This 'adds to the real financial challenges they already face in today's tough economy'
More than half of Generation Z Canadians feel compelled to project an image of financial stability, despite facing rising living costs and low income, according to a recent report.
Specifically, 53% of Gen Z workers feel pressure to maintain a successful image on social media, while 65% believe they are falling behind their peers financially, notes TD Bank Group.
“Gen Z is under constant pressure to appear financially secure as soon as they begin their careers, while many are struggling behind the scenes with stress, debt and uncertainty,” says Kristy Irwin, product group owner, Youth & Student. “The pressure to look like they have it all together—for friends, family and social media—only adds to the real financial challenges they already face in today's tough economy.”
In the second quarter of 2025, net savings for Canadian households across all income groups declined, marking the first time this has occurred since inflation peaked in 2022, according to data from Statistics Canada (StatCan).
Why do people struggle with saving money?
Nearly half of Gen Z workers (47%) identified the cost of living as the biggest barrier to reaching their financial goals, and 36% said their income is not enough to get ahead, according to TD Bank Group’s survey of 3,037 Canadians, conducted July 28–29, 2025.
One in five do not know where to start when it comes to managing their money. The survey also found that 73% worry a single financial misstep could set them back, and 66% feel pressure to hit milestones such as buying a home or building wealth by a certain age.
Gen Z Canadians are redefining financial success, with 17% aiming to save for a better lifestyle—twice as likely as Millennials (10%), Gen X (5%), or Boomers (4%). Long-term goals such as home ownership (19%) and financial independence (17%) remain important, but only 55% believe they will be able to retire comfortably. Half of respondents said they prefer to splurge on experiences like travel and dining out rather than save for the future.
Financial anxiety is widespread among Gen Z, with only 37% feeling in control of their money and 64% experiencing financial stress multiple times a week—more than any other generation surveyed.
“The mounting pressures do not mean that there are not real ways to make progress towards your financial goals,” Irwin says. “Even taking small steps can add up to big wins in both the near-term and the long run—and young Canadians are at the perfect stage of life to build these savings habits.”
Canadians are making adjustments to their investment strategies rather than withdrawing from their retirement plans, according to a previous Sun Life report, based on an analysis of 1.5 million group retirement plan members.
“Many employers already recognise the advantages of providing pension and retirement savings plans, wellness programs, and health and other benefits to their employees. Recently, mental health has become an important focus in the workplace too. A financial wellness program is a natural extension of these existing benefits and complements other employee programs,” according to the federal government.
“By implementing financial wellness initiatives in your workplace, you will be empowering your employees. They will feel more in control of their money and have improved financial, mental and physical health. This will lead to a more productive workplace and a more engaged workforce. It can also result in increased profits and lower costs for your business and enhance your reputation as an employer of choice.”
