Canadians are increasingly stressed out about their finances, as a new poll indicates they are spending the same amount of time worrying about money as they would at a part-time job.
In 2022, the average time Canadians have spent stressing about their finances equated to 31 days a year, or , marking a concerning increase from the year before where Canadians spent worrying.
Among the most common concerns were day-to-day expenses, which 44 per cent of respondents said they were worried about. Additionally, 39 per cent were most concerned about paying off their debt and 38 per cent were stressed about saving for emergencies.
While Canada's inflation rate is slowing down, it doesn't feel like it for most Canadians as prices on groceries, gas and housing continue to put a strain on people's wallets.
"For most Canadians, their income has not kept pace with the rising costs of what they buy, with groceries and gas continuing to be the biggest drivers of strain for households," Senior Vice President, Deposits, Investments & Payments at Scotiabank Kingsley Chak said in a news release.
The polling data also showed a disparity between men and women, as 26 per cent of women said they were stressed about their finances while only 20 of men said the same; an common issue that is felt across the world, says one financial expert.
Saijal Patel, founder and CEO of Saij Wealth Consulting, says there are several challenges women face, but the gender pay gap likely plays the biggest role in this disparity. A wage gap can not only result in a loss of earnings but a loss in savings, too, as Patel says women don't invest as often as men, leading to missed financial opportunities, especially for those critical later years in life.
"You're not only making less, you're saving less, but you're also putting less into some kind of a pension plan at retirement," Patel told CTVNews.ca in a phone interview on Wednesday. "A 17 per cent wage gap can easily translate to about a 30 per cent wealth gap in retirement."
CANADIANS ARE SEEKING HELP BUT IT MAY NOT BE ENOUGH
A systemic issue has exacerbated Canadians' financial concerns, Patel says, as rising food and housing costs have been particularly troubling for many. Recent reports from Statistics Canada saw an increase of 11.4 per cent on food prices year-over-year in January, while the Canada Mortgage and Housing Corp. reported a 5.6 per cent increase on the average rent price for a two-bedroom apartment in comparison to the previous 12-month period.
"We need to put pressure on leaders to come together to develop real solutions to solve this, because we can't put it on individuals to solve this on their own, there's only so much we can do," she said.
The survey shows that despite Canadians' concerns, they are still making attempts to better their financial situation, as 57 per cent say they are making changes to their spending habits to afford necessities.
Patel says financial education is the best defence against these trying times, however, many people might not know where to begin or how to ask for help. The best way to start, she says, is with the basics. For example, learning how credit scores work or creating a budget.
"The biggest reason why I encourage [budgeting] is because it raises awareness of our spending habits." she said. "We miss about 30 per cent of what we spend on, but we're just not aware of it, so you can't change what you don't see."
Ultimately, this can lead to learning about other financial strategies that can allow for the flexibility to invest or adjusting spending habits without sacrificing needs and wants, Patel says.
"You need a roof over your head, you need healthy meals. You can't just sacrifice every possible entertainment because your mental wellness matters."
METHODOLOGY
The online survey from Scotiabank organized by Maru/Blue was conducted between Jan. 24 and Jan. 25, 2023. The survey included 1,505 randomly selected Canadian adults who are Maru Voice Canada panelists and range by age, gender and region to be representative of the Canadian adult population.
