5 methods younger Canadians can put together financially for what awaits in 2024

3. Meals costs will rise, however at a slower tempo

In comparison with earlier years, meals costs ought to stabilize in 2024. Nevertheless, holding your kitchen stocked will nonetheless maintain your grocery invoice excessive. Based on Canada’s Meals Value Report 2024, general meals costs are anticipated to extend by 2.5% to 4.5% over the course of subsequent yr (whereas meals inflation jumped by 4.7% in November 2023). So, should you’re a single grownup who spent roughly $375 on meals per 30 days this yr, you possibly can anticipate to shell out from $385 to $392 month-to-month by the tip of 2024. 

The Meals Value Report suggests that you could anticipate baked items, greens and meats to take a giant chunk out of your price range. Nevertheless, you’ll get some reduction with canned items and dried pasta. The excellent news is that meals costs will enhance at a extra gradual tempo than in 2023.

What you are able to do: Contemplate meal planning 

Through the pandemic, I began meal planning as a method to cope with grocery prices. It’s been useful in making certain that our household stays inside our meals price range and doesn’t fall into the temptation to order takeout. Meal planning consists of deciding what you’ll eat for the upcoming week after which including solely the substances it’s good to your grocery record. 

Personally, I prefer to make additional lunch parts when getting ready dinner, which helps in the reduction of on prices. An alternative choice is to purchase gadgets in bulk once they go on sale after which divvy them up into smaller portions and retailer them within the freezer. This works properly for sliced fruits, greens, meats and seafood. 

4. Client debt will proceed to develop

Gen Z will proceed to face monetary strain in 2024, so managing debt will change into much more essential. Between Q3 2022 and Q3 2023, the common bank card steadiness in Canada elevated by 9%, based on TransUnion Canada. The rise was fueled by a rise in the price of residing and the price of credit score, because of greater rates of interest. Except the Financial institution of Canada begins decreasing rates of interest and day by day residing bills begin to come down, it’s seemingly that debt will proceed to develop in 2024.

What you are able to do: Begin a aspect hustle to repay debt

To change into financially safe, 40% of Gen Z are excited about producing extra sources of earnings, similar to beginning a aspect hustle, based on a BMO survey. Contemplating there’s solely a lot you are able to do to chop bills, you may need to take into account rising your earnings so you possibly can extra simply pay down your debt. 

Upon getting some disposable earnings, prioritize paying off high-interest debt, similar to bank card debt, which may also help to squash your debt load. In case you’re carrying a month-to-month steadiness, name your bank card supplier and ask if they’ll decrease the rate of interest. In case you’re contemporary out of faculty and borrowed cash to pay on your research, it’s a good suggestion to deal with repaying your pupil loans.

5. Journey will rebound regardless of excessive journey prices

Regardless of rising journey prices, younger travellers are keen to flee the day by day grind. Many younger folks would reasonably spend their hard-earned cash on experiences as an alternative of products. No matter being in a good monetary state of affairs, 2024 will be the yr many Gen Z make their dream holidays occur.