Consistent with previous years, in 2020 money is the number one cause of stress for Canadians by a large margin, according to the latest FP Canada survey.

The Financial Stress Index found that money (38 per cent) outranks personal health (25 per cent), work (21 per cent) and relationships (16 per cent) as the top source of stress in Canadians’ lives. This is particularly significant given the multitude of non-financial stresses related to the COVID-19 global pandemic, it said.

The survey also revealed that as Canadians age, they feel less stressed about money – with 44 per cent of 18-to-34-year-olds listing money as their leading concern compared to one-in-four (25 per cent) of those aged 65+.

“This pandemic has added an extra layer of financial uncertainty for Canadians,” said Kelley Keehn, author, personal finance educator and Consumer Advocate for FP Canada.

Some other key highlights from the survey:

  • 38 per cent say that financial stress doesn’t impact their lives at all;
  • In 2020, four-in-10 Canadians say the COVID-19 pandemic has impacted their financial stress levels. One-in-10 note the pandemic has significantly impacted their financial stress levels;
  • 49 per cent have lost sleep over financial worries. Younger Canadians (under 35) are significantly more likely to have lost sleep due to money stress than those over 35 (55 per cent to 46 per cent). Women (54 per cent) are more likely to lose sleep than men (43 per cent) ;
  • The 2020 results for Canadians losing sleep over financial worries were the same as in 2018 (48 per cent) and slightly down from 2014 (53 per cent). On a more positive note, only 16 per cent answered ‘strongly agree’ to losing sleep over financial worries in 2020, significantly less than the 28 per cent in 2014;
  • When asked “how has financial stress impacted your life”, half of Canadians have felt the impact in at least one way. Specifically, health issues (18 per cent), marriage/relationship problems (15 per cent), reduced productivity at work (14 per cent), family disputes (13 per cent) and mental health/substance abuse challenges (10 per cent) are attributed to financial stress;
  •  Nine-in-10 Canadians (88 per cent) under 35 have at least one aspect of their finances causing them stress, compared to 75 per cent of those over 35.

“Money, health, relationships and work are deeply interconnected; stress in any one of those domains can compound problems in the others,” said Dr. Moira Somers, Ph.D., C.Psych, a clinical neuropsychologist specializing in mental and financial well-being. “The COVID-19 pandemic has increased financial strain in many households – especially for those who have lost their job in a sector that may not fully recover. It’s important to pivot and focus on actions that will restore financial well-being, such as developing or upgrading marketable skills. Taking proactive measures is a big step towards creating financial stability and confidence in the future.” 

The full results of the 2020 Financial Stress Index can be found here. A white paper on the Financial Stress series can be found here.