In the latest episode of "Life's Littlest Surprises," the freshly released FP Canada Financial Stress Indexreports that money remains the biggest worry for Canadians in 2024.
Not exactly an eyeopener after the last few years, but 44% of respondents pinpoint financial concerns as their primary source of stress. That's up from 40% in 2023 and 38% in 2022. Personal health took silver, at 21%, while work snagged bronze at 16%.
BUT WAIT, IT GETS BETTER
Despite that rising stress line, the 2024 survey uncovers some growing optimism. Fully half, a nice round 50%, report feeling more hopeful about their financial future, up from 47% a year ago.
Where's the love coming from?
Maybe from taking action to lower that financial stress: 91% did so last year, with the top three moves being:
- tracking expenses
- paying off debt
- saving more
And speaking of action, Canadians who've taken the decisive step to work with a financial professional are significantly more optimistic about their financial futures (56%) than those who don't (48%).
Budget, pay off debt, save more, get some advice = feel better about the future. That works.
...I STILL OWE MONEY TO THE MONEY I OWE...*
What's creating all this stress?
Sorry, nothing new here: the top three survey selections were the price of groceries (69%), goods and services (60%), and gas (47%). Housing costs also remain a biggie. Rent, mortgage rates and home prices were identified as stressors by 27%, 26%, and 20% of respondents, respectively. Interestingly, only 15% of respondents report being stressed about stock market volatility.
Break it down further and another not-so-surprising detail emerges. Younger people are more stressed. Half of Canadians under 35 say money is their biggest source of stress, compared to 42% of those over 35.
Those under 35 are much more likely than Canadians 35+ to cite high rents (43% vs. 20%), house prices (40% vs. 18%) and mortgage rates (31% vs. 24%) as driving their financial stress.
The under 35 group is also more likely (50%) to experience mental health challenges due to financial stress than older generations (34%). And this one really jumped out at us: 77% of those who feel pressure to keep up with their colleagues lose the most sleep to financial stress.
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