- Forty-four per cent of Canadians say money is their leading
source of stress, steadily increasing from 2023 (40%) and 2022
(38%).
- Despite the challenging economic environment, Canadians are
feeling more hopeful about their financial futures today (50%) than
they did at the same time last year (47%).
- Canadians who work with a financial professional, such as a
Certified Financial Planner® professional or a Qualified Associate
Financial Planner™ professional, are 33 per cent less likely
to be stressed about money and 23 per cent less likely to have lost
sleep about financial worries.
TORONTO, May 23, 2024
/CNW/ - From high grocery and gas prices to elevated inflation and
housing costs, Canadians are grappling with money-related stressors
that negatively impact their financial well-being. However, the
2024 Financial Stress Index, a national survey of 2,000+
Canadians conducted by Leger on behalf of FP Canada, shows that
Canadians are prioritizing their financial health and feeling more
hopeful about their financial futures than they did a year ago.
The survey reveals that while Canadians continue to grapple with
financial worries, most are embracing strategies to reduce
financial stress in the face of persistent economic pressures.
While financial stress is on the rise, so is optimism, and the
data speaks volumes: Canadians are recognizing the power of
proactive financial management. The most striking revelation?
Year-over-year findings continue to show that Canadians 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.
Financial Stress on the Rise as
External Pressures Persist
According to the 2024 Financial Stress Index, money
remains the top source of stress for Canadians, with 44 per cent
citing it as their primary concern. This number represents a steady
increase from 2023 (40%), 2022 (38%) and 2021 (38%). External
factors are a key piece of the puzzle, as Canadians cite elevated
grocery prices (69%), inflation (60%) and housing-related costs
(52%) as leading causes of financial stress. Amid widespread
discussions about the impact of these pressing challenges, the data
reaffirms the hurdles posed by the current economic
environment.
Financial stress continues to affect the mental health of
Canadians. Nearly half (49%) have lost sleep over financial
worries, and more than half (54%) report negative effects such as
anxiety and depression (38%), disruptions in workplace productivity
(16%) and strained personal relationships (16%). However, Canadians
who work with a financial professional are less likely to lose
sleep due to financial stress (42%) than those who do not
(52%).
"There's no denying that persistent affordability concerns can
cause significant financial strain, so it's no surprise that
Canadians are continuing to feel the impact of these difficult
conditions," says Meghan MacPherson,
a QAFP® professional at Impact Financial Group Inc. "While
thoughtful planning and proactive measures can help reduce
financial stress caused by economic factors beyond our control, the
Financial Stress Index shows that working with a financial
professional can help Canadians create a sense of confidence and
control in the face of uncertainty."
Impact of Financial Stress More
Severe for Young Adults, Interest in Financial Planning
Grows
Younger generations are experiencing the highest levels of
financial stress, with half (50%) of Canadians under the age of 35
citing money as a top stressor, compared to 42 per cent of those
over 35. The survey also shows that financial stress weighs more
heavily on the minds of younger Canadians, with nearly
three-quarters (72%) stating that financial stress has had at least
one negative impact on their lives, compared to less than half
(48%) of Canadians over the age of 35. This cohort is also more
likely (50%) to say they've experienced anxiety, depression, and
mental health challenges due to financial stress than those over
the age of 35 (34%).
Although financial stress disproportionately affects the mental
well-being of Canadians aged 18 to 34, 39 per cent recognize the
value of creating a financial plan to mitigate stress compared to
22 per cent of those over 35. This trend may reflect a burgeoning
curiosity about the advantages of financial planning among younger
Canadians.
Stress Less: The Power of
Professional Financial Planning Support
Data from the latest Financial Stress Index
highlights Canadians' eagerness to take control of their finances.
However, navigating the intricacies of personal finances alone can
pose challenges.
Findings reveal that Canadians who don't work with a financial
professional are 33 per cent more likely to be stressed about money
than those who do, and 23 per cent more likely to have lost sleep
about financial worries. In contrast, those who work with a
financial professional are more optimistic about their financial
futures (56%) than those who don't (48%). Working with a
knowledgeable financial professional, such as a CFP® professional
or a QAFP professional, is an important step toward financial
well-being.
"A trusted CFP professional or QAFP professional can be a
strategic ally, offering personalized solutions tailored to each
client's unique circumstances and aspirations," says Nabila Mirza, a QAFP professional at Aviso.
"Through comprehensive financial planning, our goal is to empower
Canadians to make informed choices, optimize their resources, and
build financial resilience for a more financially secure
future."
The value of working with a financial professional extends
beyond the numbers on paper. By providing expert guidance,
financial planners help alleviate the burden of financial worry,
even in the face of uncertainty.
Growing Optimism as Canadians
Prioritize Financial Well-Being
Despite the challenging economic climate, a renewed focus on
financial self-care is emerging among Canadians. The 2024
Financial Stress Index shows that Canadians are
taking charge of their financial well-being, with 91 per cent
having taken at least one action to reduce financial stress in the
last year. Tracking expenses is the most popular strategy, adopted
by 45 per cent of respondents, while debt repayment (38%) and
increased saving (33%) also rank high on the priorities list.
The research points to a notable mindset shift with financial
well-being at the forefront, as indicated by a growing trend of
Canadians prioritizing fiscally responsible decisions when it comes
to their expenses. Ranking higher on the upcoming expense list than
vacations (19%), nearly one quarter (24%) of Canadians plan on
paying off outstanding credit card debt within the next 12 months.
That's compared to 21 per cent in 2023 and 19 per cent in 2022.
"Canadians are adopting a fiscal-responsibility mindset, which
is at the heart of financial empowerment and long-term financial
stability. It's a powerful, positive reminder of the value of
resilience in the face of adversity," said Ravi Chhabra, a CFP professional. "While it's
undoubtedly disheartening, we can't ignore the reality of the
current economy and the limitations it places on the financial
choices of Canadians. Prioritizing debt repayment while also
budgeting for the things that bring us joy will do more than help
us lessen immediate financial burdens. It will also lay the
groundwork for a future where we can prioritize life's pleasures
without compromising our financial health."
As Canadians embrace the concept of financial well-being, half
(50%) are expressing increased optimism about their financial
futures compared to 2023 (47%), despite experiencing higher stress
levels. At the forefront of this shift, 55 per cent of Canadians
under the age of 35 feel hopeful about their financial futures,
signaling a resilient mindset towards financial challenges.
In today's dynamic financial landscape, the importance of
seeking financial support from a professional can't be overstated.
As individuals face the complexities of financial decision-making
amidst ever-changing economic conditions, the expertise of a
Certified Financial Planner professional or Qualified Associate
Financial Planner professional can help Canadians of all ages and
stages of life take strides toward greater financial
well-being.
Canadians can find a financial planner at Find Your Planner.
About the Financial Stress
Index
The Financial Stress Index is conducted each year for FP Canada
by Leger, the largest Canadian-owned market research and analytics
company. The 2024 Financial Stress Index was completed
between February 28 and March 11,
2024, using Leger's online panel, receiving 2,040 Canadian
respondents nationwide. For comparative purposes, though, a
probability sample of 2,040 respondents have a margin of error of
±2.2%, 19 times out of 20.
About FP Canada
Established in 1995, FP Canada is a national not-for-profit
education, certification and professional oversight organization
working in the public interest. FP Canada is dedicated to
championing better financial wellness for all Canadians by leading
the advancement of professional financial planning in
Canada.
SOURCE FP Canada