According to IG Wealth Management’s latest Financial Confidence Index, personal financial confidence has risen above its long-term average for the first time since 2021.
The findings highlight a growing divide between how Canadians view their individual finances and how they perceive the economy as a whole. Inflation, high interest rates, and political uncertainty have left many Canadians feeling sceptical about where the economy is headed. However, more people appear to be taking control of their personal finances through budgeting, education, and better financial planning.
IG Wealth attributes this resilience to improved financial literacy. Many Canadians, it says, have made a conscious effort to learn how to manage money more effectively either through financial advisors, online tools, or independent study. This focus on personal responsibility has helped some households regain a sense of control in an unpredictable environment.
CIBC data support this trend toward financial stability. While insolvencies have returned to pre-pandemic levels, the majority of borrowers facing financial strain are pursuing consumer proposals instead of declaring bankruptcy. This is a sign that Canadians are working to manage their debt rather than defaulting.
Average credit scores remain higher than in 2019, and credit use has remained steady despite higher living costs. These indicators point to a population that is adjusting, tightening budgets, and finding ways to stay financially afloat. Rising wages may also be helping Canadians adapt to inflation, giving them slightly more breathing room to manage expenses.
Access to financial advice has also expanded, allowing more people to make informed decisions. Notably, confidence levels have risen among women, Indigenous peoples, and Quebec residents, all of whom have traditionally reported lower levels of financial assurance.
Despite the positives, experts warn that overall economic pessimism still weighs on consumer behaviour. When people lack confidence in the economy, they may delay major purchases or investments, which can slow broader growth. Yet the message from this year’s index is clear: even amid rising costs and global uncertainty, Canadians are proving adaptable. By focusing on financial health at an individual level, many are finding stability in an otherwise unsettled economic landscape.
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