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November 26, 2020
The ongoing COVID-19 financial crisis has affected Canadians of all ages and income levels, in all parts of the country. And one of the most serious ramifications of the pandemic has been the impact it has had on the emotional, physical and financial health of women.
The ongoing COVID-19 financial crisis has affected Canadians of all ages and income levels, in all parts of the country. And one of the most serious ramifications of the pandemic has been the impact it has had on the emotional, physical and financial health of women. Economic experts have called this phenomenon a she-cession, to describe the extreme financial impact the pandemic has had on women.
In this episode of the BDO Financial Wellness Podcast, host Tera Beljo speaks to two BDO Licensed Insolvency Trustees, Nancy Snedden and Jennifer McCracken, about how women have been faring during the pandemic, and what steps they can and should be taking now to recover from a recession that has disproportionately affected them. To learn more about our conversation with Nancy and Jennifer, read the full transcript below.
Tera:
Hello, you are listening to the BDO Financial Wellness Podcast, and I am your host, Tera Beljo. Today, we’re going to talk about women and their financial struggles brought on by the COVID-19 pandemic. Some economists go so far as to label the current recession a she-cession, which first I’d like to point out is very hard to say. But it is a nod to the fact that women have taken on a disproportionate financial hit since the pandemic began.
A million and a half women in Canada lost their jobs in the first two months of the COVID-19 pandemic. By April of 2020, women’s participation in the Canadian workforce dropped to 55 percent, a low not seen in over 30 years. Women were not only the first to lose jobs because of the pandemic, their financial recovery has been slower than men. And some of their jobs have never returned. I got to sit down with Nancy Snedden and Jennifer McCracken, both Licensed Insolvency Trustees from BDO Debt Solutions, and we had a fascinating conversation about the financial and emotional challenges women have come up against in 2020, and how those challenges have in many ways permanently changed their lives.
Welcome, it is so nice to have both of you here! Thank you for joining me today. Back in March, it was pretty clear quickly that the pandemic wasn’t only going to be a health crisis, it was also going to be a financial crisis for millions of Canadian households. When you think of it, as a country we’ve experienced lock downs, shutdowns, more than one wave, layoffs, lost income, drastic changes in family routines, and so much more. We’ve all been through it together in one way or another. But in many ways, women have had a different experience than men. That’s why we’re here talking about this topic today.
I read recently that COVID-19 pandemic has thrown the world off balance, and women are taking the disproportionate hit. Economists have called it a she-cession, and so Nancy, since we have you here with us today (and Jennifer, thank you as well for joining me) let’s start with you. Can you tell us more about what many women have been experiencing since the start of the pandemic?
Nancy Snedden:
Absolutely, thanks, Tera, and you’re right. As a country the pandemic has caused a lot of turmoil, both from a health crisis but also an economic crisis. And there’s no doubt that all ages, males, females, with children, without children, everyone’s experiencing some form anxiety or financial crisis. However, there’s no doubt that women are taking the brunt of that, and there’s many reasons for that.
But we know that 62 percent of women lost their jobs at the start of the shut down in February. And now, the latest stats that came out were September, and we’re seeing those numbers as high as 85 percent…
Tera:
Wow.
Nancy Snedden:
…that still remain unemployed. Our own deputy premier Chrystia Freeland has indicated that the economic fallout from the pandemic can be described as a she-cession. So there’s no doubt it exists, I know there may be some skeptics out there, but there’s no doubt, I think, that the she-cession is real.
Among parents with at least one child under the age of six, men were roughly more times as likely to have returned to work than women. And Stats Canada has also shown that women with children under 18 were also more likely to be working less than half their available hours. And there’s a lot of reasons for that, I mean, depending on where you live in the country, more people are more willing than others, I think, to send their kids back to school, so many are still homeschooling, many daycares are still not operating at full capacities.
Tera:
Yep.
Nancy Snedden:
The nature of the industry is that a lot of women work in that have been really affected, like the retail industry, like the restaurant industry. There’s more women in those industries predominantly than men. So there’s many reasons why we’re seeing the she-cession, but there’s no doubt that it exists.
Tera:
It’s such a tongue twister, she-cession, it’s almost like…
Nancy Snedden:
It really is!
Tera:
So let’s talk more about moms with younger children and the incredible stress of trying to do it all during this pandemic. I mean, I know I’m one of them. At one point, especially during the lock down here in Ontario, my husband had to call in my parents because I felt like I was having … I was losing my mind, it felt like. He’s like, “We need help because she’s losing it.” Because I was trying to work, homeschool, do the regular things, and having children underfoot all day. I often joke that when I signed up to be a parent, I did not sign up for this. At four I was supposed to send him off to school for seven hours a day and then he’d come back to me all smart and full of knowledge. I wasn’t supposed to be the one to be putting…I didn’t go to school to be a teacher. So Jennifer, you have children as well, tell me a little bit about what you think about what’s going on.
Jennifer McCracken:
Well, I think it’s probably fair to say that a lot of women that are also moms and are dealing with the stress of just living during this pandemic are also reporting higher levels of depression, anxiety, and I think it really does relate to the pressures and the stress that they have within the household. We know that gender roles still exist in Canada, so we know that women…
Tera:
Yes.
Jennifer McCracken:
…for instance are doing more of the laundry, more of the daily meal prep, and men historically pick up those tasks that are not necessarily daily chores like the repairs, like the outdoor work. And so generally on a daily basis, women are really kind of feeling that burden of having to manage it all. And then it’s the other kind of intangible stuff like the gift giving, the buying of presents, the organizing holidays, the maintaining schedules, and the pandemic has really exacerbated those gender roles. So women are having to manage, “is the daycare center open?” They’re homeschooling their children. All the while, also maintaining their…trying to maintain their careers. And the impact obviously – we haven’t talked a lot about debt – but a lot of Canadian households are also carrying debt. So we have just an enormous amount of stress and pressure on Canadians, and particular women are, I think, feeling the crunch more.
The other thing to think about is the impact…Nancy was talking about the impact we’ve had on the economy and think about the type of work that women typically do. So back in 2015 Stats Canada found that women tended to pick up work in professions which were the five Cs. So it’s catering, cashier, caring, cleaning, clerical. And those are high risk occupations, and for some of them…
Tera:
Yes.
Jennifer McCracken:
…the return to work, as Nancy was highlighting, has actually not been the same. So they’re dealing with reduced income, and there’s all of these dynamics happening. And it’s not to say that the pandemic and the economic impacts are not also affecting men, it’s just when women already had a disproportionate amount of pressure on their plate, what do we think happened after the pandemic set in and we all had to adjust our lives? And so, certainly that’s what I’m seeing in my practice, and that’s what I’m reading about as well, just online and social media, is the toll that this is all taking on Canadian women.
Tera:
And also, too, let’s go back to the gender pay gap as well. So in a lot of families, it makes more sense for the woman to stay home and take care of all of this while the man carries on doing what…working…and doing what he needs to do. But there’s still that income leaving the family, and how does the family deal with that? So not only are women’s contributions to the household income being taken away, but now they’re having more coming on them in terms of responsibilities within the home. So are you seeing…like are you seeing from a debt perspective…how that’s impacting people in your practice?
Jennifer McCracken:
You know, one thing I’ve been finding lately in my practice, and it’s really quite curious, but I’m finding in households that women tend to be carrying higher levels of debt than their spouses. And it’s not really quite clear because from an income standpoint, it’s not as though from a lending perspective, they looked much more attractive to the lender. I’ve actually not been able to put my finger on it, but I definitely am coming across that much more than I really ever have before.
Nancy Snedden:
Yeah, and I think too, I think what I’m seeing a lot is the anxiety that we talked about earlier that a lot of women are experiencing, some of that is brought on by finances. Some of it is brought on by guilt that they shouldn’t be feeling, but are feeling by the fact that maybe they aren’t able to work, or aren’t working at the same level. And so that lack of financial support that they’re used to providing to the family is causing a lot of anxiety. And they’re also having trouble coping with making the day to day bill payments. And they’re maybe seeing that more so because they are at home, so they are seeing the bills coming in, and it is causing a level of anxiety that we haven’t seen before. Financial stress has always been there, people come to us overwhelmed a lot of the time. But we’re seeing even more anxiety now I think than ever before.
Tera:
Now I know I just asked you each to talk about what you’re seeing in your practice, but I’d like to talk about your parts of Canada, because this is unique, because we have you, Nancy, who is in Newfoundland, and then we have you, Jennifer, who is out in Vancouver. So those are two separate parts of the country. So are you seeing signs of the she-cession where you live, and has there been an increase in women coming to see you for debt advice? Jennifer, let’s start with you.
Jennifer McCracken:
I’m seeing certainly an increase of single parent households. So in my practice it would absolutely…I mean, I don’t have the statistics but I can just say anecdotally it is statistically much more common for me to have a single parent household that’s run by a woman, that is not receiving any financial support from their ex-partner, they’re really only getting the Canada (Child) Benefit as another supplemental income amount to support the children and their household expenses. I’m seeing this much more. And I sympathize greatly with these clients that the pandemic, it is so challenging for them because they are running their household, they are the sole earner, they have no other financial support, and then they have their children that they’re also looking after and having to maintain all of the changes we’ve seen in this country. So I am seeing more women come to me. I think what has happened is the pandemic has sort of given that push to resolve the debt situation, because that’s just one more thing that they don’t have the head space to manage anymore. So we (Licensed Insolvency Trustees) take that pressure off and find a solution for them so that they can put their energy into all these other things.
The other aspect I’m seeing is that women with elder care, and they tend to be the ones…I actually had a client recently that literally had to quit her job to look after her mother and she is being paid as part of the household planning. But literally there was nobody else willing to step up and do this and I’m seeing that aspect of it with COVID-19, the limited movements. A lot of my clients are reporting that they’re seeing an impact, that they’re having to run around and support the elders in their family in addition to, of course, observing all the other things in their own immediate household.
Tera:
What about you, Nancy?
Nancy Snedden:
Yeah, I would agree with the things that Jennifer is seeing. I think I’m seeing more women making the call, so not necessarily single parents, although we do have plenty of them, but we’re seeing more calls coming in from women for initial appointments, to see what solutions may be available. And I think that does go a little bit to what we were saying before, as well, where women are home, they’re feeling the stress, they’re feeling the anxiety. They maybe have some more time because they are home with the kids to do some more research to see what solutions may be available, and they’re saying, “Okay, I need to reach out and get some help. I need to get some support.” The financial stress is just a little bit too much right now, especially if they’re on reduced income because they’re not able to work from home, which we’re seeing a lot of that as well.
Tera:
And what do you expect to see in the months ahead?
Nancy Snedden:
I think in the months ahead we are going to see…we’ve been seeing what the OSB predicted, I think, in the spring and summer that by the fall we’d see a 30 percent increase in insolvencies. And when I say OSB that’s the Office of the Superintendent of Bankruptcy. That hasn’t materialized quite yet, but it’s a ticking time bomb, really, we think. Because although insolvencies are at an all-time low, 22 year low, that’s not because the financial circumstances of Canadians have recovered. In fact, it’s probably worse than it was pre-pandemic because of the sheer amount of layoffs and reduced hours that we’ve had. There’s no doubt that Canadian government has stepped up and provided a lot of benefits to people who need it, but for many the level of benefit is not replacing the income that they maybe had.
So I think by the time we get through mid, late first quarter of 2021, in my opinion we’ll start seeing those numbers really increase.
Tera:
And do you see a different in Vancouver?
Jennifer McCracken:
I would have to agree with what Nancy’s saying. We’ve seen sort of steady filings, we haven’t seen this avalanche which naturally we would’ve expected in Canada because we carry record levels of debt. And we know that Canadians are living paycheque to paycheque, so the impact of such a huge economic impact across this country, we obviously would’ve anticipated that we would see an increase in insolvency filings. To see that they’ve gone down, I mean, I’d love to know who would’ve predicted that. I don’t think anybody did. So it really…it’s actually fascinating, really, when you step back and look at it.
But I’m seeing a lot of enhanced collection now from creditors. I’m having a lot of individuals talk to me about the stress that the collection calls and the collection letters are having on them. I’m just seeing in my practice, there’s a bigger sense of urgency right now. I’m meeting with people that say, “I want to get this filed right away.” So I think the stress is probably at an all-time high and it’s only going to get worse. And where we will probably see the influx of filings and Canadians actually seeking relief to deal with their debt would be in the new year. We’re already in November, we may see an uptick in December, but it really…a lot of folks feel that it’s more likely that we’re actually going to see that reckoning come the new year.
Tera:
Traditionally, we don’t normally see people filing in December because it’s almost like head down, let’s deal with Christmas and then carry on. So I would think that COVID would change that, but I don’t see any of that happening. Do you, Nancy?
Nancy Snedden:
I think it’s going to really depend on the level of debt people are currently carrying, and what available credit they still have. So oftentimes people are fearful about losing their credit card at Christmas, because of course they want to provide the Christmas that their families are used to.
Tera:
Yep.
Nancy Snedden:
They want to make sure that their child has the gifts under the tree that the kids in their class have under the tree and so on. I mean, you can’t fault them for wanting to make their kids happy.
Tera:
Not at all.
Nancy Snedden:
However, those same families may or may not, but may be in a position where they’ve had to access available credit throughout the last number of months to put food on the table, to pay their light bill, because they’re on a reduced income. So they may not have the available credit even to get through Christmas, and may need to file or get some support from a Licensed Insolvency Trustee to deal with that debt part at that time.
Tera:
So obviously a woman’s options will be different depending on her personal and financial circumstances. For example, is she part of a single or dual income household? Is she the major breadwinner, because that’s also a case, I know I mentioned earlier that traditionally the man is but this is still 2020 and while the gender gap is still there, there are still women out there who are making good money for themselves. Also, is she taking an extended leave from work to care for children? I know that, for example, maternity leave has been extended, you can take the one year, or 18 months, so people who made that choice not knowing the pandemic was going to happen.
So let’s talk about a few of these situations and a few debt and money management strategies that maybe can help people in those situations. Jennifer?
Jennifer McCracken:
I find that a lot of individuals right now are really gravitating towards the consumer proposal process. So bankruptcy does have a stigma. Obviously we’re trying to correct that because bankruptcy can be the best option and a really great tool for an individual to get a fresh start and really get relief of the debt. So it’s not to say bankruptcy is not a good option for an individual, but I’m finding a lot of women that are working, they absolutely look towards the consumer proposal process first, and they’re not filing as many bankruptcy filings, and they really are looking for a way to resolve their debt and pay back as much as they can to their creditors, and avoid the impact that their credit rating’s going to have if they proceed with the bankruptcy filing.
And in terms of tools, we have a lot of information on our website – BDO’s website – concerning debt solutions, so we have online debt calculators, budgeting tools, and so certainly anybody I meet that’s not ready to proceed with the filing, we do give them that information to say planning out the short term budget, the long term budget. And a lot of women are really…as we said earlier, the gender roles in the household, sometimes managing the finances also is sort of on their to-do list, and so they are really stepping up and putting a plan in place, given this unprecedented circumstance that we’re living in right now.
Tera:
What about households or couples who manage their finances independently? So there’s individual checking accounts, savings, loan obligations, credit cards, etc. Nancy, how would you suggest they manage the situation?
Nancy Snedden:
I think in these circumstances where they have had separate finances in the past and maybe now they’re down to one income versus a two income household, it’s a great opportunity to actually communicate together on how you’re going to manage the family finances going forward. It’s surprising how many couples don’t talk about money, and don’t talk about finances, and do have completely separate things and they maybe have…the husband pays these bills, the wife pays these bills and they’ve been doing that all along. This may force that conversation. It’s fine if you want to have two separate checking accounts and have bills that you’re each responsible for, that doesn’t mean you shouldn’t talk about the family finances.
So I guess one silver lining to this pandemic is that it may force those couples to actually sit down and take a harder look at their budget, really talk to each other about the family finances, set the short and long–term goals, and really think about okay, what should we be cutting back on to make sure that we have enough money to pay what we need to pay, but also to set aside some money for an emergency fund.
Tera:
And are there strategies for people, women and men, who want to repair the damage done to their income or their debt levels or savings goals due to what is happening right now?
Jennifer McCracken:
So in terms of…if the focus is around debt repayment, there are definitely strategies households can employ. So it would first of all making a list of the household debt, make note of the interest rates, what is the minimum payment. Some folks will … There’s two different (debt repayment) strategies, some folks will focus on the lower balances, and there’s this sense of okay, we’re going to get this one paid first and then we’re going to tackle the higher balances. Other folks use the strategy that they go after the high interest debt first, really try to plow that down, ease up the cash flow as much as they can and then focus on the ones that have the lower interest rate, because of course the carrying costs are different.
So those are two strategies that I see in the households across the country. And then some folks also will look towards doing debt consolidation, so they will approach the bank about getting a term loan so that it has an end date as opposed to something that’s revolving and the balance is just carried to when it’s actually paid in full, they actually…
Tera:
Yep.
Jennifer McCracken:
…put a term on it and they resolve…there’s a timeframe around when the debt will be paid. Of course there’s interest associated with that, but in a lot of instances when you have different interest rates on all these different accounts, you are getting a better result and you’re paying less in interest when you work through a bank and do a consolidation loan. Obviously lending and qualifying for that loan is a whole other podcast discussion, but certainly those are two like tips that I would give individuals and households to look at if they’re dealing with debt right now.
Nancy Snedden:
Yeah. And I would say as long as you’re putting a plan in place and even talk to a professional to find out is the best plan for me given my circumstances, because everyone’s situation is different.
Jennifer McCracken:
Yep.
Nancy Snedden:
So talk to friends and family and find out what’s worked for them. But make sure you’re looking at…not taking that as gospel and looking at what’s going to be right for your own personal situation. And Jen’s right, sometimes taking the lowest balance and paying it off gives the person the motivation to keep going, like they need that kind of motivation to say okay, I’ve done this, let’s move on to the next one.
Tera:
Yes.
Nancy Snedden:
(If you’re) using high interest credit, then paying that off first is always what we recommend because that’s what costing you the most money, but the important thing is put a plan in place that’s going to work the best for you. Be careful with consolidation, it’s a great opportunity as Jen said for you to be able to get one payment where everything’s focused, but make sure you cancel and destroy those credit cards so that you don’t end up them with your consolidation loan and then you’ve got this other available credit that can be tempting sometimes…
Tera:
Yes.
Nancy Snedden:
…to start using again.
Tera:
So since we’re talking about managing debt, there is still…honestly, for me, I can’t believe in 2020 that it’s still taboo or there’s a stigma attached and shame attached to people in debt, especially considering how open the media is about debt loads in Canada. If those are the statistics, then there’s more people in debt than they’re admitting to. So how, with those stigmas and with what is going on, especially in households, for example, where spouses or partners manage finances separately, what kind of conversations should the couple have? How do you broach this? How do you start talking about it? Not even just between spouses, but between family and friends because you could see if a friend or a family member is struggling. How do you talk to them about it and make it okay?
Nancy Snedden:
Yeah, I think there’s a number of things depending on the situation and who it is you’re talking to, Tera, but I always tell my clients don’t be afraid to talk to your family and friends. Because I can guarantee you there’s someone in your circle that is experiencing the same thing as you with regards to financial difficulty, or maybe has already filed a consumer proposal, for example, or has in the past. Because there’s so many Canadians out there who find themselves in that situation. With friends it can sometimes be easier because friends get together, they go out for dinner, they do all those kinds of things. It’s okay to say to your friends, “You know what guys, I’m really trying to make sure I set aside money for an emergency fund. I don’t know if you guys are feeling the pinch due to the pandemic, but can we get together and do a Zoom glass of wine, or can we get together do a little potluck rather than going out to eat or going out for drinks, just so I can manage my budget a little better.”
And oftentimes, the people who you’re talking to have that sense of relief of, “Oh my gosh, thank goodness that someone brought that up because I was feeling that too and was afraid to say.”
Tera:
Jennifer, do you have any suggestions?
Jennifer McCracken:
I just agree wholeheartedly with what Nancy is saying, and I think the guilt and the shame that a lot of individuals feel around debt is pretty widespread. And talking about it to your friends and family, really getting that support and understanding you’re not alone is a big piece. I also recommend individuals do research, read online, there’s tons of podcasts, there’s tons of stuff on YouTube, there’s a lot of free…in fact, there’s more free information out there than ever before.
Nancy Snedden:
Yes.
Jennifer McCracken:
And you will be inspired. Read the stories about the people that paid off their debt in 12 months, 18 months, what did they do? Learn from other people that have had success with it and don’t feel alone. Be ambitious about…and if you have to do an insolvency filing at the end of the day you tried, you didn’t just throw the towel in. You implemented all these things that you could, and sometimes with debt there’s life events, there’s things totally outside your control. And if you’ve done everything in your power and you still find you do need that consumer proposal, you do need that bankruptcy, you can go in knowing, “I learned so much from this.” And I have clients say to me, “I’m never going to have this happen again.” And some of them will say to me, “This was actually one of the most rewarding experiences of my life, it’s really changed my life.”
And so a lot of times debt becomes an opportunity to transform your life and so I really encourage individuals to look beyond the numbers. And you’re actually going to find that there’s opportunity for you to grow personally and for you to grow in your relationships. And you’re going to come out the other side and yeah, at the end of the day you will be okay.
Tera:
And I love that you brought up…
Nancy Snedden:
Yeah, it’s amazing just how…oh, sorry, Tera…
Tera:
No, I was going to say…no, it’s okay, I was going to say I love how you brought up life changes because there is that myth that everybody who’s having debt issues, it’s because they mismanaged their money. And that a lot of the times is not even the case. So if you two sit and speak to people every single day, so if you could put a number on it, and we’re just talking anecdotally, if you could put a number on how many people walked into your office and they are in the situation they’re in because they felt like playing the lotto 10 times a day and scratch cards and all those things that … all that checklist of reasons we’re told growing up you’re going to end up in debt, compared to someone died, or you got a divorce, or you lost your job. Could you give me a rough anecdotal idea of what you see?
Nancy Snedden:
I would say the number of people who come through our doors purely on the mismanagement of money is so, so small, maybe less than 2 percent. Most often it is a life event, it’s a marital breakdown, or it’s a job loss, or an illness, or having to take care of a family member with an illness, or there’s something that’s happened in the person’s life, the pandemic, for example, that happens to them that gets them in that situation. It’s very, very few people that I see in my practice that it’s because they just completely went on a spending spree and mismanaged the finances.
Jennifer McCracken:
Oh, that’s true, people will always say, “You know what, I have this level of debt and I literally have nothing to show for it. You should come see my house.” There is a sense of where did…how did this even happen, where did this money go, I have nothing to show for this. And that’s scary because we understand that so many Canadians are using credit to bridge the gap, to manage the fact that there’s a high cost of living. The life events of losing work and having sporadic employment, I see a huge proportion of my clients are helping family. They are literally incurring debt to support family or their friends. And absolutely this is not…it’s pretty rare to have a situation where somebody just was abusing credit, or trying to take advantage of the system. I mean, we just don’t see it.
Tera:
So going back, one of you mentioned the government assistance, so let’s go back to that for a second. How have the changes in the government assistance impacted decisions women need to make about their finances and their debt load?
Nancy Snedden:
You know, Tera, I think there is some good around the change in government assistance as well, and that is the CERB payments that were going out, there was no tax that were coming out of those. So although many people who are taking advantage of that assistance needed every penny, there’s also going to be a tax consequence once they go to file their taxes for 2020. So at least under the new EI program, although they may see a slightly lower cash in their bank account every month, at least that tax is being contributed now and that’s going to take a little bit of that burden away from them.
Jennifer McCracken:
And we did see the benefit for the baby bonus was higher, we had one time payments. The GST credits I can say in BC, there were programs in place with respect to rental subsidies and we did see on a provincial and federal level, there was a response to help Canadians. What I can say though is that the biggest impact I’m finding, or where there’s a gap in the government funding, are for businesses. So many of my clients that are sole proprietors or have corporations, it’s been really tough because some of the programs…I mean, obviously there has to be parameters around the government support for businesses, but a lot of my clients really did not necessarily hit the targets to get that funding, and of course yes, they could pivot and change aspects of their business, but let’s be honest, for many Canadians this means the closure of the family businesses, of operations they’ve had for a very long time, and for many people they don’t know what else they’re going to do.
So I’m seeing that more and more, the government funding may not have been as impactful for Canadians that run their own businesses.
Tera:
Well and women are…I can’t remember the exact number, but there is a large group of women who are entrepreneurial. They’re running home daycares that they had to close, and they have businesses…like I mean, it’s no longer (just) Avon. There are so many other opportunities for women to be their own bosses now. Even baking, I know a lot of women are taking baking and turning it into a business. Crafting, all of these things that they’re doing. Because we can’t be exchanging these things due to the pandemic, they’re at a loss of income. So thank you for bringing that up, because it’s impacting them greatly because that is technically a small business.
So is there any advice you have for a small business women who may be in this situation, how to supplement their income?
Jennifer McCracken:
Well, my advice is that we’ve all been hit hard. Canada, well, the world, right, let’s be honest, but we’re focusing on Canadians. So we’re kind of all at the same place. So my advice is like get creative, we shouldn’t be afraid to start our own businesses, like the slate is clean. And anything you thought that was in place in terms of I have to have an edge up on my competitors, and I need to get market share, you know what? The competition is different now. So it’s almost a better opportunity to start your own business, and to get creative with it. And we also are going to be thinking through how do I recession proof my business? How do I pandemic proof my business? So I actually think it’s going to be an exciting time, I think there’s going to be a lot of Canadians that feel inspired, that they have that get up and go, and they are just no holds barred, they’re going to get out there and find a way to make money and start a business. So I think it’s actually going to be an exciting time for Canadians. And particularly women.
Tera:
Mask making has become a huge entrepreneurial venture.
Jennifer McCracken:
Absolutely.
Nancy Snedden:
It really has.
Jennifer McCracken:
I mean, think through all the things we can do now. And so I think it’s going to change the landscape of Canadian businesses.
Tera:
Is there any overall advice you would give to women as we manage this she-cession, and do you have an outlook on, or a prediction on how this is going to…how it’s going to turn around? Because there was a he-cession, they called it, a few years ago during the last recession, and there was a good turnaround. So there is a turnaround on the horizon, but what advice could you give to women to help get them through that? Nancy?
Nancy Snedden:
I think, Tera, what I would say is don’t feel you have to shoulder this all yourself. So reach out and talk to someone about it, whether it’s a family member, a friend, a professional like a Licensed Insolvency Trustee, just to talk through what options you have to deal with the financial stress that you may be feeling. It can be as simple sometimes as having another second set of eyes on your budget to say, well, have we looked at changing this or changing that? If you have looked all through and scrutinized your budget and you’re still not sure where to go, you can get some advice on what your options really would be if you can’t manage your debt payments. Or, if all of your available cash flow is going towards debt repayment and it’s the minimum payment and you’re not able to see beyond reducing your debt because you’re only paying the minimum payment and you need to free up some of that cash for an emergency fund, or because you know that you’re going to be on reduced income for a period of time. The first step is picking up the phone and reaching out and getting some advice on what’s going to be the best situation for you. You don’t need to shoulder the stress and the burden and having to try to figure things out on your own.
Jennifer McCracken:
Yeah, and my advice to women is that we can’t change the past, we can’t focus on the feeling of guilt, and we should’ve done this, and I could’ve done this, and I think a lot of women also are more prone to sort of carrying that kind of burden and that negative self-talk. And I think for women now we each have to say…this is a precedent setting time for so many individuals. Most of us have never lived through anything like this, so now is the time just to take stock, take it day by day, and decide that you’re going to tackle those stresses as best you can. And getting rid of debt, or having a solution around you debt and your finances is one really important aspect of your life. I find for a lot of my clients, they physically look different, their life changes, things just start to fall into place once something is resolved.
And so a lot of times all these other things that really don’t feel like they’re going right, when you fix the debt piece, when you fix the finance piece, or at least get a plan in place for it, your energy is now there to focus on all these other things. And so it’s just a matter of prioritizing it. So sometimes folks say, “Well, I have to help…I have these other issues that I’m resolving first, but then I’m going to deal with the debt.” Just get the information now. Get a sense of the landscape, and then you can have a plan in place to resolve it, because there’s so much going on in our lives right now. But if we (and certainly at BDO), if we can be a part of that solution, obviously it brings joy to us to be able to get Canadians back on track and get them in a place where they’re better financially, mentally, physically, all these things really matter.
Nancy Snedden:
And it really does.
Jennifer McCracken:
They’re all related, right?
Nancy Snedden:
You couldn’t be more right, Jen, it is all related. And oftentimes it improves not only your own physical and mental health, but the relationships that you have around you. You can be more engaged with what’s going on around you with your family and friends because you’ve relieved that stress. Talked to a woman just today and I said, “How are you doing?” Because she was signing her documents that day. And she said, “Nancy, I really can’t thank you guys enough, I didn’t know what a difference just talking to someone and coming up with a plan would make to my overall wellbeing. I feel like the weight of the world has been lifted off my shoulders and I’ve got you guys to thank for that.” So just reach out.
Tera:
Exactly, I think before we started recording I was talking about the mental load, and this goes back to the mental load. As women we’re often in our heads trying to figure everything out, and sometimes we just need to pick up the phone and call somebody, and that somebody can be a Licensed Insolvency Trustee to help work through how to come up with the solution to the problem. That will relieve the stress and again, the mental load that you’re carrying.
Thank you so much.
Nancy Snedden:
Yeah.
Tera:
Both of you.
Jennifer McCracken:
Thank you.
Nancy Snedden:
Thank you.
Tera:
I want to thank my guests, BDO Licensed Insolvency Trustees, Nancy Snedden and Jennifer McCracken for this fascinating discussion about the challenges women continue to face during this ongoing pandemic. For more financial wellness podcasts and videos, along with debt management resources, tools, and expert advice, visit our website, DebtSolutions.BDO.ca. And remember, we are here to help you turn the page on debt.
November 26, 2020
The ongoing COVID-19 financial crisis has affected Canadians of all ages and income levels, in all parts of the country. And one of the most serious ramifications of the pandemic has been the impact it has had on the emotional, physical and financial health of women.
