A TD Financial Health Index survey has found that only a quarter of Canadians are “financially healthy” while 40% are struggling with some or all aspects of their finances.
The study also reported a growing gulf in financial literacy between Canadians. TD said that the survey reinforced the need to enhance financial education in the country.
"Most Canadians and Quebecers are still unsure about what to do, where to turn and even what questions to ask when it comes to seeking financial advice and information," said Sylvie Demers, Chair, Quebec Market, TD Bank Group.
Of the more than 10,000 Canadians surveyed by TD, working in partnership with Ipsos, 62% said they don’t know where to find financial advice, worsening their feelings of financial vulnerability. The study also found financially vulnerable people were more likely to manage their own money, while more financially healthy respondents tended to work with advisors.
A lack of financial well-being and financial literacy was linked to physical and mental health, with those classified as “financially vulnerable” scoring lower on health indices, especially measures of mental health.
Income was not the sole factor in people’s financial health, according to the study, which found subjects with high income and low debt in a state of financial vulnerability. Eighteen percent of individuals with a $150,000+ annual income had below-average financial health.
Women, LGBTQ+ people, and younger people reported higher levels of financial vulnerability and a lack of confidence in their ability to meet long-term savings goals. Boomers were the most financially secure demographic surveyed, while Quebec was found to be the “healthiest” province.
"Asking for help when it comes to money is a critical step towards financial confidence," said Émile Khayat, Senior Regional Manager, TD Wealth Financial Planning. "Let's remove the stigma around money conversations and tell Canadians and Quebecers that there are no dumb questions when it comes to your finances."
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