Earlier this year the rate of inflation in Canada was 8.1 percent, the highest it has been in 40 years. Fundamentally, we know that's not good news, but what does it actually mean?

It means that everything costs more, and if you’re living on a fixed or low income, it might feel harder to make ends meet.

Inflation is not something we can budget our way out of. When costs at the grocery store are starting to soar, cutting expenses isn’t always a viable option without cutting something vital. There is no shame in needing to access resources for essential items. The food bank and other social agencies can help bridge the gap during this time. Needing support is not your fault.

There are some long-term strategies and changes to day-to-day habits that will help ease the stress of unexpected changes to our finances (like inflation rates).

The first tool we can use is a budget, so that we know exactly how much we are spending on our wants and needs. Budgeting isn’t about depriving ourselves, it’s about having a plan for our money, and intentionally setting goals and moving towards achieving those goals.
You can dive deeper into your budget to see if there is any room to reduce expenses such as making one more meal at home per week, buying produce in season, or cycling to commute a little more often each month.
Momentum's on demand money management course on budgeting can provide all the information you need to build or hone your budgeting skills.

Building an emergency fund is a great tool as well. A little goes a long way to alleviate some of the stress of unexpected financial strain. Even as little as $40 a month in savings can help in the long run.

There are free resources that are available to support you if you’re feeling stressed out by money right now. Momentum offers financial coaching, free of charge. We can support you with tailored advice to help move you towards your financial goals and give you confidence in managing your money.

Hopefully the inflation rate and the cost of food will go down in the coming months, giving us all a bit of much needed relief.