Canadians face ‘lifestyle shrinkflation’ as paycheques pinched: MNP data

MNP Consumer Debt Index shows on Monday.Sustained cost pressures mean that for many Canadians, a substantial chunk of their income is already spoken for before they receive their paycheque, polling conducted by Ipsos for insolvency firm MNP Ltd.

shows.Three in five Canadians (61 per cent) say at least half of their income is already committed to bills, debt payments, and regular expenses before it arrives, while around one-third (32 per cent) say most of their paycheque is already committed before it arrives.For one in six (16 per cent) Canadians, however, the situation is more dire as they say all of their paycheque is spoken for or their expenses exceed their upcoming income payment.These financial pressures are driving “lifestyle shrinkflation,” said Grant Bazian, president of MNP Ltd.“Lifestyle shrinkflation is people just cutting back on not their necessities, but their luxury items, their wish list, their events, their travel, their holidays or their kids’ activities,” he said.Almost two in five (37 per cent) say financial pressures are hindering their financial progress, while more than one in three (35 per cent) are cutting back on family and personal enrichment expenses, such as personal care, clothing and children’s activities.Travel plans are also taking a hit with more than half (57 per cent) saying they are cutting back on travel.Four in 10 (40 per cent) are also scaling back on attending events like concerts, festivals, sports, movies or other events while more than half (56 per cent) are cutting back on dining out.The “lifestyle shrinkflation” is also affecting people’s relationships, as 28 per cent are scaling back on gifts, weddings, birthdays or other celebrations and 21 per cent are hosting family and