How to Successfully Manage Financial Stress During COVID-19
3 Ways to Overcome It & Be More at Peace
“People had to come up with some other way to pay the bills during the pandemic, including using emergency savings, paying for more on their credit card, and stopping their retirement plan savings contributions. Due to these factors, the financial impact of the pandemic will be felt well into the future.”
– Manulife 2020 Financial Stress Survey
Not sure if you will be able to pay your hydro bill next month? Does seeing your co-workers, friends and family losing their jobs due to the pandemic give you sleepless nights and put extra pressure on your body and soul?
Money problems are a heavy burden to bear, especially when there’s not enough of it. Financial stress- now increased by the COVID-19 pandemic, deepens the stress level and leads to other mental health problems such as anxiety and depression in many Canadians.
Financial stress is feeling a loss of control over your finances, and it can be caused by high levels of debt, a significant decrease in income, loss of work, unexpected expenses or a combination of multiple factors.
According to the Manulife 2020 Financial Stress Survey, the two main factors keeping Canadians up at night is financial stress and its impact on retirement savings. According to the survey,
• over half of the participants had to come up with other ways to pay the bills during the pandemic. These include; using emergency savings, paying for more on their credit card, and stopping their retirement plan contributions. Because of these reasons, the financial impact of the pandemic will be felt well into the future.
• people with lower household incomes have been more stressed in general during the pandemic and have felt significant financial stress before and during the pandemic than others.
• 15% of the respondents stopped contributing to their retirement plan savings to cope with the financial strain of the pandemic.
Stress isn’t something we can turn on and off easily. Naturally, we bring it into our family lives and work. However, there are ways we can take charge of the situation and feel more in control of our mental and financial health. These include;
- caring for our mental health.
- taking control of our personal finances.
- utilizing employer-provided wellness programs.
Financial stress- now increased by the COVID-19 pandemic, deepens the stress level and leads to other mental health problems such as anxiety & depression in many Canadians.
Taking Care Mental Health During COVID
Feeling overwhelmed by money worries? Identifying what you are feeling is the first step is to understand that you might be suffering from financial stress. Once you accept your emotions, you will be more assertive in dealing with any anxiety and depression, which will give you more control. Seeking help and being willing to talk about your finances is the first step to improve it. Opening up to someone you trust about your financial stress can help you better understand thoughts and emotions. And in the current economic climate, there is a good chance the person you’re talking to will be able to relate. If you would like to start your journey and review some resources, please start with these free, educational, online sources.
Prosper Canada – Prosper Canada has many free resources that you
can take advantage of. Especially,“ Managing in Though Times: COVID-19
Toolkit” offers information on Financial Coaching, Credit Card Debt,
Budgeting, Spending Tracker and more…
Click here and download your free copy.
Emotionally stressed woman not feeling well
Here To Help – You can access various screening tests, info sheets,
workbooks for self-improvement. Here to Help BC also can help you
with finding resources, services, programs, or other types of supports
in BC. Click here to contact Here to Help BC.
Mental Health Commission – Click and access various webinars, online
courses specifically designed for adults, youth and seniors.
Click here and download your free copy
Taking Care Personal Finances
Whatever your circumstances are, there are ways to get through these challenging times. If you are stressed about your finances, it means you may need to review your budget, increase your income, cut down unnecessary expenses and look for ways to reduce your debt. It can be daunting to examine your spending and changing your spending habits; however, revising and building a realistic household budget, allocating your current and future income will give you a sense of control and ease your stress.
If you lost your job and don’t have other resources of regular income, here are some crucial steps you need to take; Apply for Employment Insurance(EI) benefits and report your unemployment to the government Apply for other financial assistance programs offered by federal and provincial governments
- For more information on Federal Government benefits programs, including Canada Recovery Benefit, mortgage payment deferral, and other programs
for Indigenous peoples, please click here and find out if you are eligible. - For more information on provincial support, including BC Recovery Benefit (deadline is June 30, 2021), ICBC payment deferral, BC Hydro bill
payment support and more, please click here
Utilizing Employer-provided Wellness Programs
Financial wellness programs offer employees a wide variety of financial education workshops. They connect employees with experienced professionals and licensed financial advisors to better understand how to overcome day-to-day money issues, credit card debt, personal finance, etc.
Build Resiliency with EFAP Programs
Employee and Family Assistance Programs(EFAP) provide confidential, short-term counselling and referral services for employees who would like to resolve personal or work-related problems. These programs are employer-sponsored services, and they offer assessment, counselling, coaching, information and training to employees and their dependents. If you are experiencing financial stress and have EFAP embedded in your group benefits plan, you can get professional consultation where you can discuss;
- Budgeting.
- Credit & Debt Management.
- Retirement Planning.
- Financial implications due to a separation or divorce.
- Bankruptcy, and more.
Take Advantage of Financial Wellness Benefits
Many workplaces offer seminars or lunchtime sessions on physical activity, nutritional intake, healthy cooking and stress management. Why not have such an essential educational piece on personal finances? At Calla Financial Services, we believe financial wellness is vital for our overall well-being. Therefore we offer free education sessions for the plan members participating in a retirement plan.
These sessions are performed in a group setting as well as private sessions. Perhaps you even had a chance to join us before! Due to COVID-19, we have moved our education sessions into a secure virtual platform; however, we are still committed to preparing you for your golden years and give you a deep understanding of your existing retirement plan. During one-on-one meetings, we will usually review your plan and discuss the investment strategy, its performance, death benefits, re-examine your risk tolerance and more.
Even if you don’t have access to an employer supported retirement plan, we can help you design your personal safety net. If you would like to know more about the group retirement plans and individual saving options, please contact our knowledgeable experts:
Feeling out of control of our finances can be stressful. Don’t avoid the problem! Go after it! Have tough conversations, put the time aside, take necessary
steps and stay determined. However, while you are doing these things, don’t forget to engage in self-care and find positive things to keep you motivated and focused.
