By Jasmin Brown

BDO Debt Solutions

Addressing the Rising Cost of Living in Saskatchewan: A Guide for Residents Facing Financial Pressure

Nov 4, 2024 | 2:57 PM

In recent years, Saskatchewan has seen a noticeable increase in the cost of living, a reality that has left many residents feeling financially stretched.

Rising inflation, higher interest rates, and escalating prices for groceries and other essentials have placed additional pressure on household budgets across the province.

For residents who were already managing tight finances, these challenges have made it harder to maintain financial stability. Below I explore the factors driving up the cost of living in Saskatchewan and provide guidance on navigating these pressures effectively.

Key Drivers Behind Rising Living Costs in Saskatchewan

Inflation and Economic Volatility

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Inflation continues to be a leading factor in the rising cost of living across Canada, with Saskatchewan residents feeling its impact particularly in essential areas such as housing, transportation, and utilities.

Rising Grocery Costs

Grocery prices have surged, affecting families and individuals alike. Many factors such as increases in transportation costs can have a direct impact on food prices at grocery stores. Essentials such as meat, dairy, and produce have become noticeably more expensive, straining household budgets even further.

Increased Housing Costs and Utility Bills

Although Saskatchewan has traditionally been one of Canada’s more affordable provinces for housing, the past few years have seen steady increases in home prices and rent. Rising property taxes and the cost of utilities are adding additional expenses for homeowners and renters alike.

Higher Interest Rates Impacting Debt Repayments

In response to inflation, the Bank of Canada has increased interest rates, making it more expensive for households with debt. For residents carrying mortgages, lines of credit, or credit card debt, higher interest rates mean higher monthly payments. This has left many people in Saskatchewan with less disposable income, making it harder to manage day-to-day expenses and pay down existing debt. Although interest rates have recently come down, people are still struggling from the aftermath of the higher rates the past couple of years.

As these cost increases compound, many Saskatchewan residents find themselves navigating new financial stresses. For those on fixed incomes, such as retirees or individuals relying on government assistance, budgeting can be especially challenging. Even those with stable incomes have experienced a decline in purchasing power as wages struggle to keep up with inflation. Consequently, more residents are turning to credit cards or loans to bridge the gap, often leading to a cycle of increased debt and financial strain.

Strategies for Managing Financial Pressures Amid Rising Costs

Creating a Realistic Budget

Budgeting can be a powerful tool for managing rising costs. Start by tracking monthly income and expenses, identifying essential versus discretionary spending. Set limits on non-essential purchases, and prioritize critical expenses, such as housing, utilities, and groceries. Small adjustments to daily habits, like planning meals in advance or choosing more cost-effective grocery options, can contribute to noticeable savings over time.

Reducing and Managing Debt

Given the rising interest rates, focusing on debt reduction is increasingly important. Consider paying off high-interest debt first, such as credit card balances, and explore options for debt consolidation to simplify payments and potentially reduce interest costs. If debt has become overwhelming, seeking guidance from a Licensed Insolvency Trustee (LIT) can provide insight into structured debt relief options, such as consumer proposals, which allow for manageable repayment plans without the financial impact of bankruptcy.

Building an Emergency Fund

Even small contributions to an emergency fund can provide a financial buffer in times of unexpected expenses or temporary income loss. Setting aside a portion of income each month, even if modest, can help reduce reliance on credit and offer greater financial security over time. In a high-cost environment, having a safety net can make it easier to manage unforeseen financial challenges.

Exploring Community Resources and Assistance Programs

Saskatchewan has a variety of community resources and government programs designed to support individuals facing financial hardship.

Programs such as the Saskatchewan Income Support (SIS) program, various housing subsidies, and food bank services can provide short-term assistance. Seeking support from these programs can alleviate some of the financial burden and free up resources to manage other expenses.

For residents who are finding it increasingly difficult to stay on top of monthly bills or debt repayments, it may be time to seek guidance from a financial professional, such as a Licensed Insolvency Trustee. LITs offer unbiased advice on debt management options tailored to individual circumstances. An LIT can provide a structured pathway to financial relief.

If you are having trouble making ends meet each month, finding the right debt solution can help. Visit the BDO Debt Solutions website for more information, or call 1 855 BDO DEBT to book a free, no obligation consultation.

Jasmin Brown is a Senior Vice President overseeing the insolvency practice in Saskatchewan. She is committed to providing creative and practical debt solutions with empathy, understanding and professionalism to help people overcome their financial difficulties.