Are you stressed about your financial health? You’re not alone. 

This is one of the top challenges I speak to my clients about.

Financial stress impacts millions of people around the world. In Canada specifically, it impacts individuals of all income levels and ages.

The ever-changing economy makes living a challenge and the cost of everything is going up. Whether you’re a single woman, raising a family, or even supporting your parents financially… one thing’s for sure: financial stress can be a burden.

As a therapist, my job is to help clients who are dealing with financial stress by listening to their thoughts in an inclusive and judgement-free zone. Recently, I completed additional training on the topic of financial trauma. This has equipped me with further skills and knowledge that I get to apply in the therapy room.

In this blog, I’ll be covering the details about what financial stress is and strategic ways to cope.

What is Financial Stress?

In basic terms, financial stress is when you experience stress, anxiety, or worry relating to your financial situation. It is a term that can look a little different from person to person. 

Examples of financial stress include:

• Struggling to keep up with basic monthly expenses such as rent, utilities, groceries, and transportation.
• Living from pay cheque to pay cheque.
• Not knowing where your next source of money will come from.
• Having high levels of debt.
• Dealing with unforeseen expenses.

Impacts of Financial Stress

Financial stress can be extremely detrimental to a person’s well-being. It can affect many areas of life including your physical health, mental health, work, and relationships. Understanding these risk factors is an important step towards addressing your current situation and taking steps towards a better future.

Impacts on physical health

Physical health might not be the first thing you think of when you consider financial health. But according to the Government of Canada, having financial difficulties can show up in a variety of ways.

Individuals dealing with financial stress are:

• Twice as likely to experience poor health in general
• Four times more likely to have issues related to sleep and headaches
• More likely to develop physical illnesses and related symptoms
• More likely to develop serious health issues including heart disease and high blood pressure

Impacts on mental health

These symptoms also extend beyond the physical; poor financial health has impacts on mental health as well. Specifically, it has been shown to contribute to depression as well as anxiety.

Depression is a mood disorder characterized by a persistently low mood. It’s more than being sad for a day or two; depression is diagnosable when symptoms are present for at least two weeks. A person with depression is often disinterested in their daily activities, lacks motivation, feels low energy, and has a sense of hopelessness or worthlessness. 

Struggling to make ends meet can play a significant role in an individual’s symptoms of depression.

It can also have a strong impact on levels of anxiety. This condition, characterized by a persistent feeling of worry, is most commonly diagnosed as a generalized anxiety disorder. Stats Canada reported that the number of Canadians over the age of 15 with a generalized anxiety disorder doubled from 2012 to 2022. That’s 5.2% of the age group – and financial stress is likely experienced by many of them.

Impacts on work

Beyond impacting a person’s physical and mental health, financial stress can also play a role in an individual’s work situation. 

An employee research survey reported that 50% of individuals reported their work performance was affected by financial stress.

It’s extremely challenging to go to work each day, knowing you have a hefty credit card bill to pay or wondering how you’ll be able to afford groceries next week. Being preoccupied with these types of thoughts can be distracting and have a direct impact on work output.

This is also highly likely with individuals who aren’t being paid enough to make ends meet. For those living paycheque-to-paycheque, it can be difficult (if not impossible) to set aside money for your future.

Impacts on relationships

Financial stress can also extend beyond the individual and into the lives of those around them. Relationships are one of the top areas that can be negatively affected by financial stress.

For example, two parents raising a family who are struggling to pay their bills may be frequently stressed, overwhelmed, or angry. They may get into arguments with each other about how to pay off their credit card bill or have to make challenging decisions about new ways to supplement their income. Further, parents may feel stressed or overwhelmed around their children and struggle to create boundaries around “adult” conversations about money.

For individuals who aren’t raising families, financial stress can impact other relationships as well. For example, you might borrow money from a friend during a time of need but struggle to pay them back. You might have a group of friends who want to go on luxurious vacations that you simply can’t afford. Or, as many Canadians are familiar with, you might have a parent or family member who you need to take care of and provide for financially. These are all examples of how financial stress can show up in relationships.

How to Cope with Financial Stress

If this blog has resonated with you so far and you think you may be dealing with financial stress, there are ways for you to get help. Many people feel like money is a taboo subject, but the more we talk about it, the more comfortable we become!

Because it can have such a large impact on your physical health, mental health, work, relationships, and overall well-being, it’s important to seek support. Here are some ways to cope with financial stress.

1. Speak with someone you trust.

Money can feel like a private topic, and if you’re dealing with financial stress, you may feel reluctant to open up and talk about it. One of the best things you can do for your financial future, however, is to speak about it with a trusted individual.

If you live with others who are impacted by your financial stress, consider sitting down with them to have an open conversation about it. That could be your partner, spouse, or other family members. 

You may also want to look at the friends and loved ones in your life and confide in someone you feel supported by. This will help you get more comfortable talking about money in general and allow you to lean on the people in your support system.

2. Talk to a professional

My top recommendation beyond this is to speak with a licensed professional. There are tons of therapists (like myself) who are highly experienced in supporting clients who are dealing with financial stress.

While talking to people you know personally can help, speaking with a professional goes a level further because they can provide an unbiased perspective on your current situation.

As a financial therapist, my job is to listen closely to the challenges you are facing and help you come up with a plan to make lasting changes in your life. For example, we may set goals for you to start creating a monthly budget and have weekly check-in sessions to talk about how things are going.

Having a therapist can help you stay accountable and keep you on track to achieving your goals.

3. Take small steps to improve your financial health.

Financial health is a big topic, and it can be challenging to know where to begin. This is entirely dependent on your unique circumstances and the areas you need support.

Here are some great ways to get started:

• Create a simple budget. The Government of Canada has a great resource you can use to get started. It will help you evaluate your expenses, income, savings, and short and long-term goals.
• Evaluate your debt (if applicable). If you have debt, it’s important to be aware of how much you owe and ensure you are making your payments on time. Try this resource on how to make a plan to pay off debt.

Remember – you don’t have to take on everything at once. It’s all about making small, sustainable changes that will add up to a healthier financial future.

4. Take small steps to improve your overall health.

As I mentioned, financial stress can greatly impact your physical and mental health. It’s important to integrate strategies that will help you take better care of your overall well-being. Here are some general recommendations of things you can do:

• Eat healthy meals. This doesn’t have to break the bank. Frozen vegetables and protein are a financially-friendly way to have healthy food at home that doesn’t perish. Try making a healthy meal that you can freeze and reheat such as chili or soup.
• Focus on getting high-quality sleep. Aim to go to bed around the same time every night. I also recommend turning off your devices at least an hour before bed. If you must have them around before you hit the hay, turn on night mode to avoid the negative effects of blue light on your sleep!
• Try meditation. There are lots of free videos on YouTube that can do wonders for your mental health. If listening to audio isn’t your thing, set a timer for 5 minutes and simply focus on your breathing.

Final Thoughts

At the end of the day, financial stress is extremely challenging to go through and impacts millions of Canadians every day. If you’re going through financial stress in your own life, remember you’re not alone!

It can feel scary and isolating to deal with, and money can be an overwhelming topic to navigate. I’m here to remind you that you’re not alone and the future is oh so bright!