Managing Financial Stress During the COVID-19 Pandemic
Since January 2020, COVID-19 has swept across Canada and created upheaval in the lives of individuals. Among the host of challenges that the pandemic has presented, the economic impact is one of the most pronounced effects of the virus. In March 2020 alone, it’s estimated that over one million Canadians lost their jobs, with many struggling to find work again today (Murphy, 2020). In BC, the unemployment rate reached a record 13.7% in May – fortunately, we are now beginning to see this rate begin to drop again after three straight months of watching it climb (Bakx, 2020).
Amidst these troubling statistics, it is no wonder Canadians are feeling stressed. In a recent survey conducted by Borrowell (2020), one of Canada’s leading financial technology companies, 74% of Canadians reported feeling stress from the crisis, with over 40% worrying about how they will pay for their basic needs like food and rent.
While few Canadians are immune to these economic impacts, the Parkinson’s community is especially susceptible to financial stress. When an individual is first diagnosed with Parkinson’s disease (PD), they often encounter unexpected financial obstacles, such as having to leave work sooner than expected, or relying on disability assistance as their sole income. On top of the physical and mental hardships brought on by symptoms of PD, people with Parkinson’s and their carepartners experience more financial hardship due to medication and equipment requirements, home modifications, and other healthcare costs (PHAC, 2014).
Financial Interventions
Personal Budgeting
The first key to reducing financial stress is to develop and implement a concrete budget that includes all of your basic needs, healthcare costs, and recreational activities. An allencompassing budget provides a complete picture of your finances, facilitating a sense of calm and control. A budget helps add purpose to your financial decisions and reduce worry around unexpected costs.
During these uncertain times, identifying your ‘needs’ versus ‘wants’ is a useful way to increase savings – evaluate any superfluous spending and cut any non-essential expenses. You may realize that you have been spending less already, saving on things that have been placed on hold from COVID-19 like eating out, commuting, shopping, and entertainment. Redirecting this money into an emergency fund equivalent to 3-6 months of expenses will provide further peace of mind (FCAC, 2020).
The Financial Consumer Agency of Canada (FCAC) offers an online Budget Planner to help you get started on creating and managing your budget on an easy-to-use platform. They also offer many other resources on budgeting, savings, debt management, and interactive tools to help you maintain good financial health during these challenging times.
Professional and Institutional Resources
Another practical option to ease financial concerns is to reach out to financial professionals and institutions. For people with Parkinson’s, managing the many costs that come with a diagnosis can be overwhelming to do alone – scheduling an appointment with a financial advisor to discuss your expenses may offer support. An advisor may be able to suggest options on how to protect and grow your savings. Individuals can tend to hyper-monitor their funds, and while it is important to be proactive and have a clear picture of your finances, setting boundaries and passing this job off to an objective trusted professional may help reduce stress and improve your financial situation long-term.
Since COVID-19, many financial institutions are offering financial relief to their clients. Take some time to investigate and understand these options, including things like deferring mortgage or credit card payments, lowering credit card and loan interest rates, or taking out a home equity line of credit. While these choices could be beneficial, it is important to fully understand the conditions and long-term implications of each. Contact your financial institution to explore your options further.
Finally, there are many other organizations that offer valuable free online resources for people with Parkinson’s. Parkinson Society British Columbia has many educational and exercise webinars, free legal services and counselling, and a large collection of accessible resources on different topics including finances, mental health, and staying connected. Taking advantage of these free offerings is one more way to lessen your costs and stay positive during these unusual times. Visit our website to view all our upcoming events, as well as other organization’s events and programs, at www.parkinson.bc.ca/events.
How to Ease Financial Stress
Beyond concrete financial interventions, there are other valuable ways to manage financial concerns. Firstly, one of the most important things to remember is that you are not alone. Many are feeling anxious or worried about finances during this challenging time, and as a vulnerable population, the Parkinson’s community is especially prone to the negative social and economic impacts of COVID-19. Though it can be uncomfortable, opening up to someone you trust about your finances and mental health during this time can be extremely beneficial. If you are concerned about a sharp decline in your mental health or PD symptoms, reach out to your doctor or a healthcare professional immediately.
Consider History
Many have referred to this pandemic as an “unprecedented time” – however, it is useful to consider the fact that we have seen similar economic conditions in the past (TD Canada, 2020). While many economists are predicting a recession in 2020, history has shown that after large economic downturns, a period of growth generally follows. So, while it is still natural to feel worried or anxious during these times, consider the idea that there are better times ahead.
Give to Get
Finally, while you may be worried about your finances, there are ways you can support your community that don’t cost a penny. Check in on friends and family, empathize with those on the front lines of the health crisis, or show support by volunteering extra time you have. Studies have highlighted the benefits of generosity on our physical and mental health, showing it can help reduce stress, fight depression, and enhance your sense of purpose (Firestone, 2020).
Sources
TD Canada. (2020). 6 things to consider if you're worried about your finances right now. Retrieved from https://www.td.com/ca/en/personal-banking/covid-19/financial-stresscovid-19
Borrowell. (2020). COVID-19: 3 in 4 are Experiencing Financial Stress. Retrieved from https://borrowell.com/blog/survey-reveals-3-in-4-canadians-experiencing-financial-stressdue-to-covid-19
Bakx, K. (2020). COVID-19 expected to bring unemployment of 5% to 85% in some areas — what does that mean for Canada? CBC. Retrieved from https://www.cbc.ca/news/business/jobs-unemployment-rate-covid-19-1.5526961
Murphy, Jessica (2020). Coronavirus: Canada lost a record one million jobs in March. BBC. Retrieved from https://www.bbc.com/news/world-us-canada-52232674
Financial Consumer Agency of Canada. (2020). COVID-19: Managing financial health in challenging times. Retrieved from https://www.canada.ca/en/financial-consumeragency/services/covid-19-managing-financial-health.html
Public Health Agency of Canada (2014). Mapping Connections: An understanding of neurological conditions in Canada. Retrieved from https://www.canada.ca/en/publichealth/services/reports-publications/mapping-connections-understanding-neurologicalconditions.html
Firestone, L. (2014). The Benefits of Generosity. PsychAlive. Retrieved from https://www.psychalive.org/benefits-of-generosity
This content was published in the September 2020 edition of our monthly support group newsletter, GroupLink. The content was accurate as of this publication date.