Thursday, May 1, 2025

Money Worries Top Stressor for Canadians

Financial anxiety edges out loneliness as the top reason Canadians are feeling bad. But there’s reason for hope

Canadians are worried about money. High inflation and high interest rates over the past few years do not do much to soothe the soul. These worries aren’t new, and financial stress is often present in some form or another. But it seems to be getting worse.

New data from the Financial Resilience Institute (FRI) show that for the first time in the seven years, anxiety about money is reported at higher levels than loneliness. The FRI has been surveying Canadians about their financial well-being regularly since 2017.

Last year in June, FRI’s study reported that 38 percent of people said they had good to excellent levels of financial well-being, and 39 percent said they felt good or better about their connections to others. Previously, loneliness was cited as a bigger concern than money.

In comparison, 70 percent felt good or excellent about family relationships, and 51 percent felt similarly about emotional well-being, and 47 percent felt good or better about both physical well-being and work satisfaction. Loneliness can be damaging and affect both physical and mental health. It’s possible that loneliness levels have gone down as the COVID-19 pandemic and its social restrictions fade further into the past.

Like loneliness, financial stress can be overwhelming and can affect overall health and wellness. One way to help deal with that stress is to seek the help of a professional financial planner. Yet according to FP Canada’s 2024 Financial Stress Index, fewer people are doing so. The rate of those working with a financial professional dropped to 35 percent from 36 percent.

The report says reasons for the drop may be the perception that one needs to be wealthy to work with an advisor. But it also says there aren’t enough financial planners available. Online tools, such as Wealthgoal, available to CLAC members on myCLAC.ca, are one option for those who do not have a financial planner.

What’s stressing Canadians about money? It should come as no surprise that housing affordability, the high price of groceries, and overall inflation are top concerns, given the last couple of years, which saw inflation reach a peak of 8.1 percent in June 2022. Along with that came higher interest rates as the Bank of Canada sought to drive inflation down. All of this has created financial strain for millions of Canadians.

The report found that 44 percent of those surveyed said finances was their top stressor. This is an increase from 2023 (40 percent) and 2022 and 2021 (38 percent).

Yet despite the increase in financial stress, the FP report found that people are actually more optimistic about their financial future, with nearly 50 percent being optimistic. It cites the fact that 91 percent of those surveyed have taken steps to put their financial house in order. Better management of their finances has led to greater control, which has decreased the sense of helplessness people feel about their situation. The report says that more people are paying down debt and tracking their expenses. And that’s replacing helplessness with hopefulness.

Money Worries Top Stressor for Canadians

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