Let’s Break The Stigma Around Money
Many people living with a mental illness report that negative stereotypes about mental illness, and the resulting potential for discrimination, cause them more suffering than the illness itself. As a result, two-thirds of those suffering from mental illness are too afraid to seek the help that they need.
Mental illness affects people of all ages and from all walks of life. It can take many forms, including depression, anxiety and schizophrenia. Most individuals find ways to live with their illnesses but how they are treated by others often proves to be more of a challenge than the illness itself.
As another successful Bell Let’s Talk Day draws to a close, breaking stigmas and changing the conversation is top of mind for many Canadians.
Your finances are a key building block to your overall life goals. When we are on a solid financial footing, the rest of our lives become easier.
Unfortunately, one of the largest causes of stress and anxiety for most people is around money and their financial situation.
According to a study commissioned by the Financial Planning Standards Council, stress caused by money isn’t getting any better. This study was performed in 2014 and updated in May of 2018. This study did not include participants from Quebec.
- 41% of respondents indicated money as their largest stressor, which was the #1 answer.
- 41% was also the score in the 2014 survey, and it was also the #1 answer
- Other potential responses included health (23%, up from 19%), work (22%), relationships (14%, down from 17%)
Embarrassment & Keeping up with the Joneses
An interesting metric from the study was whether or not people felt pressured to keep up with their peers’ financial status. This metric increased since the 2014 survey from 20% to 23% in the most recent survey. This rate was most pronounced within the 18-34 age bracket at 52%. This is hardly surprising given this demographic’s use of social media to share their best selves with each other and the world.
“Too many people spend money they earned… to buy things they don’t want… to impress people that they don’t like.” –Will Rogers
Adding to the stigma is that Canadians tend to be embarrassed when it comes to money. They seem to think that they might be the only ones making financial mistakes.
The FPSC study found that 51% of Canadians are either always or sometimes embarrassed about lacking control around their current financial situation, up from 44% in 2014. Similar to the pressure measure above, this was most prevalent in the age bracket of 18-34 which sat at 70%. The embarrassment rate also declined as the age of the respondent increased.
However, given the levels of consumer debt in Canada, this embarrassment may not be warranted. You are not alone in your concern around your money decisions.
Our financial planning services tend to cater more toward those with manageable debt and assets that they need to manage. Their stress tends to come from not knowing if they will have enough for retirement, or not knowing how much they need to save for their children’s education, etc. These are examples of very common concerns experienced by the typical Canadian.
However, there is a significant portion of the population that live paycheck to paycheck and have sizable concerns about their debt.
BDO published their first inaugural affordability index and found that 3 in 4 Canadians have personal debt and that the average non-mortgage personal debt is nearly $20,000 per person. This would include car loans, lines of credit, credit cards, etc. This means that the average Canadian couple carries nearly $40,000 in non-mortgage debt. These are alarming numbers.
For the segment of the population in debt trouble, the situation can snowball quickly. High-interest debt, such as payday loans or credit cards, are a primary cause of the growing debt problem. High-interest debt payments can often have little-to-no impact on reducing the balance owing.
Compounding this problem is that the social stigma around money makes it difficult for people to discuss these issues openly, even with finance professionals.
The debt carriers often don’t know where to turn.
They don’t think that there is a light at the end of the tunnel.
But there is.
Feeling like you need help is okay.
Most people need help when it comes to their finances. For those that feel like they need help with their debt, there is a solution. Credit Counselling Canada (CCC) is the national association of not-for-profit credit counselling agencies that work provincially, regionally and locally throughout Canada. Only not-for-profit or charitable organizations are accepted as association members according to their website. One such member organization is Credit Counseling Society (CCS).
These organizations can help those with debt issues develop a plan to tackle their money issues head-on. CCS has a summary of their recommended approach to dealing with debt stress and tackling your debt problem.
This is only one example of the CCC member organizations, and anyone of their member organizations will be able to assist you.
“You must gain control over your money or the lack of it will forever control you.” –Dave Ramsey
The Brass Tacks
Studies show that money is the #1 cause of stress for Canadians. Social stigma prevents us from speaking openly about our financial situations, as we often feel pressured to keep up with the lifestyles of our peers. This is only exacerbated in the social media era.
As money anxiety grows, people need to be aware of their options. For those with significant debt, a non-profit member organization from Credit Counselling Canada will assist you in tackling your debt challenges. For those with manageable debt and assets to manage, fee-only financial planners can ensure that you receive unprejudiced advice to help you establish a solid financial footing, take control of your finances and reduce your stress.
Don’t let social stigma around money prevent you from addressing your challenges. You are not alone. There is light at the end of the tunnel.
In case of an emergency, please call 911 for immediate help.