A sharp rise in gasoline and food prices bears most of the blame for Canada’s cost of living rising at its fastest pace in decades.
with inflation at a near 40-year high in Canadapeople are getting creative in trying to save money in any way they can.
Students, retirees, families and financial experts shared their “inflation hacks” with Cross Country Checkup host Ian Hanomansingh.
A car parked in favor of an electric tricycle
Birgit Arnstein is a 75-year-old grandmother and retired nurse from Osoyoos, British Columbia, who recently purchased a tricycle and converted it to run on an electric motor. She said she did it to cut down on the gas she buys to drive her car around town.
“Going to meetings, getting groceries, going across town to meet friends for a walk — I would normally drive my car for all of those things,” Arnstein said.
WATCH | How Torontonians are coping with rising food prices:
How are you dealing with food inflation?
On the streets of Toronto, several Canadians shared their thoughts on how high food prices are affecting their family budgets.
“It didn’t make sense with the price of gas [to drive my car]. It ended up costing about $100 every two weeks. It’s true that getting this trike is an investment, but it pays off quickly without driving my car nearly as much.”
Arnstein also recently started working two days a week as a dishwasher at a bakery to earn extra income, she said.
“It’s hard work, but I’ve got some big dental bills coming up and this will help me with that.”
Precise food preparation helps reduce the grocery bill
Kate Schutz of Calgary said meal planning has become a cost-saving exercise for her family. They follow two sets of meal plans, depending on the season, each featuring 21 different dinners served at three week rotation.
“I thought we’d be really sick of it, but these are the foods we were probably going to cook anyway. It just helps us be a little more organized and avoid impulse shopping or multiple trips to the grocery store every week,” she said.
Kate Schutz, left, daughter Heidi, center, and husband David, right, stand in front of a meal plan calendar in their kitchen refrigerator in Calgary. (Kate Schutz)
Schutz estimates that this saves them at least $100 a week in groceries.
“I think [my family] like knowing what to look forward to. Everyone knows it’s week three, like “Wednesday Three” tonight. It really helps with shopping and reduces food waste.”
Schutz, her husband, David Roneberg, and daughter, Heidi, also rely on a large vegetable garden for fresh produce. They say they shop mostly at thrift stores and reuse things when they can.
Do more, spend less, put aside
Personal finance guru and author Kelly Keen says there are three key categories to keep in mind when trying to cope with the rising cost of living:
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Reduce your expenses. Track all your expenses for 30 days or review 30 days of statements and see what you can cut. Call your mobile, internet and TV providers to negotiate better deals. She says the same goes for your home and auto insurance. Keehn recommends renegotiating or holding on to expensive items if possible.
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Earn more income. Whether it’s a second job or a side hustle, Keehn says bringing in more money can be more fun than cutting costs. She says to focus on the skills you have and trust that others will pay for them. Another approach Keehn recommends is renting out a room in your house to a student as another source of secondary income.
- Increase your budget. Keehn suggests extending your mortgage amortization to get a lower payment if you can. You’ll pay more in interest in the long run, but the reduced payment will help you weather the inflationary storm and you can pay more later to catch up, she said. If your mortgage is in good shape, you may be able to miss one payment a year without a penalty — and that could put thousands of dollars in your hands right now, Keane said.
WATCH | Kelly Keane on how rising interest rates are affecting Canadians:
What the Bank of Canada rate hike means for you
Personal finance expert Kelly Keane says the Bank of Canada’s decision to raise interest rates will make life even more expensive in the short term, so it’s time to start paying off debt.
Financial journalist Renée Sylvestre-Williams recommends putting some money in an emergency savings fund if possible.
“Depending on which economist you listen to, we’re either in a recession or we’re about to be in a recession, and that could be bad,” she said.
While people aim to hide three to six months of living expenses, a more realistic goal might be one paycheck’s worth of cash, Sylvester-Williams said.
Student accommodation on wheels
Vancouver’s high rent prices have prompted two international students at the University of British Columbia to look for alternative housing options.
Alessio Brandolese and Paolo Feronato are international students from Italy now living in Vancouver. They are shown here making a circle with their arms in front of a caravan they bought because renting a place was too expensive. (Alessio Brandolese)
Italians Alessio Brandolese and Paolo Feronato ended up buying a cheap van on Craigslist.
“Otherwise, we would have spent all our money on rent and not have any leftovers to enjoy Vancouver,” said Brandolese. “We’d rather spend money on travel, buying skis and cooking so we can enjoy our time in Canada more.”
When they travel, Brandolese and Feronato try to bring friends with them to share the cost of gas.
The couple admits that although the van came with some hefty unexpected repair costs, they don’t regret buying it. Their goal has always been to spend on the things they love to do, not just save money, they added.
“One man’s trash is another man’s treasure”
Darlene Sovran of Sudbury, Ontario, helped create the online clothing swap with friend Holly Louise Graham.
Darlene Sovran of Sudbury, Ontario, helped create an online clothing exchange that has grown to include hundreds of users and other household items. (Darlene Sovran)
Since then, the Facebook group has grown to hundreds of people, and in addition to clothing, users also exchange things like tools and other household items.
“People are exchanging really nice things, knowing that everything will work out – there’s a lot of trust and generosity in the group,” Sovran said. “One man’s trash is another man’s treasure.”
Besides the clothes swap, Sovran, who owns an older van, limits the distance she travels and how often she drives to keep costs down.
Written by Bob Becken. Cross Country Checkup produced by Steve Howard and Abby Plehner.
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