Money & Mental Health

May is Mental Health Awareness Month , and studies show money, wealth, and all things finances cause high amounts of stress, and financial health is strongly linked to mental health.

It is probably not a surprise that If you're worried or stressed about money, have no financial plan, or aren't sure if your financial needs will be met, your mental health will be negatively affected.

I compiled some statistics and information to lay out the facts on how finances/money impacts Canadians Mental Health, and outlined a few ways to provide some relief if you find yourself feeling stressed and cannot seem to manage it well.

Money & Mental Health Facts:

According to FP Canada's Financial Stress Index 2024:

Money continues to be the top stressor for Canadians, driven by a challenging economic landscape. Elevated grocery prices, inflationary impact on living costs and higher gas prices are key factors contributing to financial stress.

• Over four-in-ten (44%) say that money is what tends to cause them the most stress in their lives, more than personal health (21%), work (16%) and relationships (16%).
• Stress related to money is on the rise: Canadians are more likely to cite money as a leading source of stress in 2024 (44%) than in 2023 (40%) and 2022 (38%).
• Nearly seven in 10 (69%) say elevated grocery prices are having a direct impact on their financial-related stress, the highest among all identifies external forces. Other external forces include: Inflation’s impact on the cost of goods and services (60%) ? Housing-related costs (52%) ? Elevated gas prices (47%) Elevated interest rates (35%)
• While nearly half of Canadians (49%) report losing sleep because of financial worries, those who work with a financial professional are less likely to lose sleep over finances and less prone to money-related woes.

Despite Canadians continuing to grapple with financial worries, there is a growing sense of optimism as they prioritize financial well-being with a renewed focus on financial self-care.

• Half (50%) expressed increased optimism about their financial futures compared to 2023 (47%), despite experiencing higher stress levels.
• 55% of Canadians under the age of 35 feel more hopeful about their financial futures, indicating that younger generations are adopting a mindset of financial resilience.
• Over nine-in-ten (91%) are proactively embracing strategies to reduce financial stress and combat growing economic pressures.
• Tracking expenses is a popular strategy, adopted by 45% of Canadians.
• Paying down debt (38%), saving more (33%) and creating a budget (30%) also emerge as top strategies Canadians are taking to mitigate money-related stress.
• This indicates a rise in proactive financial behaviours and demonstrates that Canadians are eager to take charge of their finances to help combat rising financial stress in a challenging external environment.

Read the full report here :

Where to Start? Finding Relief & Solutions:

There is no one right answer to how to improve your mental health based on finances, but I've outlined some ways/resources to empower you to improve your financial situation which could alleviate stress:

Don't Avoid the Money:

If you find yourself avoiding checking your account balances, paying bills, not answering phone calls from the Bank or Credit Card company, you may think that sweeping it under the rug will make it go away, but it is best to try to face the problems and solve them, with help.

Talk to a Financial Professional:

Start with your Financial Institution by sending them a message, email, phone call, or walk-in - whatever is easiest for you and tell them you want help with your finances. Personal Bankers and Financial Planners have seen and heard all types of issues and are there to help you navigate these. They can guide you on some next steps without you having to do the hard work. Some key areas your Banker/Financial Professional Can immediately help:

• Discussing your goals, needs and current financial situation and guiding you through priorities.
• Creating and providing advice on budgeting and spending.
• Managing your savings and investments, or helping you better understand these.
• Helping automate stressful financial tasks (paying bills).
• Helping with payment plans on credit cards/loans.
• Developing a comprehensive financial plan.

Answer a few questions and this tool can help provide a general assessment of your financial health with some helpful tips and information. Take TD's Financial Health Assessment Here .

Spending & Budgeting:

If spending and budgeting is causing stress for you, taking some time to sit down alone, with a friend or with a professional to map out your financial budget and spending can help.

Educate Yourself:

Financial Literacy can be a journey on your own, and you may need to spend some time learning more about money, banking and finances. If you are able to spend some time learning about how these things work, you may start to feel less stress around them as you have a better understanding.

The Canadian Government has resources which can help here .

Counselling & Therapy:

In general, if you have mental health issues or need support, counselling and therapy with a professional can help.

In regards to finances and money, there are many counselling services available by not for profits providing financial literacy to help.

Credit Canada has resources available to Canadians to assist here, and has a Webinar on Wednesday, May 29th, 2024, at 12 PM, 4 PM and 8 PM to learn how you can regain a feeling of control over your finances and improve your mental health.

Government Of Canada Credit Counselling Resources available here .

Mental Health is unique to each individual, and there is no one right answer or solution. Speaking to a mental health professional is the best recommendation if you feel stressed or overwhelmed, and speaking to a financial professional can also help.

Myself and my team are here to support you with any questions you have!