Financial stress is impacting the mental health of Canadians: Survey - BNN Bloomberg (2024)

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Financial stress is impacting the mental health of Canadians: Survey - BNN Bloomberg? ›

The survey also found that 36 per cent of respondents experienced mental health challenges, like anxiety or depression, associated with their financial stress. Additionally, 48 per cent of respondents reported losing sleep over their finances this year, an increase from 43 per cent last year.

Money problems can affect your mental health

Certain situations might trigger feelings of anxiety and panic, like opening envelopes or attending a benefits assessment. Worrying about money can lead to sleep problems. You might not be able to afford the things you need to stay well.

It may be that you have too much credit card debt, not enough income, or you overspend on unnecessary purchases when you feel stressed or anxious. Or perhaps, it's a combination of problems. Make a separate plan for each one.

Create an emergency fund: start saving to establish an emergency fund, which can provide relief from the anxiety of not being financially prepared to handle unexpected situations. Savings are the safety net of our finances.

Financial stress is emotional tension that is specifically related to money. Anyone can experience financial stress, but financial stress may occur more often in households with low incomes. 2 Stress can result from not making enough money to meet your needs such as paying rent, paying the bills, and buying groceries.

The US Bureau of Labor Statistics indicated that the shock to food and energy prices, supply chain issues, and an increased demand for products all contributed to the sharp rise in inflation. Fast forward four years and most Americans are still struggling.

After inflation, high interest rates, unattainable housing prices and other economic factors, 50 percent of U.S. adults say their overall personal financial situation is worse than it was in November 2020, according to October 2023 Bankrate polling.

Most of the reviewed studies show that financial stress is positively associated with depression. A positive association between financial stress and depression is found in both high-income and low-and middle-income countries, but is generally stronger among populations with low income or wealth.

How to stop being broke? ›

Use the 50/30/20 Rule: Allocate 50% of your income to needs, 30% to wants, and 20% to savings and debt repayment. Adjusting these percentages to fit your goals can help accelerate your savings. Save Your Raises and Bonuses: Resist the temptation to increase your spending with every raise or bonus.

A clear mind and a calm emotional state can help you make strong financial decisions. They can also help you ease stress from your finances and other sources. Yoga, meditation and other mindfulness practices can strengthen your ability to calm yourself and push stressful thoughts to the sidelines.

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals. Let's take a closer look at each category.

Money dysmorphia is a psychological condition where individuals have distorted perceptions of their financial status, often leading to unhealthy behaviors and attitudes toward money.

Gently let them know that you care about them, and want to help. Listen and be curious about their experience. Give them space to share if they choose to. You can ask open questions such as 'how are you feeling?

Generally, financial stress can generate, in some cases, physical consequences such as insomnia, loss of appetite, stomach ache and headaches; in other cases, psychological repercussions such as anxiety and panic attacks, depression, mental rumination (repetitive thoughts about past or future situations).

Financial trauma refers to the distress associated with chronic money-related stress, lack of resources, or financial abuse. These difficulties can overwhelm the ability to cope with stress, thus leaving many stuck in a state of heightened anxiety, fear, or anger.

Couples or families facing financial difficulties may experience increased conflict, arguments, and tension due to the strain caused by limited resources or financial constraints.

Money-related anxieties can significantly impact our mental health and quality of life. When finances feel out of control or overwhelming, it's normal to experience heightened stress, anxiety, depression, and even physical symptoms like headaches, stomach troubles, and sleep disturbances.