Is smoking cool again? It’ll cost you

For this week’s Reality Cheque column, we’re looking at an expensive trend with Gen Z that many Canadians thought would never come back. 

If you thought smoking cigarettes was something only Gen X and Boomers did, think again. Some Gen Z, while known as Sober Savers, are spending money on nicotine. Celebrities like Justin Bieber, Heated Rivalry’s Hudson Williams and Charli xcx (who even had a cigarette platter at her wedding) have all been spotted smoking old-school cigarettes. Even stars with carefully crafted images, including Sabrina Carpenter and Kylie Jenner, have smoked in videos and magazine shoots.

While it’s no secret that smoking is terrible for your health, you may be surprised to learn that it’s also hard on the wallet and can have long-term costs that aren’t so obvious when you first light up. 

The bigger picture

According to 2024 data, 11% of adult Canadians reported smoking cigarettes. As for the younger generation, about 9% of Grade 12 students smoke, says Rob Cunningham, a senior policy analyst at the Canadian Cancer Society. That seems pretty good compared to 1965, when 50% of Canadian adults smoked. But if celebrities’ behaviour is any indication, smoking might be making a comeback.

A 2024 study about tobacco in films found that 51% of the 152 movies that cracked the top 10 in box office contained tobacco imagery, a number that’s been steadily rising. “And we know from a vast number of studies that smoking in movies influences youth. Because they’re glamorous celebrities, you know, that people look up to,” says Cunningham.

Burning through cash

Even if your favourite A-lister has taken up this hazy habit, before you light up, you might want to consider the overall cost. 

A pack of 20 non-premium cigarettes costs about $14 (more or less, depending on the province). Think about that. If you smoke a pack a day for 365 days, that adds up to more than $5,100 a year, says Cunningham. That’s a good chunk of your TFSA limit (for 2026, the tax-free savings account limit is $7,000). Even if you only smoke five cigarettes a day, that’s still about $105 a month and more than $1,270 a year. But it’s not just the cost for one year you should factor in. 

“Most young people who begin smoking don’t think they’re going to be smoking five years later. Most people who smoke want to quit,” says Cunningham. But it’s not always a choice. “Nicotine is as addictive as heroin and cocaine,” he explains.

“Once you’re addicted to cigarettes and nicotine, you might be smoking for many years ahead or for the rest of your life,” says Cunningham. “Think about the cost over 10 years or 20 years or 30 years. It’s huge.” (Think too about that TFSA and the compound interest you could have earned.)

Health Canada even has a cigarette cost calculator that lets you look at your overall spend for each day, week, month and year, so you can compare it to your financial plan.

If you understand the “latte factor”—the idea that the cost of a daily coffee could be invested elsewhere—then a pack of smokes fits well with this analogy, too. Imagine taking $100 a month and investing that in your TFSA or saving up for a big purchase like a car instead. 

How much life insurance costs for a smoker in Canada

When it comes to smoking, the full price tag isn’t always obvious. Bet you didn’t consider how being a smoker would affect your life insurance. 

“It basically doubles it,” says Toronto-based independent life insurance broker Daniel Goldhar. “It’s pretty much as simple as that. So, if it was going to be $100 a month, it’s going to be $200 a month now.” That’s to account for the increased risk of multiple health issues.

Depending on the type of life insurance and the coverage you choose (term 10, term 20, permanent), the costs can be tremendous. “You know, you’re having life insurance for hopefully your whole life,” says Goldhar. “You’re talking hundreds of thousands of dollars depending on the level of coverage you’re getting.” Something else to note: it’s also slightly more expensive to get life insurance if you’re a man who smokes compared to a woman who smokes (about $50 a month more). 

You don’t need to smoke a pack a day for the cost to rise. Most insurance companies consider you a smoker if you’ve smoked just one cigarette in the past 12 months—and if you’ve vaped or used chewing tobacco and other nicotine products those will all bump you into that smoker category. 

Plus, if you don’t tell your insurer you smoke during the application process, they could deny your claim(s) or even cancel your policy. 

Why is smoking considered such a significant risk factor? Insurers “look at the actuarial charts; smokers have a lower life expectancy,” says Goldhar. Without higher premiums, the insurance companies would be paying out earlier and making less money on smokers.  

There are clear stats on the health impacts. Smoking is linked to more than two dozen diseases and conditions, notably several types of cancer and heart disease. More than one out of every two long-term, regular smokers will likely die early because of smoking, says Cunningham. 

That’s about 45,000 Canadian deaths each year due to smoking tobacco, according to the Canadian Cancer Society. Not so sexy after all... 

Gen Z and nicotine: not just cigarettes

Vaping and nicotine pouches are also growing in popularity. Approximately 27% of high school students in Grade 12 vape, says Cunningham. While vaping is slightly less expensive than cigarettes and may seem like a good alternative to traditional cigarettes, it’s still harmful, he says. 

Vapes contain nicotine, which is highly addictive, can impact brain development for young people and may expose people to thousands of harmful chemicals. Vaping costs add, including the initial expense of the vape systems and the regular purchase of e-liquids.  

The slow burn on your finances

If you’re one of the many Gen Z who work full-time and have a side hustle, there’s another reason you may want to reconsider whether you can afford this costly habit. 

Because smoking weakens your immune system, smokers are 31% more likely to get sick than a non-smoker, meaning smokers are more likely to miss work. On average, a daily smoker took two and a half more sick days than employees who never smoked. 

And being a smoker could even affect your future job prospects if you’re on the hunt for a new gig. A year-long study out of Stanford University suggests that smokers have a harder time getting jobs and earn a lot less than non-smokers.

Doctors will all tell you smoking cigarettes is one of the worst things you can do for your health, but it can also do some serious damage to your budget, your long-term professional goals, and your finances. 

Turns out it’s not as cool as it looks.