This is one of the findings from FP Canada’s 2024 Financial Stress Index, one of the most anticipated reports of the year. It looks at what concerns Canadians financially. What the survey found is that we continue to grapple with financial worries like saving enough for retirement, paying our bills and covering our expenses, and saving enough for a major purchase like a new home, car, a wedding or our children’s education.
The numbers don’t lie. Of those surveyed, 44% cited finances as their top stressor, which is an increase from 2023 (40%), 2022 (38%) and 2021 (38%). The reasons are external factors like elevated grocery prices (69%), inflation (60%) and housing-related costs (52%).
This has led to anxiety, depression and mental health challenges, especially among Canadians under age 35. There are a ton more findings, so let’s do a deep dive into the report to understand how and why we’re feeling a certain way about money.
How are Canadians taking control of their finances?
With those numbers, why has the level of optimism increased? Nearly 50% of Canadians surveyed were optimistic about their financial future.
“The level of optimism has actually increased, and the economic conditions are tougher for sure,” says financial planner Tina Tehranchian, CVP, who is a senior wealth advisor at Assante Capital Management Ltd. “But I think probably one of the biggest contributing factors is the fact that the survey actually showed more than 91% of people are taking steps to put their financial house in order, and they’ve taken at least one action that can help them better manage their finances.”
She says a sense of control creates optimism that it’s possible to do something about your financial situation; it’s helplessness that really leads to depression. That means Canadians are taking actions like paying down debt, up to 38% from last year’s 36%, and tracking their expenses, up to 45% from 2023’s 44%.
Those who work with a financial professional are more likely to be optimistic about their financial future (56%) and for those who might be thinking of working with one. Tehranchian says, working with a professional accredited with QAFP or CFP (Qualified Associate Financial Planner or Certified Financial Planner) can be a great asset. “Having the professional help you along this path can definitely accelerate the learning curve, can help you make more informed decisions, and it can lead to improved results.”
The financial stress of Canadians under 35
Half of Canadians under age 35 cite money as a top stressor. When asked why they were the most stressed out, Tehranchian says, “I think there are a lot of issues, with the level of inflation being one of them,” she says. “Housing affordability being another, and grocery shopping.”
GIPHY App Key not set. Please check settings