2 in 3 Canadians Plan Big Spending Cuts in 2026: TD Survey
MWN-AI** Summary
A recent TD survey reveals a significant shift in Canadian consumer spending habits as 2026 unfolds. Two-thirds (67%) of Canadians plan to implement substantial spending cuts, a notable increase from 51% in the previous year. Many respondents, particularly younger generations, are tightening their budgets, with 86% of Gen Z and 77% of Millennials intending to reduce expenses. Common areas of cutbacks include dining out less (55%), minimizing retail purchases (53%), and reducing entertainment costs (44%).
In addition to cutting back, Canadians are adopting creative financial strategies to manage expenses. Activities such as couponing, "no spend" challenges, and thrifting have gained popularity. Furthermore, 25% of respondents are considering side gigs to supplement their income. Amid these budgetary constraints, Canadians are prioritizing key financial goals, including saving and investing (47%), managing daily expenses (46%), and paying down debt (32%). However, only 36% have a formal financial plan, illustrating a gap between intentions and actual strategies.
Interestingly, despite financial challenges, 63% of Canadians express a stronger commitment to buying Canadian-made products. The desire to support local businesses is evident, with 38% prioritizing Canadian-made products and 27% opting for purchases from local small businesses. This trend reflects a growing "Buy Canadian" movement, showcasing a shift towards intentional spending that supports the national economy.
As Canadians navigate these changes, TD Bank emphasizes the importance of creating practical budgets and establishing clear savings goals to enhance financial resilience. The survey, conducted by Harris Poll, involved over 1,500 Canadian adults and highlights an evolving landscape in economic behavior amid ongoing financial pressures.
MWN-AI** Analysis
As we head into 2026, the financial landscape for Canadians is undergoing notable shifts driven by the need for budget cuts, as indicated by a recent TD survey revealing that 67% of Canadians plan to reduce their spending. This comes in the wake of economic pressures and rising costs that are notably affecting younger generations, with heightened concern among Gen Z and Millennials.
For investors, the key takeaway here is to be mindful of sectors that may experience slowdowns due to decreased discretionary spending. Retailers, especially those heavily reliant on in-person transactions such as restaurants and department stores, could face challenges as consumers opt for fewer outings and shift their purchasing patterns toward essential and Canadian-made products. Companies that adapt quickly to the "Buy Canadian" sentiment may also see a competitive edge. This intrinsic desire to support local businesses could result in investment opportunities in domestic companies that align with Canadian consumer values.
Advisory services and financial institutions, like TD, highlight the importance of developing a formal financial plan despite the 64% of Canadians lacking one. For individuals, creating clear savings and investment goals could result in better financial stability and confidence going forward. Financial advisors should emphasize budgeting tools and strategies to help clients navigate these changing times effectively.
Moreover, with many Canadians embracing side hustles and reduced consumption habits, there may be a rise in entrepreneurship, particularly in sectors that encourage sustainability and local production. Investors should consider allocating resources to startups and ventures that demonstrate potential for growth in this evolving economic environment.
In summary, a strategic focus on essential services, local businesses, and innovative financial planning will be crucial as we move through 2026. Building a resilient investment portfolio that recognizes changing consumer behavior and supports local economies can provide promising avenues for growth amid budget cuts.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Canada NewsWire
Despite slashing budgets, 63% of Canadians say their desire to buy Canadian is stronger than last year
TORONTO, Jan. 13, 2026 /CNW/ - A new TD survey reveals more Canadians are kicking off 2026 with big changes to their budgets and buying habits. Two-thirds (67%) of Canadians surveyed plan to cut back their spending this year – a significant spike from 51% in 2025. Nearly six in 10 (59%) say they'll reduce their monthly budgets by up to $1,000 per month. Younger Canadians appear to be feeling the pinch more acutely, with 86% of Gen Z and 77% of Millennials preparing to slash their budgets compared to 65% of Gen X and 43% of Boomers.
In terms of how Canadians are cutting back, top budget sacrifices include:
- Eating out less often (55%)
- Making fewer retail purchases (53%).
- Spending less on entertainment, such as attending concerts, sporting events, movies (44%)
- Shopping around more to save purchases (41%)
- Switching from name-brand to store-brand products (39%)
- Cancelling some or all subscriptions (31%)
Beyond belt-tightening, Canadians are getting creative to help manage their finances as they head into 2026, such as couponing (30%), "no spend" challenges (30%) and thrifting (27%). One in four (25%) are even taking on a side hustle or part-time employment to help manage their expenses.
The Money Map Gap: Smart Financial Priorities, But No Plan to Achieve Them
As Canadians look ahead to the new year, their top financial priorities include saving and investing (47%), managing day-to-day expenses (46%), paying down debt (32%), supporting family or children (29%), and covering housing costs (26%).
Despite these goals, only 36% of Canadians have a formal financial plan for 2026 – highlighting a notable divide between intention and action.
"Intentions are a great first step but turning them into action is what truly makes the difference. One of the most empowering things Canadians can do is create a practical and achievable budget with clear savings goals. Something that not only guides you but also builds your confidence along the way," says Joe Moghaizel, Vice President, Everyday Advice Journey at TD. "Simple habits, like pausing to understand your needs versus your wants, can strengthen your financial resilience and help you feel prepared to reach your goals in the year ahead."
The "Buy Canadian" Movement Gains Momentum
Even with tighter household budgets in 2026, Canadians are doubling down on keeping their dollars at home. Nearly two-thirds of respondents (63%) say their commitment to buying Canadian is stronger this year than last.
When it comes to how Canadians prioritize boosting the domestic economy, buying Canadian-made products (38%) and buying from local small businesses (27%) are most important, outpacing buying from a Canadian brand (18%) and buying from a brand that employs Canadians (16%).
"While Canadians are being more intentional with their spending and savings, their desire to support Canadian-owned businesses is evolving from a trend to a habit," said Julia Kelly, Vice President, Small Business Banking at TD. "This comes at a pivotal time for business owners who continue to face rising costs and a changing business environment."
Additional resources for Canadians:
TD offers a number of tools and resources to help Canadians and TD customers plan, budget and track as they go into the new year:
- Build a budget that's right for you: Setting a budget can help you keep your spending in check in 2026. TD Personal Bankers are available to offer financial advice and help customers plan their finances and reassess your goals with you.
- Keep your spending on track: Tracking your spending habits can help you see where your money is really going during the holidays. As a TD customer, you can take advantage of tools like the TD MySpend app that lets you see your TD deposit and credit card account information in real time.
- Using TD Goal Builder, where a TD Personal Banker can provide personalized investment advice to help customers work toward their financial goals.
- The TD Advice Hub which has information and articles available on a variety of financial topics and investing
About the TD Survey
This TD survey, conducted by Harris Poll, ran from October 23rd to October 27th, 2025, with a nationally representative sample of 1,516 Canadian adults. The results have been weighted by age, gender, and region (and in Quebec, language) to match the population, according to Census data. For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of ±2.5%, 19 times out of 20.
In addition, TD included two supplementary questions on Canadian buying habits and attitudes toward shopping local. These questions were fielded between December 18, 2025, and January 5, 2026, using a nationally representative sample of 1,517 Canadian adults drawn from the Leger Opinion panel. Results were weighted by age, gender, and region, and by language in Quebec to align with Canadian Census data. For comparison purposes, a probability sample of this size has an estimated margin of error of ±2.5 percentage points, 19 times out of 20.
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group ("TD" or the "Bank"). TD is the sixth largest bank in North America by assets and serves over 28.1 million clients in four key businesses operating in a number of locations in financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Auto Finance Canada; U.S. Retail, including TD Bank, America's Most Convenient Bank®, TD Auto Finance U.S., and TD Wealth (U.S.); Wealth Management and Insurance, including TD Wealth (Canada), TD Direct Investing, and TD Insurance; and Wholesale Banking, including TD Securities and TD Cowen. TD also ranks among North America's leading digital banks, with more than 13 million active mobile users in Canada and the U.S. TD had $2.1 trillion in assets on October 31, 2025. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto Stock Exchange and New York Stock Exchange.
SOURCE TD Bank Group
FAQ**
How do the changes in spending habits reflected in the TD survey impact the potential investment opportunities within the Canadian retail and service sectors in 2026, especially with the significant reductions in discretionary spending? Toronto-Dominion Bank (The) TD:CC
Given that 63% of Canadians show a stronger commitment to buying Canadian products, how could this trend influence the market performance of local businesses and Canadian manufacturers in the upcoming year? Toronto-Dominion Bank (The) TD:CC
What implications might the observed financial priorities of Canadians, such as increased saving and debt repayment, have on the demand for financial products and services offered by banks like TD in 2026? Toronto-Dominion Bank (The) TD:CC
With only 36% of Canadians possessing a formal financial plan for 2026, how might this gap between intention and action affect the overall financial health of Canadian households and the potential for growth in financial advisory services? Toronto-Dominion Bank (The) TD:CC
**MWN-AI FAQ is based on asking OpenAI questions about Toronto Dominion Bank (NYSE: TD).
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