IKEA Canada's vision is to create a better everyday life for the many people, and naturally, great design, quality, and affordability are key. But what does “affordability” really mean? Last fall, Selwyn Crittendon, CEO and Chief Sustainability Officer at IKEA Canada, gathered some of Canada’s top finance experts to discuss what it means to do more with less.
Panel guests included moderator Bianca Freedman, Chief Executive Officer at Edelman Canada; Shannon Lee Simmons, founder of the New School of Finance and personal finance writer for the Globe and Mail; Nathan Kennedy, content creator and host of the podcast “New Money with Nathan Kennedy,” and Rachel Wong, co-founder of Monday Girl, Canada's leading network for professional women.
It’s no secret that we’re experiencing an affordability crisis in this country, with Canadians feeling the pinch across all areas of life. Post-pandemic prices and rising cost of living have left almost all of us feeling squeezed. IKEA Canada CEO Selwyn Crittendon makes no bones about it: “It’s tough times,” he says. Regardless of who you ask, you’re likely to hear that the rising cost of living is weighing heavily on many of us. This is especially true for younger Canadians—many of whom can’t even afford to pay their rent—never mind buy their first car. Factor in the price of gas and food, and you have an untenable situation. But perhaps the most urgent fallout of the affordability crisis is mental health, which is suffering across the board.
Inflation and rising interest rates have hit Canadians from coast to coast, and many are fighting to make ends meet. It’s something Shannon Lee Simmons hears repeatedly from her customers —many of whom have solid incomes. They tell her there was a time when their wages were enough for a good life. They could buy the things they needed, pay their bills, save a bit—maybe even take a vacation.
But these days, it seems every dollar has a job. “What I'm hearing all the time is ‘once I pay for everything, there's really nothing left to spark any sort of joy,’” says Simmons, who can’t overemphasize the importance of those little extras that remind people of why they work. “When we start to resent our financial situation, we lose hope for the future,” she says. “We give up.” It’s this feeling of “what’s the point?” that can compel us to “just put it on the credit card” —which is when things can start to spiral out of control.
Access is another barrier for many professionals—particularly young women entering the workforce. “They're thinking about starting their lives, and they're thinking about making moves in their career,” says Rachel Wong of Monday Girl. For some, that might be pursuing higher education. For others, it’s seeking mentorship or attending an expensive conference with tickets priced in the thousands. And with twenty-five percent of Wong’s clients new to Canada, access and resource sharing are even more crucial.
If you asked Nathan Kennedy to name the biggest challenge facing today's young people, he’d say, hands down, it’s rent. “It’s created an overarching stress with young Canadians,” he says, “They aren't just worried about what they’re going to do with their life—but where are they going to live? And how are they going to live?” He points to the current trend of Gen Z’s—and even Millennials —who continue to live with their parents and how professionally limiting this can be, especially if they are outside a city center that may hold more job prospects.
He also thinks financial literacy is lacking— especially among young adults—and that “affordability” means different things to different people. Say you have ten thousand dollars and want to buy a car that’s ten thousand dollars. Technically, you can buy the car. But does that mean you should buy it? For Kennedy, the answer is a hard ‘no. ”You can afford it, but you can't afford it.” In his world, financial responsibility and “affordability” mean you can make a purchase without financially straining yourself or putting yourself in a bind. In other words, living within your means.
Then there’s the aging population, a too-often forgotten group for whom the affordability crisis is very real. And it’s a demographic that keeps growing. How can we provide resources and create a better everyday life for the many retiring Canadians? It's a question that needs to be front and center for both the government and companies like IKEA.
In our next post, we’ll explore innovative ways for Canadians—young and old—to do more with less while building a life they want and love.