Latest news with #financialstress
Yahoo
5 days ago
- Business
- Yahoo
How rising living costs are changing the way we date, live and love
If it feels like rising prices are affecting your dating life or friendships, you're not imagining it. Around the world, economic pressures are taking a significant toll on personal relationships. From strained romantic partnerships to postponed life milestones, financial uncertainty is changing the way people connect and relate to with one another. Young adults in their 20s and 30s, in particular, are facing an altered social landscape where even the most fundamental aspects of relationships are being influenced by financial realities. Dating today can feel like a mix of endless swipes, red flags and shifting expectations. From decoding mixed signals to balancing independence with intimacy, relationships in your 20s and 30s come with unique challenges. Love IRL is the latest series from Quarter Life that explores it all. These research-backed articles break down the complexities of modern love to help you build meaningful connections, no matter your relationship status. Financial stress and relationship strain Money has long been one of the biggest sources of conflict in relationships, but today's economic landscape has made financial stress an even greater burden. In Canada, a staggering 77 per cent of couples report financial strain, and 62 per cent say they argue over money. The rising cost of rent, food and everyday expenses has forced many couples to make difficult financial decisions, sometimes at the expense of their relationship. These concerns are not unique to Canadian couples. A study in the United Kingdom found that 38 per cent of people in a relationship admit to having a secret account or 'money stashed away' that their partner doesn't know about. And in the United States, couples surveyed reported having 58 money-related arguments per year. Even more concerning, financial instability is affecting how long relationships last. A recent RBC poll found 55 per cent of Canadians feel they need to be in a relationship to afford their lifestyle. The economic barriers to independence are particularly pronounced for those contemplating separation or divorce. Traditionally, a breakup meant one partner moving out, but now more divorced and separated couples are finding themselves cohabitating simply because they can't afford to live alone. Understanding how to maintain a healthy relationship when facing financial troubles is essential for couples to navigate these difficult times. Postponing major life decisions The cost-of-living crisis is also delaying key life milestones for young adults worldwide. A Statistics Canada survey found that 38 per cent of young adults have postponed moving out due to economic uncertainty, an increase from 32 per cent in 2018. This issue is not only delaying the journey to independent adulthood, it is also reversing it. For example, in the United Kingdom, one in five young adults who moved out have had to move back into their family home due to the cost of living crisis. Housing affordability plays a major role in these delays. With housing prices soaring in Canada, the U.S., the U.K. and elsewhere, home ownership feels out of reach for many. For instance, 55 per cent of young Canadians report the housing crisis is fuelling their decision to delay starting a family. These delays have cascading effects on individuals and on broader societal trends, including lower fertility rates and shifts toward smaller families. Dating in a cost-conscious era One side effect of the rising cost of living is that couples are moving in together sooner than they might have otherwise in order to split living expenses. Others are adopting a more pragmatic approach to dating and bringing up topics like financial stability, job security and housing much earlier in their relationships. A dating trend known as 'future-proofing' is also spreading. According to Bumble's annual trend report, 95 per cent of singles say their worries about the future are impacting who they date and how they approach relationships. Top concerns include finances, job security, housing and climate change. Read more: At the same time, financial strain is leading to simpler and cheaper date nights. More than half of Canadians say the rising cost of living is affecting dating. Many people are opting for budget-friendly activities like coffee dates, picnics or home-cooked meals instead of expensive dinners or weekend getaways. In the U.K., inflation and other day-to-day expenses have also made 33 per cent of the nation's young singles less likely to go on dates. Around one-quarter of them say it has made them less likely to seek out a romantic partner altogether. These costs are forcing single Americans to adjust their dating plans. With 44 per cent of single Americans reporting adjusting a date for financial reasons, and 27 per cent outright cancelling plans due to financial pressures, it is clear that the cost of living is fundamentally changing how Americans date. Also, with 38 per cent of dating Canadians saying the costs associated with dating have negatively impacted their ability to reach their financial goals, some are even skipping dating altogether. The cost of friendship Friendships, too, are feeling the pinch. Gone are the days of casually grabbing dinner or catching a concert on the weekend. Nearly 40 per cent of Canadians, 42 per cent of Britons and 37 per cent of Americans have cut back on social outings due to financial constraints. While this may seem like a small sacrifice, the decline in social interactions carries serious consequences. Regular social engagement is critical for mental health, resilience and career development. The more social activities are reduced, the greater the risk of loneliness and isolation — two factors that can significantly impact emotional well-being. For many, socializing now means opting for budget-friendly alternatives. However, even with creative adjustments, financial pressures are making it harder to maintain strong social ties. The changing landscape of connection If you're in your 20s or 30s, you've probably felt the way the economic realities of today are reshaping what relationships look like. Rising costs are influencing everything, from who you live with, how you date and when — or if — you take major life steps. Maybe you've moved in with a partner sooner than planned to split rent, swapped nights out for budget-friendly hangs or put off milestones like starting a family. You're not alone. Financial pressures are redefining how we connect with each other. Finding ways to maintain strong relationships under economic stress is essential. Research shows providing emotional support to your partner, employing positive problem-solving skills and engaging in open communication are key maintaining high-quality relationships. This article is republished from The Conversation, a nonprofit, independent news organisation bringing you facts and trustworthy analysis to help you make sense of our complex world. It was written by: Melise Panetta, Wilfrid Laurier University Read more: Love in the age of conspiracy: 5 tips to deal with disinformation and political polarization in relationships How embracing the cringe can help your dating life How to cope with romantic rejection – a psychologist's advice Melise Panetta does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
Forbes
5 days ago
- General
- Forbes
Embattled Adult Kids Are Stressing Their Aging Parents-Can It Stop?
Two sisters with parents in their 80s bitterly accuse one another of wrongdoing. Older sister (OS) originally had full charge of both parents, quitting her job to care for Dad when he got sick. Younger sister (YS) is sure OS took money she should not have taken, as she drew a small regular amount from the parents' funds to help support herself. OS is sure YS took money out of the parents' savings and hid her actions. Then the power over funds was switched to YS and finally revoked by the parents. No one is clear about Verbal strikes by sisters stress older parents who is right. The fight goes on. The conflict seems to be driven by an underlying fear that the parents will run out of money while they still need full time care. It is a legitimate fear. The parents' income is good from their retirement plans as public employees for decades, but it is not enough to pay for a full time caregiver who helps both of them. Mom cannot do much for herself now. She is in a wheelchair and needs assistance with her basic activities such as bathing, dressing and getting to the bathroom. Dad is less impaired but has early dementia. He's in a wheelchair too. The Dire Financial Picture Most of us believe that if we have solid careers and a retirement plan or pension that we'll be okay in retirement. For many, the rude awakening comes when one must pay for help at home. Medicare does not cover this except for a short time after a hospitalization. Normal health insurance does not cover it either. So, it has to come out of savings or selling assets. In this family's case, the only significant asset left is the parents' home, which has a loan on it. That loan is paying for the home care workers. When it comes due, the elders will have to sell their home. That creates a taxable event and will not leave a huge amount of sale proceeds to pay for care elsewhere. No one in this family has a plan for what happens after the home must be sold. Neither OS nor YS make enough money working to support their parents. Failure To Plan The parents, like many retired elders, never imagined running out of money. After all, that good pension should be enough to live on rather well, right? Neither parent ever contemplated becoming impaired and needing around the clock help. That is a failure on their part to even consider the potential need for long term care, now causing nasty fighting between their adult children. The mutual accusations between the sisters will never solve the running-out-of-money issue. What the aging parents might have done at an earlier stage in life could have included investing in a way that increased their income, downsizing their home to generate cash, buying long term care insurance when they were younger, making a plan to move to a less expensive place to live and get care, and other possible options. As they live on, the parents face the prospect of becoming impoverished and having to accept the lowest level of care available with public benefits, which at this moment are all in danger, given the current political climate. Possible Solutions No one is going to give these elders an easy way out of their situation. There is no public program that will allow them to stay at home indefinitely, keep the home, repay the loan, and have full time care there. No magic solution exits. There are some things that can lessen the load of stress the elders have to deal with now, particularly over the daughters' battle. They make accusations about who took what money from the parents and how it was spent. Facts can clear up the misconceptions if there are any. 1. A neutral outside professional, such as a licensed fiduciary, bookkeeper or Daily Money Manger can do an accounting of all income and expenses from the time the Dad fell ill up to the present. Money leaves a trail. A neutral person can show in black and white the figures both sisters and the parents need to see to reduce the vitriol that is unnecessarily stressing out the parents. If anyone needs to make things right, the same evidence will be before all family members. If not, they can drop the fighting and focus on their parents' future. 2. Either OS or YS or any other competent person can start the research now on alternative living arrangements where care can be provided for both parents full time. The elders live in a very expensive area of their state where property values are high. Even with repayment of the loan on the home, and the tax consequence of selling it, they are going to receive some cash after it's said and done. That cash can help pay for care in a far less expensive location than the parents' current home with their agency provided caregivers. 3. Both parents need to be prepared to accept that they can't stay at home after the home loan comes due. They also need to accept that their living situation must change. They expressed the desire to remain where they are 'as long as possible.' That is a common refrain we hear at where we advise families, including this one. These folks are reaching the limit of 'as long as possible' at home soon. Possible means one must be able to pay for the privilege. That has an expiration date in this case. There are no other assets to tap to enable them to stay in place. The Takeaways It seems clear to us as advisors in this matter that the real force behind the sibling fighting over who did what is that neither wants their parents to end up with nowhere to go and no way to pay for care. The daughters themselves cannot provide the needed care. We suggested to them to do these things: 1. Get a full accounting of finances from an outside neutral person and accept the results. It is too late to undo any money moving that may have happened in the past. Unless there is clear proof of financial abuse from the accounting, it is not worth anyone's time to continue the battle. Get over your own conflicts and concentrate on planning for your impaired parents' safety for the future. They are very stressed by your fighting. 2. Plan for alternative locations where your parents can live and receive care at a lower price than they are now paying in their very expensive county. Lower cost options do exist, outside their city and in different parts of their state. Spend your time and efforts in finding a good place for them, analyze the timeline and plan for it. 3. Get tax advice, medical opinions and projections from their healthcare providers, and care planning advice from the appropriate available experts. Those kinds of advice are valuable in helping to protect vulnerable elders from being forced into a sub standard nursing home, their worst nightmare. Family fights are not an uncommon matter in the world of aging parents who need care. It is possible to get them resolved if the family members are willing to change focus from accusations against one another to protecting their parents. Family meetings conducted by facilitators or mediators who are well versed in the legal and medical issues at hand can reduce stress for all.
CTV News
14-07-2025
- Business
- CTV News
Alberta leads the country in people reporting financial stress, cautious spending
The latest MNP Consumer Debt Index suggest nearly half of Albertans are $200 or less away from financial insolvency. (File) Albertans are more likely than any other province to report feeling stressed about their finances, according to a new report. The latest MNP Consumer Debt Index shows 41 per cent of Albertans polled say they feel anxious about their financial situation. The report shows two-in-five Albertans are concerned rising interest rates could drive them toward bankruptcy. That same amount are also feeling more cautious with how they manage their money due to current financial pressures; Alberta tops the list in this category. Nearly half of Albertans (47 per cent) say they are $200 or less away from financial insolvency, which is up slightly from the last report. Significantly more Albertans this quarter are concerned about interest rates, with nearly two-in-five concerned rising interest rates could drive them toward bankruptcy Even if rates do go down, many Albertans (46 per cent) remain concerned about their ability to repay debt. This survey was conducted by Ipsos and included interviews with 2,003 Canadian adults conducted between June 9 to June 13. The results are accurate to within +2.5 percentage points, 19 times out of 20.
Yahoo
10-07-2025
- Business
- Yahoo
This is the minimum amount of savings you need to improve your financial well-being
When you don't have a financial safety net in place, an unexpected medical bill, car repair, or job loss can take a toll on your mental health and throw your budget for a loop. That's why experts recommend putting aside some money in an emergency savings fund. And according to a new survey by Vanguard, even a modest emergency fund can dramatically lower stress and elevate your financial health. So what's the magic number for improving financial well-being? And what can you do to achieve it? This embedded content is not available in your region. Vanguard researchers surveyed more than 12,400 Vanguard investors to understand the impact of emergency savings on financial well-being. They found that respondents who had at least $2,000 saved showed a 21% increase in financial well-being, while those with three to six months' worth of expenses saved had another 13% increase, even after accounting for income, debt type, and financial assets. 'People with emergency savings have a higher level of financial well-being, spend less time thinking about and dealing with their finances, and are less distracted at work,' said Paulo Costa, Vanguard's senior behavioral economist, in a statement. According to the research, investors without emergency savings reported higher levels of financial stress. On average, they spent 7.3 hours per week thinking about and dealing with their finances, compared with just 3.7 hours for those with at least $2,000 in emergency savings. Although $2,000 isn't a particularly large sum, many Americans have even less than that in their savings accounts — or nothing at all. According to our 2025 State of Savings Report, one-third (33%) of Americans couldn't cover bills for even one month if they lost their income. Meanwhile, only 26% said they had enough savings to cover one to three months of expenses. Read more: How much money should I have in an emergency savings account? If you have competing financial obligations like housing, debt payments, school tuition, etc., saving for emergencies may not be a priority. But that's the thing about emergencies: You can't predict when one will happen, but you can be certain it will happen at some point. When that day arrives, you'll be better prepared to cover the cost, avoid racking up debt, and protect your mental health with an emergency fund in place. Whether your goal is $2,000 or $20,000, it's never too late to get started. Here are a few best practices for building and maintaining an emergency fund: Experts typically recommend saving three to six months of essential expenses in an emergency fund, but the right amount depends on your personal situation. For example, if you have an unsteady income, you may want to aim for nine to 12 months' worth of expenses. Also, keep in mind that the amount of money you're able to comfortably save each month may fluctuate depending on how your income and financial obligations change over time. It's important to be flexible when it comes to your savings strategy and adjust it as your financial situation evolves. Once you've built a nice financial cushion, you may be tempted to dip into it. But this defeats the purpose of an emergency fund. Be honest with yourself about what constitutes a financial emergency and when it's appropriate to use that money. If you use your fund for an unexpected expense, make a plan to rebuild it. For example, you might decide to set aside a portion of your next few paychecks or temporarily cut back on discretionary spending to increase your savings contributions. It's important to have a clear separation between the money you use for everyday transactions and your savings. That means you should keep your emergency savings (and any other type of savings) out of your checking account. That said, your emergency funds should be easily accessible in a pinch — and ideally, earning interest while sitting in the bank. That's why a high-yield savings account is a great place to keep emergency savings; your money stays safe and grows over time, but can be withdrawn whenever you need it. Read more: The 4 best (and worst) places to keep your emergency fund
CBS News
09-07-2025
- Business
- CBS News
Considering debt relief this July? Here are the pros and cons of each option
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. Before you choose any debt relief strategy, make sure you're fully aware of the potential benefits and downsides it comes with. Getty Images With the average American carrying nearly $8,000 in credit card debt and card rates hovering near historic highs, debt-related stress has become a daily reality for millions of households. In today's high-rate, inflationary landscape, even the most modest credit card balance can result in a constant juggling act of minimum payments, late fees and growing balances. And, when that happens, the debt burden becomes increasingly difficult to manage. As a result, more people are now exploring their debt relief options, from debt management to hardship programs, to try and find some relief. And, that makes sense. While you still have to do your research and find a reputable provider to work with, the debt relief landscape has evolved significantly in recent years, and it now offers more sophisticated and consumer-friendly options than before. This evolution means you have real choices for tackling your debt. However, not all debt relief solutions will be the right fit for you or your finances. Some work best for those who are current on payments but struggling with high rates, while others are designed for those who have already missed payments. Making the wrong choice could worsen your situation, so it's important to know the true costs and benefits of each option. Find out how you can get rid of your high-rate debt for less now. Debt relief pros and cons to know this July Before you choose a debt relief strategy, be sure to weigh the following pros and cons to ensure that you're making the right move for your unique situation: Debt settlement Debt settlement (also known as debt forgiveness) involves negotiating with your creditors or debt collectors to accept less than the full amount owed in return for a lump-sum payment on the account. The remainder of the balance is then forgiven. This process can be navigated on your own, but is typically done with the help of a debt relief company. Pros: Can reduce the balance owed by 30% to 50% or more May resolve debts faster than making just minimum payments Could stop collection calls May help you avoid bankruptcy in some cases Could allow you to become debt-free in two to four years Cons: Learn more about the debt relief strategies available to you now. Credit counseling and debt management Credit counseling agencies offer help with managing your finances. That typically includes the creation of a debt management plan that consolidates your unsecured debts into one monthly payment with reduced interest rates and fees. Pros: Offers lower monthly payments via reduced interest rates and fees Rolls debts into a single monthly payment that simplifies budgeting Could help you develop better money management skills Comes with less credit damage than other options Creditors may agree to remove late fees and over-limit charges Cons: Must close your credit card accounts Doesn't reduce your principal balance Takes several years to complete Not all creditors participate May appear on credit report Debt consolidation programs Debt consolidation programs function similarly to traditional debt consolidation by combining multiple debts into one loan obligation, typically with a lower rate. The big difference is that these programs are offered by debt relief companies and have loans issued through third-party partner lenders. Pros: The single monthly payment simplifies debt management Typically results in a lower interest rate compared to credit cards Offers a fixed payment schedule with a clear payoff date Keeps your credit accounts open May reduce the total interest paid Cons: Requires a good credit score Not all borrowers will qualify to enroll Could come with origination fees and other costs May have higher rates than traditional consolidation options Risk of accumulating new debt on cleared cards Credit card hardship programs Many credit card companies will offer hardship programs to customers who are experiencing temporary financial difficulties. These programs can result in modified payment terms or other types of temporary relief, making it easier to manage what's owed during a job loss, illness or other hardship period. Pros: May temporarily reduce or waive interest charges Can lower your minimum payments Typically doesn't hurt your credit score No third-party fees Maintains your relationship with the creditor Cons: Provides just a temporary solution (usually six to 12 months) Access may be limited to specific hardship situations Creditors may close your accounts during the program Doesn't reduce the principal balance owed Could affect future credit applications Bankruptcy Filing for bankruptcy may seem extreme, but this debt relief option provides legal protection from creditors and can eliminate or restructure debts through Chapter 7 (liquidation) or Chapter 13 (reorganization) proceedings. Pros: Offers legal protection against creditors Provides immediate relief from collection activities Can eliminate or restructure most unsecured debts Allows you to keep essential assets in most cases Provides a fresh financial start Cons: Severely impacts credit score for up to 10 years Comes with expensive attorney and court fees Could result in losing non-exempt assets Doesn't eliminate all debts May limit your borrowing options and result in higher rates The bottom line Debt relief can provide much-needed breathing room if you find yourself unable to manage your financial obligations, but not every option works for every type of borrower. That's because each debt relief strategy comes with its own set of risks and rewards, and choosing the wrong one could set you back further. So, before moving forward, take time to carefully review your finances, understand the potential impact on your credit and future goals and seek advice from a debt relief expert if you're still unsure about which path to take. A well-informed decision can put you on the path toward lasting financial stability, so putting in a little work now to find the right fit could pay off significantly in the future.
