New research reveals the high cost of bad financial advice, and a better path forward.
If you’ve ever felt overwhelmed by conflicting financial tips, you’re not alone. A new national survey from Co-operators reveals that nearly half (48%) of Canadians feel exactly that way, caught in a storm of well-meaning but often costly guidance. The study found that one in three Canadians have lost money after acting on bad advice, with more than three-quarters of those incidents costing over $1,000.
These findings highlight a critical need for clarity. “Financial Literacy is a wonderful thing, but not all the information out there is equal,” says Shane Kennedy, Financial Advisor, Co-operators. “And there is something to be said about a little knowledge being a dangerous thing. Even if you can find some credible information online – something generally accepted as good – it doesn’t necessarily mean it’s good for you.”
The survey uncovered a dangerous gap between confidence and reality. While 70% of Canadians are confident they can spot bad advice, 32% followed guidance that hurt them financially. This overconfidence is particularly costly for men, who reported being nearly twice as likely to fall victim to bad advice (40% vs. 24% for women) despite a higher reported confidence recognizing the good from bad.
“As a financial advisor – I’ve seen a lot of clients get drawn by advice that was too general, unapplicable and sometimes just plain wrong,” says Kennedy. “The benefit of working with an expert is we can help you filter through the noise to create a personalized plan – one that considers your goals, your risk threshold, and has some resilience to external pressures like inflation, market volatility, and shock moments.”
Some examples of common but pervasive myths costing Canadians:
Myth 1: “All debt is bad and should be paid off immediately.”
As many Halifax business owners know – this oversimplification can hinder growth. In business and personal finance, not all debt is created equal. Low-interest debt, like a manageable mortgage or a business loan used for strategic investment, can be a tool. The key is prudent management, not total elimination.
Myth 2: “It’s safer to keep cash on hand than invest right now.”
With cost-of-living and cost-of-business steadily increasing – a balanced, long-term investment strategy is crucial for building wealth that outpaces inflation. A resilient, diversified portfolio aligned with your goals and risk tolerance can help you manage market volatility, while cash on hand slowly loses its buying power.
Myth 3: “If you have insurance through work, you don’t need personal coverage.”
While employer-provided insurance is a valuable benefit, it’s rarely sufficient on its own. It’s typically a one-size-fits-all solution that may not cover your specific needs, and it disappears if you change jobs. For a business owner or professional, a personal policy ensures your financial security is portable and tailored to your life—protecting your income, your family, and your business interests.
The Confidence Trap
The biggest issue, Kennedy points out, isn’t just one ‘bad tip’ or myth – it’s believing you are immune to risk. With the economic and affordability challenges so many experience today, that balance can seem harder than ever to achieve, making it easy to fall victim to this confidence trap.
The data shows a clear benefit to seeking professional guidance. Canadians who work with a financial advisor report higher confidence in their finances (64%) compared to those without one (44%).
Shane Kennedy is the owner and operator of the local Co-operators agency serving communities across Nova Scotia, bringing over 30 years of financial services experience. He is a Halifax Chamber member, 2025 Business Leader of the Year finalist, and an active community leader through the Cobequid Hospital Foundation, ISANS and support for local small businesses.
