Financial stress is being felt by Canadians with the rising costs of everyday essentials like groceries and gas. In 2026, the Credit Counselling Society reported that 68% of Canadians are concerned about the rising costs of living. Debt remains one of the biggest contributors to financial stress, and 46% of Canadians say their debt has increased over the last year.
Beyond the financial impact of debt, there is also an emotional toll and that can cause people not to seek help. In fact, the same report found discussing debt remains one of thetop financial fears among Canadians.
We want you to know that CUA is here to help. Debt repayment is an important financial goal, but we also want to encourage a savings or “emergency fund” for when those unexpected expenses pop up in the future. Planning for a temporary setback can help avoid a larger financial challenge. Here are some of the most common questions people ask about emergency funds:
How much do I need to save? Many experts encourage 3-6 months of living expenses, especially in the event of a job loss. A good rule of thumb is to remember the more you own, the more you need to save. For example, someone who owns a house, cottage, truck and three dogs would be advised to save more than a student who lives at home and owns a used car. The good news? Once you reach your savings goal, you can redirect your regular contributions to other priorities.
What type of account should I use?Having more than one savings account is a great strategy, but it will require you to spread your savings dollars across multiple accounts. We recommend at least two, keeping fun funds (i.e. vacation) separate from emergency funds. A Tax-Free Savings Account (TFSA)is a great option for your emergency fund because you can earn interest on your savings, while still accessing the funds if you need them. The biggest benefits of a TFSA? They’re not accessible by using your debit card, and they’re easy to forget about if you “set it and forget it”. More on that below.
How can I get started?If you’re ready to set up an emergency fund, the first step is to review your budgetwith a Financial Advisor. Together, you’ll determine how much you can realistically put away each month. From there, you can “set it and forget it” with an Automatic Funds Transferthat will move the amount of money you choose into a savings account on a schedule that works for you.
We understand life can get in the way of the best intentions. If you are facing a challenging situation, the best thing you can do is call us. Depending on your situation, a deferred or interest-only payment might be an option to help you move forward without added financial stress. Call us any time at 902.492.6500, email info@cua.com or book an appointment with a Financial Advisor.
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