Price changes (Getty)
The cost of goods is still high in both the United States and Canada. With prices increasing on everything from eggs to groceries to housing, how can you buy what you need and stay on budget?
Rising costs are impacting every household. The same amount of money buys less than it did just years and even months ago, so paychecks aren’t going as far. All income levels are showing signs of financial stress. Everyone is cutting back.
Tips for dealing with higher prices
- Know what you’re spending. Compare your 2023 bank and credit card statements to your 2024 statements to see how costs impact you. This will also give you an idea of where you can make cuts. If your spending in some areas has dramatically increased this year, you can figure out specific strategies for reducing costs.
- Stick with your current vehicle. Both new and used car prices are up. Keeping your current ride is likely more economical if you don’t need a new car. If you are leasing a car, find out the cost of the buyout. That’s because the car’s price was set at the start of your lease – before the any inflation began.
- Get smarter with your grocery shopping. Some key grocery items, such as eggs have seen some of the highest price increases. Eating vegetarian a few nights a week will help reduce food costs. Also, getting serious about meal prep, shopping your pantry, and reducing food waste will help lower grocery bills.
- See a sale? Jump on it. Stock up if you see a good price on items you regularly use, such as soap or paper towels. Don’t wait until you run out.
- Cancel subscriptions that you aren’t using. It’s easy to lose track of what subscription services you are paying for. Forbes reminds consumers to review their subscriptions to ensure they’re still using them. If you are signed up for multiple subscriptions, a subscription management app can help you track and manage them.
- Negotiate better prices. It’s possible you could get a better rate for things like insurance, cable bills, gym memberships, and credit card interest. Start by being nice to the company rep and “ask if there are any programs or discounts you qualify for,” advises CNBC.
- Watch out for shrinkflation. Some manufacturers won’t raise prices; they will put fewer products in the same packaging. Read labels and choose options that give the most value for your dollar.
- Enjoy what you already have. Take a walk with a family member instead of driving to the movie theater. Clean out your closet to rediscover lost items instead of buying new ones. Finish the project you started instead of spending on something different.
- Watch out for scams. Con artists know shoppers are concerned about prices and will take advantage of the situation. Beware of deals that sound too good to be true. They probably are! Always research unfamiliar vendors to ensure you’re dealing with a legitimate business before you purchase or give them your personal information.
For more information
See BBB’s tips on creating a budget and smart online shopping.
Get more tips from BBB on credit relief and debt repayment services.
Check out Canada's financial basics and financial toolkit.
Learn more about your banking rights and protections in Canada and your financial toolkit.
Read about financial wellness in the workplace for Canadians.
View Canada's workshops on understanding your credit report and score.