The majority of younger Canadians are feeling stressed about their financial situation, according to a new survey, while at the same time facing few job prospects, stagnating wages and high unemployment.
They’re also reporting social media is adding additional, unrealistic pressures.
And experts say that if left untreated, stress can lead to more severe mental and even physical health issues.
“There’s always been an element of ‘keeping up with the Joneses,’ but now you’re seeing it constantly through social media, digital advertising and algorithms that read data on our phone,” says Kaylie Tiessen, chief economist at the Canadian Shield Institute for Public Policy.
“Whether they’re influencers or friends and family — nobody’s posting the ‘grumpy’ picture. Maybe occasionally, but it’s not what you’re inundated with every day.”
A TD Bank survey asked more than 500 Gen Z Canadians (ages 18-28) about their financial well-being, and more than half identified as young professionals who have been in the workforce one to five years.
Fifty-three per cent of those surveyed said they felt compelled to maintain a successful image on social media, while nearly two in three (65 per cent) believed they were falling behind their peers financially.
Sixty-six per cent said they felt pressure to hit financial milestones like buying a home or building wealth by a certain age.
Statistics Canada reported in September that the gap continues to widen in Canada between the wealthiest and lowest income households, and that both younger age and lower income groups were growing their net worth and disposable income at a slower pace than wealthier and older Canadians.
The idea of people being motivated to meet or exceed the expectations and milestones of peers may not be new, but experts say there have been signs it is increasing feelings of “anxiety” among younger groups in recent decades.
“One thing that we’ve seen over the last decade or two is an increase in anxiety in children and young adults and also an increase in ‘perfectionism’ — this desire to perform at a higher level and have higher standards and be concerned about coming across as less than those standards. So that doesn’t surprise me at all, that it is being found in TD’s research,” says psychology professor Dr. Martin Antony at Toronto Metropolitan University.
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“Most of us present ourselves in the best possible light online. We know that we all tend to compare ourselves to other people. And if you’re comparing yourself to other people who always seem better than you, we call those ‘upward social comparisons.’”
According to the World Health Organization, half of all mental health disorders in adulthood start by age 18, and most cases are undetected and untreated.
Canada’s unemployment rate topped seven per cent in September, which continues to be much higher for youth categories, according to Statistics Canada.
The agency notes that unemployment for students was more than 17 per cent in September — up three per cent from a year prior.
A tough job market overall may be even harder for recent graduates to break into as businesses pull back on expansion plans amid the trade war and impacts from U.S. tariff policies. Combined with the heightened cost of living, including for housing and food, younger Canadians are reportedly struggling to make ends meet.
“Looking at young workers, they have fewer job opportunities. So the unemployment rate is the highest it’s been in the last 25 years outside of the pandemic or the Great Recession — we’re in crisis mode for this group,” says Tiessen.
“Overall fewer jobs, fewer hours and less pay means that they are really struggling to get by.”
Nearly half of Gen Z (47 per cent) told the TD survey the cost of living was their biggest barrier to reaching their financial goals, and more than a third (36 per cent) said their current income isn’t enough to get ahead.
Meanwhile, two in three (64 per cent) of Gen Z said they experience financial stress multiple times a week — more than any other generation (Millennials: 55 per cent, Gen X: 42 per cent and Boomers: 27 per cent).
Financial experts believe what sets Gen Z apart from other categories, other than their age, is how social media dials up the pressure to reach certain milestones that may not be realistic given some economic challenges — especially those faced by younger Canadians.
“It’s the pressure of ‘having it all together’ in an uncertain economy with rising costs,” says Sumaiya Bhula, a senior manager at TD Bank Group.
“Social media really amplifies stress beyond traditional financial concerns where they (Gen Z) are really feeling the weight from their peers, family, and online comparisons. Gen Z is, unfortunately, feeling that much more anxiety to keep up with what they’re seeing online, which may not be the reality of a lot of individuals.“
The cost of living continues to rise, with August’s reading on consumer prices for goods and services increasing by nearly two per cent. Although the Bank of Canada believes this may be a relatively good signal for now, it adds that the tariff outlook means it remains “uncertain,” and there is still a significant risk of potential price spikes.
A separate report from the federal government on housing affordability highlighted how lower income households are “struggling to have their basic housing needs met.”
Antony says that “stress is really a risk factor” for some of these younger Canadians reporting financial struggles, which can lead to more severe health issues if untreated.
“Stress is correlated with various kinds of mental health issues like anxiety, depression, eating disorders and substance use and all kinds of emotional and behavioral issues. Stress has also been linked to lots of different physical issues like high blood pressure, headaches, and even cancer and heart disease,” says Antony.
“I don’t want to say that anyone who’s experiencing these stresses is going to have any or all of those problems, but their risk is higher of developing those kinds of problems if the stresses continue over long periods and people don’t have the tools to deal with those stresses.”
Tools to manage stress may include “various strategies” to address the health risks, in addition to financial strategies that could help younger Canadians find some balance in their lives.
“There are various strategies that we can use that involve learning strategies for solving problems, improving chances of getting jobs, and for managing anxiety and stress. Things like mindfulness meditation and relaxation strategies, social support and exercise,” says Antony.
Working with financial experts can also help Canadians, including Gen Z, to manage their savings, income and budgeting no matter their economic situation.
“Start young, and start small — even if it’s $20 a month. As you’re going through those years trying to find your dream job, or you’re trying to travel, or you have goals and aspirations, it’s really starting young which will help alleviate the anxiety and help you build your financial plan,” says Bhula.
“It’s just building that habit so you feel financially secure and have a peace of mind.“
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