Are Canadians Feeling Financially Pressured?

Financial Stress on the Rise

• According to FP Canada’s 2025 Financial Stress Index, 42% of Canadians now rank money as their top stressor—up from 38% in 2021 (see image below)

• Nearly 49% report losing sleep over financial anxiety, and 55% say it has negatively impacted their lives—affecting mental health for 38%, and productivity or relationships for others.

• 64% of Canadians cite rising grocery prices as a key stressor, while 54% point to general inflation.

• 73% of all gig workers are either employed full-time or part-time outside of their gig work. The most common reason Canadians are engaging in gig work is the increased cost of living, cited by nearly one-third (31%) of gig workers.

Macroeconomic Context & Future Outlook

• Inflation may have cooled to 1.7% in April 2025, but core inflation remains above the Bank of Canada’s 1–3% target at 2.3%.

• Mortgage debt exceeds 100% of GDP; housing still highly unaffordable—63.8% of median household income required for ownership costs.

• Reports and analysis suggest that persistent price pressures—driven by trade disruptions and elevated business costs—are likely to keep inflation sticky and GDP less than 2%.

What Can You Do About It?

1. Work with a Financial Advisor: Accoding to FP Canada, 60% of Canadians working with a financial professional agree that they are more confident about their financial future and those with a financial plan are twice as likely to feel on track with their goals.

2. Build Emergency Savings: Funds should be able last at least three months. Households with just $1,000 in emergency funds were 40% less likely to rely on credit during unexpected expenses. (Statistics Canada, Manulife Bank Debt Survey 2024)

3. Attack High Interest Debts: The average Canadian household holds $21,000 in non-mortgage debt (Equifax, 2024). Interest on credit cards (19–24%) can erode your future savings fast. Use the avalanche (highest interest first) or snowball (smallest balance first) method. Automate payments when possible.

4. Increase Income or Upskill: More Canadians are understandably seeking additional income sources. Remote work, gig platforms, and certifications (e.g., in project management, tech, trades) are popular and effective.

Request a free consultation to set up a tailored financial plan and budget for you and your family.

Other References RBC - 2025 Poll Results (Part 1)

RBC - 2025 Poll Results (Part 2)

Bank of Canada - How a Severe and Long-lasting Trade War Could Affect Financial Stability