Nearly three in 10 young people say their finances are in a “poor state,” with many pointing to increased costs of living expenses.

That is one of the takeaways from Leger’s sixth youth survey, conducted annually among 3,015 members of the Gen Z and millennial generations.

The study found that 29% of young people consider their personal finances to be in a poor state. More young people are living paycheque to paycheque than they did in 2022: 51% in 2023, up 3% from the year prior.

This is having a major impact on how young people view and use their money. The biggest is when it comes to saving, with 73% saying they’ve changed their approach to saving, up 6% from the year prior.

But it is also influencing their regular purchases. Cost of living increases has made 68% of respondents change their food habits and 67% changing their bar or restaurant habits. Both of those figures are up by 5% from last year, with the change largely coming from Gen Z.

There has also been significant movement in the number of young Canadians who have changed spending habits when it comes to clothing (67%, up 9% from last year), leisure activities (59%, up 8% from last year) and cultural outings (53%, up 9% from last year).

Also, 48% of young people feel the impact of the rising cost of living on the regular payment of their credit cards or other bills in 2023, an increase of 8% from 2022 levels.

Almost three-in-four renters (72%) feel that their rent accounts for too large a portion of their expenses. Also, about one-in-four renters have had to move because of a rent hike.

With the economy in a poor state, 15% of young people intend to quit their job in the next 12 months. This proportion is higher among Gen Z (22%) and lower among millennials (11%), but is overwhelmingly being driven by the need for a salary increase.

However, Gen Z also report they don’t have enough flexibility or that their employer’s mission does not resonate with them.

“What is your organizational purpose, and does it speak to your employees>” says Nikolas Lopez, Leger’s senior research director.

Salary is important, Lopez notes, but Leger insights also examined how people weigh employment offers. While wages are key, and cited as the primary factor for accepting an offer (44%), benefits are also very important to both demos (about 23%), followed by vacation time (14%).

Younger generations are increasingly pessimistic about the future of both the economy, and the planet: 47% of young people believe that the Canadian economic situation will deteriorate in 2024, the same as 2022 levels, while 51% of young people believe that the environmental situation will deteriorate in 2024, up 8 points.