Young adults in Outaouais face financial headwinds amid rising debt and living costs

Tashi Farmilo

With debt levels on the rise and a challenging job market, young adults across Outaouais are increasingly grappling with high credit card balances, mounting living expenses, and limited financial guidance. Every November, Financial Literacy Month, led by the Financial Consumer Agency of Canada (FCAC), aims to help Canadians, especially younger generations, build confidence in managing their money.

Recent data from Equifax Canada reveals the financial strain on young Canadians, with credit card balances for consumers under 35 now averaging over $4,300—the highest since 2007. Payment rates have dropped significantly among this age group, contributing to increased delinquency rates. As of Q2 2024, non-mortgage delinquencies hit 1.4%, the highest rate since 2011, with the 26-35 age group seeing a sharp 21.6% increase from the previous year. Auto loan and line of credit delinquency rates among young adults also rose, at 1.45% and 2.19%, respectively, underscoring financial pressures. Additionally, nearly one in three Canadian households now includes adult children living with their parents, up from 26.7% a decade ago. This trend is especially pronounced in urban areas, reflecting how economic challenges are reshaping family dynamics and stressing the need for robust financial literacy support.

“Talking about finances with family or friends builds confidence and leads to better financial decisions,” said Werner Liedtke, Interim Commissioner of FCAC. “Our message is simple: Canadians should feel comfortable asking questions and learning from trusted sources.”

As part of this year's Financial Literacy Month campaign, the FCAC has launched resources and activities that encourage Canadians to check their credit scores, discuss budgeting with peers, and seek advice from financial professionals. “The transformative power of open conversations about finances can help Canadians build a stronger foundation for their future,” Liedtke added. He pointed to research indicating that talking about finances not only builds confidence but also has tangible, positive impacts on financial outcomes.

“Young adults in Outaouais need more than just access to credit,” said Marc Rouleau, a Licensed Insolvency Trustee at Doyle Salewski Inc., who frequently collaborates with community initiatives on financial education. “The real value lies in having the confidence and knowledge to manage that credit responsibly. A lot of young people don’t realize how quickly missed payments and high credit utilization can impact their scores.”

Rouleau explained that many young people inadvertently harm their credit due to a lack of guidance, often misusing credit cards and carrying high balances without understanding the impact on their financial health. “Ideally, they should keep their credit use under 30 to 50 per cent of the limit,” he said. “On a $1,000 credit card, for example, that means carrying no more than $300 to $500 in debt if possible. This is one of the most effective ways to maintain a healthy credit score.”

Online, the FCAC’s: www.canada.ca/en/financial-consumer-agency.html, provides free budgeting tools and resources to help Canadians strengthen their financial resilience. This month, the FCAC encourages everyone to take one small step, whether by checking their credit score, using budgeting apps, or exploring financial advice on trusted platforms, such as the ACEF Outaouais’s website: acefo.org or Doyle Salewski: doylesalewski.ca, where Marc Rouleau and his team offer personalized financial guidance.

“Financial literacy isn’t just about budgeting; it’s about long-term planning, protecting yourself from scams, and knowing your rights,” said Rouleau. “We’re hoping that this month of focused attention will bring lasting change for young adults and set them up for a more secure financial future.”

Young adults in Outaouais, facing high debt and rising living costs, are turning to financial resources from organizations like FCAC and ACEF Outaouais, with expert guidance from professionals such as Marc Rouleau at Doyle Salewski, to build financial confidence and resilience during Financial Literacy Month. Photo: courtesy of Doyle Salewski Inc.