Dec. 18: Tough economic times mean we’re cutting back on things
December 18, 2025
There’s a lot of uncertainty out there these days – the trade war, higher costs for essentials like food and fuel, a tougher job market.
Canadians are good at keeping calm and carrying on, so Save with SPP decided to look into exactly what we are cutting back on, given the choppy economic waters.
A recent poll carried out by the publication INsauga, located in Mississauga, Ont., got nearly 4,000 responses to the question “what’s the first thing you cut back on when money gets tight?”
Near the top of the list, the publication reports, is travel.
“More than a quarter of voters said vacations are the first to go. For many, that means skipping sunny getaways or pushing back long-awaited trips abroad,” INsauga notes.
Next, the article continues, comes entertainment.
“Live concerts, movie nights, and other entertainment events ranked high on the list of sacrifices. This shows that while people still crave experiences, they’re more likely to wait until times feel more financially comfortable,” the article explains.
Other things Canadians commonly cut back on, the article adds, are “shopping for new clothes and extras” and “streaming services.” The number one thing that gets cut, the article concludes, is “eating out, with 38.6 per cent saying restaurant meals are the first to go.”
Affordability is such a problem, reports CTV News, that some of us have “skipped paying a bill to afford groceries.” That and other surprising findings are covered off in a recent poll by Nanos Research, the broadcaster notes.
“The survey found adults under 55 were four times more likely to put off payments for their cars, credit cards and electricity bills to buy food,” the article continues. Shopper Almas Patel, 23, of Charlottetown tells CTV “`my phone bill, the rent, the groceries…my car insurance, the fuel… it all adds up.’”
“The Nanos survey found 18.1 per cent of those aged 18 to 34 said they missed a bill sometimes or often. That nearly matches the 17.9 per cent reported by those 35 to 54. The figure drops to 4.2 per cent for those 55 and older,” CTV reports. Chief Data Scientist Nik Nanos tells the network that “inflation and high housing costs are major factors contributing to the generational divide.”
According to Popwire, Americans are facing higher costs as well, prompting spending cutbacks.
Data from Empower, the article reports, shows Americans cut their spending on clothing by 20 per cent in the first quarter of this year, compared to the last quarter of 2024.
“That’s an average monthly spend of $573, down from $732, signaling that consumers are actively reducing their spending on clothes, shoes, and accessories. It seems a wardrobe refresh is taking a backseat to more pressing financial priorities,” Popwire notes.
Spending on luxury items, like “premium products and designer brands,” is down by five per cent and spending on beauty and personal care products “is getting a trim,” the publication reports.
“Over 60 per cent of American consumers anticipating spending less on beauty products, according to an L.E.K. Consulting survey from October 2025. It appears now that the desire for a simplified routine and a healthier bank account is stronger than the allure of a fully stocked cosmetics drawer,” Popwire concludes.
If you’re cutting back on luxury expenses, if it is possible, you may want to consider directing some of the savings towards your long-term goals, such as retirement. Even if money is tight today, you’ll appreciate having retirement savings when you’re older and less able to work.
A great savings partner for the long-term is the Saskatchewan Pension Plan. Open to any Canadian with registered retirement savings plan (RRSP) room, SPP invests the money you contribute in a professionally managed, low-cost pooled fund. They’ll grow your savings, and when it’s time to collect, your options include receiving a monthly annuity payment for life, or the more flexible Variable Benefit.
You can even consolidate your savings within SPP by transferring any amount in from other RRSPs you may have.
Check out SPP today!
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Written by Martin Biefer
Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.
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