Posthaste: Millennials face tough balance between cost of living, investments
Canadian millennials are feeling the pinch when it comes to balancing the rising cost of living with saving for the future.
More than half of them say they are left with little money after paying their bills and about 40 per cent don’t have any investments at all, according to a recent survey by the Royal Bank of Canada.
“Today’s lack of affordability is a crucial challenge for millennials at a time when they need their money to be working as hard as they are,” Jodi Wright, senior director and head of RBC Financial Planning, said in a news release. “It can be overwhelming when you’re trying to cover monthly expenses, pay down debt and invest for the future.”
High costs have millennials, aged between 30 and 45 years old, feeling the pressure. Nearly half have dipped into their savings to pay their bills and 40 per cent are concerned they will never pay off their debts.
Canadian household debt reached $2.6 trillion in the fourth quarter of 2025, a 4.3 per cent year-over-year increase, according to a report by TransUnion of Canada Inc.
Despite the growing debt, TransUnion said Canadians seem to be using it in the right way.
“Rising outstanding balances alongside slower growth in the credit‑active population indicates that borrowing activity is concentrated among existing credit users,” the report said. “This pattern is likely being driven by consumers using credit more actively as a financial management tool, suggesting that this trend reflects a healthier, expanding economy rather than elevated financial stress.”
Delinquency rates have climbed in the quarter, but TransUnion said they seem to be stabilizing as interest rates drop and Canadians adapt to the changing financial landscape.
Credit card delinquency rose two basis points in the quarter, the smallest annual increase since 2021, while auto loan delinquencies fell five per cent.
“Stabilizing and improving delinquency rates indicate that Canadians are better at managing debt after several years of volatility,” Matt Fabian, director of financial services research and consulting at TransUnion Canada, said in a release.
RBC also pointed to a lack of financial literacy among millennials, as almost half of them don’t have a financial plan and 55 per cent said they are having trouble navigating the complex nature of their financial situation.
Despite those issues, only 22 per cent have sought professional financial advice over the past year, with 44 per cent indicating they don’t know enough about their finances and don’t want to be judged and 40 per cent said they don’t know where to start when it comes to financial planning.
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Canadian airlines resumed flights in and out of Puerto Vallarta, Mexico, yesterday after widespread violence led them to temporarily suspend service.
This past weekend, Mexican officials captured and killed drug kingpin Nemesio Oseguera Cervantes, sparking violence in the area and blockages from criminal groups.
Air Canada, Air Transat, WestJet and Porter Airlines said they were resuming flights to and from Puerto Vallarta on Tuesday, with WestJet also offering service to Guadalajara and Manzanillo.
Flair Airlines said in a statement it plans to restore service to Puerto Vallarta and Guadalajara starting today.
Mexican President Claudia Sheinbaum has assured travellers that the country is returning to normal, but both Canada and the U.S. have issued travel advisories.
This comes after major Canadian airlines already cancelled flights to Cuba amid a fuel crisis in the region.
Files from the Canadian Press and Bloomberg
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- New cross-border U.S. pipeline proposal could revive idle Keystone XL assets: analysts
- Scotiabank beats earnings expectations with growth across all business segments
- Here’s why mortgage renewals may be the banks’ biggest rip-off
- Garry Marr: Mexico chaos shows it’s time to start thinking of your vacation as an investment and hedge your bets
For those with a mortgage renewal on the horizon, it’s important to take a serious look at the rates offered by your existing lender, says financial planner Ted Rechtshaffen. Just two percentage points difference between institutions can result in thousands of dollars over just five years. For tips on getting the best deal read more here.
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McLister on mortgages
Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily.
Financial Post on YouTube
Visit the Financial Post’s YouTube channel for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.
Today’s Posthaste was written by Pamela Heaven with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.
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