Skyrocketing Cost of Living Fuels Mental Health Crisis Among Canadian Youth

Rising prices and growing financial stress have young people across Canada under pressure like never before. Recent national surveys show that most Canadians now link youth mental health struggles directly to the soaring cost of living, with issues such as rent, food, and job insecurity topping the list of worries.

Many young adults say they’re having to choose between paying bills and seeking help, making therapy and support feel out of reach for many.

Experts and families now see the crisis as urgent and widespread, especially as more Gen Z Canadians share stories of anxiety, burnout, and uncertainty about the future. With nearly three-quarters of those over 30 believing young people have it harder than past generations, the need for real solutions is clear. This post will explore what’s fueling the crisis and what’s needed to protect the well-being of young Canadians right now.

Understanding the Link Between Financial Pressure and Youth Mental Health

The skyrocketing cost of living has shifted from being a background worry to a main source of stress for young Canadians. Every dollar seems to be stretched thinner, from groceries to rent, with stagnant wages offering little relief. As wallets tighten, youth face choices that chip away at their well-being and sense of security. For many, each day brings a new calculation: pay for essentials or put money toward their mental health. The weight of these decisions is having a clear and measurable effect on the mental health of young Canadians.

How the Cost of Living Became a Crisis for Young Canadians

Young Canadians are battling a combination of sky-high rents, expensive groceries, and incomes that have failed to keep pace, all of which have escalated the cost of simply getting by. Recent years have seen the average price for everything from a loaf of bread to an apartment lease shoot upward.

Housing costs have made it harder for young people to live independently. Many are forced to live with roommates or stay longer in their family homes. Nationwide, soaring rents and a tight housing market have left millions feeling shut out of home ownership or secure leases. According to a Forbes analysis, Canada’s housing affordability challenges are now sparking national concern.
Food insecurity is on the rise. Studies highlight worrying trends, like one showing that over 11% of Canadian children and youth face food insecurity, meaning thousands are going hungry or eating less nutritious meals just to save money (Public Health Ontario).
Stagnant wages mean many young people work longer hours or juggle multiple jobs just to stay afloat, with little left over for savings or emergencies.

Together, these factors leave youth with little margin for error. If even one bill spikes, a young person can be forced to sacrifice essentials or forgo care, including therapy or medication.

The Psychological Toll: Anxiety, Depression, and More

The mental health impact of financial pressure is showing up in the data, and it’s alarming. Youth are reporting record-high rates of anxiety, depression, and related disorders.

According to a 2025 StatCan report, almost 1 in 5 Canadians aged 15 and older now meets the criteria for a mood, anxiety, or substance use disorder.
Other studies highlight a steady rise in mental health struggles, including more frequent reports of suicidal thoughts and increased use of crisis supports.
Since 2016, statistics show that the number of young Canadians experiencing these issues has jumped significantly, with youth especially at risk as they juggle studies, work, and uncertain futures (Mental Health Research Canada).

Mental health experts warn that when therapy or support groups become unaffordable luxuries, early signs of distress often go untreated, leading to more severe, longer-lasting problems.

Compounded Stressors: Beyond Economics

Financial stress rarely acts alone. It often teams up with other modern anxieties, creating a perfect storm for the mental health of today’s youth.

Job uncertainty hovers over many young Canadians, making it tough to plan for the future or even the next month’s bills.
Climate change is sparking a whole new kind of anxiety. Many young people say that worrying about the environment directly impacts their daily mood and long-term outlook. Research from The Lancet describes how climate anxiety now rivals concerns about career or cost of living in its effect on youth mental health.
Global events such as war, political tension, and economic instability amplify feelings of uncertainty, fueling fears about everything from personal safety to career prospects.

When stacked, these worries don’t just add up—they multiply. The result is a generation carrying a heavier psychological load, often with fewer resources to recover. For many young people, it can feel like living in survival mode, always waiting for the next crisis, and never quite having a chance to catch their breath.

Barriers to Accessing Mental Health Care

Many Canadian youth want help for their mental health. But for too many, that help feels just out of reach. Money worries get in the way of booking therapy or buying medication, while public system wait lists seem endless. Even as stigma fades and more young people speak openly about anxiety or stress, the basic roadblocks to care remain.

Cost-Prohibitive Care: Therapy, Medication, and Wait Times

For young Canadians, the price tag on private mental health care is a dealbreaker. Out-of-pocket costs for therapy sessions range anywhere from $60 to $250 each; most insurance plans only cover a handful of visits, if any. After that, it’s all on the individual.

Many choose to wait, hoping things improve or insurance resets for the year. For some, seeing a therapist becomes as unaffordable as a luxury vacation. A few sessions can cost more than groceries for a month. This means youth are forced to delay or stop treatment altogether, even when progress is just starting.

The same financial crunch shows up with medication. More young people are being diagnosed and treated for anxiety, depression, and ADHD, but even basic prescriptions can break the bank for those without strong drug plans. For many, these are recurring, essential expenses, not one-time costs.

The public health system is supposed to offer another path, but it’s crowded and thinly staffed. There’s not enough funding or professionals available. Youth sometimes wait months for a first appointment, only to wind up on another waitlist for specialised support. Nonprofits and community groups try to fill the gaps, but can’t always keep up with demand. The result is a system where care quality might be similar between public and private, but public access simply moves too slowly.

Recent data from CAMH and mental health experts strongly support this reality: the bottleneck isn’t just cost alone, it’s an overloaded, understaffed system that can’t meet the urgent needs of today’s youth.

Unmet Needs and Early Intervention Challenges

Delayed care doesn’t just mean waiting longer for relief—it can make everything worse. For youth in the thick of change, from high school through their first jobs, problems that are left untreated can derail personal growth, education, and relationships.

When mental health needs go unanswered, young people slip through the cracks. They struggle with keeping up in school, withdraw from friends, and sometimes leave university or jobs before they have had a real chance. For some, this can alter their life’s direction, making it harder to recover and catch up later.

Continuity of care is a serious issue, too. Many youth use up their resources quickly and then drop out of therapy just as they start making headway. For others, cycling in and out of programs due to limited session caps means never getting the full benefit of ongoing support.

High-cost users—those who end up in crisis again and again—are a symptom of these gaps. If care isn’t there at the start, people are more likely to need emergency services later, straining the entire system. Early care matters, but long waits and high costs block that path. Recent studies show these delays affect some groups even more, especially those already facing social or economic hardships.

Too often, systemic barriers mean youth must operate in “survival mode,” only seeking help when they hit rock bottom. Breaking this cycle will take more than talk—it means fixing the broken system, and making care available right when it’s needed most.

Toward Solutions: Building Resilience and Accessibility

Young Canadians face real mental health challenges tied to money, stress, and daily uncertainty, but there are paths forward. By focusing on both policy changes and support at the ground level, Canada can make it easier for youth to stay well and get help when needed. This means making care more affordable, expanding housing options, and strengthening the networks youth rely on every day.

Policy and Systems Change: Expanding Affordable Access

Real help starts with the system. Proposed policy changes hold promise for unlocking doors that have long been shut to youth struggling with mental health.

Universal mental health coverage could change the story for so many. New federal commitments, including the planned Canada Mental Health Transfer, aim to help provinces deliver more services at a lower cost. If funded well, it could mean therapy sessions and other supports are no longer out of reach (Policy Brief: Child & Youth Mental Health).
Affordable housing initiatives are key. Making sure youth can afford a safe place to live helps protect their well-being and sets the stage for recovery. Direct investment in homes, especially for young people leaving care or facing homelessness, would take pressure off the rest of the system.
Integrated youth wellness hubs offer one-stop locations where youth can get mental health care, addiction support, and social services together. These hubs shorten wait times and reduce barriers by bringing care and support under one roof. They’re already helping in parts of Canada and could work nationwide if expanded.

Recent funding from federal programs is helping local organisations add staff, reduce waitlists, and bring specialised support to more communities (Government of Canada launches Youth Mental Health Fund). These steps chip away at old roadblocks by:

Covering more of the cost for youth and families
Filling gaps in care between the public and private sectors
Expanding access in rural, remote, and Indigenous communities

Building on these efforts, the push is now for a permanent fix. Advocates argue the next leap should make mental health services as affordable and accessible as a trip to the family doctor (About the Youth Mental Health Fund).

Building Youth Resilience and Community Supports

Rules and funding only go so far—kids and teens also need a strong safety net they can reach out to every day. Social support, peer groups, and school programs all play a big role in helping youth handle life’s stresses.

Research and lived experience show that strong community connections can calm the chaos of economic ups and downs. When young people feel heard and supported, they’re less likely to reach crisis points. Here’s how Canada is strengthening those supports:

Community resilience programs: Grants and funding for projects that help youth build coping skills, learn emotional strength, and create peer networks (Community Resilience Fund).
School-based initiatives: Schools across Canada are adding mental wellness programming that goes beyond textbooks—think mindfulness activities, mental health first aid, and staff trained to spot issues early.
Youth-led projects: Programs like youth resilience grants give funding directly to young people, letting them design supports that work for their own needs (Youth Resilience Grants).
Family and caregiver education: Teaching parents and guardians simple support strategies helps families talk about mental health and spot warning signs sooner.

What makes these efforts stick is their practicality. Regular check-ins, drop-in spaces, and peer-led support make mental health feel less like a last resort and more like a regular part of life. Young people who build connections—at school, at home, or through the community—have more tools to tackle stress and uncertainty.

Recent work also highlights that simply being part of a group, team, or club provides a buffer against economic and psychological strain (Building Youth Resilience Through Community Connections). Canada’s next step is scaling up what works: support that’s easy to access, local, and shaped by youth voices.

Conclusion

Canada’s young people are feeling the squeeze of rising costs, and it’s taking a real toll on their mental health. The connection between money stress and mental well-being is clear: when rent, food, and bills climb faster than wages, young Canadians face giant hurdles just to stay afloat.

No one group can fix this alone. It will take cooperation from government leaders, health professionals, and the wider community. Continued investment in mental health care, more affordable options, and targeted supports are essential right now.

Yet, there’s hope. Solutions work when everyone pulls together—building services that are easy to reach and strong community connections. Prioritising youth well-being isn’t just the right thing to do; it sets up a future where every young person has the chance to thrive.