Sixty percent of Canadians are feeling anxious when thinking about their personal finances, and nearly 40 percent are struggling to put food on the table, a new survey suggests.
The escalating cost of basic necessities like food, housing, and energy have heightened financial anxiety, seriously affecting people’s well-being, according to a poll conducted by Léger on behalf of the United Way Centraide Canada
Financial anxiety has escalated, climbing five percentage points within a span of six months to affect 60 percent of all Canadians surveyed in the latest financial anxiety index survey, the United Way said.
Thirty-eight percent of those polled also reported experiencing food insecurity, and one in five indicated that they have exhausted all food supplies in their home, with no funds to restock their cupboards.
Another 40 percent are losing sleep over how they’ll stretch their paycheque and 34 percent are finding it hard to focus at work or school, the survey found.
Younger adults, single-parent households, and those who have recently immigrated to Canada are most affected by financial anxiety, the survey found.
Fifty-eight percent of single parents and 54 percent of newcomers are at a greater risk of being unable to meet basic expenses without incurring debt one month after losing their primary source of income, according to the report. It also found that adults aged 18 to 34 have the highest anxiety levels.
Changing Circumstances
The data indicates not only the extent of financial stress but also the pace at which it is increasing, the report said, noting that people who once considered themselves financially stable are now dealing with money issues.Thirty-four percent of respondents reported someone in their close circle has faced poverty, a five-point increase, while 22 percent indicated that they have personally encountered poverty, rising from 19 percent.
Those who reported experiencing poverty or having knowledge of someone in such circumstances recognized single-parent households as the most impacted.
Fifty-two percent of respondents said they were either a single parent living in poverty or knew one, while 49 percent were aware newcomers in that scenario or knew one, and 45 percent knew or were adults aged 18 to 34 facing similar circumstances.
“Financial strain is no longer isolated to the most vulnerable,” the report said. “More than half—53 percent—of Canadians describe their financial situation as ‘OK’ or worse, meaning that they can manage expenses but nothing more or are already struggling outright.”
Thirty-one percent of those who said their situation was OK indicated that it has worsened over the past six months and 24 percent expect it to deteriorate further, the report said.
The outlook is particularly dire for individuals who described their situation as “poor.” Sixty-six percent said their situations have worsened, and 39 percent predicted a continued decline.
The report also analyzed poverty in different regions. Quebec had the lowest percentage of respondents who either knew someone living in poverty or identified themselves as poor, at 35 percent.
This was closely followed by British Columbia at 36 percent, and the Prairies at 39 percent. Ontario, Alberta, and Atlantic Canada fared the worst, at 41 percent.
The web survey was conducted among 8,014 Canadians aged 18 or older, between Feb. 17 and March 11.
