their finances improve as a result of pandemic-induced restrictions and government support schemes. Now, with many Canadians heading back to office after working from home for months, if not years, their pocketbooks are in store for a major adjustment.
It was evident that during the pandemic over the past couple of years, many consumers saw their spending habits change naturally. For instance, impulse purchasing was brought to a halt as a result of the closure of clothing stores and bakeries, while social life was forced onto the back burner, with after-work drinks, dinners and cultural outings no longer possible owing to travel restrictions. This may no longer be the case, as pandemic-induced regulations are lifted and people start to return to office. “For many Canadians, their expenses during the COVID-19 pandemic completely changed,” Barry Choi, founder of MoneyWeHave.com, said in an interview. “People who have been working at home or on a part-time basis during the pandemic are going to go through an adjustment period over the next few months.”
Accordingly to the most recent Bloomberg Nanos Canadian Confidence Index, which surveys 250 Canadians, more consumers are growing concern about their financial situation, with four-out-of-10 respondents saying they’re financially worse off now than they were a month ago. “Some people are used to a gas budget right now of around $100 a month, but that could be doubled or tripled depending on the individual and how often they will be driving to work,” Choi pointed out, adding that individuals may have also forgotten about how much money they used to spend on socialising with colleagues, friends and relatives, before the pandemic. “They might go out for coffee with another employee, shop at nearby stores or eat at restaurants for lunch. All of these costs that went away for two years are coming back,” he said.
According to experts, when heading back into office, one of the most critical steps in keeping those pandemic-era savings habits is by having a budget. Consumers can either start to personally track their expenses or using an online tool like Mint.com to have a better understanding of their spending habits. When structuring the budget, Tim Cestnick, co-founder and CEO of Our Family Office Inc, advises prioritising putting money into savings, then your cost of living, followed by paying down debt, miscellaneous expenses and finally, entertainment.
Some experts also recommend not leaving behind some the good saving habits which consumers picked up during COVID. For instance, if you had cut back on takeout while working from home, this can be continued by proactive meal prep when heading back into the office. Another key advice is to revisit are all the additional at-home luxury costs that may have accumulated during the pandemic. Those extra expenses like additional streaming platforms or an upgraded internet plan may not be as justifiable now if you’re spending less time at home.
