Despite rising grocery and gas prices, high inflation, and elevated housing costs, Canadians are prioritizing their financial health and are feeling more hopeful about their financial futures today than they did a year ago; according to the 2024 FP Canada Financial Stress Index, a national survey of more than 2000 Canadians.
The data speaks volumes, the survey reveals that while individuals’ financial stress is rising, so is their optimism. Canadians recognize the power of proactive financial management, those “who work with a financial professional are less prone to money-related stress, more hopeful about their financial futures and better positioned to navigate financial uncertainty with confidence.” – 2024 FP Canada Financial Stress Index.
The Rise of Financial Stress
Forty-four percent of Canadians name money as their primary source of stress. This has steadily increased from 2023 (40%), 2022 (38%) and 2021 (38%). External pressures including elevated grocery prices (69%), inflation (60%), and housing-related costs (52%) are the key contributors to the rise in Canadian’s financial stress. Despite ongoing discussion about these rising costs, this data reaffirms the current economic environment continues to challenge Canadians.
Stress affects our mental health. Nearly half of Canadians (49%) have lost sleep over financial worries, and more than half (54%) reported experiencing anxiety or depression, workplace productivity disruption (38%), and strain on personal relationships (16%).
This survey also found that young Canadians, under the age of 35, are experiencing more severe stress relating to their finances than Canadians over the age of 35. Nearly three-quarters (72%) of young Canadians stated that financial stress has had at least one negative impact on their lives. Fifty percent of young Canadians have experienced anxiety, depression, and mental health challenges due to financial stress, in comparison to 34% for Canadians over the age of 35.
Working with a Financial Professional
Stressing about your finances is exhausting and can negatively affect your life in many ways. However, this survey proves that Canadians who work with a financial professional are less likely to lose sleep due to financial stress (42%) than those who do not (52%). Furthermore, those who work with a financial professional are more optimistic about their financial futures (56%) than those who don’t (48%). In these challenging times, the importance of working with a financial professional cannot be overstated.
If you or someone you know is stressed over finances, please don’t hesitate to contact us, it is our mission to share our knowledge and provide guidance to those who seek financial well-being and a good night’s sleep.
Have a great weekend,
Tracey & Paige
Photo by krakenimages on Unsplash
Products or services related to investments, investment recommendations, financial planning, retirement planning, and investment reviews are provided through our mutual fund dealer Security Financial Services and Investment Corp. 4665 Yonge Street, Suite 309, Toronto, ON M2N 0B4 t 416.964.0440