According to FP Canada’s 2024 Financial Stress Index, 44% of respondents named finances as their biggest stressor.
That’s a noticeable increase from previous years. Why?
The main culprits aren’t shocking – it’s thanks to rising grocery prices, inflation, and housing costs, which hit particularly hard for Canadians under 35. Adding fuel to the fire is the phenomenon of "money dysmorphia," a term describing the irrational insecurity about one's financial status, heavily influenced by social media.
You or someone you know potentially can fall into the trap of endless scrolling through curated feeds of luxury lifestyles. For some people, this behavior leans on dangerous, creating feelings of inadequacy, even if they are financially stable. It’s no wonder experts recommend setting clear financial goals AND being mindful of social media use to avoid falling into this comparison trap.
Here’s what we know for sure: managing financial anxiety starts with recognizing that social media often portrays an unrealistic snapshot of others' lives. Understanding that these highlight reels do not reflect reality can help reduce feelings of inadequacy. Talking openly about financial concerns with trusted friends or loved ones and seeking advice from financial planners can provide much-needed reassurance and clarity. Setting and defining personal financial goals, such as through cash-flow exercises and automated savings, empowers individuals to make informed decisions and stay focused on their financial priorities.
Social media won’t be going anywhere anytime soon, but better mental health is attainable. By bridging the gap between perceived and actual financial realities, young Canadians can cultivate a healthier relationship with money and achieve a sense of financial well-being.
PFG’s Life Print FORMula aligns with these findings by emphasizing the importance of financial organization, reflection, and milestones. By organizing finances, reflecting on personal spending values, and setting measurable milestones, individuals can combat financial stress and money dysmorphia. PFG’s approach encourages clients to create realistic financial goals, automate savings, and seek professional advice, ensuring a balanced and confident financial outlook. This method not only aids in achieving financial stability but also supports mental well-being – which is an authentic reflection of our undying commitment to holistic financial health.
Because a life well planned is a life well lived.
