White said advisors can make suggestions to clients while reviewing their budgets. They can urge clients to look at their spending patterns – what, and how, they spend, and how much they may emotionally spend when stressed or angry.
“We all do random spending, just because it’s convenient or satisfies an emotional feeling at the time. So, we can help them look at their budgets to see what they need to survive – like mortgage or rent for housing, insurance, or utilities – and what they’re spending on Starbucks, eating out, or Uber rides. Check if those are necessary to earn their income or because they need a social outlet. That’s big now after we’ve been locked won and isolated because of COVID.”
Advisors can then dive into some of the categories pushing up inflation.
When Statistics Canada released its latest consumer price index (CPI) statistics for July 2022 this week, grocery prices had increased by 9.9% from a year ago with baked goods 13.6% higher due to elevated wheat prices. White said clients plan meals in advance to avoid buying extra, compare prices, especially between stores, and use coupons. They also shouldn’t shop when they’re hungry to avoid buying what they don’t need.
While gas prices decreased by 9.2% from June to July, they’re still 35.6% higher than a year ago. White said clients – especially seniors – could ride share or car-pool for shopping, appointments, and errands to save on gas and enjoy some company
