Canadians Seek Financial Stability: Four Steps to Take Control
A recent survey conducted by Fig Financial, a Canadian online loan provider, reveals that a staggering 84% of Canadians currently carry some form of debt. The survey highlights a growing concern, with one in seven individuals expressing uncertainty about their ability to pay off their financial obligations. Despite the challenges, there is a positive trend emerging: more Canadians are willing to engage in conversations about their financial struggles.
Historically, personal finance has been a taboo subject, especially in romantic relationships. The Fig survey indicates that a significant 39% of respondents in long-term relationships find discussing sex more uncomfortable than money. Only 28% reported that finances are equally difficult to discuss. Furthermore, 94% of Canadians believe that financial challenges should be more openly addressed.
The data shows that financial worries affect many Canadians, with 39% reporting that their financial concerns have caused sleepless nights. Additionally, 34% of respondents said they felt hopeless about their financial situations in the past year. To address these issues, Francois Coté, CEO of Fig Financial, emphasizes the need for open dialogue. “Money has become more than a financial tool; it’s a reflection of how people see themselves,” he stated. “True financial well-being isn’t just about having more; it’s about feeling secure, informed, and unashamed of where you are.”
Four Steps to Financial Control
For those looking to manage their financial stress, especially within romantic partnerships, there are four key strategies to consider.
1. Discuss Finances with Your Partner
Many individuals feel ashamed to talk about their financial struggles due to the stigma surrounding the topic. In romantic relationships, financial issues can significantly impact the stability and future of the partnership. The survey revealed that 58% of Canadians consider financial infidelity as upsetting as romantic infidelity. Furthermore, 55% of Canadians with debt view it as a red flag, leading to 37% of men questioning their self-worth due to financial issues.
Addressing financial matters openly with a partner can foster teamwork in overcoming challenges. About 94% of respondents believe that discussing financial struggles should be more socially acceptable. “At Fig, we’re urging Canadians to break the silence around debt,” Coté adds. “Open, honest conversations are the foundation for financial confidence.”
2. Save for Emergencies
The survey indicates that 45% of Canadians believe a single unexpected expense could derail their finances, with 57% of Millennials stating such an expense could financially cripple them. Additionally, 47% of respondents indicated that a $10,000 emergency would put them into debt, while 32% believe a $5,000 emergency would have the same effect.
Given these figures, establishing a financial safety net is crucial. While it may be challenging to set aside funds, prioritizing emergency savings over unnecessary expenditures can provide significant financial relief.
3. Explore Alternatives to Traditional Banking
Trust in banks has diminished over the past five years, with 31% of Canadians expressing decreased confidence in traditional financial institutions. This shift has led many to consider fintech companies like Fig, which often provide more personalized and transparent financial services. Before making financial decisions, individuals should conduct thorough research to find options that align with their needs.
4. Regularly Monitor Finances
An “out of sight, out of mind” approach to finances can lead to detrimental outcomes. Many people avoid checking their bank accounts, and the convenience of payment applications exacerbates the issue. The survey found that 6 in 10 Canadians feel that modern payment tools and one-click checkouts increase their susceptibility to debt. Regularly reviewing finances is essential for managing debt and preventing overspending.
As financial concerns become more prevalent, the need for open discussions and proactive financial management is clear. By following these four steps, Canadians can take significant strides toward achieving financial stability and reducing the stigma associated with discussing money matters.
