AI and social media are frequently chosen, especially among younger Canadians
More Canadians sought financial guidance from AI tools last year than have ever walked through the door of a free or low-cost non-profit counselling service.
That’s according to new data that highlights a widening gap between where people look for help and where the most reliable support actually exists.
Alberta-based non-profit credit counselling agency Money Mentors has published its survey conducted in partnership with Angus Reid, which found that 15% of Canadians used AI tools including ChatGPT, Claude or Gemini for financial guidance in the past 12 months.
Only 6% have ever used a non-profit financial counselling or debt support service despite those services being free or low-cost with more than half of survey respondents saying they were not even aware such services existed before being asked.
Nearly one third of respondents turned to some form of online source for financial advice in the past year, with social media platforms, AI tools and podcasts or news articles each cited by roughly equal shares of respondents.
The pattern is most pronounced among younger Canadians with 47% of those aged 18 to 34 seeking financial advice online, versus just 17% of those aged 55 and older. Among Gen Z specifically, 37% used social media and 22% used AI tools for financial guidance, the highest rates of any age group.
The survey probed why Canadians are gravitating toward online sources despite the continued dominance of professional trust.
Professionals are trusted
Nearly three quarters of respondents said they trust a bank, credit union or licensed financial professional for advice.
But when asked what draws them to digital channels, 69% of online advice users said speed was the primary factor, 47% said they prefer to educate themselves before engaging a professional, and 36% said online content feels more relatable or easier to understand.
About 27% cited the ability to access information anonymously, and 23% said they valued being able to get guidance without feeling judged.
Among Canadians who used online financial advice, 34% said they did not want to feel pressured by a professional, and 27% said they did not seek professional help because they did not think their situation was serious enough.
"The most concerning findings in this report aren't that Canadians are using AI or social media; it's that more than one in four didn't reach out for professional help because they didn't think their situation was serious enough," said Stacy Yanchuk Oleksy, CEO of Money Mentors. "We see this every day. By the time people come to us, they've often been carrying financial stress along for months or years. Online research can be a starting point, but it shouldn't be the final word on debt, credit or investing. Free, accredited help exists in every province. The earlier people reach out, the more options they have."
Acting on advice
Among those who acted on online financial advice, 37% said it influenced savings decisions related to TFSAs, RRSPs or emergency funds, and another 37% said it shaped investment choices including stocks, ETFs or cryptocurrency.
Budgeting decisions were affected for 28%, debt management for 23%, and credit applications for 18%. While 56% of those users reported a positive outcome, 26% said the advice had no real impact, and 16% said it was too early to tell.
Money Mentors points to the Orderly Payment of Debts program as one underutilized resource available to Canadians carrying unsecured debt. The federally recognized program allows individuals to consolidate debt into a single monthly payment with interest reduced or eliminated, without resorting to bankruptcy or a consumer proposal.
