While the new Financial Anxiety Index allows us to better understand the present, it also gives us better information to build the future.
Posted at 6:00 a.m.
During Centraide’s many fundraising activities, I always mention that the pandemic has hit vulnerable populations the hardest. Social inequalities have widened in recent years and the runaway inflation we are experiencing at the moment does nothing to help matters. One in five Canadians is already depriving themselves of food to face inflation, we learned last week. The result for people in vulnerable situations: greater economic anxiety.
The “financial anxiety index” unveiled this week by Centraide and the firm Léger presents us, in these uncertain times, with concrete data on the sentiment of Quebecers with regard to inflation. It paints a worrying portrait, revealing in particular that 85% of Quebecers experience financial anxiety, from mild to extreme.
One of the most worrying situations in this index is the rate of financial anxiety revealed among young people aged 18 to 34; one in three fears not being able to pay for essential expenses.
On the one hand, we see on the ground that young people are not well prepared to manage their financial situation. On the other hand, we must make sure to keep them in school since there is a direct link between education and future income. The idea here is to give young people tools to ensure their educational and social success and thus contribute to breaking the cycle of poverty. They can count on a number of resources within community organizations, whether in terms of listening, assistance or referral services or even financial literacy.
Among the responses compiled in the survey, I was particularly shaken to find that people with functional limitations are among those most affected by the economic situation. They are concerned about their ability to find accessible and suitable housing and the fear of not having enough money for their basic needs and their retirement.
These individuals and their families make many sacrifices in terms of income, ability to be available for work, career impact, etc. When you’re a parent of a severely disabled child, for example, every day has surprises and schedule adjustments in store for you, whether it’s a work day or not.
Fortunately, several innovative initiatives are emerging, such as Finautonome, which works to improve the financial health and autonomy of people with disabilities and, you guessed it, their families. Disability Without Poverty, a pan-Canadian initiative by and for people with disabilities, is currently working with the federal government on the Canada Disability Benefit to ensure they have a decent minimum income. When the labor market is inaccessible for more than 20% of this population, as reminded us by Ex æquo, an organization for the promotion and defense of the rights of people with motor disabilities, these people must then turn to social programs that they would be available for work.
single parent families
Unsurprisingly, the index tells us that heads of single-parent families – four out of five of whom are women – have a significantly higher financial anxiety index. Beyond issues such as housing, these people experience stress at the idea of facing an unforeseen expense or having to think about their retirement, since the burden of the family budget rests entirely on their shoulders.
I regularly meet with leaders of organizations who tell me about the distress experienced by these families. Support exists thanks to the community sector, whether in terms of food (food donations, collective kitchens, group purchases) or housing (defence of rights, accompaniment), but also in the form of workshops. help with the budget and strategies to reduce your debts. This work is often done in the shadows, far from the recognition it deserves.
It is the combination of these effects that is currently causing so much distress, hence the importance of working on the causes of poverty and social exclusion.
A tool for the future
Measured twice a year for three years, the financial anxiety index will serve as a barometer of Quebecers’ feeling of economic security. It will allow us to assess our effectiveness, as a society, in supporting people in vulnerable situations, whether through our government programs or through actions such as those supported by Centraide.
This is a gesture that leads to a better common understanding of the issues. Let’s hope that it also acts as a call to all actors of change to work together, over the long term, in order to improve the daily lives of our fellow citizens in vulnerable situations.