Here's What Canadians Say They'd Do With A 'Surprise Gift' Of $5,000 Right Now

Inflation in Canada is at the forefront of everyone's mind right now, and new research really backs this up.

Data collected by the Angus Reid Institute has looked at how Canadians are responding to price increases, with four out of five stating they are cutting back on spending.

When asked about how they're pinching pennies, cutting back on a discretionary budget was the most popular recorded response.

This means that people simply aren't spending like they used to.

Canadians are also delaying major purchases, driving less, scaling back on travel, on charitable donations and delaying saving for the future.

But perhaps the most notable indicator of the effects of inflation can be seen in the answers Canadians gave when they were asked how they would spend a surprise, no-strings-attached gift of $5,000.

About 10% of those surveyed said they would use the money for day-to-day expenses, while a whopping 38% said they would use it to pay down their debt.

Meanwhile, 43% of Canadians surveyed said they would put the money in a savings account or invest it.

Only about 9% said they would spend the extra money on a big-ticket item.

"Canadians with lower household incomes are more likely to say that any cash infusion would go to essentials," the survey notes, with 23% of those with "the lowest levels of income" keeping the money for day-to-day expenses.

Meanwhile, those earning $150,000 or more would rather put extra money into a savings or investment account.

The survey was conducted from a sample of 2,279 Canadians between August 8 and 10, 2022.

This month, the rate of inflation slowed, with a 7.6% increase since last July. A huge reason for that was the cost of gas, which finally declined. But even so, food prices are up by almost 10% since last year.

The Bank of Canada is also believed to be announcing more interest rate hikes in the months to come, with the next one expected in September.

All these factors may be key reasons why more than half of the respondents (56%) said they simply can't keep up with the cost of living in the country.

This article's cover image was used for illustrative purposes only.