Hi folks! This year for Financial Literacy Month in Canada I will provide a weekly four part dive into topics which I wish they taught in school starting with:
Part 1 — The Illusion of Control: Why Financial Struggle Is Often Deeper Than Money
Financial struggle in Canada often looks like a budgeting issue on the surface but beneath lies emotion, impulse, and denial. Canadians often say they need to earn more money, yet more income rarely fixes the underlying habits. We’ve normalized living at the edge, disguising debt as convenience and overspending as rewarding yourself.
The system encourages it with buy now – pay later plans. The illusion of control is powerful. We tell ourselves we’re managing because bills get paid, but one emergency away from collapse means we’re not managing at all but maintaining our poor habits.
Financial problems often begin emotionally, not mathematically. Stress, boredom, or social pressure lead to reactionary spending that later feels like necessity. When people say they don’t know where my money goes, it’s rarely a lack of intelligence — it’s avoidance born from fatigue or fear of seeing the truth.
Breaking this illusion begins with awareness. Before any app, tool, or debt plan can help, the individual has to face the core issue: why they spend. Without that honesty, every financial correction becomes temporary.
Lessons for Change: Escaping the Illusion
- Track emotions, not just expenses. Write down how you feel before large or unnecessary purchases — tired, stressed, bored. Patterns will appear.
- Introduce friction. Use cash or debit for discretionary spending. The act of physically paying forces awareness.
- One-day rule. Delay all non-essential purchases by 24 hours. Most emotional impulses fade quickly.
- Define “manageable.” If your total debt wouldn’t survive 60 days of lost income, it’s not manageable — it’s fragile.
- Audit your autopilot. Cancel or pause one recurring charge you’ve ignored. Small reversals rebuild control.
Thank you for reading part one and stay tuned for part 2 coming in 7 days (Nov. 8, 2025)
DGB
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