5 Financial Moves Young Canadians Need to Make in 2024

It’s been a turbulent year for Gen Z in Canada. Young adults have been squeezed by rising living costs, higher rents, and a volatile job market. While some of these pressures are likely to continue into 2024, there are practical steps you can take to reduce risk and build financial resilience. Below are five trends that will probably shape Gen Z finances next year, with clear, actionable advice on how to respond.

1. A recession could make employment less secure for young workers

Whether or not the economy is officially in a recession, many large employers — including banks and tech firms — have announced layoffs in recent months. Young workers are often among the most vulnerable in downturns, and extended unemployment can harm both mental health and financial stability. Preparing now for the possibility of job loss will make it easier to weather a difficult period if it arrives.

What you can do: Create an emergency fund

An emergency fund is the most effective buffer against sudden income loss. Aim, when possible, to save between three and six months’ worth of essential expenses. If that feels out of reach, begin with what you can afford — even small daily or weekly contributions add up over time. Consistency is more important than size at the start: regular, manageable deposits will build momentum and protect you if your income changes.

2. Rent will likely continue to climb

Rent increases are expected to persist in many Canadian cities. Mortgage renewals at higher interest rates and continued population growth — including newcomers settling in urban areas — are putting upward pressure on rental prices. Landlords who face larger mortgage costs are more likely to raise rents, and provincial rules only limit increases so much.

What you can do: Negotiate and explore alternatives

If rent feels unaffordable, try negotiating with your landlord. Offering to sign a longer lease at a fixed rate can be persuasive. Remember to check provincial guidelines on allowable rent increases so you know your rights. Other options include moving to a more affordable neighbourhood, finding a compatible roommate, or using services that report rent payments to help build credit. Small changes can reduce monthly strain without sacrificing stability.

3. Food prices will rise, but more slowly

Grocery inflation is expected to moderate in 2024 compared with sharp increases seen in previous years, but food costs will still climb modestly. Forecasts point to a smaller rate of increase overall, with staples like bakery items, fresh vegetables and meats continuing to take a large share of grocery budgets, while canned and pantry items may provide some relief.

What you can do: Plan meals and buy smart

Meal planning is an effective, low-effort way to cut grocery expenses. Plan your week’s meals, shop with a focused list, and cook larger batches to use as lunches. When items go on sale, buy in bulk and freeze portions for later. These habits reduce impulse purchases and food waste while keeping your grocery bill under control.

4. Consumer debt may keep growing

Higher living costs and increased credit rates contributed to rising credit card balances last year. Unless interest rates fall or everyday costs ease substantially, many young Canadians could see consumer debt grow in 2024. Carrying high-interest balances makes budgets tighter and slows progress toward long-term goals.

What you can do: Increase income and prioritize high-interest debt

Consider adding a side income to accelerate debt repayment. Even a part-time gig or freelance work dedicated to debt reduction can make a major difference. Focus on paying down high-interest obligations first — especially credit cards — and contact your card issuer to request a lower rate if you struggle with payments. If student loans are part of your balance, prioritize a steady repayment plan and explore any available repayment assistance or consolidation options.

5. Travel demand will rebound despite higher costs

Many young people prioritize experiences and will continue to travel even as prices rise. Travel remains an important emotional and social investment for Gen Z, and 2024 could be a big year for trips and getaways despite higher flight and accommodation costs.

What you can do: Use rewards and plan carefully

Leverage travel rewards, loyalty programs and travel-focused credit cards that match your spending patterns. Choose a card that rewards categories you use most, such as dining, groceries or gas, so you can earn points without overspending. Make sure any credit product you use includes the protections you need, such as travel insurance, and avoid carrying balances that cancel out the value of rewards.

Featured credit cards

Young Canadians can succeed in 2024

No forecast is certain, but many of the pressures facing Gen Z can be managed with planning, creativity and persistence. If you faced setbacks this year, focus on small, practical steps that rebuild security: build or top up an emergency fund, reduce and prioritize debt, negotiate recurring costs like rent, and pursue additional income streams where possible. These habits strengthen your financial position and give you the flexibility to pursue opportunities as conditions improve.

Read more Making It columns:

• Is studying in Quebec still worth it for out-of-province university students?
• Health insurance in Canada: A primer for students and recent grads
• How to build a credit history while renting in Canada
• Struggling with student debt? Here’s how to pay off student loans faster