It’s well-known that stress affects one’s physical and mental health and overall well-being. Yet it is less well-known that money problems are the number one cause of stress for Canadian employees today. According to the Health is Cool survey of physical and mental health (Desjardins Financial Security, 2008), 44% of Canadians say money problems are their number one stressor. Financial stress is the pressure or tension that is caused by personal, family, and other financial challenges.

There are many things that can lead Canadians to a place of financial stress especially in today’s economy, such as a lay-off, but there are also certain spending habits that can lead to unhealthy finances. Whatever the cause, the result is record high (and growing) consumer debt, as well as a decrease in the amount of money that Canadians are saving.

Financial stress can affect anyone and can impact all areas of a person’s life. It can have a negative effect on an individual, but also on the individual’s relationships with family members and friends. Personal money worries can spill over into the workplace, resulting in reduced quality and quantity of work. Financial stress has also been linked to gambling, substance abuse, and family violence (Mang, 2008).

Unmanaged stress and worry can have long-lasting effects on both mental and physical health. The effects of financial stress include feelings of inadequacy and despair, doubt or insecurity about the future, and worry about loss of control of financial affairs. These effects can increase feelings of powerlessness and may result in those people impacted by financial stress, avoiding or simply not using services that might be available to help.

In many cases, people with unmanaged financial stress eat poorly and do not get enough physical activity. In fact, 37% of Canadians did not take time off work when they experienced physical health problems related to stress, anxiety, or depression because they needed the income (Desjardins Financial Security, 2008).

There are some things that people can do to prevent or reduce the impact of financial stress, such as:

• Do not hide from personal financial stress.
• Be realistic and recognize that all stress, especially financial stress, can’t be completely eliminated.
• Try to recognize stress from financial overload early, as this can help you to take steps early enough to minimize the harmful effects.

Stress is Stress?

All the advice for dealing with other types of stress like eating well, getting enough sleep, being physically active, and talking and spending time with family or friends, applies to stress from financial concerns. Yet, in addition to these more traditional stress-reduction strategies, the tools needed to cope with the realities of financial stress may include professional support, such as credit counseling, and assistance in creating a realistic budget. Of course any type of stress that is causing us to have challenges in day to day living, should be followed up with a qualified health professional.

Earning a good salary does not always prevent money problems. Being smart and well-educated does not always prevent money problems. The reality is that financial stress can affect anyone. It is important to stay informed about your personal finances and to deal with your challenges as soon as possible.

KEY REFERENCES:

Desjardins Financial Security. (2008). Health is cool: Survey on Canadian attitudes towards physical and mental health. Toronto, ON: Author.

Mang, R.A. (2008, November 10). Be well! A special information series on wellness at home and in the workplace: Money and stress. Globe and Mail. Retrieved March 10, 2009 from http://www.theglobeandmail.com/partners/free/desjardins/bewell/stress.php