Author: Oskar Malone

One of the biggest news stories to come from Donald Trump’s successful reelection bid as the forthcoming president of the United States was the announcement of a 25% tariff being placed on goods from both Canada and Mexico.

Trump’s reasoning for this legislative taxation is to incentivize production of goods within America, effectively making the country more self-sufficient and economically diverse. He has also written on Truth Social how these tariffs are a form of penalization for a supposed crisis of illegal border crossings with neighbouring nations — and can be levied if he notices positive improvement.

However, during a recent press conference, the former Apprentice host admitted to using economic pressure to make Canada cede governing power to its southern neighbour, effectively pushing Canada into becoming what Trump calls the “51st state” of the United States.

Whatever his fluctuating reasoning may be, Trump’s proposed tariffs, alongside Canada’s current economic outlook, will have far-reaching implications for Canadians, especially those with an investment portfolio.

To assess the impact, we spoke with Stephen Johnson, a private equity manager and director of Omnigence, a Canadian private equity firm, about why Trump’s tariffs could accelerate Canada’s descent into grinding economic stagflation, what investment markets will be hit hardest and how to avoid catastrophic losses.

How will these tariffs impact Canadian investors?

According to Johnson, the impact of Trump’s tariffs will be felt by all Canadians, regardless of province of residence or size of portfolio.

“We can expect an increase in inflationary pressures, such as loss of purchasing power from Canadian dollar weakness, and recessionary pressures like increasing current account deficit and GDP contraction,” he said.

“This will be a material exacerbation of Canada’s already challenging stagflation, which is a fusion of inflation and economic growth problems.”

Johnson warns that these tariffs can reduce already low capital inflows to Canada, which, in turn, can reduce the nation’s already low investment in fixed capital. It’s a situation that puts Canadians perilously close to the dreaded state of stagflation.

What is stagflation?

Stagflation combines positive inflation with lower nominal gross domestic product (GDP) per capita growth, resulting in negative real GDP per capita, according to a report conducted by Omigence entitled Addressing Canada’s Stagflation Challenge: A Modest Proposal.

Here are some of the key factors influencing stagflation:

Economic Fundamentals:

• Low GDP growth: Canada’s GDP growth is the lowest among OECD countries.
• Poor labour productivity: Productivity levels are stagnant or declining.
• Capital flight: Net capital outflows (ie: money leaving Canada) increases with average capital flight around ~$40 to $60 billion annually.
• Structural deficits: Persistent fiscal and current account deficits.

Demographic Pressures:

• Aging population: Rising dependency ratio increases entitlement spending and tax burdens.
• Rapid immigration: High immigration rates add to the strain on housing and social systems.

Housing Market Issues:

• Supply-demand imbalance: A shortage of more than three million housing units.
• Over-reliance on housing investment: Crowds out productive capital formation — the process of investing money in goods and services that are meant to maintain or stimulate economic growth.

Energy Costs:

• Increasing energy costs reduces competitiveness.

Savings and Investment:

• Low household savings: Leads to chronic underinvestment in productive capital.

What investment sectors will be impacted the most by Trump’s tariffs?

The sectors most at risk from Trump’s tariffs include: the automotive industry, aviation, and heavy machinery manufacturing sectors. These sectors are the most exposed given Trump’s stated goal of onshoring production and manufacturing — a process of bringing these jobs back onto American soil

However, the widespread uncertainty of whether or not these tariffs will be enacted, coupled with his threat of using economic pressure, can create enough instability that all market sectors are impacted.

And while Canada has already hedged tariffs during Trump’s previous presidential tenure, this time things could get much worse.

“Proposed tariffs will be a very serious issue for the Canadian economy given its already very weak fundamentals versus Trump’s previous presidency,” explains Johnson.

What’s worse is that even if the tariffs are not introduced, the uncertainty of the current Canadian and American political landscapes means the market will react to the uncertainty anyway — meaning a reduction in investments throughout the Canadian economy.

“Even without an imposed tariff, the uncertainty will impact the investment market. Yes – transmission mechanism is likely to be CAD$ weakness and reduced capital inflows in the near term.”

Additionally, Johnson believes that there is nothing that the Canadian government can enact in the short term to soften the blow of tariffs without adding to the nation’s current fiscal deficit.

“Doing so will add to downward pressure on the Canadian dollar and inflationary pressures,” he said.

Are there any investment sectors that may be more resilient?

Tariffs or not, as an investor, it’s important to ask yourself whether your portfolio has the following three things:

1. Recession hedging factors
2. Inflation hedging factors
3. Low reliance on middle-class demand as a return driver

For Johnson, the answer to all three should be a resounding yes to generate alpha — or create excess returns — over the next decade.

This may also result in having to rethink portfolio allocations that have worked in the past as Canada continues to endure an unsavoury economic climate and the threat of tariffs.

“Traditional 60/40 portfolio allocations — 60% equities and 40% fixed income — that have worked well in the last two decades of below-trend inflation and above-trend GDP growth are unlikely to generate the same level of returns in a macro climate of above-trend inflation and below-trend GDP growth that Canada faces,” Johnson added.

However, despite a feeling of economic unease, there are certain sectors where Johnson sees opportunities.

His top pick: farmland, which hedges both inflation as a non-depreciating, real asset, as well as recessions, due to inelastic food demand.

Plus, the production of goods from farmland go beyond our trade reliance on the US.

“Canada exports to markets outside the US, such as China and the Middle East, with strong and growing incremental demand for agricultural products,” Johnson said.

Automotive maintenance is another sector Johnson believes has strong investment potential. Johnson chalks up the strength of this sector to a shrinking middle class and dwindling purchasing power.

“People drive their cars for longer before replacement – this reduces demand for new cars and increases demand for ongoing maintenance,” he said.

“The resulting growth is forecast to be well above overall Canadian GDP growth rates, and could outperform even in a low aggregate GDP growth climate.”

Environmental services are also immune to GDP growth since it is largely driven by regulation, which Johnson believes is worth pursuing for investors looking to create a durable portfolio that can withstand market volatility

Johnson’s final pick is the building products distribution sector. This is due, in part, to the lucrative residential housing shortfall of more than three million homes. This shortfall means that a refresh of the “Canadian infrastructure” will be required as well as “significant increase in domestic investment in fixed productive capital in order to grow the economy,” Johnson said.

This article How Trump’s proposed tariffs will impact Canadian investors originally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Taking the mystery out of how scores work can help you boost your rating.

It’s typically recommended that you check your credit score at least once a year to know your standing and also mitigate the risk of identity theft. That being said, many credit card holders don’t really understand how it all works, but having a good understanding of your credit score is crucial as you prepare to make major purchases, apply for a car loan, or get your first mortgage.

Your score ultimately affects what credit and financing you’re eligible for, which means the better your score, the more favourable your rate will be from lenders.

Here, we debunk seven credit score myths to help you enhance your creditworthiness and ultimately save more money.

1. Checking your score hurts it

Keeping an eye on changes in your score or report can help you detect errors, keep track of your spending habits and figure out how to improve your credit — but few Canadians are taking advantage of this.

In 2019, The Financial Consumer Agency of Canada reported that half of Canadians have never requested a credit report from Equifax Canada Transunion of Canada.

The fact of the matter

Checking your credit score or report counts as a “soft inquiry” — which means that it won’t affect your score. You can check it for free.

It’s a good idea to monitor your credit score and track your bills regularly to avoid missing any upcoming payments which could mean paying late fees and more interest.

However, when you apply for a loan or a new credit card, a lender will want to check out your credit score to determine whether you’re a reliable borrower. This particular check counts as a “hard inquiry” and will dent your score by a few points, temporarily.

2. You only have one score

Contrary to popular belief, you have more than one score and it could waver slightly depending on which credit bureau is providing the information.

When you apply for a credit card or a loan and lenders check your credit score, they could be pulling up any one of your scores. You have no way of knowing which, but checking more than one can give you a better picture of your creditworthiness.

The fact of the matter

The two national credit reporting agencies are Equifax and TransUnion. Typical credit scores range from 300 to 900 and credit bureaus generally consider the same factors — like payment history, utilization rate and how long you’ve had credit for — to determine your score.

However, agencies may use different scoring models and could receive different information when they evaluate your credit.

3. The higher your paycheque, the higher your score

Some people believe a wage increase can directly affect their credit scores — after all, a higher income makes you more attractive as a borrower and you’ll have more funds to pay off your debts.

But, is your income actually included in your credit report, and does it impact your score?

The fact of the matter

The answer is no, your income isn’t included on your credit report, nor is it factored into your credit score. Even if the money’s rolling in, you still want to avoid accruing more credit card debt than you need to — that will affect your score, and not in a good way.

That said, if you’re more financially stable and have been able to pay your bills on time in full without adding up on interest and debt, then yes, you’re more likely to have a better credit score.

And lenders will assess your credit score and your income and employment status when you apply for credit products. A good credit score and a steady income are both key to obtaining lower rates on cards and loans.

If you’re thinking about boosting your income with some good investments, but aren’t sure how to get started, consider trying out a beginner-friendly investing service.

4. Carrying a balance on your credit card improves your score

The average credit card balance for Canadians was $4,499 in the second quarter of 2024, according to TransUnion.

The Bank of Canada also says close to half of Canadians with a credit card carry a balance for at least two consecutive months.

Carrying a balance on your credit card ensures that you rack up on interest and owe more money than if you made your payments in full — does that impact your score?

The fact of the matter

With typical credit card interest rates around 20%, paying your monthly bills in full and on time is the best way to maintain a good credit score and potentially save thousands. The general rule of thumb is to keep your credit utilization rate below 30% across all your accounts if you can.

When you make the minimum payments instead of paying off your balance in full each month, you’ll accrue interest and increase your debt. If you also keep making purchases, your credit utilization rate — which divides your total credit card balance by your total credit card limit — increases as a result, and that hurts your credit score.

A 0% utilization rate won’t help you either — lenders want to see that you’re using your credit responsibly.

If you find yourself bogged down by interest and credit card debt, consider a debt consolidation loan to fold all of your debts into one loan with a lower interest rate or refinancing your current loan.

5. Closing a credit card helps your score

You might be thinking about cancelling one of your credit cards — maybe you never really use it or you think it’ll make your debts more manageable and boost your credit score.

There are plenty of reasons for and against closing a credit card.

The fact of the matter

Here’s the thing. Your credit score improves when you have more available credit, a long credit history and a lower credit utilization rate.

So, when you close a credit card, particularly a high-limit one, or one you’ve had for a long time, you’re more likely to harm your credit score than help it.

This doesn’t mean you should never close a credit card, however. If you haven’t been using it very often and you’re paying high annual fees, there’s little point in keeping it alive. Instead, switching to a card with lower or no fees may be more beneficial.

6. Employers don’t check your score

It may come as a surprise to know that employers can check your credit score when you apply for a job.

A bad credit score can affect more than just your loan or credit approval chances — it could prevent you from landing the perfect job, renting a home or even getting a new cellphone with a good plan.

The fact of the matter

A future employer may want to check whether you’re managing your money responsibly, especially if your job involves handling large sums of money or making major business decisions. This check counts as a “soft inquiry” so it won’t damage your score.

The credit report they pull up will show your name, address, SIN number, date of birth, previous employers and information about your debt, like mortgages, credit accounts and student loans — so it is important to prepare and get your finances in order.

However, they can’t go about this without your consent, so don’t worry about them sneaking around behind your back.

7. You and your spouse share the same score

When you get married, there are several things you might need to jointly do with your spouse, like applying for a mortgage loan, or splitting household bills like groceries and utilities.

As a result, you might believe your credit scores get merged into one as well.

The fact of the matter

You and your spouse will still receive separate credit reports and credit scores, even when you combine incomes or bank accounts. Don’t concern yourself with a partner’s past bankruptcy ruining your credit as soon as you get hitched.

However, if your partner has poor credit and you apply jointly for a loan or open an account together, that information will affect both your credit reports and you could end up with less-favourable rates costing you more money.

For example, you might be denied a good mortgage rate from a mainstream mortgage provider and pay a higher rate with another lender to account for the greater risk you present as borrowers together.

So, it’s still important to be aware of each other’s credit history and spending habits before you tie the knot or buy a home together.

Sources

1. Financial Consumer Agency of Canada: Canadians and their Money: Key Findings from the 2019 Canadian Financial Capability Survey

2. TransUnion: Q2 2024 Credit Industry Insights

3. Bank of Canada: The reliance of Canadians on credit card debt as a predictor of financial stress (July 2024)

This article 7 common credit score myths you should never believe originally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

You may be on the same page with your significant other in most ways: your level of commitment, your hobbies or your career paths. However, if you find that your partner isn’t responsible when it comes to finances, this can spell trouble down the line. Your finances as a couple, especially when you’re married or living together, matter a lot more than you might think.

In fact, a 2024 survey by BMO found that 35% of partnered Canadians believe their significant other spends too much money and 36% admit they are not always truthful to their partner and/or spouse about their finances.

When one partner is making major financial choices without their spouse knowing, it’s called financial infidelity, which is not only a sign of a lack of communication and trust in a relationship, but it can also be detrimental to your financial future.

Let’s look at some signs on how to determine if your partner is financially reliable before it’s too late, and what you can do to turn the situation around.

1. They don’t have any future financial plans

It’s one thing to not have any investments, but another thing entirely if your partner doesn’t seem to have any long-term savings plans.

Shopping regularly or spending money lavishly, but not having an emergency fund or any long-term savings for larger purchases, like a down payment on a house, is definitely something you don’t want to find out on your honeymoon, or after you move in together.

If money disappears as soon as payday rolls around, this can be an indication that your partner doesn’t know how to properly save money. Living paycheque-to-paycheque should be the first red flag that there are some deeper financial issues at play.

2. Bills are never paid on time

You don’t necessarily have to be living with your partner to pick up on this one. If they always seem to be scrambling when a cell phone or credit card bill comes around, this can be a sign that they’re not on top of their finances.

However, if you are living together, it can be a lot easier to spot when bills aren’t being paid (hopefully before the electricity gets shut off!), and it’s a lot more frustrating. Don’t always accept when your partner insists they’ll “take care of it.” Financial statements should be open and accessible for both you and your significant other to see so that you can make sure they get paid.

3. They’re secretive about debt

Secret debt is a big one when it comes to financial infidelity.

But it’s not just knowing whether your partner has debt, it’s also important to know the specific kind of debt your partner owes.

The type of debt your partner has will give you insight as to the type of spender your partner is, providing you with even more information about what to look out for, and spending habits to begin curbing. Is it for necessities, like student loan debt or a car loan? Or, is it for luxuries, like multiple pairs of designer shoes or unaffordable property? Assessing the type of debt your partner has is crucial to determine if you’re both financially compatible.

4. They have too many credit cards

There’s no magic number of how many credit cards you should have, as long as you’re using them responsibly. A huge cause for concern is if your loved one seems to have a credit card for every occasion, yet payments aren’t made by the due date, or they’re constantly cancelling and applying for new ones.

If the debt they owe is credit card debt for overspending, this should indicate to you that they’re financially irresponsible.

5. They can’t stick to budgets

When you bring up budgeting to your partner, it should lead to open communication rather than an argument.

A lack of budgeting skills or not being able to stick to one shows that a person is mismanaged and frivolous. This can lead to big issues when you need to create budgets for more important things, like a wedding or your children’s education.

What can you do about your partner’s bad money habits?

Once you’ve understood what to look out for when assessing your financial compatibility, you must think about a course of action, and no, breaking up doesn’t have to be it.

First things first. It’s critical you sit down and voice your concerns to your partner about their financial habits and how it affects your relationship. Try not to be accusatory, but instead offer them concrete solutions for how they can turn their bad habits around. You can even involve yourself in the solution and commit to creating a new financial plan to stick to together.

Regardless of how you approach the situation, there are a few key things you and your partner should do to regain financial stability:

Saving your money

Before your partner tries to tackle rebuilding their credit score or paying off debts, the first step is to start saving money again.

One of the best ways we recommend getting started is by opening a high-interest savings account (HISA). As your partner is likely just starting out on their savings journey, it’s best to start with an account that has no minimum balance.

Minimizing your debt

There’s no quick fix for getting out of debt responsibly, but there are steps you can take to minimize your current debt and avoid unnecessary interest.

Encourage your partner to apply for a balance transfer credit card. These cards allow you to transfer your high-interest debt to a low-interest credit card, ideally with a low balance transfer rate. This will allow your partner to free up money to help pay off debts and get back on track.

Growing your money

Show your partner that growing your savings doesn’t have to be a chore by implementing budgeting apps into your routine. Using apps is quick and easy, and most people are already comfortable doing this regularly, so it shouldn’t be a big adjustment.

‘Til debt do us part

Realizing your partner’s poor money habits can have a serious impact on your future may be scary, but it doesn’t have to mean giving up on your relationship or your financial stability.

It’s extremely important to identify these destructive money habits before they snowball into a larger, more irreversible problem. Financial infidelity is extremely hurtful on more levels than just the disappointment of fiscal irresponsibility.

A healthy relationship goes hand in hand with healthy finances. This is not a topic you can avoid, so it’s best to be open with your partner and show them concrete solutions that will assist them in repairing their financial mishaps.

Sources

1. BMO: Spending a Source of Conflict for a Third of Couples – BMO Survey (Feb 8, 2024)

This article 5 ways you can tell your partner isn’t financially reliable, and what to do about it originally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

The old saying “comparison is the thief of joy” is increasingly relevant in the age of social media.

A 2024 study by LendingTree found that more than 6 in 10 Gen Zers say they feel pressured to spend to keep up with others.

For Alyssa Davies, a 32-year-old content manager from Calgary, Alta., the cost of keeping up with the Joneses landed her in serious debt.

“The thing that influenced me most when it came to spending money and collecting tens of thousands of dollars in consumer debt was external pressure from peers and media,“ said Davies.

However, she isn’t alone in overspending. The average credit card balance for Canadians was $4,499 in the second quarter of 2024, according to TransUnion.

With inflation remaning steady, now is a good time to manage your debt and get your finances on track. It might be time to reassess your spending habits — and your scrolling habits — and realize when a lifestyle isn’t sustainable.

“When we’re scrolling, we’re being influenced.”

Parween Mandar, a certified financial counselor and trauma facilitator, sees the effects that social media has on people’s spending habits. She has witnessed her clients comparing themselves to family and friends, creating a narrative around the life they’re living.

“We’re seeing other people, maybe taking trips or going out to fancy dinners and that comparison game just starts to seep in,” said Mander.

She’s quick to point out that, when you’re on social media, “no one’s posting receipts.”

The materialistic things you see on social media, Mander notes, are often funded through debt.

You don’t see the financial struggle that people are facing, “We just see the nice flashy stuff,” Mander noted.

The endless assault of images can be triggering if you have a debt problem. If you can, Mander recommends removing yourself from social media to avoid the problem. She also suggests following more positive influences.

For instance, some Tiktok users have started promoting the concept of “de-influencing” as a way to combat overconsumption.

The why of the buy

“There’s complicated layers below our spending decisions and that doesn’t get talked about enough. It’s labelled as you’re bad with money because you’re overspending, and that’s the end of the conversation," Mander said.

One of the main problems facing individuals is that getting a quick fix is often easier than identifying the source of the problem. For many, this results in impulsive purchases and “retail therapy.”

If you’re stressed or tired, you might go online and buy a product you’ve been wanting in order to help you feel better.

“What are we seeking here?” asks Mander. “In most times it’s comfort, safety, security.”

For Davies, understanding her relationship with money and the emotional weight it carried was one of her first steps to getting out of debt.

“I thought spending money showed that I was successful, which wasn’t healthy,” Davies said.

Keeping a journal of her expenses and using spending trackers helped Davies find a path out of debt.

Look for signs

Davies has felt the spiral of debt first hand.

“Early on, I didn’t even consider the reality that I would have to pay back all of the debt I was accumulating.”

“As soon as I had maxed out two credit cards and was struggling to pay the minimum balance on my cards each month, it was impossible to avoid thinking about debt,” said Davies.

Seeing the signs of a debt cycle can be difficult. Mander has identified three signs that may suggest you’re in trouble:

1. You avoid looking at bank or credit card statements. Mander says this suggests you’re avoiding accountability, and therefore don’t want to face the truth about your money.

2. You carry a consistent balance on your credit card, and are only paying off the minimum amount each month.

3. You regularly pay off your credit card debt, but you spend your entire paycheck doing it. Mander says this is a silent sign of having uncontrollable debt, as it’s a hidden cycle. Due to this, you’re not able to save any money for the future.

The social pressure of spending

Mander acknowledges that there’s a social element to spending, whether it’s going to an event with friends or out for dinner and drinks. This can be a hard thing to let go of when you’re trying to get out of debt, which is why she teaches her clients “stepped down spending.”

This technique involves coming up with a compromise that can limit your exposure to spending, while allowing you to take part in a social event.

For instance, if your friends invite you to dinner and drinks, Manner suggests you can offer to meet them at happy hour. You still get to spend time with them, but you also make a conscious decision that’s better for your budget.

The journey out of debt

Mander recognizes that there’s an emotional and psychological component on top of the financial reality you face when trying to get out of debt. While it’s important to analyze why you’re spending, you also need to take a look at the numbers.

When Mander works with a client, she goes through the past two or three months of credit card and bank statements. This lets her show her clients how they can start making different decisions with their money, whether that’s reducing takeout or retail shopping.

The next stage is to focus on debt resilience. For some clients, throwing all their money at their debt can ultimately lead to greater debt in the future. It’s important to build an emergency fund while you reduce debt, so that you are better prepared for unplanned expenses.

Mander stresses that building an emergency fund takes time, but that’s a normal part of the process.

Sources

1. LendingTree: 62% of Gen Zers Feel Pressured to Keep Up With the Joneses, As Many Overspend Into Debt (March 18, 2024)

2. TransUnion: Q2 2024 Credit Industry Insights

This article ‘No one’s posting receipts’: Social media FOMO can land you in tens of thousands of debt, 3 signs you are in trouble originally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

According to the latest Skyscanner survey, 86% of Canadians admit to overthinking their vacation planning. With half of Canadian travelers beginning to plan and book their 2025 vacations in January, overthinking the when, where and how much they will spend their hard earned money is putting pressure on them to make a decision.

“Planning a vacation can feel overwhelming, especially when each decision — whether it’s choosing a destination or booking flights, hotels and activities — requires significant mental effort,” neuroscientist Dr. Faye Begeti said in a statement.

“We can then end up in a state of fatigue where, instead of feeling inspired by the idea of travel, the usual excitement of ‘wanderlust’ turns into a state of ‘wanderlost’."

Almost all travelers (95%) cited cost as a major factor in that decision paralysis.

Vacation destination consternation

Deciding how much to spend is clearly a frought decision, with 65% of Canadians saying it takes them between one and six months to finalize their trips.

In fact, such weight is given to travel decisions that Canadians admit to spending more time planning a vacation (65%) than they do making a major life decision, such as choosing where to live (56%).

But the idea of travel doesn’t have to stop you in your tracks. There are plenty of great places to consider visiting that will give you the vacation you’re looking for without a hefty price tag.

Skyscanner assembled the top 10 affordable destinations for Canadians to fly under $700 to help give you some ideas of where your money goes further: Fort Myers, Fla.; St. John’s; Turin; Boston; Montreal; Montego Bay; Berlin; Ponta Delgada, Portugal; and Madrid. The Fort Myers flight averages $246.50, while the Madrid flight averages $676.60.

Stress-free travel planning

Dr. Begeti has five tips for Canadians seeking to plan vacations, stress-free. It starts with combatting decision fatigue, by narrowing down key destinations early.

From there, tackle the big decisions — like selecting flights or accommodation — when your mental energy is highest. For less important choices, adopt a "good enough" approach. If a choice meets your criteria, select it and move on to avoid overthinking it. You know where you want to go and stay, so the big stuff is done!

Choose a vacation that aligns with your mental state. If you’re feeling mentally overloaded, for example, opt for a nature-focused retreat to reduce sensory input and recharge. If you’re under-stimulated, consider a city break or an adventure vacation for a burst of novelty and excitement.

Bookmark your dream destinations in a saved list and revisit them as you refine your plans, making the planning a less stressful and more exciting experience.

Finally, try a little break from routine by stepping out of your comfort zone when planning your vacation and exploring unexpected destinations; this can lead to more memorable experiences.

Survey methodology

The survey consisted of independent research through polling 1,000 Canadian adults. For the flights, Skyscanner analyzed millions of flight bookings and calculated the median return economy seat price for all departure cities within the market. The analysis covers all departure and return dates in 2025, based on data available as of November 2024, including both direct and connecting flights.

This article The majority of Canadians are overthinking their vacation decisions originally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

According toStatistics Canada, the current inflation rate is 1.9% and BMO as well as other bank analysts are predicting the nation’s inflation rate will continue to hover around the 2% target rate over the next year.

While these rates are lower than some we’ve seen in recent years, it’s certainly not negligible, especially if you’re still trying to catch up from the impact higher inflation rates had on your monthly budget — rising costs that started to climb in 2020 and continued until late 2024.

What can you do? A good strategy for fighting back is to take advantage of some simple ways to stretch your money — and make more of it.

Here are eight ideas for putting some padding in your budget, so you can show inflation who’s boss.

1. Cut the cost of your debt

High-interest debt from credit cards and personal loans can be a major drain on your bank balance, especially if you’re making only the minimum payments each month.

To slash the cost of that debt, you might shop around for a debt consolidation loan. You’ll trade in all of your current balances — on credit cards, loans, everything — for a single monthly payment at a lower interest rate.

For instance, using the online portal for Loans Canada, you can apply for a personal loan in as little as 30 seconds. Depending on how much interest you’re currently paying on your debts, consolidating them could save you thousands of dollars and help you become debt-free years sooner.

2. Hunt down your long-lost money

You do know where all your money is, right?

People move on and forget all about money in old accounts all the time. It’s so common that Americans currently have more than $40 billion in unclaimed funds waiting for them. Is any of that yours? Search MissingMoney.com, which will show if you left any money in an old checking or savings account, or if you’re entitled to unclaimed life insurance policies from relatives who have passed away. (You’ll want to be much more careful when you buy your own life insurance policy.)

You also should check with Revenue Canada to see if there are any tax refunds you’re missing. You can amend your previous tax returns for up to three years if you were eligible for a refund but neglected to claim it.

3. Use technology to save when you shop online

If you do most of your shopping online — and these days, who doesn’t? — you likely go to the same website again and again. You know the one. But Amazon doesn’t always have the best prices, and nobody has time to price-check every store.

You can let technology do that work for you. You might download a free browser extension that will automatically find you deals and coupon codes every time you shop online. You also can set price-drop alerts for your favourite products, so if they go on sale, you’ll be the first to know. Installation of the add-on takes just a moment and could save you hundreds of dollars a year.

4. Play the market with your extra cash

If you’ve never put money into the stock market, you might think owning a piece of a well-known company is out of reach. After all, stock prices have been climbing higher and higher over the last year.

But Wealthsimple Trade will let you buy fractions of shares, allowing you to ride the stock market juggernaut with just your spare change. You can buy pieces of companies like Google and Tesla for as little as $1 — and when they profit, so will you.

5. Shrink your car insurance bills

If you’ve got a car and aren’t shopping around for cheaper insurance every six months, you could easily be overpaying by hundreds of dollars a year. Comparing rates from multiple insurance companies may sound like a lot of work, but some websites do the shopping around for you. You might find a better deal in just a few minutes.

For instance, YouSet is an insurance brokerage platform that allows you to browse the best auto insurance policies across multiple insurers all in one place.

You’ll answer a few quick questions and be presented with the best quotes from numerous car insurers. That way, you can find the lowest price available on the coverage you currently have.

6. Stop paying too much for home insurance

Homeowners insurance rates have been rising for many Canadians. But if your bill seems too steep, you might be able to cut it down to size with some good old-fashioned shopping around. Thankfully, shopping around is much easier these days because of online insurance brokerages, such as YouSet. As a digital insurance firm, YouSet let’s homeowners compare insurance policies and costs from multiple providers — and this quick comparison helps you identify quick and easy ways to pay less for your home insurance coverage.

To save, go online and compare quotes using YouSet. Answer a few basic questions, and you’ll instantly see the best deals available in your area. In just a few minutes you could end up saving some serious money while keeping the same level of coverage — that’s peace of mind and savings, all in one.

7. Get paid when businesses behave badly

When companies do the wrong thing, they get taken to court — and sometimes their customers get compensated. The Consumers’ Council of Canada has a website that lists class action lawsuits. You can check to see whether you qualify to join in any of these suits, which may result in money coming to you.

Recently listed class action suits in Canada include one for owners of lawnmowers and another involving price-fixing of auto parts.

The criteria for eligibility will vary depending on the lawsuit, but in some cases you may not even need a receipt to get reimbursed.

8. Make money with your pocket change

Another way to use the stock market to help you battle rising inflation is by putting your pennies to work.

You could use a trading platform to help you grow a diversified portfolio with investments of as little as $1. Inflation may be eating away at the value of money, but your pocket change is far from worthless. If saved and invested properly, it could turn into hundreds of dollars in as little as a year.

Sources

1. Statistics Canada: Consumer Price Index Portal

2. BMO Capital Markets: 2025 Canada Economic Outlook: On the mend (Dec 3, 2024)

3. Consumers’ Council of Canada: Notice of class action lawsuits

This article [Inflation busters: 8 ways to stretch your money and fight soaring prices](https://money.ca/managing-money/budgeting/inflation-beaters-stretch-money originally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

The Greater Toronto Area (GTA) housing market is not known for being easily navigable. But, we may be at a turning point in terms of affordability.

According to the Toronto Regional Real Estate Board (TRREB), the GTA housing market saw annual sales up slightly compared to 2023, and new listings were up significantly year-over-year. Buyers benefited from substantial negotiating power on price, especially in the condominium apartment market.

“Borrowing costs were top of mind for home buyers in 2024. High interest rates presented significant affordability hurdles and kept home sales well below the norm. The housing market did benefit from substantial Bank of Canada rate cuts in the second half of the year, including two large back-to-back reductions,” TRREB president Elechia Barry-Sproule said in a statement.

“All else being equal, further rate cuts in 2025 and home prices remaining below their historic peaks should result in improved market conditions over the next 12 months.”

A closer look at 2024 Toronto real estate sales

Annual 2024 home sales amounted to 67,610 – up by 2.6% from 65,877 sales in 2023. New listings, at 166,121, were up by a greater annual rate of 16.4%. Listings increasing by a greater rate than sales provided buyers with considerable choice in the marketplace, which effectively kept a ceiling on any widespread price growth, TRREB explained in a release.

The average selling price for all home types combined was $1,117,600 in 2024, representing a decline of less than 1% compared to the 2023 average of $1,126,263. Price declines were more notable for condo apartments.

“Market conditions varied by market segment in 2024. Sales of single-family homes, including detached houses, increased last year, whereas condo apartment sales were down. Many would-be first-time buyers remained on the sidelines, anticipating more interest rate relief in 2025. The lack of first-time buyers impacted the less-expensive condo segment more so than the single-family segments,” said TRREB chief market analyst Jason Mercer.

A look at GTA home sales leading into 2025

GTA home sales amounted to 3,359 in December 2024 – down slightly from December 2023. New listings were up over the same period, continuing the trend of a well-supplied market.

The MLS Home Price Index Composite Benchmark was up by less than 1% year-over-year in December. Over the same period, the average price, at $1,067,186, edged lower.

Total condo sales were down across all TRREB areas 2.8% in 2024 to 18,698, whereas detached homes saw a 3.8% increase to 30,577.

“Consumer sentiment, monetary policy, development policy, and issues such as congestion continued to impact the resale, new, and rental housing markets in 2024. Government policies on these fronts need to be reviewed in 2025,” said TRREB CEO John DiMichele.

This article Toronto living might be more than a pipe dream after all — the GTA housing market got proportionately more affordable in 2024 originally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Canada’s high cost of living is causing great stress for a majority of couples, as more than three-quarters (77%) of Canadian couples said money is a major source of stress, according to the RBC Relationships & Money Poll.

Most alarmingly, 47% of Canadians nationwide are reporting they can’t afford pay the bills if they split up with their current partner, showcasing how the impact of the current economy is putting stress on Canadian couples who may feel trapped in a relationship for financial reasons.

Money, stress and romance

When it comes management of the financial burden of Canadian couples, three-in-five (62%) people polled by RBC called out money as the cause of arguments and more than half (55%) said they need a relationship to support their lifestyle.

In addition, almost a quarter (23%) admitted that it’s never been more stressful to talk to their partner about their finances, with two-in-ten flatly stating their partner “simply avoids talking to me about finances.”

While romance is a two-way street, that’s not always the case with financial responsibility, given that 47% of respondents say they handle finances better than their partner.

Another 27% acknowledged they are frustrated by their partner’s financial habits, with an additional 15% disclosing that these habits are having a negative impact on how they feel about their significant other.

What to do about it

A quarter (26%) of couples polled by RBC responded that, while they talk about improving their money situation together, they don’t know what to do next.

"If you’re one of the couples struggling to make ends meet right now, you may not think a bank can help," Craig Bannon, RBC’s regional financial planning support director, said in a statement, noting challenging financial circumstances are not without solutions.

Bannon offered some advice for couples struggling with money or the conversation with money. It starts with being honest with yourself and your partner about the money that’s going in and out.

Then, he encourages looking at shared expenses together to see how you’re each handling your individual expenses and highlight what adjustments you both could make to ease any financial stress you’re feeling. It is important to follow through on those adjustments and review the actions you’ve been able to take as part of regular conversations with each other about money — monthly if you can — to help you both stay on top of your financial goals and see progress.

Bannon recommends that if you and your partner are finding it difficult to talk with each other about your finances, you should consider asking an advisor to join the conversation. It can be helpful to have an objective voice in the room.

Lastly, if you and your partner don’t already have a household budget in place, now’s the time to create one. This kind of homework will empower you to readily see the value a budget can bring to your lives, as it will clearly show you both where your money is going now, compared to where you would like to see it go. Check out our list of Canada’s best budgeting apps to help put the power of budgeting in the palm of your hand.

Survey methodology

The survey was commissioned by RBC and conducted from June 21 to 26, 2024 among 1,507 Canadians aged 25 and up who are in a cohabiting relationship and are members of the Angus Reid Forum. The sample frame was balanced on gender and region according to the latest census data. For comparison purposes only, a probability sample of this size would yield a margin or error of ±2.5 percentage points at a 95% confidence level.

This article Over three quarters of Canadian couples say finances are putting major strain on their relationships — and they can’t afford to leave originally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

With its larger-than-life bulk items, enticing discounts and cheap hot dogs, the aisles of Costco can feel like an abundant wonderland and an overwhelming funhouse all at once.

And while purchasing a palette of breakfast cereal may not always be necessary, the wholesale retail chain is at the top of the list of Canadians’ preferred grocery chains, according to customer data science company dunnhumby’s Retailer Preference Index (RPI). Following Costco in this list are Super C, Maxi and Walmart.

“The impact of customer’s behavioural shift due to inflation are clear to see across the Canadian market,” Chris Thomson, dunnhumby’s senior vice-president in Canada and the US, said in a statement.

“For retailers to succeed over the next 12 months, they need to be clear on how their value proposition meets and connects to customers’ evolved needs in a way which matters to them. Change leads to opportunities, and this change in customer behaviour presents opportunities for all Canadian grocers, as long as they are also able to change with their customers.”

The majority of a retailer’s success is based on their price, promotions and rewards propositions, so it’s not a shock that Costco hits the mark on this. All of the most popular retailers are club, discount and superstore banners, according to the data.

The most popular types of grocers in Canada

Conventional grocers, comprising almost 40% of the Canadian market, represent the second and third most popular for Canadians’ grocery shopping preferences.

The top type of retailers grew grocery revenue the most over the past five years and have built a competitive edge in overall market share. Retailers with clear and strong customer value propositions — indicated by higher rankings in the index — grew up to 1.5 times faster over the long-term and three times faster in the past year than retailers with lower rankings.

“The RPI has been a core report for retailers across the US for the last eight years, playing a fundamental role in helping grocers focus their value propositions on the needs of the customer. The Canadian RPI can play a similarly pivotal role in the Canadian grocery industry, supporting retailers to capitalize on opportunities driven by change and even help conventional grocers do something more unconventional to meet changing needs,” Thomson said.

A look into Canadians’ grocery preferences

It’s not the larger than life products at Costco that make it the top choice for Canadians’ stocking up on groceries. Canadian retailer’s long-term success is based on the following categories:

• Price, promotions and rewards proposition (44%)
• Quality (31%)
• Digital (11%)
• Speed and convenience (8%)
• Operations (6%)

Value lever importance varies by region, with 48% of Ontario based retailers’ long-term success due to their price, promotions and rewards proposition, compared to 35% for Atlantic-based retailers.

Costco’s success is due to their powerful performance across four out of the five pillars, including ranking first for operations nationally.

In addition, Costco is moving towards becoming an everyday retailer for customers as it becomes more accessible to customers through third-party delivery channels such as Uber Eats and Instacart and as it increases its presence in home meal replacement categories.

Walmart wins on the digital ranking across all regions, but three out of 10 Canadian customers shop Amazon for groceries.

Survey methodology

The dunnhumby company analyzed customer and financial data for the 28 largest conventional, discount, superstore and club banners in Canada, which account for 97% of market share in those formats.

The customer perception data comes from dunnhumby’s survey of 6,000 Canadian grocery shoppers.

The five drivers of the customer value proposition are: Price, promotions and rewards; quality; digital; speed and convenience; and operations. Financial data analyzed included market share, near-term and long-term sales growth.

This article Costco’s impact goes beyond its $1.50 hot dogs, taking the top spot for Canadians’ grocery preferences originally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.