Money stress can affect your health. Here’s how you can ease the pressure

When Toronto psychotherapist Dr. Renee Raymond starts working with new clients, mental health concerns such as anxiousness, family tensions and feelings of isolation are often at the top of their list. When she digs deeper, however, she often finds a common denominator: financial stress.

The conversation may start in one place, she says, but “when financial issues are asked about more explicitly, the floodgates tend to open.”

In fact, FP Canada’s 2025 Financial Stress Index recently revealed that 44 per cent of Canadians cited money as their primary source of stress. Sixty-eight per cent said the high cost of living was the main obstacle from feeling like they’re in control of their finances, while 52 per cent cited a fear of making wrong financial decisions.

Worrying about money, regardless of income bracket, can lead to all kinds of self-defeating behaviours, Dr. Raymond says – such as feeling disconnected at work, feelings of shame and social withdrawal and changes in eating habits. These can coincide with a decline in overall healthy behaviours, like regular exercise or dental checkups, that support well-being and longevity.

According to data from the Financial Consumer Agency of Canada, individuals experiencing financial stress are twice as likely to report poor overall health and four times more likely to suffer from sleep disturbances, headaches and serious illnesses such as heart disease. They’re also more likely to experience mental-health challenges, including anxiety and depression.

Research shows that long-term financial planning can help reduce this stress before it escalates – 60 per cent of FP Canada survey respondents reported feeling more optimistic about their financial futures after working with a financial professional. But many Canadians are hesitant to take that step. “People tend to focus on what’s in front of them first, especially if longer-term planning feels daunting,” Dr. Raymond says. “There’s also uncertainty about what financial planning looks like.”

To reverse this trend, Jenn Ruso, head of residential lending at Manulife Bank, says Canadians might benefit from a shift in how they think about long-term financial planning. “Just as people routinely seek guidance from health-care providers, like fitness trainers and nutritionists, to help take charge of their health, financial advisors and mortgage brokers can be seen as crucial partners in managing their financial well-being.”

“Advisors and brokers can guide individuals through the right questions and lead them to the right tools, empowering them to take control of their financial future,” she says. “The research clearly shows that financial health is deeply intertwined with overall health, and adopting a proactive approach is essential for supporting both.”

Breaking the cycle of financial anxiety

Uncertainty is one of the top causes of financial anxiety among Canadians, Ruso says, from job insecurity to the economy, to housing prices. “Canadians are asking themselves, what does it all mean to me, as someone trying to support my family and build a future?”

Ruso notes that being stuck in limbo can lead to a feeling of decision paralysis, which negatively impacts mental health. “People can’t make out the meaning of what to do next and they end up in a constant stream of questions about the future. That mental stress can spiral and progressively become worse.”

She believes breaking this cycle begins with education, support and encouraging a change in mindset aimed at taking the fear out of financial planning. “Sometimes, you need an outside perspective – whether from a financial advisor or a mortgage broker – that can take fear out of the equation, relieve anxiety and build confidence around how to make financial decisions that are right for you,” she says.

Building confidence, flexibility and longevity

Dr. Raymond says she often advises her clients to tackle financial stressors one step at a time, and to try to increase their comfort talking about money. But for those looking to connect with an advisor, even that first email or call can be a source of anxiety.

Asking yourself a few simple questions beforehand can help you feel more in control, says Kerry Reinke, head of specialized lending at Manulife Bank.

“Spend some time seeing if you can define your goals, long and short term,” Reinke says. Making spending decisions without any kind of framework can end up being a major source of stress, he adds. When you have clear goals, you have something to measure each spending decision against. “The feeling you’re left with is that you’re contributing and putting your energy and efforts into achieving your goals first.”

Once your goals are defined, an advisor can help build a plan that realizes them, with individual advice and product recommendations that are specific to your situation, and check ins to help keep you on track.

“Advice shouldn’t feel like it’s off-the-shelf, or one-size-fits-all,” says Reinke. “All our tools are developed around enabling an advisor to build and execute a financial plan specific to you — so you’re not on your own to figure it out.”

Ruso points to offerings like Manulife One, an all-in-one mortgage and banking solution built to reflect that very principle. “We think of it not as a product but a proactive strategy for financial wellness that combines bank accounts, savings, income and debt to give clients the flexibility to increase or decrease mortgage payments, reduce interest costs and access home equity when needed,” she says. “It’s this kind of flexibility that allows you to feel more in control.”

As Canadians navigate the complex relationship between money and health, it’s crucial to remember that support is available, Ruso says. “By being proactive and seeking guidance from a financial advisor or mortgage broker, individuals can take significant steps towards reducing stress and enhancing both their financial and personal health.”

The information in this article is not to be relied on for medical advice for specific situations. Individual circumstances may vary. Always speak to a medical professional for medical advice.

Advertising feature produced by Globe Content Studio with Manulife Canada. The Globe’s editorial department was not involved.