You’ve likely heard the term “financial resilience”. You may even know it refers to a household’s ability to navigate and overcome financial stress and hardships that life inevitably throws at you. But did you know that financial resilience can be measured?

This calculation is based upon key indicators that include household savings, stress levels around current and future financial obligations, social resources and support, the ability to meet short-term savings goals, debt management and credit score. Depending on how you score in each category, you’re given a number from 1-100, with 100 being the most financially resilient. In 2022, the mean financial resilience score in Canada was 55.58.

This means that almost half of all Canadian households are financially vulnerable – or not well-positioned to absorb unforeseen challenges. Nearly 30% report having a savings buffer of less than three weeks¹. This is exacerbated by rising interest rates and higher debt-servicing costs on mortgages, loans and credit cards, putting more people in the position of living paycheque-to-paycheque, leaving even less money to build emergency funds and a financially secure future.