FP Canada™ 2025 Financial Stress Index reveals top financial stressors, barriers and generational differences
- 42 per cent of Canadians say money is their leading source of stress, decreasing from 2024 (44%) yet trending upward since 2021 (38%).
- Canadians experience several barriers preventing them from taking control of their finances, notably the high cost of living (68%) and fear of making wrong financial decisions (52%).
- Canadians who work with a financial professional, such as a Certified Financial Planner® professional or a Qualified Associate Financial Planner™ professional, are increasingly hopeful about their financial futures year over year (60% in 2025, 56% in 2024, 50% in 2023).
TORONTO, March 18, 2025 /CNW/ - Money-related stress is nothing new for Canadians. However, the eighth Financial Stress Index, a national survey of 2,000+ Canadians conducted by Leger on behalf of FP Canada, reveals a nuanced picture of how the financial barriers, goals and mindsets of Canadians have changed over time.
Canadians continue to contend with broad and dynamic external economic forces that demand financial resilience. Against this backdrop, those who work with a financial professional, such as a CFP® professional or QAFP® professional, are consistently more resilient to negative financial impacts and are notably more hopeful about their financial futures year over year.
How Different Generations Are Impacted by Their Finances
According to the 2025 Financial Stress Index, 42 per cent of Canadians say money is their top source of stress, far more than health (21%), relationships (17%), and work (17%). While this is a small decrease from 2024 (44%), the percentage of Canadians who cite money as their top source of stress has been steadily trending upward over the past five years (40% in 2023, 38% in 2022 and 2021).
External factors always have a direct impact on personal finances, but they affect generations differently. While grocery prices (64%) and inflation (54%) are the top factors impacting all generations, Canadians ages 35-54 feel these factors most acutely (69% percent and 59%, respectively). In contrast, those ages 18-34 are significantly more affected by housing than older generations. A little under half of this younger generation cite house prices (45%) and rent prices (43%) compared to under a third for those ages 35-54 (26% and 28%, respectively) and 55+ (15% and 18%, respectively). These factors highlight differences in external forces that contribute to the financial stress felt across generations.
"Canadians of all ages and walks of life have differing relationships with money and feel the impacts of financial stress in ways that are unique to them," says Ravi Chhabra, a CFP professional at Cigfin Corp. in Vaughan, Ontario. "No matter what specific factors are impacting someone's circumstances, managing our finances can feel overwhelming. The encouraging thing is, there are steps Canadians can take to feel better about their financial situation, including partnering with a professional financial planner who can help them build a personalized plan to achieve their goals."
Barriers Preventing Financial Progress
Despite ongoing financial stress, 88 per cent of Canadians acknowledge that taking an action such as budgeting or saving would help reduce financial stress. The top perceived actions cited are saving more (48%), paying down debt (40%) and having an emergency fund (37%). This demonstrates an awareness and openness to better manage financial challenges.
Despite this widespread acknowledgement, Canadians experience a number of barriers that prevent them from proactively taking control of their financial situations. The top cited barrier is feeling burdened by the high cost of living (68%), followed by fear of making the wrong financial decision (52%) and not having enough left over after paying necessary expenses (51%).
Younger Canadians expressed greater concerns about financial education as prohibitive to taking positive steps to improve their financial situation. Those ages 18-34 say not knowing where to access reliable financial advice (49%), how to start improving their finances (49%) and understanding financial concepts (37%) are top barriers, which is significantly higher than those ages 35-54 (36%, 41% and 23% respectively). This highlights an important educational gap for young Canadians who openly acknowledge a need for increased financial literacy and trusted help to aid them in overcoming personal financial barriers.
The Positive Impact of Professional Financial Planning
The internal and external forces that affect personal finances are dynamic and difficult to keep pace with while juggling life's other responsibilities. This reality underscores the value of seeking professional financial help and is reflected in the 2025 Financial Stress Index.
Canadians who work with a financial professional, such as a CFP professional or QAFP professional are less likely to say money is their top source of stress (34%) than those who don't (48%). The positive outcomes of professional financial help are also present in the barriers Canadians say are preventing them from taking control of their finances. Only 27 per cent of those who work with a financial professional feel like their actions won't make a difference in their finances compared to 41 per cent for those who don't, demonstrating a stronger sense of control among those who work with a professional.
The most positive indicator of seeking professional help is present in the long-term trends over several years. Canadians who work with a financial professional make significantly greater leaps in feeling hopeful about their financial futures (50% in 2023, 56% in 2024, 60% in 2025) than those who don't (44% in 2023, 48% in 2024, 48% in 2025).
"I'm deeply encouraged by such positive financial strides in the lives of Canadians who are supported by a professional financial planner," says Tashia Batstone, President and CEO at FP Canada. "Even though the annual Financial Stress Index proves that money is a significant source of stress for many Canadians year after year, it also demonstrates the positive impacts that CFP professionals and QAFP professionals are having on the well-being of the Canadians who partner with them."
Trusted advice from a CFP professional or QAFP professional is always close at hand to help Canadians overcome personal barriers on the path toward financial well-being regardless of age, income or background.
To learn more about the 2025 Financial Stress Index and FP Canada's resources for Canadians, visit https://www.financialplanningforcanadians.ca/fsi-2025.
About the Financial Stress Index
The Financial Stress Index is conducted each year for FP Canada by Leger, the largest Canadian-owned market research and analytics company. The 2025 Financial Stress Index was completed between January 6 and January 13, 2025, using Leger's online panel, receiving 2,010 Canadian respondents nationwide. For comparative purposes, though, a probability sample of 2,010 respondents have a margin of error of ±2.2%, 19 times out of 20.
About FP Canada
Established in 1995, FP Canada is a national not-for-profit education, certification and professional oversight organization working in the public interest. FP Canada is dedicated to championing better financial wellness for all Canadians by leading the advancement of professional financial planning in Canada.
SOURCE FP Canada
For media inquiries, or to arrange media interviews with a CFP professional or QAFP professional please contact: Nathaniel Glassman, Kaiser & Partners, [email protected], 416-998-2258
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