How to Manage Your Money During Economic Stress

A few months ago, many of us were primarily concerned about the ongoing pandemic, high interest and inflation rates, and rising grocery and housing costs. As we move into 2025, new challenges have emerged: tariffs on Canadian goods were threatened in February and then some took effect on March 4, followed by consumer boycotts and widespread conversations about the difference between “made in Canada” and “produced in Canada.” Interest and inflation rates have dipped, only for the economy to again face possible inflationary pressure and a potential recession.

Unsurprisingly, money remains a top worry for Canadians. Last year, 44% of Canadians named finances as their leading source of stress, up from 40% the previous year, according to FP Canada’s annual Financial Stress Index. With geopolitical tensions, market uncertainty and everyday life expenses all competing for attention, planning and investing can feel overwhelming or even pointless. So why is it so difficult to make financial decisions when you’re stressed? Below we explore practical steps to get started and regain control.

Stress and finances: How to make smart decisions with your money by getting started

Samantha Sykes, a senior investment advisor with Raymond James, notes that many people simply don’t know where to begin. Her clients—from their mid-30s to early 70s—often face life-changing events such as receiving an inheritance, earning a higher salary, getting married, buying a home, or starting a family. All of those milestones demand financial choices and trade-offs. Feeling overwhelmed, many people pause and avoid making big decisions, which only delays progress and increases stress.

Chantel Chapman, CEO of the financial literacy program The Trauma of Money, agrees. She says avoidance is a common response when people feel scarcity or catastrophize their situation. Triggers like inflation or the daily barrage of negative headlines can heighten anxiety, and the brain reacts by trying to reduce immediate distress—often by ignoring finances.

But avoidance only offers short-term relief. The risks are concrete: unpaid bills, unopened statements, avoidance of conversations with family or advisors, a lack of awareness of your credit score, and no clear picture of net worth. These consequences compound stress rather than reduce it.

Alleviate stress and investigate your money narrative

To begin financial planning, Chapman recommends examining your relationship with money. Understanding the personal narrative that shapes your financial behaviour is a critical first step. Reflecting on your money story helps you move away from reactive or scarcity-based choices and toward more deliberate, constructive decisions.

Chapman suggests asking yourself questions such as:

• What messages about money did I hear growing up?
• How did money influence my childhood and family life?
• What messages about money am I receiving from society and the media now?
• Which narratives are driving my behaviour today?
• How can I reshape that narrative to support financial stability and well-being?

Answering these questions can reveal patterns and beliefs that keep you stuck. Once you identify them, you can consciously replace unhelpful habits with practical strategies and healthier perspectives.

Chapman also recommends building a supportive team—friends, family and trusted financial professionals—who can help you move forward. That’s where advisors like Sykes can be useful: they offer guidance, accountability and practical steps so you don’t have to navigate everything alone.

Ask for help when you’re stressed about money

Admitting you need help is a major step. Sykes says she commends clients who reach out—calling, sending an email, or booking a meeting is often the biggest hurdle. Asking for support opens the door to structure, clarity and concrete next steps.

Don’t be afraid to admit what you don’t know

Financial jargon can be intimidating and deter many people from taking action. Sykes focuses on plain language and relatable examples—especially for creative clients—so concepts feel accessible. A practical tactic is learning one new financial term a day using a reliable glossary; small, steady learning builds confidence and reduces the sense of being overwhelmed.

Start with a quick win—an easy decision

Quick wins are powerful. Identify what keeps you up at night and pick one manageable task you can complete today or within the next three months. Examples include opening a registered education savings plan (RESP), drafting a will, or setting up an emergency savings account. These actions deliver immediate relief and create momentum toward larger goals.

Hire a planner, and meet somewhere comfortable

Professional help doesn’t always need to happen in an office. Sykes often meets clients where they feel relaxed—on a walk, over ice cream, or with their favourite coffee—to lower defenses and make it easier to share information. Comfortable settings can make the process feel less clinical and more collaborative, helping advisors gather the details they need to plan effectively.

Have a buddy

An accountability partner can provide simple but powerful support. Share goals—like building an emergency fund—and ask your buddy to check in or talk you through impulse spending. That extra layer of accountability can curb costly decisions and keep your plan on track.

There are macro challenges beyond any individual’s control—housing affordability, trade tensions, and economic cycles. Still, by examining your money story, asking for help, taking one small step at a time, and building a supportive team, you can reduce financial stress and regain agency. With a few practical habits in place, money becomes one fewer thing to worry about in an uncertain world.

Read more financial psychology:

• What are money scripts? What’s yours?
• Investing Beyond the Numbers: Understanding financial flashpoints
• Emotional investing: How to make better decisions with your money
• How to overcome financial decision fatigue and start building wealth