Cost of Living Stress: Why So Many People Are Struggling to Keep Up
You stand in the grocery aisle doing math in your head. You put the name-brand cereal back, then the berries. At the checkout, the total is still higher than you expected, and you feel a familiar knot in your stomach. You have a job. You are careful. You are doing everything you were told to do. So why does it feel like you are falling further behind every month?
If this sounds familiar, you are far from alone. Financial stress has become one of the most common threads running through conversations in therapy rooms across Canada. This post explores why cost of living stress affects mental health so deeply, why so many people are struggling right now, and what can help you cope when so much feels outside your control.
It is not just you
The numbers reflect what many people feel. In a 2024 Statistics Canada survey, 45% of Canadians reported that rising prices were greatly affecting their ability to meet day-to-day expenses, up from 33% two years earlier (Statistics Canada, 2024). By the second quarter of 2025, only about 24% of Canadians said it was easy or very easy for their household to meet its financial needs, compared with nearly 48% in 2021 (Statistics Canada, n.d.).
In other words, the share of people who feel financially comfortable roughly halved in four years. Struggling to keep up is not a personal failing when it is happening to so many people at once. It reflects real pressures on housing, food, transportation, and everyday costs.
Why money stress hits so hard
Financial stress is not only about numbers. It touches some of our most basic needs: safety, shelter, food, and the ability to care for the people we love. When those feel threatened, the body responds as it would to any threat, with a stress response designed for short bursts of danger. The problem is that financial pressure rarely ends quickly. It hums in the background for months or years, and chronic stress takes a toll on sleep, mood, concentration, and physical health.
Money worries also have a way of taking over the mind. In a well-known set of studies, Mani and colleagues (2013) found that prompting people to think about financial pressures reduced their performance on reasoning tasks, particularly among those with lower incomes. The researchers argued that scarcity captures attention and leaves less mental space for everything else. Later studies have not always replicated these effects, so the size of the effect remains debated, but the idea resonates with many people: when you are constantly calculating how to make it to payday, it becomes harder to plan, rest, or think clearly.
Shame adds another layer. Many people believe they should be able to manage, and they blame themselves for not keeping up. That shame often leads to secrecy, which cuts people off from the support and practical help that could ease the burden.
The link between financial strain and mental health
Research consistently finds strong links between financial difficulty and mental health. A meta-analysis of 65 studies found that people with unsecured debt were about three times more likely to have a mental health condition and nearly three times more likely to experience depression than those without debt (Richardson et al., 2013). The authors noted that most of the studies captured a single point in time, so they could not establish which came first.
The relationship likely runs in both directions. Financial strain can contribute to anxiety and depression, and mental health difficulties can make it harder to work, manage money, or seek help. Understanding this cycle can reduce self-blame and point toward where support might help most.
Why so many people are suffering right now
Several pressures tend to pile up at once. Essential costs such as housing and groceries take up a larger share of many budgets, which leaves less room for anything unexpected. Many people have delayed life milestones such as buying a home, moving out, or starting a family, and that can bring a quiet grief for the life they expected. Some people support children and ageing parents at the same time. Social media adds comparison, showing curated versions of other people's lives that can make your own struggles feel like a private failure.
Common advice to "just budget better" can also sting. Budgeting skills can help, but no spreadsheet solves a gap between income and the real cost of living. Recognizing the structural side of the problem does not remove your ability to act. It simply places the weight where it belongs.
How to cope when so much is outside your control
There is no single fix, but a few approaches tend to help both your finances and your wellbeing.
Separate what you can control from what you cannot. Prices and interest rates sit outside your control. How you respond, who you reach out to, and which small steps you take sit within it. Naming that difference can ease a sense of helplessness.
Contain the worry. Rather than letting money thoughts run all day, some people find it helpful to set a regular, time-limited "money check-in" to review accounts and make decisions. Outside that window, when worries arise, you can remind yourself they have a place and time.
Break the secrecy. Talking with a partner, trusted friend, or professional can reduce shame and open doors to practical help. Money conflict is common in couples, and talking about it with curiosity rather than blame can protect the relationship.
Use the supports that exist. Non-profit credit counselling services can help you review debt and options. Calling 2-1-1, or visiting 211.ca, can connect you with local programs for food, housing, and financial assistance. If you have workplace benefits or an Employee and Family Assistance Program, check what they cover, including counselling.
Protect the basics and the small joys. Sleep, movement, time outdoors, and low-cost connection with others will not change your bank balance, but they help your nervous system cope with ongoing stress.
Notice warning signs. If you find yourself turning to alcohol, gambling, or other ways of escaping more often, or if you feel hopeless or trapped, reach out for support sooner rather than later.
How therapy can help
Therapy cannot pay the bills, and it is important to say that plainly. It can, however, help you carry financial stress with less anxiety, shame, and isolation. A therapist can help you manage worry and sleep difficulties, untangle beliefs about money that you may have absorbed growing up, navigate conflict with a partner, and make decisions from a steadier place. For people whose financial stress sits alongside depression, anxiety, or past trauma, therapy can address those concerns directly.
If cost is a barrier, it is worth checking your extended health benefits, since many plans cover psychotherapy with registered professionals.
Reflection questions worth exploring
These prompts are best explored with a professional or a trusted person, rather than used to reach conclusions on your own.
Where do I feel financial stress in my body, and when is it strongest?
What messages about money did I learn growing up, and how do they shape how I feel now?
Who knows how much I am struggling, and what stops me from telling others?
What is one thing within my control this week, however small?
What helps me feel steady, even for a moment, when money worries rise?
Support at Vive Wellness Therapy
At Vive Wellness Therapy, we know that financial pressure affects every part of life, from sleep and relationships to how you see yourself. You do not have to carry that weight alone or in silence. If you would like support in managing cost of living stress, we would be glad to hear from you whenever you feel ready.
References
Mani, A., Mullainathan, S., Shafir, E., & Zhao, J. (2013). Poverty impedes cognitive function. Science, 341(6149), 976–980. https://doi.org/10.1126/science.1238041
Richardson, T., Elliott, P., & Roberts, R. (2013). The relationship between personal unsecured debt and mental and physical health: A systematic review and meta-analysis. Clinical Psychology Review, 33(8), 1148–1162. https://doi.org/10.1016/j.cpr.2013.08.009
Statistics Canada. (2024, August 15). Nearly half of Canadians report that rising prices are greatly impacting their ability to meet day-to-day expenses. The Daily. https://www150.statcan.gc.ca/n1/daily-quotidien/240815/dq240815b-eng.htm
Statistics Canada. (n.d.). Financial well-being. Quality of Life Hub. Retrieved September 26, 2026, from https://www.statcan.gc.ca/hub-carrefour/quality-life-qualite-vie/prosperity-prosperite/financial-well-being-bien-etre-financier-eng.htm
This article is provided by Vive Wellness Therapy for general informational and educational purposes only. It is intended to be used alongside professional therapy and is not a substitute for assessment, diagnosis, or treatment by a qualified health professional. It does not constitute financial, legal, or tax advice; please consult a qualified financial professional or non-profit credit counsellor about your specific situation. Economic conditions, statistics, and available programs change over time, and information in this article may become outdated or contain inaccuracies. If you are in crisis or thinking about suicide, call or text 9-8-8 (Suicide Crisis Helpline, available 24/7 across Canada; in Quebec, calls connect to 1-866-APPELLE). If you or someone else is in immediate danger, call 9-1-1 or go to your nearest emergency department.
