Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomePersonal Finance42% of Canadians say an unexpected expense could derail their finances: RBC pollAnd nearly four in 10 households with incomes under $100,000 don’t even have an emergency fund set up to cushion the blowLast updated 1 hour ago You can save this article by registering for free here. Or sign-in if you have an account.Emergency expenses, such as a big medical bill or a costly car repair, are a significant threat to the financial stability of many Canadians. Photo by Getty Images/iStockphotoWe independently select everything we recommend. Buying through us may earn us a commission, which supports our work.Emergency expenses, such as a big medical bill or a costly car repair, are a significant threat to the financial stability of many Canadians, according to a survey released Thursday from Royal Bank of Canada.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorAbout 42 per cent of Canadians worry even one major unexpected expense could derail their finances, according to the poll. And nearly four in 10 households with incomes under $100,000 don’t even have an emergency fund set up to cushion the blow.“I’m not surprised, but I am concerned,” said Ryan Gubic, a certified financial planner and the founder of MRG Wealth Management, based in Calgary. “Over the past several years, the cost of essentials and living expenses in Canada have risen faster than household budgets can deal with.”Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againWith rising prices, Gubic said the proportion of Canadians struggling to fund emergency expenses could continue to swell in future years.Inflation climbed 3.2 per cent in May, according to the latest consumer price index from Statistics Canada, with gas prices surging 33 per cent year over year.Groceries, housing, gas and other items are taking up a larger portion of household incomes, said Gubic, leaving less money left over for savings. He added that the mortgage renewal wave has been putting homeowners under pressure as well in recent years.“(These concerns) are not limited to lower-income households,” he said. Close to a third of households with incomes over $100,000 said they are one major unexpected expense away from going over the edge, and 75 per cent said the high cost of living is hurting their savings plans as well.The top unexpected expenses Canadians are worried about include car repairs or other unexpected transportation costs (39 per cent), followed by home repairs (38 per cent) and medical or health expenses (31 per cent).Across all respondents, the high cost of living was the biggest factor making it harder to build or maintain emergency savings, at 76 per cent. But Albertan respondents (86 per cent) were most likely to cite cost of living as a deterrent, followed by Atlantic Canadians (83 per cent).Gubic said this could be due to transportation needs in these provinces, with households there more likely to own at least one car. Alberta has seen rapid population growth in recent years as well, he said, which has raised housing costs and made it less affordable to live in.And in Atlantic Canada, average household incomes tend to be lower amid fewer job prospects, Gubic said.Other reasons in the RBC poll preventing respondents from contributing to their emergency fund included saving for other priorities (55 per cent), finances being stretched too thin (45 per cent) and dipping into their emergency fund to pay for non-emergency expenses (29 per cent).The repercussions of not having an emergency cushion can include relying on credit cards or other debt instruments, Gubic said.Still, he said that while financial advisers typically recommend building three to six months’ worth of savings in a fund, such a target can feel daunting, especially for someone living paycheque to paycheque.“Starting is the most important step, even if it’s $10 a month,” he said. “Maybe the first goal is to save one paycheque worth in your emergency savings, and the next goal can be saving one month of your living expenses.” Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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