We independently select everything we recommend. Buying through us may earn us a commission, which supports our work.

Article content

Nearly half of working Canadians feel less financially secure than a year ago, while 47 per cent could cover no more than two months of expenses after a job loss, according to a new report out Wednesday from Money Mentors conducted with Angus Reid.

Sign In or Create an Account

or View more offersArticle content

“Canadians are not feeling better about their money, they’re not living their best financial lives,” said Stacy Yanchuk Oleksy, chief executive at Money Mentors, an Alberta-based, non-profit credit counselling and financial education agency. “We see a lot of Canadians are struggling, and I think it’s gotten worse post-pandemic … especially with cost of living … eating away at people’s budgets.”

Article contentWe apologize, but this video has failed to load.Try refreshing your browser, or
tap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, or
tap here to see other videos from our team.Article content

Story continues below

This advertisement has not loaded yet, but your article continues below.

Article content

Even among those in higher-income households earning $100,000 or more, more than one third said they could cover no more than two months of expenses if they lost their job. However, higher-income households might have more debt, such as through mortgages or auto loans. “If you’re making six figures, your lifestyle is probably going to be more expensive,” said Yanchuk Oleksy.

Article contentArticle content

She added that $100,000 doesn’t have the same purchasing power today that it did 20 years ago.

Article content

In the past year, tariffs and inflation have raised everyday costs for Canadians, Yanchuk Oleksy said. Consumer prices climbed three per cent in August compared with the same month a year ago, according to the latest inflation data from Statistics Canada, with gas prices surging nearly 23 per cent.

Article content

Nearly one quarter of respondents in the report attributed higher costs for groceries, utilities, transportation and other everyday expenses as the main reason they feel less financially secure, as opposed to other reasons, such as housing costs, debt payments or reduced or uncertain income.

Article content

However, across generations, 30 per cent of generation Z workers said they feel more financially secure than a year ago, compared with 16 per cent of millennials, 14 per cent of generation X and 14 per cent of baby boomers who said the same in the report.

Article content

Story continues below

This advertisement has not loaded yet, but your article continues below.

Article content

That said, only 29 per cent of gen-Z workers could cover six months or more of expenses following a job loss, compared with nearly half of boomers, according to the data.

Article contentRead More

  1. Canadian household wealth tops $19 trillion for the first time as equities drive a ‘blow-away quarter’
  2. Even in a tough economy it pays to change jobs, according to new data about Canadian wages
  3. Story continues belowThis advertisement has not loaded yet, but your article continues below.

Article content

Yanchuk Oleksy said a higher proportion of younger working Canadians likely feel more financially secure because they tend to have fewer fixed expenses, compared with many millennials, for example, who are likely dealing with homeownership and child-care costs.

Article content

She added that the generational differences could look very different if non-working Canadians were to be surveyed as well, given Canada’s higher youth unemployment rate.

Article content

Working Canadians in some provinces are feeling this deterioration in their financial security more than other parts of the country, according to the Money Mentors report. For example, about 64 per cent of respondents in Atlantic Canada and 62 per cent of respondents in Alberta reported feeling less financially secure than they did a year ago, compared with 49 per cent in British Columbia and Ontario, respectively, 48 per cent in Saskatchewan, 46 per cent in Manitoba and 38 per cent in Quebec.