How you can save money as cost of living rises

The rising cost of living and a possible recession are top of mind for many Vancouverites, and while it may seem impossible to stretch your money, experts say there are things you can do.

Economist with the UBC School of Economics, Michael Devereux suggests making small changes to your spending habits.

“It may not add up to a lot but if you can save 10, 15 per cent on your monthly budget, then when you think about it, with inflation at around seven, eight per cent, you’re actually a bit ahead,” he told CityNews.

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Devereaux recommends shopping at cheaper stores, taking public transit over driving, paying off debt, and avoiding falling further in the red.

“The other thing which many people may not think of is if you do have some savings then you note that interest rates have gone up so make sure that whatever bit of savings you have is not stuck at a very low rate of return on a bank deposit but put it into GICs or something which now have much higher rates of return.”

Vancouverites making changes to spending habits

Shoppers in Vancouver have told CityNews that they’ve noticed changes to the price of things and have begun adjusting the way they spend money.

Jasmine says she’s been more cautious about what she spends money on.

“Just not spending money on frivolous things and just being more aware – do I need this or is this something I want?” she said.

Greg notes the rising cost of his grocery bills.

“I think we picked up some steaks from Costco the other day, like, two or three steaks and it was almost $80 for a couple steaks and it seemed like that would have been $40 not too long ago,” he said.

Katy says she’s been more diligent while at the grocery store.

“Looking for the lower price point food options in food groups, so for fruits, bananas,” she said.

How to save money on groceries

Food business professor at the University of Guelph, Simon Somogyi says the price of food has risen 11 per cent over the past year. He suggests sticking to a budget, planning meals, looking at flyers, and buying frozen when you can.

“Frozen fruits and veg are just as nutritious, they’re snap frozen when harvested,” he said. “They might not look as good as the fresh stuff or taste as good but they’re just as good for you and they’re significantly cheaper.”

As for what the future holds, Somogyi says he doesn’t think food prices will be dropping any time soon.

“But I think now that our economy is starting to cool a bit, that prices should stabilize, and any increases will be small rather than large,” he noted.

Devereaux says while the economy is slowing down, he isn’t seeing any major SIGNS of a big recession yet.

“There are some indications we’re at the worst of it now, but I wouldn’t like to predict that for sure,” he said.