Canadians' biggest financial regret: How past mistakes affect life milestones

Are financial decisions from your past affecting your future? According to our survey, for many Canadians, the answer is "yes"

Many Canadians are discovering that earlier money choices are impacting their ability to reach important financial milestones like buying a home. Whether it's stretching too far on a car loan, overspending on discretionary items or putting off saving for major purchases, these decisions can have lasting consequences.

To better understand this issue, we surveyed 1,000 Canadian adults about their financial regrets, the long-term impact of these decisions and the steps they take to get back on track. Here's what we learned about the challenges people face and how they're working to overcome them.

Key takeaways

• 41% of Canadians aged 30 to 44 report that financial mistakes have delayed key milestones, such as paying off debt or making major purchases.
• After making money mistakes, 42% of young Canadians turn to loved ones for financial support.
• 4 out of 10 women prioritize reducing spending, such as through spending adjustments, as a corrective action.

Financial mistakes have long-term consequences — impacting major life milestones

For many Canadians, past financial mistakes continue to cast a shadow, influencing everything from day-to-day life to future plans. When asked how their past financial choices affect them today, nearly one-half (46.4%) of Canadians said they struggle to build savings. 

Close behind, 37.7% feel hindered from enjoying their desired lifestyle— including vacations and leisure activities— while 37% still grapple with paying off debt.

This struggle is especially evident among Canadian millennials, with 41% saying past financial mistakes have kept them from paying off debt and 38% citing delays in major purchases like homes or cars. 

These challenges align with broader economic trends, as the Canadian Real Estate Association (CREA) projects a 4.7% increase in the national average home price, making it even harder for millennials facing financial setbacks to catch up.

Significantly, 17% of respondents said past financial missteps kept them from buying a home—a major setback, as homeownership is often key to long-term financial security. With rising rent costs, owning a home is becoming even more important. This burden is particularly felt by those in their 30s and 40s, who are also juggling retirement planning. 

42% of young Canadians lean on loved ones after money mistakes

When it comes to financial setbacks, Gen Z and older Canadians handle recovery in different ways. Younger individuals are more likely to consult with trusted family and friends (42%) to navigate difficult financial situations.

In contrast, millennials (ages 30 to 44) are more likely to adjust their budgets or financial strategies (52.4%) to recover. This difference suggests that younger adults value social support in overcoming financial challenges, while older adults lean towards self-reliance.

This reliance on social support may stem from the heightened financial stress younger Canadians face. FP Canada reports that 50% of those under 35 consider money a top stressor, and 72% say it negatively impacts their lives—much higher than the 48% of Canadians over 35.

While seeking validation from those who’ve faced similar struggles is natural, remember they may not be experts. Instead, turn to resources like money.ca or consult a qualified financial advisor for more reliable guidance.

Women favour spending adjustments over investment shifts

When it comes to recovering from past money mistakes, Canadian men and women take different approaches—women are more likely to cut spending and seek expert advice, while men tend to focus on adjusting their investment strategies. 

While reducing spending is a common reaction for both, women are more likely to tighten the purse strings (40.5%) than men (32.5%).

This difference extends to seeking professional guidance, with 20.9% of women reporting that they worked with a financial advisor to recover from their biggest financial mistake, compared to 19.8% of men. While the gap is small, it suggests women may have a slightly greater inclination toward expert assistance.

In contrast, men are more likely to adjust their investment approaches after financial missteps. Seventeen percent of men reported becoming more cautious about investing, such as diversifying their portfolios, compared to 13.3% of women. This suggests a greater tendency to adopt investment strategies in response to financial errors.

Nearly one-half of Canadians regret not building savings

If you ask Canadians about their biggest financial regret, most won’t mention a bad investment or a missed opportunity — they’ll say they didn’t save enough.

When asked about past financial mistakes, a staggering 44.9% of respondents cited not building their savings as their biggest regret. This was followed by overspending without a budget (42.5%) and not saving enough for emergencies (37.2%).

Across all age groups, not building savings was the most common regret, with overspending also being a significant concern. These findings suggest that many individuals, regardless of age, wish they had been more proactive in creating a financial safety net for their futures. This sentiment echoes a broader concern among Canadians about having adequate savings for retirement.

These findings underscore the critical importance of early financial planning and highlight the need for developing strong saving habits — such as creating a budget, setting clear financial goals and automating savings contributions — to ensure long-term financial security.

1 in 5 Canadians lack confidence in overcoming financial mistakes

Twenty-one percent of Canadians worry about their ability to recover from financial missteps, with 14.9% feeling "somewhat unconfident" and 6.1% "very unconfident" about their financial resilience.

Better access to financial resources and education is key to helping these individuals navigate challenges — such as the upcoming wave of mortgage renewals. Budgeting workshops, debt management counseling and financial literacy programs can empower informed decision-making.

While a considerable portion of Canadians express concern, the majority (79%) feel at least somewhat prepared for financial challenges. Specifically, 54.8% are "somewhat confident" and 24.2% are "very confident" in their ability to bounce back financially.

Take steps toward financial confidence with Money.ca

Many Canadians regret not building savings sooner, but it’s never too late to take control of your financial future. Money.ca offers expert advice and practical tools to help you overcome past mistakes, make smarter financial decisions and build your financial literacy.

Methodology

The survey was conducted by SurveyMonkey Audience for Money.ca. The survey was fielded between January 22, 2025, and January 23, 2025. The results are based on 1000 completed surveys. In order to qualify, respondents were screened to be residents of Canada over 18 years of age and own a home. Data is unweighted, and the margin of error is approximately +/-5% for the overall sample with a 95% confidence level.

Scott Birke Content editor, Money.ca

Scott Birke Content editor, Money.ca

Scott Birke is a financial content editor at Money.ca.

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