This is one among the Results from FP Canada’s 2024 Financial Stress Index, some of the eagerly anticipated reports of the 12 months, which examines what worries Canadians financially. The survey found that we proceed to struggle with financial worries, resembling whether we’ll save enough for retirement, pay our bills and canopy our expenses, and whether we are able to save enough for a serious purchase like a brand new home, automotive, wedding or our kids’s education.
The numbers don’t lie. 44% of respondents cited funds as their biggest stressor, up from 2023 (40%), 2022 (38%), and 2021 (38%). The reasons for this are external aspects resembling increased food prices (69%), inflation (60%), and housing-related costs (52%).
This has led to anxiety, depression and mental health issues, especially amongst Canadians under 35. There are lots more findings, so let’s take a more in-depth have a look at the report to grasp how and why we now have certain attitudes about money.
How do Canadians get their funds under control?
Why has optimism increased in light of those numbers? Nearly 50% of Canadians surveyed were optimistic about their financial future.
“Optimism has actually increased and economic conditions have definitely become more difficult,” says financial planner Tina Tehranchian, CVP, who works as a senior wealth advisor at Assante Capital Management Ltd. “But I think one of the biggest factors in that is the fact that the survey actually showed that more than 91% of people are taking steps to get their finances in order and have taken at least one action that can help them better manage their finances.”
She says a way of control creates optimism which you can do something about your financial situation; helplessness really does result in depression. That means Canadians are taking steps like paying down debt (up 38%, in comparison with 36% last 12 months) and maintaining a tally of their spending (up 45%, in comparison with 44% in 2023).
Those who work with a financial skilled usually tend to be optimistic about their financial future (56%), as are those that are fascinated by working with one. Tehranchian says that working with knowledgeable with QAFP or CFP (Qualified Associate Financial Planner or Certified Financial Planner) certification is usually a huge profit. “Having a professional help you along the way can definitely speed up the learning curve, help you make more informed decisions, and lead to better outcomes.”
The financial stress of Canadians under 35
Half of Canadians under 35 cite money as their biggest stressor. When asked why they’re most stressed, Tehranchian says: “I think there are many issues, inflation is one of them,” she says. “Housing affordability is another, and grocery shopping.”
