Expenses continue to outpace income for most Canadian households: report

The financial vulnerability of low-income Canadians continues to grow, according to an intelligence memo recently released by the Financial Resilience Institute in partnership with Coast Capital.

The report found that 77 per cent of Canadian residents, regardless of income, experienced financial vulnerability and that one-third of households relied on side hustles over the last 12 months.

“Policymakers, employers, and others must focus on expanding access to employment and economic mobility to help strengthen financial resilience and improve overall well-being, particularly for vulnerable groups facing barriers,” said Eloise Duncan, the institute’s founder and CEO.

Eighty-four per cent of people surveyed for the report also said that the cost of living has outpaced their household income, while nearly one in five Canadians reported their household income varies significantly or quite significantly month-to-month. 

“The fact that people in Canada are grappling with increasingly difficult financial circumstances isn’t surprising,” said Maureen Young, vice president of social purpose at Coast Capital.

However, she added detailed data tells a broader story about who is most impacted and how to assist them.

For example, 32 per cent of Canadians reported they cannot meet essential expenses, even while supplementing their income with side gigs or secondary employment. This same segment of the population is also disproportionately affected by money worries, the report found.

Nearly 80 per cent of respondents said financial stress negatively impacted their mental health.

Women and people living with a disability were also found to possess less financial resilience than non-disabled men. 

The Institute has been tracking the financial resilience gender gap between women and men in Canada for several years and said that as of June of this year, men had a mean financial resilience score six per cent higher than women.

“Everyone has the right to access economic opportunities that support financial health, resilience, and well-being,” the memo concludes. “Economic and financial inclusion are vital for a thriving society, empowering individuals to earn a living that reflects their talents, skills, and ambitions.”