Financial challenges are weighing heavily on mental health
The cost of living challenges are being felt across generations of Canadians who report rising stress about their current – and future – financial situation.
A new study released today (Oct. 26) by RBC reveals that Generations X, Y (Millennials), and Z are all battling with their finances with a negative impact on general wellbeing.
More than half of Millennials (53%) report losing sleep because of their finances, followed by 48% of Gen Zs and 43% of Gen Xers. Almost two thirds of the younger cohorts say their finances are affecting their mental health along with 54% of Gen X respondents.
Personal relationships are also impacted with 59% of Gen Y, 53% of Gen Z, and 47% of Gen X reporting “a significant amount of stress” due to their finances, while more than 8 in 10 across the generations say they would be happier if they were more confident in their financial future.
“We know personal wellbeing is closely tied to financial wellbeing, particularly for Canadians who are essentially living paycheque to paycheque or are uncertain about what the future holds,” says Neil McLaughlin, group head, Personal & Commercial Banking, RBC. “Many Canadians deal with a lack of confidence when it comes to understanding their finances, which affects their ability to make sound financial decisions.”
Taking more control
The RBC Canadian Financial Wellbeing Survey – Fall 2023 Edition also shows how financial planning and management can make a big difference to financial and general wellbeing.
Although almost a third or more of Gen X (31%), Gen Y (41%) and Gen Z (34%) think about money a couple of times daily, more than two-thirds responded that their financial situation could be better if they spent more time on it (70%, 69% and 73% respectively).
RBC recently warned that Canadians are losing their financial flexibility due to the cost of living.
