Money is No.1 source of stress among Canadians, annual survey finds once again
Money stays the most important supply of stress amongst Canadians, in keeping with a brand new survey.
Released Thursday, FP Canada’s 2023 Financial Stress Index reveals that cash is the highest stressor for Canadians, with 40 per cent of individuals surveyed expressing it’s their foremost supply of stress, forward of non-public well being, relationships and work — for the sixth yr in a row.
And monetary woes are taking a toll on folks, impacting their high quality of life and sleep.
The ballot of greater than 2,000 Canadians, performed by Leger, discovered that 48 per cent of individuals have misplaced sleep and 36 per cent have skilled psychological well being challenges because of monetary stress.
“This is a really important issue,” David Christianson, an authorized monetary planner at National Bank Financial Wealth Management, instructed CTVNews.ca in a telephone interview.
“(Money) is causing a lot of people stress and anxiety and those things are causing long-term physical and mental damage to people, so it’s important that this stuff gets addressed.”
THE IMPACT OF INFLATION, RISING COSTS, INTEREST RATES
Inflation’s affect on the prices of products and companies, together with excessive grocery and gasoline costs, are contributing to Canadians’ monetary stress, the newest Financial Stress Index notes.
Nearly half of survey respondents — 48 per cent — stated they’ve much less disposable earnings in comparison with a yr in the past, marking a considerable enhance from the 39 per cent of people that expressed that was the case in 2022.
“It’s a stressful time financially. Prices have gone up significantly over the last 18 months,” Christianson stated.
The survey additionally reveals that Canadians are struggling to save cash, with 35 per cent of individuals expressing that saving sufficient for retirement and 32 per cent expressing that saving for a significant buy are areas of rising concern.
Young Canadians are particularly involved about saving for main purchases, with 50 per cent of individuals between the ages of 18 and 34 saying saving for main monetary purchases is an space of concern for them.
Christianson additionally identified that many Canadians are in piles of debt, together with these with traces of credit score that include variable rates of interest who’re having to pay “much, much higher rates of interest and much, much higher debt payments” than they have been in years previous.
“People really got in the habit of having almost free money. They had a good credit rating and collateral. And now that’s not the case anymore,” he added.
HOW TO ADDRESS FINANCIAL STRESS
Despite the difficult financial local weather, Canadians shouldn’t lose hope, Christianson stated, including there are some steps folks can take to handle and reduce their monetary stress.
The first step that folks ought to take, he stated, is to seek the advice of a monetary planner that may assist them navigate their cash issues.
“The good news is that people who work regularly with a financial professional, especially a financial planner, have significantly lower levels of stress, fewer regrets about money and they have a more hopeful view of their financial futures,” Christianson stated.
“Sit down with someone who can help give you perspective and help you say, ‘Am I making mistakes? No, things are just hard and they’re gonna get better.’”
Reading books and listening to podcasts about monetary literacy is one other means that Christianson stated folks can study to handle their funds in a extra knowledgeable and accountable means.
He additionally recommends Canadians develop a spending plan that accounts for his or her fastened bills like mortgage and lease, meals, insurance coverage, financial savings and disposable earnings that they’ll use to spend on issues like leisure and experiences that convey them pleasure.
“Track your spending for a few months and see where your money is really going. That information leads to clarity and the ability to make decisions,” Christianson stated.
METHODOLOGY
An on-line survey of two,004 Canadians was accomplished between March 29 and April 7, 2023 utilizing Leger’s on-line panel.
No margin of error will be related to a non-probability pattern like an internet panel on this case. For comparative functions, although, a chance pattern of two,001 respondents have a margin of error of ±2.2 per cent, 19 occasions out of 20.
