Managing Financial Stress Amid Pandemic-Related Challenges

For many, this has been a time of increased stress due to pandemic-related challenges and economic uncertainty. Throw existing financial worries into the mix and you have a recipe for increased stress, decreased productivity, and a heightened sense of dis-ease. 

November is commonly known as Financial Literacy Month where organizations across Canada are encouraged by the Financial Consumer Agency of Canada (FCAC) to host events and share their resources to help employees and fellow Canadians understand their finances. This includes criteria such as: money and debt management, saving for the future and understanding one’s financial rights and responsibilities. 

While there are a host of resources available in the Canadian Financial Literacy Database, employers may benefit more from highlighting tips that help employees learn to cope with financial stress.

Monetary challenges can make one feel isolated and alone, but research reveals that many Canadians site money worries as their number one source of stress. 

Additionally, financial stress doesn’t discriminate. It affects people of all income levels and age groups. In fact, the FCAC shares the 48 per cent of Canadians say they’ve lost sleep because of financial worries and 44 per cent believe it would be difficult to meet their financial obligations if their pay was late. 

Sources of financial stress include: dealing with unexpected expenses, job loss or a layoff, dealing with high debt levels, managing household expenses, living pay cheque to pay cheque, and struggling to save for short or long-term goals.

The following are some basic tips that anyone can use to strengthen their financial resiliency:

1. Don’t go it alone. Connect with a trusted friend to share your situation as much as you feel comfortable. Source the contact information for your employer’s confidential Employee Assistance Provider or a free community counselling service or government agency.
2. Create a realistic personal budget. Set aside time to review the money coming in and going out of your bank account. The more you’re on top of the reality of your cash flow, the better shape you’ll be in to take the next best step in managing your financial stress.
3. Practice no cost self care. It might seem difficult to practice self care when you’re not feeling in control of your finances. There are plenty of free ways to establish a low-stress lifestyle. Consider creating a list of 5 minute techniques to adopt when you feel stressed. This list could include: meditation, breathing techniques, exercise (walking, Yoga, stretching, dancing) setting healthy boundaries (learning to say “no”), laughing and listening to music.
4. Don’t hide from debt. The problem won’t go away if you ignore it. It’s important to seek help so that you can take the necessary steps to understand the debt cycle and work your way out of it. There are many non-profit credit counselling organizations that help thousands of Canadians every month. The service is confidential and available over the phone. The website, mymoneycoach.ca offers a list of Canadian Non-Profit Credit Counselling Services with positive reviews and proven track records. Credit Canada is one such resource that offers free debt counselling.

Reducing financial stress starts with evaluating one’s current situation and getting the right help to feel a greater sense of control and develop a sustainable plan.

There are also many ways for employers to offer support and encouragement.

Simple tactics include: featuring free debt management website resources, running (financial) stress management virtual courses, and offering access to confidential finance and/or mental health professionals.

We know this is an important and concerning topic for employers wishing to reduce employee stress and financial anxiety. Please contact us with your questions and let’s work together and create solutions that work best for you and your organization.