As we leave behind a rocky economic year, slightly more Canadians this year say they’re feeling hopeful about their finances in 2025 compared to last year, according to a new TD survey.
Twenty-four per cent of the survey respondents said they are feeling more confident in 2025, a 4% increase from 2024.
“I think what this data tells is that the Canadians surveyed are feeling cautiously optimistic. They’re feeling like they can make progress toward reaching their financial goals,” said Emily Ross, VP, Everyday Advice Journey at TD.
The survey also asked respondents about their financial resolutions for the new year, and 61% of respondents said they’d made specific ones. For example, 18% said they wanted to save more money, 15% said they wanted to pay down their debt or pay off their credit cards, and 13% said their financial resolution was to rein in their spending.
When it comes to debt, Millennials are the age group of Canadians most focused on paying it down, the survey found.
The survey also found that 49% of Canadians surveyed still see inflation and the cost of living as a major financial challenge for 2025, a 9% decrease from last year’s numbers.
“The optimism is there, but the cost of living is still a prominent concern as we begin a new year,” Ross said.
Fewer retail purchases and more shopping around for savings
More than half of Canadians surveyed — 51%— said they plan to reduce their spending, according to the survey results.
Of the people who intend to cut back, 61% said they’d buy less clothing and electronics, 52% said they’d shop around to find savings before they make purchases, 41% said they’d spend less on concerts and sports events, and 56% said they’d order food and eat out less frequently.
Among the survey respondents who said they didn’t plan to cut back on spending, 42% said they’d already curbed their spending as much as they could. More Millennials and Gen Z respondents— 49% from each group — said they’d already cut back as much as they can in comparison to Boomers (35% of whom said the same).
Plans and tools for financial growth
Deciding to pay down debt, invest or reduce spending are powerful resolutions, but sometimes we need guidance to help us take a few meaningful first steps, Ross said.
The survey found that 61% of Canadians surveyed do not have a financial plan in place for 2025, and 70% don’t use budgeting tools, such as spreadsheets or mobile apps, to help them track and manage their finances.
“Our survey found that those who work with a qualified financial professional are 50% more likely to feel positive about their 2025 finances than those who do not work with one, highlighting the importance of expert advice,” Ross said.
“Your financial goals are unique, so sitting down with an advisor can help you come up with a plan for your circumstances.”
TD Personal Bankers are in branches across the country, Ross said, and they can help customers with decisions around their personal finances and investments.
“When you sit down with one, they can use a tool such as TD Goal Builder to help you to create a custom plan for saving, retirement, your child’s university education, or a major purchase like a home or vehicle," Ross said.
TD customers ready to take control of their finances can try out TD MySpend, an online tool that can track daily and monthly cash flow, help make a wish list of savings goals, and provide some general insights into how to reach those goals.
TD Ready Advice Hub also has information and articles on topics like borrowing money, growing investments, and creating a personal or family budget.