Canadians Show Signs of Financial Improvement but Continue to Feel the Cost-of-Living Squeeze: TransUnion Canada Study

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Postmedia has not reviewed the content. by GlobeNewswire Canadians Show Signs of Financial Improvement but Continue to Feel the Cost-of-Living Squeeze: TransUnion Canada StudyAuthor of the article: You can save this article by registering for free here. Or sign-in if you have an account.86% of Canadians surveyed rank inflation among their top three household financial concerns; 51% continue to cut discretionary spendingDespite improving financial optimism over household finances, 50% say their income isn’t keeping pace with inflationOne quarter (25%) of consumers plan to apply for new credit, but many remain cautious about borrowing costsAs fraud threats rise, 40% of Canadians surveyed now check their credit report at least monthly THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountTORONTO, July 22, 2026 (GLOBE NEWSWIRE) — Canadians are showing modest signs of financial improvement, but affordability pressures continue to shape how they spend, borrow and protect themselves financially, according to TransUnion’s (NYSE: TRU) Q2 2026 Canada Consumer Pulse Study. While financial optimism has improved over the past year, with 45% of Canadians surveyed expressing optimism about their household finances over the next 12 months, many households continue to feel financially stretched. Half (50%) of Canadians surveyed said their income isn’t keeping pace with inflation, while 86% ranked inflation among their top three household financial concerns.The survey responses suggest a gradual improvement in Canadians’ financial health, driven by stronger household incomes and growing confidence about the year ahead. One-quarter (25%) of consumers reported an increase in household income over the past three months, while nearly one in four (24%) said their finances are better than expected so far this year – the highest level recorded in the past year. However, those gains do not appear to have translated into broad financial relief, as many households continue to face cost-of-living pressures and absorb higher everyday expenses.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try again“Many Canadians are beginning to see improvements in their financial outlook and have adapted to sustained periods of economic uncertainty. They’re continuing to make decisions through an affordability lens,” said Matt Fabian, senior director of financial services research and consulting at TransUnion Canada. “While improving incomes and easing economic conditions are helping households regain their footing, affordability continues to shape everyday financial decisions. We’re seeing Canadians become more intentional with how they spend, borrow and manage their financial health as they adapt to a higher-cost environment.”Affordability Continues to Shape Spending DecisionsAlthough household finances are beginning to improve, many Canadians continue to make deliberate trade-offs in how they manage their budgets. The findings suggest consumers remain focused on essential expenses while remaining selective about discretionary purchases, even as some early signs point to growing financial confidence.51% cut back on discretionary spending, including dining out, travel and entertainment26% cancelled subscriptions or memberships18% chose to pay down debt obligations faster11% increased discretionary spending, up three percentage points year over year, signaling early signs that some households are beginning to regain financial flexibilityCanadians Remain Cautious About BorrowingDespite ongoing affordability pressures, Canadians have not materially pulled back from the credit market. One-quarter (25%) of Canadians surveyed plan to apply for new credit or refinance existing credit over the next year, unchanged from a year ago, demonstrating that consumers continue to value credit as a financial tool. However, the findings suggest many Canadians are taking a more cautious and deliberate approach to borrowing as they navigate higher living costs.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Younger Canadians continue to lead the demand for new credit, with nearly half (48%) of Gen Z consumers and 37% of Millennials planning to apply for new credit or refinance existing credit over the next year. Credit cards remain the preferred borrowing product, with nearly half (49%) of prospective borrowers planning to apply for a new credit card.At the same time, about one in five Canadians (21%) considered applying for new credit but ultimately chose not to move forward. Among those consumers, 29% said they decided they didn’t need additional credit, while 26% cited the cost of credit as the primary reason. Roughly one in five also believed they would not qualify because of their credit history (22%) or income and employment status (20%), underscoring how affordability pressures continue to influence borrowing decisions.“We’re seeing Canadians become more intentional in how they approach credit,” said Fabian. “Consumers continue to recognize the value of credit, but they’re carefully weighing borrowing costs, eligibility and their financial needs before making decisions. That reflects a more thoughtful approach to managing finances as households continue adapting to a higher-cost environment.”Growing Fraud Threats are Driving More Proactive Financial ManagementAs fraud attempts and data breaches become increasingly common, Canadians are taking a more active role in monitoring and protecting their financial health. The study found that 44% of Canadians were targeted by fraud in the past three months but did not become victims, while 20% said they had been notified they were affected by a data breach.Against that backdrop, credit monitoring is becoming an increasingly common financial habit, with 40% of consumers checking their credit report at least monthly, up three percentage points year over year. Consumers are also increasingly monitoring their credit reports to detect fraud and verify the accuracy of their credit information, rather than to simply improve their credit scores.Despite growing awareness of cybersecurity risks, significant knowledge gaps remain. One-third (33%) of consumers reported taking no action to address cybersecurity concerns, while more than half (51%) of those consumers said they were unsure what steps to take.About TransUnion (NYSE: TRU)TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries and territories, including Canada, where we’re the credit bureau of choice for the financial services ecosystem and most of Canada’s largest banks. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care.Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.For more information visit transunion.ca.ContactRachel RomuE-mailRachel.Romu@edelman.comTelephone(647) 854-8850Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.