A sharp rise in gas and food prices is taking most of the blame for Canada’s cost of living rising at its fastest pace in decades.
with inflation in Canada at a nearly 40-year highpeople get creative in their attempts to save money in any way they can.
Students, seniors, families and financial experts shared their “inflation hacks.” Cross Country Checkup host Ian Hanomansing.
Car parked in favor of the electric tricycle
Birgit Arnstein is a 75-year-old grandmother and retired nurse from Osoyoos, BC, who recently bought a tricycle and converted it to run on an electric motor. He said he did it to cut down on the gas he was buying to drive his car around town.
“I’m going to meetings, I’m going to get groceries, I’m going across town to meet friends for a walk — I would normally have driven my car for all of those things,” Arnstein said.
LOOK | How Torontonians are coping with rising food costs:
How do you handle food inflation?
On the streets of Toronto, several Canadians shared their thoughts on how high food prices are affecting the family budget.
“It didn’t make sense with the price of gas [to drive my car]. It ended up costing about $100 every two weeks. Admittedly, it’s an investment to get this trike, but it pays off quickly without driving my car nearly as much.”
Recently, Arnstein also started working two days a week as a dishwasher at a bakery for some extra income, she said.
“It’s heavy work, but I’ve got some big dental bills for me, so he’ll help me with that.”
Meticulous meal preparation helps keep your grocery bill down
Kate Schutz in Calgary said meal planning has become a cost-saving exercise for her family. Two sets of meal plans follow, depending on the season, each with 21 different dinners served in a three week rotation.
“I thought we’d make a lot, but these are the foods we’d probably be cooking anyway. It just helps us be a little more organized and avoids impulse buys 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 calendar on the refrigerator in their kitchen in Calgary. (Kate Schutz)
Schutz estimates it saves them at least $100 a week on groceries.
“I think [my family] how to know what to expect Everyone knows it’s the third week, for example, “Wednesday Three” tonight. It really helps with shopping and reduces food waste.”
Schutz, her husband David Ronneberg and daughter Heidi also rely on a large garden for fresh produce. They say they shop mostly at thrift stores and reuse things whenever they can.
Do more, spend less, put some aside
Personal finance educator and author Kelley Keehn says there are three key categories to consider when trying to cope with the rising cost of living:
-
Reduce your expenses. Track all your expenses for 30 days or review your 30-day statements and see what you can cut. Call your cell phone, internet and TV providers to negotiate better deals. She says the same goes for your home and auto insurance. Keehn recommends renegotiating or putting expensive items on hold, if possible.
-
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 focus on the skills you have and believe others will pay for them. Another approach Keehn recommends is renting out a room in your home to a student as another source of side income.
- Stretch your budget. Keehn suggests extending your mortgage payment to get a lower payment if you can. You’ll pay more in interest in the long run, but a lower payment will help you weather the storm of inflation and you can pay more later to catch up, he said. If your mortgage is in good standing, you may be able to skip a payment a year without penalty, and that can put thousands of dollars in your hands right now, Keehn said.
LOOK | Kelly Keehn on how rising interest rates are affecting Canadians:
What the Bank of Canada rate hike means for you
Personal finance expert Kelley Keehn 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 down debt.
Financial journalist Renée Sylvestre-Williams recommends saving 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 it could be a bad one,” he said.
While people aim to stash away three to six months of living expenses, a more realistic goal might be the value of a paycheck in liquid cash, Sylvestre-Williams said.
Housing for students on wheels
High rental prices in Vancouver left a pair of international students at the University of British Columbia looking for alternative housing options.
Alessio Brandolese and Paolo Ferronato are international students from Italy now living in Vancouver. Here they are shown making a circle with their arms in front of a caravan they bought because renting a place to live was too expensive. (Alessio Brandolese)
italians Alessio Brandolese and Paolo Ferronato ended up buying a low-priced RV on Craigslist.
“Otherwise, we would have spent all our money on rent and would have nothing to enjoy Vancouver with,” Brandolese said. “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 Ferronato try to take friends with them to split the cost of gas.
The couple admitted that while the van has come with some unexpected high repair costs, they don’t regret buying it. Their goal has always been to spend on the things they love to do rather than save money, they added.
“One man’s trash is another man’s treasure”
Darlene Sovran of Sudbury, Ontario, helped create an online clothing exchange along with her friend Holly Louise Graham.
Darlene Sovran of Sudbury, Ontario, helped form 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 aside from clothing, users also trade things like tools and other household items.
“People are exchanging really nice things, knowing that everything will come; there’s a lot of trust and generosity in the group,” Sovran said. “One man’s trash is another man’s treasure.”
Aside from the clothes swap, Sovran, who has an older van, limits the distance she travels and how often she drives to keep her expenses low.
Written by Bob Becken. Cross Country Checkup produced by Steve Howard and Abby Plener.
Share your “inflation hacks” in the comments below.