New research reveals a startling reality for nearly half of Canadians who are living so close to the financial edge that a single unexpected expense would push them into debt.
The Precarious State of Canadian Finances
A comprehensive report from online loan provider Fig Financial Inc. shows that 45% of Canadians would see their finances thrown into disarray by an unforeseen cost. The situation becomes even more dire for younger generations, with 57% of millennials at risk of financial harm from surprise expenses.
The financial vulnerability extends across different emergency scenarios. According to the data, 47% of Canadians would fall into debt facing a $10,000 emergency outlay, while nearly one-third (32%) would take on debt with a $5,000 unexpected spend.
Sleep-Losing Financial Anxiety
The constant financial pressure is taking a significant toll on Canadians' mental health and daily lives. The research indicates that 39% of Canadians report financial stress impacts their sleep, while 34% have felt helpless about their finances in the past year.
Younger Canadians bear the heaviest burden of financial decision fatigue, with 59% of those aged 18 to 34 and 49% of those aged 35 to 54 struggling to manage the constant flow of financial choices. The anxiety has become so pervasive that 51% of Canadians feel guilty about spending on themselves, even for small discretionary purchases.
Income Vulnerability and Regional Differences
Employment Hero's research adds another concerning dimension, revealing that 51% of Canadians would fall behind on their bills with just one missed paycheque. Regional data from accounting firm MNP Ltd. shows the situation is particularly acute in Ontario, where 43% of residents are just $200 or less away from financial insolvency.
Caryl Newbery-Mitchell, a licensed insolvency trustee at MNP, explained the broader impact: "Many households are feeling caught between persistent economic pressures and global volatility, with little flexibility to manage any disruptions in income or unexpected expenses. Some are hesitating to move forward with major financial or life decisions as a result."
Pathways to Financial Resilience
Fig Financial recommends several strategies for Canadians struggling with financial stress. The company emphasizes normalizing conversations around money, planning and budgeting for unexpected emergencies, and regularly checking financial health to ensure they're on the right track.
Francois Coté, chief executive of Fig Financial, stressed the importance of open dialogue: "At Fig, we're urging Canadians to break the silence around debt. Open, honest conversations are the foundation for financial confidence."
The research collectively paints a picture of a nation where financial resilience is increasingly rare, with nearly half the population vulnerable to any economic disruption or unexpected life event.
