Simplifying Access to Benefits Helps With Not Only Financial Health, but Mental Well-Being Too

By: Katharine Reid, Prosper Canada

May 2025

There is a profound and inseparable relationship between financial health and mental well-being. In order to improve one, we need to support the other. That’s why financial counselling, resources and tools are an essential part of improving financial well-being—and ultimately supporting more positive mental health outcomes. Prosper Canada’s mission is to ensure that Canadians living with low income have access to much needed financial support systems.

When Jennifer, a 43-year-old Torontonian with no income, showed up at Toronto Public Library's Financial Empowerment (FE) program in 2023, she was experiencing debilitating anxiety and depression. Due to mental health challenges and past traumatic experiences, she was struggling, not only to independently complete tasks she once managed with ease, but to deal with financial stress that felt insurmountable.

Jennifer’s situation is not uncommon. According to the Centre for Addiction and Mental Health, in any given year, one in five Canadians experiences a mental illness. And by the time Canadians reach 40 years of age, one in two have (or have had) a mental illness.

Canadians are also struggling financially. Statistics Canada reports that in spring 2024, 38 percent of Canadians were very concerned with their ability to afford housing or rent and 23 percent shared that they were likely to obtain food or meals from community organizations (like food banks) over the next six months.

When you are struggling to meet basic needs like food and housing, your mental health suffers. And when your mental health is suffering, it feels impossible to manage your finances. The relationship between the two is undeniable.

This is where financial empowerment tools and resources make a difference. Evidence shows that embedding financial empowerment interventions into municipal welfare, employment, housing, shelter and health services can significantly boost service outcomes.

Recognizing the need directly in the community, Prosper Canada, along with Toronto Public Library (TPL) and community partners WoodGreen and North York Neighbourhood House, helped develop the Financial Empowerment program that Jennifer attended at Riverdale.

The Benefits Wayfinder helps people find their way forward

Among a variety of resources leveraged to support participants, a key tool used in the program, also developed by Prosper Canada, is the Benefits Wayfinder, a free online tool to assist Canadians in accessing essential government benefits.

While any individual can access and use this tool. Prosper Canada also trained thousands of frontline staff from hundreds of organizations across Canada (including the staff in TPLs Financial Empowerment program) to support people with low incomes in accessing income benefits and tax credits.

Accessible at benefitswayfinder.org, included are over 300 federal, provincial, and territorial government benefits. These benefits are updated on an ongoing basis as new information becomes available including newly participating municipal benefits.

Prosper Canada also offers a 90-minute webinar on a quarterly basis to provide frontline practitioners with foundational knowledge and skills to support Canadians who are living on a low income.

The results of using the Benefits Wayfinder speak for themselves. When frontline and social services organizations use this tool, they report that it’s easy-to-use, makes their jobs easier and most importantly, provides an opportunity for those that need them to access life-changing benefits.

"I just want to say thank you for designing such a beautiful and user-friendly benefits finder,” says Sidra Mahmood, service delivery lead at Employment and Social Development Canada. “I absolutely adore the tool and recommend it to whoever asks. I especially love that you are straightforward about how difficult an application is, and what documents might be required prior to starting. In all my research on benefits delivery, I’ve learned that users like to be set up for success and prepared for these things without getting surprises along the way.”

See more about the impact the Benefits Wayfinder is having/

Free financial counselling and support: A light at the end of the tunnel

Prosper Canada recognizes the need to embed financial empowerment resources like the Benefits Wayfinder into spaces where people living on low incomes are most likely to seek financial guidance and support. Places like libraries or municipal services provide accessible spaces to offer free financial counselling.  In Jennifer’s case, her visit to the library resulted in receiving support responding to the Canada Revenue Agency about an overpayment of tax benefits so she could file back taxes for multiple years. Jennifer also got help navigating income supports and communicating with her landlord.

Jennifer’s financial empowerment social worker worked collaboratively with her to address these issues, ensuring her tasks were completed in a way that was conducive to her needs—and more importantly, empowered her to feel in control of her situation.

Free financial empowerment resources

These free resources are about more than just checking off boxes. They are designed to empower individuals to continue forward on their own financial journeys.

Not only did Jennifer’s FE social worker provide a safe, patient, and supportive environment, she validated Jennifer’s progress, encouraged her to express emotions and concerns and explained complex terminology in plain language to enhance her understanding. In short, she showed her all the ways she was capable of doing hard things—and gave her manageable steps she could take.

This support made it possible for Jennifer to move forward in her financial empowerment journey and move towards financial well-being.

Where do we go from here? From financial counselling to financial empowerment

There comes a point in supporting community members living with low income where they are no longer in crisis mode—and that is ultimately the goal. But it’s also important to think about where to go from there.

Jennifer is the perfect example of someone who accessed this essential service when she was in crisis and has moved on to using these services to continue to support her future goals.

Not only has Jennifer improved her finances, she has increased confidence and independence. She began taking the lead on tasks and even consulted a financial planner independently to assess her long-term financial options. Jennifer was also able to independently advocate with her landlord regarding her rental arrears.

She continues to work with her Financial Empowerment social worker to get the support she needs to reach her financial goals. The help she received from the staff in the program has made a significant change in her life.

She still has days where she feels low, but their encouragement gives her faith in herself. This is truly a testament to the unique way financial empowerment counselling, resources and tools set people with low incomes up for success.

Resources

Bridge to Benefits: If you are an organization looking to help people living on low incomes access the benefits they are eligible for, this tool can help you get started.

For a deeper understanding of the connection between financial empowerment interventions and integration into municipal services, learn more here.

About the Authors

Katharine is an Officer in the Marketing and Communications team.