Money concerns worry Canadians the most

Money continues to be the number one source of stress for Canadians, according to the 2025 Financial Stress Index from FP Canada — though the latest findings offer a glimpse of cautious optimism.

This is the eighth edition of the index, which has tracked how Canadians’ financial stress, barriers and mindsets have evolved over time.

According to the report, 42 per cent of Canadians cite money as their top source of stress — almost more than health, relationships and work combined. While this figure represents a slight decrease from 44 per cent in 2024, it’s still notably higher than earlier years, underscoring the ongoing financial pressure faced by many households.

Generational differences in financial stress levels were also apparent. Millennials reported the highest levels of financial stress, with nearly half (48 per cent) naming money as their top concern. In contrast, only 31 per cent of Baby Boomers reported feeling that way, suggesting younger Canadians face more immediate financial pressures.

The report highlights the rising cost of living remains the biggest financial barrier for Canadians, with 68 per cent of respondents naming it as their primary challenge. Inflation, housing costs and everyday expenses have stretched household budgets thin, making it difficult for many to meet financial goals or save for the future.

Other significant barriers include:

• Fear of making poor financial decisions – Fifty-two per cent of Canadians worry about managing their finances incorrectly, which can lead to procrastination or indecision.

• Lack of funds after covering expenses – Fifty-one per cent said they don’t have enough left over after paying for essentials to save or invest.

Interestingly, 43 per cent of respondents also reported feeling overwhelmed by the amount of financial information available, highlighting the importance of simplifying financial advice and support.

Mindset and financial hope

Despite the high levels of stress, the report offers some encouraging insights. Canadians who work with a professional financial planner reported feeling more hopeful and less stressed about their finances. Of those with a professional planner, 73 per cent said they feel hopeful about their financial future, compared to 48 per cent of those without professional guidance (across income and net worth levels).

Financial literacy also plays a key role in reducing stress. Respondents who rated their financial knowledge as strong were more confident about making financial decisions and less likely to feel overwhelmed.

What Canadians can learn from the findings

The 2025 Financial Stress Index underscores the importance of taking proactive steps to manage financial stress. Canadians can benefit from:

1. Building a financial plan – Having a clear plan that includes budgeting, saving, and investing can help reduce uncertainty and build confidence. A professional planner can provide guidance tailored to individual needs and goals.

2. Focusing on what you can control – While inflation and rising costs are largely out of individual control, managing expenses, reducing debt, and building an emergency fund can help create financial stability.

3. Improving financial literacy – Understanding the basics of budgeting, investing, and debt management can empower Canadians to make informed decisions and feel more in control of their finances.

4. Exploring alternative financial tools – High-interest savings accounts, GICs and tax-advantaged accounts like TFSAs and RRSPs can help maximize savings and build long-term financial security.

The 2025 Financial Stress Index reflects a complex financial landscape where Canadians face ongoing pressure from inflation and economic uncertainty. However, the findings suggest that building financial literacy and seeking professional advice can significantly reduce stress and improve confidence.

Taking control of personal finances — even in small steps — can help Canadians navigate financial challenges more effectively and feel more hopeful about the future.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.