The Age of Unaffordability: Coping With The Cost of Living and the Stress that Comes With It
There is a particular kind of stress that comes from not being able to afford your life. It is not just the worry about this month's rent or the anxiety of watching grocery bills climb. It is the deeper, more corrosive fear that no matter how hard you work, you will never get ahead. It is the feeling of being trapped in a system that seems designed to keep you struggling. This is the reality for millions of Canadians.
According to a survey by Mental Health Research Canada, 46% of Canadians say the rising cost of living is negatively affecting their mental health. 37% cite difficulty paying household bills, and 35% cite challenges affording or maintaining stable housing (Benefits Canada, September 2026).
This is the final post in our October series, The Scaries: Tackling the Things That Keep Us Up at Night. This week, we explore how financial stress shapes mental health across generations—and what each generation can learn from the others.
How Financial Stress Shapes Mental Health Across Generations
The cost of living crisis is not experienced equally. Each generation faces distinct pressures, shaped by their stage of life, their resources, and their expectations.
According to Canada Life, as of spring 2024, nearly half (45%) of Canadians reported that rising prices were greatly affecting their ability to meet day-to-day expenses, up 12 percentage points from two years earlier (33%). This financial strain creates uncertainty about current expenses and long-term goals (Canada Life, 2024).
Below, we explore the unique challenges facing Boomers, Gen X, Millennials, and Gen Z—and the strategies each can use to cope.
Boomers: The Fear of Outliving Your Money
The Reality: For many Baby Boomers, retirement was supposed to be a time of rest and reward. Instead, rising costs are eroding fixed incomes and forcing difficult choices.
A news report on older adults found that economic insecurity is upending the lives of millions of seniors. One 79-year-old woman, Bettye Cohen, learned her rent would increase from $989 to over $1,800 per month. "The devastation, I cannot tell you," she said. "I'm waking up in the middle of the night a lot of times because my brain won't shut off. Everything is so overwhelming" (KFF Health News, 2022).
Another woman, 61-year-old Carrie England, lost her home and now spends over $1,700 per month on rent alone, leaving her less than $300 for everything else. "It's becoming too expensive to be alive," she said. "I've lost everything and break down on a daily basis."
A third woman, 65-year-old Elaine Ross, lives on just over $23,600 annually with her husband. "All this inflation, it's just killing us," she said. "I know I'm not the only old person in this situation, but it pains me that I lived my whole life doing all the right things to be in the situation I'm in."
The Mental Health Impact: For seniors on fixed incomes, the stress of rising costs is compounded by a sense of helplessness. They cannot work more hours or ask for a raise. The anxiety is often accompanied by grief—grief for the retirement they imagined, grief for their lost security, grief for the independence they are losing.
Coping Strategies for Boomers:
Seek benefits and supports. Many seniors are eligible for programs they are not aware of. Contact your provincial or territorial government to learn about seniors' benefits, rent supplements, and prescription drug programs.
Connect with community. Isolation amplifies financial stress. Senior centres, faith communities, and peer support groups can provide both practical help and emotional support.
Talk about it. Shame keeps many seniors silent about their struggles. Sharing your experience with a trusted friend or counsellor can reduce the burden.
Focus on what you can control. You may not be able to change your income, but you can control your spending, your routines, and your self-care.
Boomer: Margaret’s Story
Margaret is 72 years old and lives in a modest one-bedroom apartment in London, Ontario. She worked as a legal secretary for 35 years. She has a small pension, Canada Pension Plan payments, and Old Age Security. She budgeted carefully her whole life. She thought she had done everything right.
But when her landlord announced a rent increase of $400 per month, everything changed.
"I sat at my kitchen table and just stared at the letter," she says. "I did the math three times. It didn't matter how many times I did it. The numbers didn't work."
Margaret has cut back on groceries. She has stopped attending her weekly coffee group because she can no longer afford the $5. She has stopped running her air conditioning in the summer, even when the temperature climbs above 30 degrees. She has started lying to her daughter, telling her everything is fine.
"I don't want to be a burden," she says quietly. "I spent my whole life being independent. And now I'm one rent increase away from losing everything. I lie awake at night doing the math over and over. I'm so ashamed."
The Mental Health Impact:
Margaret is experiencing chronic anxiety and depression. She has trouble sleeping. She has withdrawn from social connections—a major risk factor for cognitive decline and isolation in older adults. She feels a profound sense of shame, as though her financial precarity is a personal failure rather than a systemic issue.
What Helped Margaret:
She told her daughter the truth. It was one of the hardest conversations of her life. But her daughter didn't see her as a burden. She saw her as her mother. Together, they began exploring options.
She contacted her local seniors' centre. Margaret learned about rent supplements and a food bank specifically for seniors. She was not alone. There were resources designed for people in her situation.
She grieved the retirement she imagined. "I thought these would be my golden years," she says. "I had to let go of that picture. It was a loss. I needed to feel that loss before I could figure out what came next."
She found a peer support group. Through the seniors' centre, Margaret joined a weekly group for older adults navigating financial stress. "For the first time in months, I didn't feel like a failure," she says. "I felt like a person in a broken system. That made all the difference."
Gen X: The Sandwich Generation Squeeze
The Reality: Generation X—those born roughly between 1965 and 1980—are often called the "sandwich generation." They are caught between supporting their aging parents and their dependent children, all while trying to save for their own retirement.
The financial pressure is immense. Many Gen Xers are helping their parents navigate the healthcare system, contributing to their care costs, and simultaneously paying for their children's education or extracurriculars. The cost of living crisis has made this balancing act even more precarious.
The Mental Health Impact: Gen Xers report high levels of burnout and chronic stress. They are often the ones everyone else depends on, leaving little time or energy for their own needs. The MHRC poll found that 31 per cent of those aged 35 to 54 feel exhausted or burned out always or most of the time (Benefits and Pensions Monitor, 2026).
Coping Strategies for Gen X:
Set boundaries. You cannot pour from an empty cup. It is okay to say no to additional financial demands, even from family.
Have honest conversations. Talk with your parents and children about financial realities. You do not have to carry the burden alone.
Prioritize your own mental health. You are the linchpin of your family. Your well-being matters.
Seek professional support. A therapist or financial counsellor can help you navigate the competing demands on your resources.
Gen X: Paul’s Story
Paul is 51 years old and lives in Calgary. He works in IT for a mid-sized company. His wife, Dana, is a nurse. They have two teenagers and a mortgage that feels like it will never end.
They are also supporting both of their aging parents. Paul's father needs help with medical appointments and daily tasks. Dana's mother recently moved into a care facility, and the costs are staggering.
"It's like we're being squeezed from both ends," Paul says. "Our kids need braces, school supplies, money for extracurriculars. Our parents need support. And we're supposed to be saving for retirement? When exactly?"
Paul wakes up at 3 AM most nights. He lies in bed running numbers in his head. He has stopped exercising. He has started drinking a glass of whiskey most evenings to take the edge off.
"I don't have the luxury of breaking down," he says. "Everyone needs me. What am I supposed to do?"
The Mental Health Impact:
Paul is experiencing burnout. He feels trapped between competing obligations and has no space for his own needs. He is using alcohol as a coping mechanism—a common but unhealthy strategy for men in his position. He is also experiencing a profound sense of isolation, as though he is the only one struggling with this impossible balancing act.
What Helped Paul:
He and Dana had an honest conversation about capacity. They realised they were both trying to do everything for everyone. They couldn't. They had to make choices. They had to ask for help.
They involved their children in age-appropriate ways. "We told the kids that things were tight and that we would need to make some changes," Paul says. "They handled it better than I expected. They felt more like partners in the family, not just bystanders."
He set boundaries with his parents. This was the hardest part. Paul had to accept that he could not be everything to his father. He hired a part-time caregiver. He asked his siblings to step up. It felt like failure. It was actually survival.
He cut back on alcohol and started walking. It wasn't about fitness. It was about having something to do that wasn't drinking or worrying. He started walking every morning before anyone else was awake.
He saw a therapist. "I didn't want to go," Paul admits. "I thought therapy was for people who had real problems. But my problems were real. And having a space to say out loud how exhausted I was—it saved me."
Millennials: The Crushing Weight of Never Getting Ahead
The Reality: Millennials—those born roughly between 1981 and 1996—came of age during the 2008 financial crisis. They entered the workforce with high student debt, stagnant wages, and a housing market that has only become more unaffordable.
The cost of living crisis has hit Millennials hard. Many are working multiple jobs, delaying major life milestones like marriage and children, and wondering if they will ever achieve the stability their parents enjoyed. The MHRC poll found that 67 per cent of those aged 25 to 34 ended mental health care early, often because they could not afford to continue (Benefits and Pensions Monitor, 2026).
According to Canada Life, common worries for this generation include the ability to raise a family, buy a home, and save for retirement (Canada Life, 2024).
The Mental Health Impact: Millennials report high levels of anxiety, depression, and burnout. They are caught in a cycle of working harder and falling further behind. The sense of futility can be paralyzing.
Coping Strategies for Millennials:
Validate your frustration. You are not lazy or entitled. You are navigating an economy that has fundamentally changed.
Find your community. You are not alone in this. Connecting with others who share your experience can reduce isolation and build solidarity.
Take small actions. You cannot fix the housing market, but you can take small steps to protect your mental health—a walk, a conversation, a moment of rest.
Seek affordable support. Many therapists offer sliding scale fees. Community health centres and employee assistance programs may also provide free or low-cost counselling.
Millennial: Vanessa’s Story
Vanessa is 34 years old and lives in Hamilton, Ontario. She has a master's degree, a full-time job, and a side hustle that she juggles on evenings and weekends. She has been working for 12 years. She has never owned a home. She is not sure she ever will.
"I did everything I was told," she says. "Go to university. Get a good job. Work hard. And I'm still renting. My parents bought their first house when my dad was 26. I'm 34 and I'm looking at another rent increase."
Vanessa feels like she is running on a treadmill that is moving faster and faster. She works hard. She saves what she can. But the goalposts keep moving.
"I try to stay positive," she says. "But it's exhausting. And I feel like I'm not allowed to complain because I know others have it worse. But I'm tired. I'm so tired."
The Mental Health Impact:
Vanessa is experiencing low-grade chronic depression and anxiety. She has difficulty finding meaning in a future that feels permanently out of reach. She feels a sense of isolation—caught between generations that don't understand her reality and a system that seems designed to keep her struggling.
What Helped Vanessa:
She found a community. Vanessa joined a local group for young professionals navigating financial stress. "It was the first time I felt like I wasn't alone," she says. "We weren't competing. We were holding each other up."
She started therapy. She found a therapist who offered sliding scale fees. "I learned that I wasn't failing. The system was broken. And I needed tools to cope with that reality, not just affirmations."
She grieved the life she imagined. "I had to let go of the picture—house, kids, a certain kind of stability. I had to grieve that before I could imagine something else."
She found small moments of joy. "I can't afford a vacation. But I can afford a walk by the water. I can afford to call a friend. I can afford to sit in the sun for 15 minutes. I'm learning that well-being isn't about the big things. Sometimes it's just about the moment."
Gen Z: The Fear of No Future
The Reality: Generation Z—those born roughly between 1997 and 2012—are entering adulthood in a world that feels increasingly unstable. They are inheriting a climate crisis, a housing crisis, and an economy that seems designed to exclude them.
A report by the End Child Poverty Coalition in the UK surveyed 476 young people aged 16 to 25 about their experiences of the cost of living crisis. The findings were stark: 97 per cent said the rising cost of living was a problem for young people today. 77 per cent said the crisis worried them "a lot" when they thought about the future. A further 21 per cent said they were "a little" worried. That means 98 per cent of respondents are worrying about their future in relation to the cost of living crisis (End Child Poverty Coalition, 2022).
One 24-year-old from England put it plainly:
"My generation can't afford things the way our parents and grandparents could. I'm sick of renting but can't afford a home. I was told my 20s would be full of adventures and travelling—I can't afford any of that."
The Mental Health Impact: Gen Z reports the highest levels of burnout of any generation. The MHRC poll found that 33 per cent of those aged 16 to 24 feel exhausted or burned out always or most of the time. They are also the most likely to have ended mental health care early—64 per cent—often because of cost (Benefits and Pensions Monitor, 2026).
The psychological toll is profound. Young people are grieving the futures they were promised. They are mourning the milestones they cannot reach—homeownership, marriage, children. And they are doing so in a world that often dismisses their struggles as entitlement.
Coping Strategies for Gen Z:
Name what you are feeling. The hopelessness you feel is not a personal failing. It is a rational response to a broken system.
Find your people. Connection is protective. Whether it is a friend, a support group, or an online community, you do not have to carry this alone.
Take small acts of agency. You cannot fix the economy, but you can vote, advocate, volunteer, and make choices that align with your values.
Seek free and low-cost support. Many resources exist, from campus counselling to community mental health programs.
Hold onto hope. It is not naive to believe things can be different. It is necessary.
Gen Z: Lucas’s Story
Lucas is 21 years old and lives in Halifax, Nova Scotia. He is in his third year of a business degree. He works 20 hours a week at a grocery store to supplement his student loans. He is tired all the time.
"I don't know what I'm working toward anymore," he says. "I'm getting this degree because I was told it would lead to a good job. But all my friends who graduated are working retail. They can't afford to move out. They can't afford to start families. They're stuck."
Lucas is considering dropping out. He is considering moving back in with his parents—though he knows they are also struggling. He is considering leaving Canada altogether.
"I don't see a future here," he says. "And I don't know how to make one. I'm angry. And I feel like I'm not allowed to be angry because I'm young and I'm supposed to be hopeful."
The Mental Health Impact:
Lucas is experiencing hopelessness and cynicism—common symptoms of depression in young adults. He is also experiencing anticipatory grief for a future he feels he will never have. He is isolated, angry, and unsure where to turn.
What Helped Lucas:
He found a counsellor at his campus wellness centre. "I didn't think my problems were bad enough," he says. "But they were. Having someone listen—really listen—without telling me to be grateful or just work harder—it changed everything."
He connected with other students. Lucas joined a mental health peer support group on campus. "It was the first time I realised other people felt the same way. It wasn't just me. It wasn't just us. It's the whole generation."
He channeled anger into action. Lucas started volunteering with a local advocacy group focused on housing affordability. "I can't change the economy," he says. "But I can be part of something that matters. That gives me a reason to keep going."
He gave himself permission to rest. "I was pushing so hard all the time. I thought rest was lazy. But I was burning out. I had to learn that rest is survival. It's not a reward. It's a necessity."
What Each Generation Can Learn from the Others
These stories remind us that financial stress is not just about numbers. It is about identity, dignity, hope, and the fear that we are failing at the one thing we are all supposed to be able to do: take care of ourselves and the people we love.
The cost of living crisis is not a competition. Each generation faces unique challenges, but there is wisdom to be shared across generational lines.
From Boomers: The importance of resilience, the value of savings, the perspective that comes from having weathered previous economic storms.
From Gen X: The art of balancing competing demands, the skill of advocating for yourself and your family within systems.
From Millennials: The willingness to question the status quo, the refusal to accept that "this is just how things are."
From Gen Z: The urgency of the moment, the courage to speak openly about mental health, the insistence that the future must be different.
Affording Wellbeing: How to Care for Your Mental Health When Money is Tight
There is a persistent myth that self-care requires money. That you need the gym membership, the therapy sessions, the weekend retreats, the organic groceries. That well-being is a luxury reserved for those who can afford it.
This myth is not only untrue—it is harmful. It convinces people who are struggling financially that they cannot afford to take care of themselves. It adds guilt and shame to an already heavy load.
The MHRC poll found that Canadians are more likely to cope with stress on their own than seek professional support. More than two-fifths (43 per cent) said they keep busy or push through, while just 11 per cent cited seeing a counsellor, therapist or other mental-health professional as a coping strategy (Benefits Canada, 2026).
The truth is that well-being does not have to be expensive. Here are free and low-cost strategies for managing stress, connecting with others, and accessing support.
Free Strategies for Managing Stress:
Breathe. Deep breathing exercises cost nothing and can calm your nervous system within minutes. Try the 4-7-8 technique: inhale for four seconds, hold for seven, exhale for eight.
Move. Walking, stretching, or dancing in your living room can reduce stress and improve mood. You do not need a gym membership.
Go outside. Time in nature—even in a local park—has been shown to lower cortisol, improve mood, and restore attention.
Sleep. Prioritize rest. Even small improvements in sleep quality can make a significant difference in how you feel.
Journal. Writing down your thoughts can help you process difficult emotions and gain clarity.
Free Strategies for Connecting with Others:
Reach out. Call or text a friend. You do not need to spend money to maintain relationships.
Join a group. Many communities offer free meetups, support groups, or interest-based clubs.
Volunteer. Helping others can provide a sense of purpose and connection—and it does not cost anything.
Use online communities. Forums, social media groups, and online support networks can provide connection, especially for those who are isolated.
Low-Cost Strategies for Accessing Support:
Sliding scale therapy. Many therapists offer reduced rates based on income. Ask about sliding scale fees when you reach out.
Community mental health services. Many cities offer free or low-cost counselling through community health centres.
Employee assistance programs. If you are employed, your workplace may offer free counselling sessions through an EAP.
BounceBack. This free, guided CBT program is available across Canada for those experiencing anxiety or depression.
Crisis lines. If you are in crisis, help is available 24/7. Call or text 988.
Online resources. Websites like Anxiety Canada, the Canadian Mental Health Association, and Peachey's Picks offer free tools and information.
The MHRC survey found that among those who accessed mental health support, 65 per cent said the care met most or all of their needs. But just 29 per cent said their needs were fully met, and 52 per cent ended care earlier than planned or needed. The most commonly cited reasons included not seeing progress (16 per cent), not feeling understood or respected (12 per cent), and having unclear goals or expectations (11 per cent) (Benefits Canada, 2026).
This tells us something important: it is not just about accessing care—it is about finding care that works for you. Do not be afraid to advocate for yourself. Ask questions. Try different therapists if the first one is not a fit. Your well-being is worth the effort.
A Final Thought
The age of unaffordability is not a personal failure. It is a systemic crisis. But you are not powerless—even when it feels that way.
If you see yourself in any of these stories, know this: you are not a failure. You are navigating a system that is profoundly unfair. Your fear is valid. Your anger is valid. Your grief is valid. And you do not have to carry it alone.
You can take small steps to protect your mental health. You can find moments of connection and rest. You can seek support, even when resources are limited. And you can remember that you are not alone in this.
No matter your generation, your struggles are valid. Your fear is valid. Your hope is valid. And you deserve care—no matter how much money you have.
Whatever it is, we’re here for you.
Life is uncertain. Jobs are stressful. Parenting is hard. Relationships take work. Families can be dysfunctional. And sometimes, love hurts. When you’re confronted by feelings, events, or issues that are making your life challenging, it’s okay to ask for some help.
REFERENCE SOURCES:
Benefits Canada Survey finds 46% of Canadians say rising cost of living negatively affecting mental health
Canada Life Managing your mental health amid Canada’s high cost of living crisis
CBC News Get therapy or pay rent? Millennials, Gen Z making hard choices when it comes to mental health
Mental Health Commission of Canada Financial Advice for the Times We’re In
Mental Health Commission of Canada Mental Health and the High Cost of Living
End Child Poverty Young People’s Experience of the Cost of Living Crisis
BPM Cost of living erodes mental health of nearly half in Canada: poll
KFF Health News It’s Becoming Too Expensive to Live: Anxious Older Adults Try to Cope With Limited Budgets
