Author: Oskar Malone

Hot off interest rate hikes, Canada’s economic environment remains a potentially volatile and uncertain environment for investors. With risks ranging from fluctuating markets to geopolitical events, experienced investors are increasingly turning to strategic cash holdings — an old-school tactic that helps safeguard your financial portfolios from volatile economic shifts.

A cash position offers liquidity, minimizes risk and preserves capital during market downturns. It’s particularly helpful during global macroeconomic events when fallout can be unpredictable — such as the potential impact of Donald Trump’s re-election as US president. While some business leaders are breathing a sigh of relief, others are bracing for strong headwinds. Trump’s impending return to the White House could disrupt economic stability, particularly in countries heavily reliant on US trade relations.

For Canadian investors, understanding the role of cash in a diversified investment strategy is indispensable.

Impact of Donald Trump’s presidency on Canada’s economy

Donald Trump’s return to the presidency could profoundly affect Canada’s economic landscape, given that more than 75% of Canada’s exports are US-bound. This suggests even a relatively small tariff could reduce Canada’s GDP.

For instance, if Trump were to impose a 10% tariff on Canadian goods exported to the US, this could result in a GDP drop of 0.9%, annually — about CDN$19.3 billion, based on Canada’s GDP of $2.14 trillion in 2023.

Expect Canadian concessions

Trump’s previous approach to trade was marked by higher tariffs and additional demands. As a result, Canadians can expect that Trump will focus on the Canada-United States-Mexico Agreement (CUSMA) — and should anticipate drastic changes, even before the agreement reaches the mandatory 2026 review deadline.

Economists with Desjardins estimate that new Trum tariffs could increase inflation in Canada by as much as 1.7%, pressuring the Bank of Canada to raise rates. These tariffs would raise costs, adding inflationary pressure to goods and services, which could prompt an increase in the Bank of Canada’s overnight rate.

Trump’s fiscal policies could further strain Canadian budgets

Moreover, Trump’s expansive fiscal policies — characterized by tax cuts and increased government spending — could drive US inflation with spillover effects in Canada. Rising US inflation would particularly affect Canadian imports, pushing up consumer prices and eroding purchasing power.

Additionally, higher U.S. Treasury yields, influenced by these policies, could lead to increased fixed-rate mortgage costs for Canadians. Since fixed interest rates are heavily influenced by the five and 10-year Treasury yields, this could add further strain to household budgets in both countries.

For Canada’s energy sector, the outlook is similarly concerning. While direct tariffs may not be imposed on energy exports, Trump’s push for US energy independence could depress global oil prices, significantly reducing revenues for Canadian producers. Considering that energy exports make up 30% of Canada’s goods sent to the US, lower oil prices could trigger job losses in oil-dependent regions and shrink family incomes.

Lastly, potential shifts in immigration policy, particularly large-scale deportations, could lead to a surge of migrants northward. Such an influx could strain housing and social services in Canada, compounding economic challenges.

Predicting a stock market downturn

Tighter fiscal policies don’t always result in market downturns, but uncertain economic conditions signal that investors should protect their portfolios. To do this, investors need to be mindful of when market downturns occur and how long they last. According to analysts, the stock market has crashed 13 times since 1950, with the average length of time before the rebound lasting almost one year? To be considered a crash, stock prices must decline suddenly and dramatically — usually by 20% or more — and hit a few sectors, simultaneously.

Many experienced investors prepare for downturns by realigning their portfolios, selling off non-strategic holdings, and increasing cash reserves.

In general, cash holdings provide a secure and flexible foundation to protect your portfolio but also offer some upside benefits. For instance, experienced investors will use their cash reserves to jump on future investment opportunities while keeping a portion of their portfolio liquid and protecting it from market fluctuations and downturns.

Three ways to keep cash

While there are various ways to keep cash, two of the most common and easiest-to-implement options are to stash your cash in a money market fund or to open a high-interest savings account.

Keeping cash in a money market fund

A money market fund is a type of mutual fund that invests in short-term, highly liquid and low-risk debt instruments. These funds aim to provide investors with a safe place to park cash while earning a modest return, typically higher than a standard savings account.

Most of the big banks offer a money market fund, meaning you can buy and sell shares in these funds through any trading platform.

If you plan to park your money for an undetermined amount of time, you may want to consider funds with better historical performance. Good options include:

• Purpose High-Interest Savings ETF (TSX:PSA): With a yield of 5.05%, it’s one of the highest-yielding funds currently available. It invests in high-interest savings accounts at major Canadian banks, offering a low-risk option with monthly distributions.
• Horizons Cash Maximizer ETF (TSX:HSAV): This ETF boasts a yield of 5.30%, which is among the best returns for a money market ETF. It reinvests all income, increasing the fund’s net asset value (NAV) daily, and offers a very low MER of 0.12%, making it an attractive option for tax-sheltered accounts.
• CI High Interest Savings ETF (TSX:CSAV): Offering a yield of 4.90%, this ETF is also a popular choice for those seeking a low-risk investment in Canadian dollar-denominated high-interest savings accounts
• BMO Money Market Fund ETF Series (TSX:ZMMK): This fund offers a yield of 4.98% and primarily invests in short-term government and corporate debt, providing stable returns with low-risk.

To get started, you’ll need to open a discount brokerage account. You can find the best stock trading platform to meet your needs, or open an account with a brokerage account using a new client promotion. Good options include:

• CIBC Investor’s Edge: Get 100 free trades when you open a CIBC Investor’s Edge account using promo code EDGE2425. Plus, get $200 or more cash back. Offer valid until March 31, 2025
• Moomoo: Get up to $2,200 in rebates
• Wealthsimple: Get 1% cash back with a minimum deposit of $15,000 or open and fund an account with $100,000 or more and get an iPhone or Macbook.

Keeping cash in a high-interest savings account (HISA)

During a stock market correction, many investments lose value rapidly, and liquidity becomes crucial. By keeping your cash in a secure bank account that earns a higher interest rate, you not only protect your money, but you remove the volatility to your portfolio. Unlike stocks or mutual funds, cash in a HISA is not subject to market fluctuations, ensuring that your savings are safe from financial losses. Plus, cash in a HISA ensures you have readily accessible funds to cover expenses or invest when better opportunities arise. That’s because cash in a HISA is readily accessible, making it easy to withdraw funds for emergencies, expenses, or investment opportunities.

Read More: Pick the best high-interest savings account

Lock-in today’s higher interest rates with a GIC

One other option is to park your cash in a guaranteed investment certificate (GIC). Investing in GICs is an effective strategy for saving as it offers several benefits that align with financial security and growth:

• Fixed Interest Rates: GICs provide a guaranteed return on your investment at a predetermined rate, shielding you from market volatility.
• Predictable Growth: You know exactly how much your savings will grow by the end of the term, making them an excellent choice for conservative savers.
• Zero Risk of Loss: GICs are one of the safest investment options, as your principal is fully protected. They are particularly attractive to risk-averse investors.
• Deposit Insurance: Most GICs in Canada are insured up to a certain limit by the CDIC or provincial counterparts, further safeguarding your investment.
• Higher Yields: GICs often offer higher interest rates compared to regular or even high-interest savings accounts, rewarding you for committing your money for a fixed term.

Read More: Find the best GIC rates

5 reasons to park your cash

To appreciate whether or not you should consider increasing a portion of your portfolio and keep more cash — as a smart hedge during a stock market correction — consider these five reasons for keeping cash.

#1. Cash offers liquidity and safety during equity market downturns

During a stock market correction, many investments lose value rapidly, and liquidity becomes crucial. Cash in a high-interest savings account remains safe from market volatility. Unlike stocks, which can see sudden drops in price, your cash balance is secure and unaffected by market swings. This ensures you have readily accessible funds to cover expenses or invest when better opportunities arise.

#2. Cash in high-interest accounts earns interest while staying liquid

In a typical savings account, the interest rates are low, and inflation may erode the purchasing power of your cash. However, a high-interest savings account offers a better yield, allowing you to earn more on your cash reserves. While the interest may not outpace inflation entirely, it provides some return on your money, helping it grow modestly while staying liquid and accessible.

#3. Having cash offers opportunistic buying opportunities (buy low and sell high!)

Holding cash during a market correction puts you in a strong position to take advantage of investment opportunities. When stock prices fall during a correction, many high-quality assets may become undervalued. Having cash on hand allows you to buy stocks, bonds or ETFs at lower prices, capitalizing on the potential for future growth once the market recovers.

#4. Minimized risk

When stock markets correct, there is often widespread uncertainty. Holding cash in a high-interest savings account minimizes your risk exposure. Unlike investing in the market, where losses can be substantial, cash in a savings account is typically insured (in Canada, this would be through the CDIC, up to a certain limit), reducing the risk of losing your principal.

#5. Preserving capital

One of the main objectives during a market correction is to preserve your capital. By keeping a portion of your portfolio in cash, you are preserving that capital and ensuring it doesn’t suffer from the same market losses as your equity investments might. High-interest savings accounts, while not offering high returns, can serve as a stable part of a diversified portfolio, providing balance in turbulent times.

Bottom line

Whether you open a high-interest savings account or invest in a money market fund, both options offer strong returns compared to traditional savings accounts plus, investors get the benefit of accounts that keep cash highly liquid, which is excellent for conservative investors looking to park cash during volatile market conditions.

Sources

1. Covenant Wealth Advisors: Understanding Stock Market Corrections and Crashes (2024) (Sept 26, 2024)

This article Worried about a stock market crash? Here’s where to park your cash 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.

Let’s say a 58-year-old is close to retirement. Not only will he have a decent workplace pension, but they’re finally an RRSP millionaire — a target to which many Canadians aspire. But how far will $1 million take you these days?

This near-retiree is wondering if they should keep growing their nest egg or, now that they’ve hit the $1 million mark, if they can ease off on their aggressive savings plan. While there’s no simple answer — every person’s situation is different — it’s important to consider your goals in retirement, other sources of retirement income and potential expenses, such as long-term care.

That $1 million (along with any other sources of retirement income) will need to last throughout your golden years, so you’ll only withdraw a portion of it annually. The rest will continue to stay invested and will continue earning returns.

A common rule of thumb suggests you’ll need about 80% of your pre-retirement income to maintain the same lifestyle in retirement. So, if our 58-year-old makes an annual income of $80,000, they’ll need $64,000 per year to live the same life in retirement.

How long will your money last?

The popular 4% withdrawal rule suggests withdrawing 4% in your first year of retirement and, in subsequent years, withdrawing that amount adjusted for inflation. With a portfolio of $1 million, that would work out to about $40,000 in the first year — so this 58-year-old will need to make up the difference from other sources of retirement income to reach $64,000.

But there are many other withdrawal approaches. For example, the Bogleheads variable percentage withdrawal strategy determines your withdrawal percentage based on age, asset allocation and portfolio balance. You can also estimate withdrawal amounts with an RRSP withdrawal calculator or work with a financial advisor.

This 58-year-old will also have to consider how much they’ll bring in with Old Age Security (OAS) and the Canada Pension Plan (CPP) — the two federal public pensions in Canada — along with their workplace pension.

If you’re eligible for CPP, the maximum monthly amount you could receive in 2025 if you start your pension at age 65 is $1,364.60. However, the average monthly amount (at age 65) was $815 (as of July 2024), according to the Government of Canada. For OAS, the maximum monthly payment is $727.67 for those aged 65 to 74 and $800.44 for those 74 and older. If you take your pension early (as early as age 60), your monthly cheque will be lower; you can delay up until the age of 70 and receive a permanent bump in your benefit. You can plug the numbers into the government’s Canadian Retirement Income Calculator to estimate your CPP and OAS.

Once you add up all the sources of your retirement income, you’ll get a better sense of how much you’ll have to live on in retirement — and if you need to work longer to meet your goals.

Don’t forget about inflation

Even if our 58-year-old feels that they has a decent nest egg, they should also consider the impact of inflation. While inflation has been coming down, the past few years have demonstrated how high inflation can impact our cost of living — from the grocery store to the gas pump.

Using the Bank of Canada’s investment calculator, consider an investment of $1 million over 30 years (assuming an annual interest rate of 3.3% and an annual rate of inflation of 2%). The good news? Your nest egg will keep growing: to $1,462,192.30. But the effect of inflation on the value of the initial investment would be $552,070.89.

It’s quite an accomplishment to save $1 million, but our 58-year-old will also want to consider when they plan to retire — if they’re retiring early, they’ll need to stretch their nest egg over a longer period of time. If they plans to work (and save) longer, they’ll not only have a larger nest egg, but they’ll have a larger monthly CPP cheque.

But there does come a point when you will stop saving for retirement and … retire. Eventually, you can ease off the gas as you head into your golden years. Doing the math, and perhaps consulting with a financial advisor, can help you figure out the best way to stretch your nest egg — whether you’ve reached that $1 million milestone or not.

Sources

1. TaxTips.ca: RRSP/RRIF Withdrawal Calculator

2. Canada.ca: CPP Retirement pension: How much you could receive

3. Canada.ca: Old Age Security: How much you could receive

4. Canada.ca: Canadian Retirement Income Calculator

5. Bank of Canada: Monetary Policy Report (October 2024)

6. Bank of Canada: Investment calculator

This article I’m 58 years old and finally an RRSP millionaire: Do I need a bigger nest egg or can I ease off the gas? 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.

Over the past few years, the prospect of buying a home in the GTA seemed impossible for many, with price tags in the millions and intimidating borrowing rates.

That being said, there’s a new sense of ease in the GTA housing market right now as borrowing rates have lowered. For context, last October the Bank of Canada interest rate was 5% and in October 2024 it fell to 3.75%.

According to the Toronto Regional Real Estate Board (TRREB), Greater Toronto Area (GTA) home sales saw a strong increase in year-over-year sales this October. Over the same period, new listings were up, but by a lesser annual rate, and the average selling price was up slightly on an annual basis.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October. The positive affordability picture brought about by lower borrowing costs and relatively flat home prices, prompted this improvement in market activity,” TRREB president Jennifer Pearce said in a statement.

A closer look at GTA real estate in October

So, how exactly did these lower borrowing costs reflect in the GTA housing market? Here’s a closer look:

• Realtors reported 6,658 home sales through the MLS system in October 2024 – up by 44.4% compared to 4,611 sales reported in October 2023.
• New listings entered into the system amounted to 15,328, up by 4.3% year-over-year.
• The MLS Home Price Index Composite benchmark was down by 3.3% year-over year in October 2024.
• The average selling price was up by 1.1% compared to October 2023 to $1,135,215.
• On a seasonally adjusted basis, the average selling price edged up compared to September.

While much of these stats point toward housing affordability, the following statement from TRREB chief market analyst, Jason Mercer, implies potential homebuyers should still be aware of the potential for prices to rise by next year:

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for home buyers. This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

What about condos?

It wasn’t just houses that went up in sales, condos, semi-detached homes and townhomes also made it into the selling limelight in the GTA.

Condo apartment sales went up 33.4% to 1,722, while semi-detached homes saw a 44% increase to 612. Detached home sales rose 46.6% to 3,139. Townhomes saw the biggest sales increase – 56.8% to 1,123.

However, the average sale price was down 1.1% to $920,201. Condo apartments were also down to $694,000. Semi-detached and detached both rose 0.7% to $1,108,376 and 1.2% to $1,462,838, respectively.

A policy to assist affordability

With all this in mind. TRREB also supports the federal Conservative Party’s proposed policy of removing the GST on home sales under $1 million to assist in affordability.

“Given that the average price of a home in less affordable markets such as the GTA and Vancouver is over $1 million, phasing out the rebate between $1 million and $1.5 million, rather than a hard cutoff at $1 million, would address this shortcoming. Provincial consideration should also be given to matching this proposal,” TRREB CEO, John DiMichele, said in a statement.

Sources

1. Toronto Regional Real Estate Board: Sales and Average Selling Price Increases in October (Nov 6, 2024)

This article The calm after the storm? GTA home sales spiked in October as borrowing rates lowered 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.

Taylor Swift’s "Eras Tour" captivated audiences worldwide, leading to unprecedented demand and soaring ticket prices, especially in the United States. Interestingly, many American fans discovered that attending a Swift concert in Canada — specifically in cities like Toronto, Ontario, and Vancouver, British Columbia — can be more cost-effective, even when accounting for travel expenses.

Here’s why travelling to Canada to attend a Taylor Swift concert may be cheaper than your American hometown venue, even after accounting for resale ticket pricing, exchange rates, and travel costs.

Exchange rate advantage: Stretching the US dollar

A significant factor that makes Canadian concerts more affordable for American fans is the favourable exchange rate between the greenback and the loonie. As of November 2024, $1 US dollar (USD) is equivalent to approximately $1.41 Canadian dollars (CDN). In short, American visitors can stretch their dollars far more when spending in Canada.

For instance:

• Average Ticket Price: Buy a resale concert ticket priced at CDN$2,500, which equates to approximately USD$1,733
• Hotel Stay: Spend CDN$200 on a hotel room, which equates to USD$142

This exchange rate effectively reduces the cost of tickets, accommodations, and other expenses for American attendees.

But currency exchange alone doesn’t warrant a trip north to see Swift. To get a better idea, American concert-goers should consider what it would cost to take the trip — even if their dollar is stronger.

Ticket price comparisons: US vs. Canada

Ticket prices for Taylor Swift’s concerts vary significantly between the US and Canada, influenced by factors such as demand, venue capacity, and local market conditions.

Still, even when accounting for these variabilities, it appears that purchasing an Eras ticket for a Canadian concert date is financially more cost-effective for American fans.

For instance:

Average ticket prices for Taylor Swift concert

United States

• Face Value: Tickets typically range from USD$300 to USD$500 USD (approximately CDN$423 to CDN$705)
• Resale Market: Due to high demand, resale prices often escalate to between USD$1,200 and USD$2,000 USD (approximately CDN$1,690 to CDN$3,807)

Canada

• Face Value: Tickets are generally priced between CDN$300 and CDN$500 (about USD$213 to USD$355)
• Resale Market: While resale prices do increase, they tend to be lower than in the US, ranging from CDN$1,000 to CDN$1,500 (about USD$709 to USD$1064)

Even cheaper with the release of new tickets to Toronto concerts

For Americans and Canadians still hoping to catch Taylor Swift live and in person, there’s good news: Ticket prices for Taylor Swift’s Toronto concerts dropped after the Swift crew released blocks of tickets for sale at face value. The result was a sudden drop in resale ticket costs. Prior to the release, resale tickets were selling for CDN$2,500 or more; after the release, resale tickets could be bought for CDN$1,785 (about USD$1,320).

Travel costs: Comparing expenses to major cities

When considering attending a concert in another city, travel expenses are a crucial factor. Here’s a comparison of travel costs for American fans travelling to Toronto or Vancouver versus attending concerts in major US cities.

Flight costs (round trip, economy class)

To Toronto:

• From New York City: Approximately CDN$475 to CDN$865 (USD$337 to USD$613)
• From Chicago: Approximately CDN$550 to CDN$865 (USD$390 to USD$613)

To Vancouver

• From Los Angeles: Approximately CDN$500 to CDN$1,000 (USD$355 to USD$709)
• From Seattle: Approximately CDN$385 to CDN$640 (USD$273 to USD$454)

If that same Taylor Swift fan were to fly from an American city to either New York City or Los Angeles in order to attend an Eras concert date, then average seat prices from Expedia show they’d have to budget approximately USD$154 to USD$302 for a roundtrip flight (CDN$217 to CDN$426).

Hotel costs (per night for double occupancy)

• Toronto: Approximately CDN$175 to $CDN600 (USD$124 to USD$425)
• Vancouver: Approximately CDN$250 to CDN$800 (USD$177 to USD$567)

Major US cities

• New York City: Approximately USD$300 to USD$500 (CDN$423 to CDN$705)
• Los Angeles: Approximately USD$250 to USD$400 USD (CDN$353 to CDN$564)

Additional expenses

Transportation: Both Toronto and Vancouver offer efficient public transit systems, with daily passes costing around CDN$10 to CDN$15 (USD$7 to USD$11) Food and Entertainment: Dining and entertainment costs are comparable between major US and Canadian cities, though the favourable exchange rate benefits American visitors in Canada.

Cost comparison: A sample scenario

Let’s compare the total estimated costs for an American fan attending a Taylor Swift concert in Toronto versus New York City.

Scenario: Attending a Concert in Toronto vs. New York City

Concert Ticket (Resale):

• Toronto: CDN$2,000 (USD$1,418)
• New York City: USD$1,800 (CDN$2,538)

Flight:

• To Toronto: CDN$500 (USD$355)
• To New York City: USD$500 (CDN$705)

Hotel (2 Nights):

• Toronto: CDN$600 (USD$425)
• New York City: USD$800 (CDN$1,128)

Food and Transportation (2 Days):

• Toronto: CDN$200 (USD$142)
• New York City: USD$250 (CDN$353)

Total estimated costs: Canada vs US

Toronto: CDN$3,300 (USD$2,340)
New York City: USD$3,350 (CDN$4,724)

Potential Savings: Approximately $1,424 (in Canadian currency or $1,010 in US dollars)

Even with travel expenses and the hassle of crossing a border, attending a Taylor Swift concert in Canada can be more economical for American fans than attending one in a major US city like New York.

Additional considerations

Of course, a dollar-for-dollar comparison doesn’t take into consideration all variables. What if you can’t cross the border? Or you can’t find a hotel room? To make the best assessment, consider how unknown factors could prompt extra costs.

Still, for American fans — and Canadian fans that need to travel to a large urban area in order to attend a Swift concert — there are non-financial benefits to travelling to Toronto or Vancouver for Taylor Swift’s concert:

• Availability: Tickets for Canadian concerts may be more readily available due to slightly lower demand compared to US cities.
• Experience: Attending a concert in a different country offers a unique cultural experience and the opportunity to explore a new city.

Bottom line

For American fans of Taylor Swift, attending her concerts in Canadian cities like Toronto or Vancouver presents a cost-effective alternative to US venues. The favourable exchange rate, comparatively lower ticket prices, and manageable travel expenses contribute to overall savings.

This article Why American fans are saving $1,400 by attending a Taylor Swift concert in Canada 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.

If you’re looking to buy a home in Canada in 2024, you might notice the housing market feels different from recent years. After a period of intense demand and skyrocketing prices, the real estate market is now experiencing a slowdown. Sales have declined in several regions, and prices are starting to ease in some areas, giving buyers a slight advantage that hasn’t been seen for a while. While the reductions aren’t drastic across the board, many cities are seeing more gradual price adjustments as the market stabilizes.

This cooling in the market comes as Canada tightens its immigration policies in response to concerns over housing affordability and infrastructure strain. However, with some Americans considering a relocation to Canada, demand from foreign buyers could still have a stabilizing effect on property prices. For the near future, these changes mean the housing market may see a complex interplay of factors as supply and demand shift.

Even so, for those who are budget-conscious, Canada’s diverse markets still offer some good options. Here’s an updated look at what $500,000 can get you in various Canadian cities — from cozy condos in urban centers to spacious family homes in more affordable regions.

Victoria, BC

Based on recent 2024 data, housing prices in Victoria have continued to rise.

For $500,000, buyers are generally limited to smaller condos in the city. The average condo in central Victoria now costs around $525,000. In outlying areas like Hillside, $500,000 can typically secure a one-bedroom, one-bathroom unit of around 650 to 750 square feet, slightly smaller than previous years but still offering access to amenities and proximity to downtown.

Related: Compare rates to find the best mortgage rate in Canada)

Vancouver

As of 2024, the Vancouver housing market remains one of Canada’s most expensive.

For around $500,000, buyers are generally limited to micro-studios or very small one-bedroom units. In the downtown area, a $500,000 budget typically affords a studio apartment of 350 to 400 square feet with one bathroom. This size reduction reflects rising costs, even as the average condo price in the city exceeds $900,000.

Kelowna, BC

In 2024, the Kelowna market has seen significant appreciation.

A $500,000 budget now typically buys a two-bedroom, one-bathroom condo within city limits or a small cottage-style home in outlying areas. Properties offering lake access or scenic views are generally priced higher, making such amenities harder to find within this budget.

Related: The top 22 cheapest places to live in Canada

Calgary, AB

Calgary remains one of the more affordable large Canadian cities.

In 2024, a budget of $500,000 can typically secure a two to three-bedroom house with one to two bathrooms in suburban areas or a larger condo within the city. The typical square footage for this budget has increased slightly, offering 1,200 to 1,400 square feet depending on the neighbourhood.

Related: Find the best mortgage rates in Alberta)

Edmonton, AB

Edmonton remains highly affordable in 2024 compared to other major cities.

For $500,000, buyers can find spacious single-family homes with three to four bedrooms and two to three bathrooms in established neighbourhoods or newer developments. Typical homes offer 1,800 to 2,200 square feet of living space, and suburban options often come with large yards.

Related: The top 12 cheapest places to live in Alberta

Regina, SK

In 2024, $500,000 remains a generous budget for Regina, SK.

Buyers in this price range can expect to find newer or recently updated single-family homes with three to four bedrooms and two to three bathrooms. Homes within city limits commonly provide around 1,600 to 1,900 square feet, often with large yards and modern finishes.

Saskatoon, SK

For $500,000 in 2024, buyers in Saskatoon, SK can still find spacious family homes, though options are typically three to four bedrooms and two to three bathrooms. Properties in this budget often provide 1,700 to 2,000 square feet in suburban areas, and many homes include modern amenities such as finished basements and open floor plans.

Winnipeg, MB

In Winnipeg, $500,000 in 2024 allows for a well-sized, detached home in established neighbourhoods or newer subdivisions.

Buyers can expect to find three to four-bedroom homes with two to three bathrooms and around 1,600 to 1,800 square feet. Many properties offer landscaped yards and proximity to parks and amenities, though premium features like pools are rare at this price point.

Related: Cheapest province to live in Canada

Toronto

As of 2024, Toronto’s real estate market remains highly competitive.

For $500,000, buyers are generally limited to older or smaller condos, rather than townhouses, within the city. In neighbourhoods like West Humber, a $500,000 budget may secure a one-bedroom condo or a small two-bedroom unit with 600 to 750 square feet, often with limited updates.

Related: Find the best mortgage rates in Ontario)

Mississauga, ON

In 2024, Mississauga’s housing market remains robust.

For $500,000, buyers can generally afford a one-bedroom condo or a smaller two-bedroom unit of around 700 to 850 square feet. Condos in this range may include access to amenities like gyms and shared outdoor spaces, though outdoor private patios are less common.

Related: 12 cheapest places to live in Ontario (and buy a home!)

Ottawa

In Ottawa, $500,000 in 2024 can generally afford buyers a two-bedroom townhouse or a one-bedroom condo closer to the city center. Townhouses in outlying areas like Rockland offer around 1,100 to 1,300 square feet, while condos in central Ottawa average around 700 to 850 square feet.

Kitchener, ON

The 2024 market in Kitchener is competitive due to its proximity to Waterloo’s tech sector.

For $500,000, buyers can generally find two-bedroom condos or smaller semi-detached homes with around 850 to 1,100 square feet. Detached homes in this range are rare and tend to be smaller with modest updates.

Montreal, QC

In 2024, $500,000 remains sufficient for newer condos in Montreal’s suburbs, such as Longueuil. Buyers in this price range can expect two-bedroom units with 850 to 1,000 square feet. Within Montreal proper, similarly priced units are typically smaller, one-bedroom condos or older units in established neighbourhoods.

Quebec City

In 2024, Quebec City remains relatively affordable.

A budget of $500,000 can often secure a three to four-bedroom home with two bathrooms, offering around 1,800 to 2,000 square feet. Properties are generally newer or updated, with spacious layouts and ample natural light. However, five-bedroom homes are now rare in this range due to slight increases in the local housing market.

Saint John, NB

Saint John remains one of Canada’s most affordable markets.

In 2024, $500,000 can secure a large historic home or a newer property with three to four bedrooms, two to three bathrooms, and approximately 2,000 to 2,500 square feet. While 6,500-square-foot homes are rare in this price range, buyers still have options for spacious properties, especially in older neighbourhoods.

Moncton, NB

In Moncton, $500,000 remains a substantial budget in 2024. Buyers can typically find spacious homes with three to four bedrooms, two to three bathrooms, and 2,000 to 2,500 square feet of space. Such homes often include updated kitchens and landscaped yards. However, five-bedroom properties are now rare in this budget.

Fredericton, NB

Fredericton remains affordable in 2024.

A $500,000 budget can typically secure a three-bedroom, two-bathroom home with 1,600 to 1,800 square feet in newer suburban developments or established neighbourhoods. These homes often feature modern amenities, including hardwood floors and open floor plans.

Halifax, NS

In 2024, Halifax continues to offer investment opportunities within the $500,000 budget. Buyers can often find duplexes or single-family homes with potential for rental income. Typical properties include two to three bedrooms with one to two bathrooms per unit, offering around 1,400 to 1,600 square feet. Rental demand remains high due to the city’s growing population.

Charlottetown, PEI

Charlottetown remains one of Canada’s more affordable markets.

In 2024, with a $500,000 budget, buyers can secure a sizable single-family home with three to four bedrooms and two bathrooms, usually between 1,800 to 2,200 square feet. Properties in this range often include larger lots and are located in well-established neighbourhoods.

St. John’s, NL

In St. John’s, $500,000 is still considered a high-end budget in 2024. For this price, buyers can often secure three to four-bedroom homes with two to three bathrooms, around 2,000 to 2,400 square feet. Properties within this budget are typically newer and located in desirable neighbourhoods with easy access to amenities.

*Sources: Realtors Association of Edmonton (RAE), Association of Saskatchewan REALTORS® (ASR), Saskatoon Region Association of REALTORS® (SRAR), Winnipeg Real Estate Board (WREB), Toronto Regional Real Estate Board (TRREB), Mississauga Real Estate Board (MREB), Ottawa Real Estate Board (OREB), Kitchener-Waterloo Association of REALTORS® (KWAR), Quebec Professional Association of Real Estate Brokers (QPAREB), Saint John Real Estate Board Greater Moncton REALTORS® du Grand Moncton, Real Estate Board of the Fredericton Area, Nova Scotia Association of REALTORS® (NSAR), Prince Edward Island Real Estate Association (PEIREA), Newfoundland and Labrador Association of REALTORS® (NLAR), Canada Mortgage and Housing Corporation (CMHC), Canadian Real Estate Association (CREA), Statistics Canada: Housing Market Data

Disclosure: This content was generated with the assistance of AI technology. While the information and insights provided aim to be accurate and engaging, please keep in mind that the final content was influenced by AI-driven tools. For specific advice or decisions, always consult a financial professional or trusted expert.

This article What a $500,000 home looks like in every major city originally appeared on Money.ca

## Victoria, BC

Based on recent 2024 data, housing prices in Victoria have continued to rise.

For $500,000, buyers are generally limited to smaller condos in the city. The average condo in central Victoria now costs around $525,000. In outlying areas like Hillside, $500,000 can typically secure a one-bedroom, one-bathroom unit of around 650 to 750 square feet, slightly smaller than previous years but still offering access to amenities and proximity to downtown.

Related: Compare rates to find the best mortgage rate in Canada)

Vancouver

As of 2024, the Vancouver housing market remains one of Canada’s most expensive.

For around $500,000, buyers are generally limited to micro-studios or very small one-bedroom units. In the downtown area, a $500,000 budget typically affords a studio apartment of 350 to 400 square feet with one bathroom. This size reduction reflects rising costs, even as the average condo price in the city exceeds $900,000.

Kelowna, BC

In 2024, the Kelowna market has seen significant appreciation.

A $500,000 budget now typically buys a two-bedroom, one-bathroom condo within city limits or a small cottage-style home in outlying areas. Properties offering lake access or scenic views are generally priced higher, making such amenities harder to find within this budget.

Related: The top 22 cheapest places to live in Canada

Calgary, AB

Calgary remains one of the more affordable large Canadian cities.

In 2024, a budget of $500,000 can typically secure a two to three-bedroom house with one to two bathrooms in suburban areas or a larger condo within the city. The typical square footage for this budget has increased slightly, offering 1,200 to 1,400 square feet depending on the neighbourhood.

Related: Find the best mortgage rates in Alberta)

Edmonton, AB

Edmonton remains highly affordable in 2024 compared to other major cities.

For $500,000, buyers can find spacious single-family homes with three to four bedrooms and two to three bathrooms in established neighbourhoods or newer developments. Typical homes offer 1,800 to 2,200 square feet of living space, and suburban options often come with large yards.

Related: The top 12 cheapest places to live in Alberta

Regina, SK

In 2024, $500,000 remains a generous budget for Regina, SK.

Buyers in this price range can expect to find newer or recently updated single-family homes with three to four bedrooms and two to three bathrooms. Homes within city limits commonly provide around 1,600 to 1,900 square feet, often with large yards and modern finishes.

Saskatoon, SK

For $500,000 in 2024, buyers in Saskatoon, SK can still find spacious family homes, though options are typically three to four bedrooms and two to three bathrooms. Properties in this budget often provide 1,700 to 2,000 square feet in suburban areas, and many homes include modern amenities such as finished basements and open floor plans.

Winnipeg, MB

In Winnipeg, $500,000 in 2024 allows for a well-sized, detached home in established neighbourhoods or newer subdivisions.

Buyers can expect to find three to four-bedroom homes with two to three bathrooms and around 1,600 to 1,800 square feet. Many properties offer landscaped yards and proximity to parks and amenities, though premium features like pools are rare at this price point.

Related: Cheapest province to live in Canada

Toronto

As of 2024, Toronto’s real estate market remains highly competitive.

For $500,000, buyers are generally limited to older or smaller condos, rather than townhouses, within the city. In neighbourhoods like West Humber, a $500,000 budget may secure a one-bedroom condo or a small two-bedroom unit with 600 to 750 square feet, often with limited updates.

Related: Find the best mortgage rates in Ontario)

Mississauga, ON

In 2024, Mississauga’s housing market remains robust.

For $500,000, buyers can generally afford a one-bedroom condo or a smaller two-bedroom unit of around 700 to 850 square feet. Condos in this range may include access to amenities like gyms and shared outdoor spaces, though outdoor private patios are less common.

Related: 12 cheapest places to live in Ontario (and buy a home!)

Ottawa

In Ottawa, $500,000 in 2024 can generally afford buyers a two-bedroom townhouse or a one-bedroom condo closer to the city center. Townhouses in outlying areas like Rockland offer around 1,100 to 1,300 square feet, while condos in central Ottawa average around 700 to 850 square feet.

Kitchener, ON

The 2024 market in Kitchener is competitive due to its proximity to Waterloo’s tech sector.

For $500,000, buyers can generally find two-bedroom condos or smaller semi-detached homes with around 850 to 1,100 square feet. Detached homes in this range are rare and tend to be smaller with modest updates.

Montreal, QC

In 2024, $500,000 remains sufficient for newer condos in Montreal’s suburbs, such as Longueuil. Buyers in this price range can expect two-bedroom units with 850 to 1,000 square feet. Within Montreal proper, similarly priced units are typically smaller, one-bedroom condos or older units in established neighbourhoods.

Quebec City

In 2024, Quebec City remains relatively affordable.

A budget of $500,000 can often secure a three to four-bedroom home with two bathrooms, offering around 1,800 to 2,000 square feet. Properties are generally newer or updated, with spacious layouts and ample natural light. However, five-bedroom homes are now rare in this range due to slight increases in the local housing market.

Saint John, NB

Saint John remains one of Canada’s most affordable markets.

In 2024, $500,000 can secure a large historic home or a newer property with three to four bedrooms, two to three bathrooms, and approximately 2,000 to 2,500 square feet. While 6,500-square-foot homes are rare in this price range, buyers still have options for spacious properties, especially in older neighbourhoods.

Moncton, NB

In Moncton, $500,000 remains a substantial budget in 2024. Buyers can typically find spacious homes with three to four bedrooms, two to three bathrooms, and 2,000 to 2,500 square feet of space. Such homes often include updated kitchens and landscaped yards. However, five-bedroom properties are now rare in this budget.

Fredericton, NB

Fredericton remains affordable in 2024.

A $500,000 budget can typically secure a three-bedroom, two-bathroom home with 1,600 to 1,800 square feet in newer suburban developments or established neighbourhoods. These homes often feature modern amenities, including hardwood floors and open floor plans.

Halifax, NS

In 2024, Halifax continues to offer investment opportunities within the $500,000 budget. Buyers can often find duplexes or single-family homes with potential for rental income. Typical properties include two to three bedrooms with one to two bathrooms per unit, offering around 1,400 to 1,600 square feet. Rental demand remains high due to the city’s growing population.

Charlottetown, PEI

Charlottetown remains one of Canada’s more affordable markets.

In 2024, with a $500,000 budget, buyers can secure a sizable single-family home with three to four bedrooms and two bathrooms, usually between 1,800 to 2,200 square feet. Properties in this range often include larger lots and are located in well-established neighbourhoods.

St. John’s, NL

In St. John’s, $500,000 is still considered a high-end budget in 2024. For this price, buyers can often secure three to four-bedroom homes with two to three bathrooms, around 2,000 to 2,400 square feet. Properties within this budget are typically newer and located in desirable neighbourhoods with easy access to amenities.

*Sources: Realtors Association of Edmonton (RAE), Association of Saskatchewan REALTORS® (ASR), Saskatoon Region Association of REALTORS® (SRAR), Winnipeg Real Estate Board (WREB), Toronto Regional Real Estate Board (TRREB), Mississauga Real Estate Board (MREB), Ottawa Real Estate Board (OREB), Kitchener-Waterloo Association of REALTORS® (KWAR), Quebec Professional Association of Real Estate Brokers (QPAREB), Saint John Real Estate Board Greater Moncton REALTORS® du Grand Moncton, Real Estate Board of the Fredericton Area, Nova Scotia Association of REALTORS® (NSAR), Prince Edward Island Real Estate Association (PEIREA), Newfoundland and Labrador Association of REALTORS® (NLAR), Canada Mortgage and Housing Corporation (CMHC), Canadian Real Estate Association (CREA), Statistics Canada: Housing Market Data

Disclosure: This content was generated with the assistance of AI technology. While the information and insights provided aim to be accurate and engaging, please keep in mind that the final content was influenced by AI-driven tools. For specific advice or decisions, always consult a financial professional or trusted expert.

This article What a $500,000 home looks like in every major city 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.

If you’re one of the projected 430,000 to 542,000 people who have immigrated to Canada this year, welcome! Aside from acclimating yourself to a new country, home and job, you’ll also quickly realize the benefits of building a credit history with a strong credit score.

Whether you’re looking to lease a car or buy a home, you’re going to want to start building a credit history right away to get access to lending products at the best rates available. Here are a few tips to help you get started.

Why you need to build up credit

In Canada, lenders report the relevant details of your credit accounts (whether you’re paying on time, how much of a balance you carry and more) to two major credit bureaus: Equifax and TransUnion.

From there, the credit bureaus give you a three-digit score between 300 and 900.

Most of the time, you’ll need a credit score to:

• Rent an apartment or buy a house
• Take out credit cards
• Take out a private student loan
• Apply for a job
• Get utilities to connect to your home
• Get a cellphone

How to build up your credit

First of all, you want to get an idea of how far you need to go to qualify for better interest rates or become a better borrower. Fortunately, you can check your score for free online.

Now that you know your baseline, remember there are five factors that go into calculating your credit score. While your payment history and level of debt carry a lot of weight, there’s also how long you’ve had your credit accounts, what mix of credit you carry and how many new accounts you have.

With that in mind, here are five of the best ways to build up your credit as an immigrant to Canada looking to build a healthy financial profile.

1. Apply for an unsecured credit card: Apply for a Canadian credit card as soon as possible. Many of the big banks offer new immigrants a credit card with a low line of credit as part of their initial banking package, including RBC’s “Welcome to Canada” package or Scotiabank’s “Start Right” program. Once you get your credit card, start using it right away.

2. Apply for a secured card if need be. Not everyone will be eligible for an unsecured credit card without credit history. Those who find themselves in this position should instead consider applying for a secured credit card, which requires a refundable security deposit (typically matching the card’s credit limit). The advantage of using a secured card is that your repayment habits will be reported to the credit bureaus, allowing you to gradually build the all-important credit history you need.

3. Apply for a mobile phone. Some phone carriers, such as Telus, specifically state that no credit history is required to get an account, and that they will report your post-paid subscription to the credit bureaus. While you may be tempted to get a pre-paid plan, a post-paid plan will help you build a credit history.

4. Pay your credit card bill on time. Whether paying the minimum or more, make your credit card bill payments on or before the due date. Thirty-five percent of your credit score is based on payment history. If you’re late, even by an hour, your credit history will be negatively impacted. Paying on time does not mean paying your entire balance. Paying on time means paying the monthly minimum payment at the very least, which is shown on your credit card statement. Understand how long you have after receiving your credit card bill to make your payment, which is called the "grace period" — it’s usually around 21 days. To help you pay on time, you can set-up automatic monthly payments through your bank account.

5. Pay off your balance in full each month. While carrying a balance and making your payments on time will help your credit history more than paying in full each month, we would never recommend carrying a balance just to build your score. This is actually a myth when it comes to what affects your credit score, so be careful with your balance. Using your credit card and paying it off every month will help build your credit score as well, just not as fast. However, it’s a better strategy than paying excessive interest charges just to build a credit history.

6. Get different types of credit. The credit bureaus love people with different sources of credit. So if you can manage to get a credit card, cell phone, or car loan (usually with a large deposit), it will help you build a credit history with a strong score that much faster.

7. Build your credit score with some help. Use tools to help you build your credit score faster. If money is tight, consider a free tool although the options for real-time tracking and personalized insight may be limited. If you have a bit of funds to commit to building a credit score, consider paying for a tool that helps you track and improve your credit history using personlized recommendations.

Financial institutions will usually start using your credit history after it’s been established in good standing for a period of 18 months. But several other factors will be considered as well, including your savings history, net worth, income and ability to provide a security deposit — such as a down payment on a mortgage. These strategies should go a long way towards establishing a Canadian credit history for new immigrants.

Sources

1. Government of Canada: Immigration, Refugees and Citizenship Canada Departmental Plan 2023-2024

This article Moving to Canada? Here are 4 ways to start building your credit score 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.

We are alone but we are many. We are single-income, single parents paying a premium to pay bills and buy necessities for our smaller-sized households. We feel that pinch.

Step into a Costco and you’ll know how much cheaper (on a per unit basis) it is to buy bulk. But for many households, like mine, there aren’t enough people under the roof to make these purchases realistic. We will never finish that vat of mayo nor do I have the space in my humble home to store that skid of toilet paper.

It’s not just the bulk-is-better marketing. Add in the tax breaks and admission incentives and the argument gets stronger: the economy is set up in such a way as to benefit larger families — nuclear, blended or multi-generational.

As a single parent, I pay a premium to supply and care for my small family. I feel the impact on my budget because I can’t take advantage of the savings of buying bulk. It’s only my paycheque paying the bills. It’s only me determining when to buy and when to wait. Let’s face it: single folk, especially those with children, just pay more.

So are businesses missing out on converting this large segment of people into loyal customers? This single-income, single-parent household says: yes, most definitely.

Missing out on a loyal customer by ignoring the single-income household

We single-income households make up a strong portion of the purchasing public, it makes good business sense to speak directly to us and cater to our unique needs. We make purchasing decisions based not just on the hard numbers, but there are emotional and psychological reasons we choose things, too.

There are almost 1.1 million single-income households in Canada, according to the latest statistics from 2022. These households get by on a median income of $43,590. Of those households, just shy of 42% have two or more children.

That’s a lot of solo decision-makers across this country — many of whom have dependents — for business to ignore.

Want my money? Appeal to my head…and my heart

Solo-income families tackle two realities when faced with a purchase decision: Can we justify the expense? And, does it make sense based on our single-income budget?

While logic dictates many of these decisions, our heads and hearts play a large factor. Understanding that we buy with our head as well as our heart is good business for companies looking to expand their market.

Amrit Richmond of Medium, a digital marketing publication, explains that a lot goes into purchasing decisions. There are the basics — cost, colour and quality, as well as personal experience or consumer testimonials — such as solid reviews, featured articles and product safety, among various other factors.

“In today’s economy, consumers have multiple choices for pretty much everything: coconut water, sneakers, airlines, and cell phones,” Richmond says. “Consumers are increasingly curious and conscious of your ingredients, labour practices, and competitors.”

Every buying decision I make is weighing needs against wants and cost against value. And value isn’t just about the hard numbers. With so many companies competing on price, understanding what single income homes value is a competitive edge they should consider.

Single-income families need to buy things, too

Furnishing my first home post-separation, and buying food and clothes for myself and my children, most certainly involves a myriad of emotions, every time I shop.

Now that you know we are out there, in large numbers, wanting to buy and needing to buy, businesses also need to recognize that we can and will buy.

The reality is that every household needs to buy things. Single-income households have the same needs, but our means are different.

This is particularly true of households with growing children. As a single mom with young teenagers, all expenses take a significant bite out of my wallet.

The real cost of raising a family

According to Statistics Canada, the cost to raise a child from birth to age 17 is just over $290,000 — for each child! That means the average child costs $17,000 per year — but only if the child lives in a household with two parents. Simple math suggests that each earner is responsible for about $8,500 in child-related expenses per year.

For one-parent families, the average annual expenditure on each child is closer to $13,500. Again, simple math suggests that the single-income earner pays more than 45% more, per child per year.

And that’s just until age 17. As we know most kids don’t leave home, let alone for good, when they graduate from high school.

We talk, so you better start listening

I’ve already explained how consumers buy (with emotion!) and I don’t have to tell you that choosing a couch for your living room is based on more than the price tag: Will it physically fit in the space? Will it be able to endure my children? Do I want to pay more now for better quality so that it lasts longer? Will my budget even allow that?

Chances are better than not I’m going to turn to my single-mom network and ask for recommendations on where I can get the best bang for my buck to furnish my space. Companies that realize the value we provide are more likely to come up when I seek this input. If you market to us, we will recommend you!

Putting a price on loyalty

Research conducted by the Harvard Business Review found that companies that focus on the value of Net Promoter Scores (a fancy way of saying the people who recommend or vouch for you) tend to reap the rewards in their bottom line.

“Loyalty leaders — companies at the top of their industries in Net Promoter Scores or satisfaction rankings for three or more years — grow revenues roughly 2.5 times as fast as their industry peers and deliver two to five times the shareholder returns over the next 10 years,” the study found.

“Yet companies and investors continue to prioritize quarterly earnings over customer relationships.”

Let’s take a look at an example of a company that did just that.

Think outside of the box

About 20 years ago, the largest condo developer Tridel began to focus on single women as homebuyers — and it paid off.

Back in 2013, Jim Ritchie, senior vice president of sales and marketing for Tridelsaid single women accounted for one-third of all new sales. That’s a rather large chunk.

In fact, at the time, the Globe and Mail said young single women were becoming a ‘dominant force’ in the condo market and that developers who acknowledged that were shifting their focus to cater to them.

“Developers have taken note, and are responding by designing buildings and individual units to suit their tastes and interests, whether it’s improving the quality of lighting, or installing security cameras in parking garages, or creating floor plans that maximize storage space.”

Tridel understood what bulk buying costs fail to: Maximizing space storage is a key factor for families and bulk buying definitely does not fit into that neat little package.

Value the undervalued

The 2016 census showed that in the year previous, working women earned an average annual salary of $35,461, compared to men who earned an average annual salary of $48,059. Do you know what that means to women bidding on homes? We lose out to men who are better able to afford them.

Detached housing, in general, does not support the needs of single-income homes, with kids or without. They were built with families in mind, who needed space and have better means (i.e. two incomes) to afford it.

In 2021, the Walrus wrote an article speaking to the challenges faced by a single woman’s ability to live in post-war-build communities, such as the Etobicoke suburb of Thorncrest Village. This area, in particular, was built exclusively for detached housing. When speaking about the community, Marshall Foss, the neighbourhood’s lead developer, described Thorncrest’s layout as an asset that ensured “your property values and your living values are secure and stabilized.”

For whom, though? Two-parent, two-income families..

Families come in many forms

But what of single women?

“While policy preference for single-family housing was established with the nuclear family in mind, it did not respond to the complexities of the female experience,” write the author of that 2021 Walrus article.

“Because the zoning effectively prioritized the development of single-family housing, as opposed to housing affordability, the social networks of divorced women were weakened because the neighbourhoods where they lived during their marriages did not offer an adequate supply of housing affordable to them when they became single.”

These women had nowhere to go in their own communities when they became single. It simply was not built for them.

Thankfully, today, the federal government is acknowledging that single women need better accessibility to housing in Canada.

In a 2021 report released by the CMHC , the federal government said it aims to allocate 33% of the National Housing Strategy’s investments, with a minimum of 25% towards serving the unique needs of women and their children. Further, the report acknowledged that women are more likely to be lone parents than men (13.2% compared to 9.6%).

In other words, the government understands that it’s hard to live on one income, especially for women, who make less on the dollar than their male counterparts and are more likely to be single parents.

Businesses should take the government’s lead.

It’s because my money needs to be spent in order to provide for myself and my family. We need a place to live. We need food on our plates and yes, mayo on my sandwiches and toilet paper in the bathroom. I have an income and buying power. And I am but one, of many just like me, who struggles with paying more for less, when my needs are more and my means are less.

It’s not just because we are many. It’s not just because we have needs, too. It’s not even because it’s good for business.

Sources

1. Statistics Canada: Population estimates, quarterly

2. Medium: Why People Buy Things, and How to Make Consumers Fall in Love with Your Products

3. Statistics Canada: How much do Canadian families spend raising a child? (November 30, 2023)

4. Harvard Business Review: Are You Undervaluing Your Customers? It’s time to start measuring and managing their worth (January-February 2020)

5. Canadian Mortgage and Housing Corporation: Serving women and their children through the National Housing Strategy (2021)

This article Imagine paying 45% more to raise your child—the single tax is real 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.

When you think of Tony Hawk, chances are you picture him pulling off a 900 or flying high in a skatepark. But beyond his legendary skateboarding skills, Tony Hawk’s financial success offers some valuable lessons for investors. Not only did the Hawk conquer the skateboarding world, but along the way he learned a few savvy financial moves that investors of all levels can learn from.

In a YouTube video, the old-school skater chats with hosts of Nine Club Clips to reveal what he learned about finance and the power of money as he built his brand and his business.

Here are three key lessons investors can learn from Tony Hawk’s journey to financial success.

#1. Unexpected success can be life-changing—if you’re ready for it

Tony Hawk’s Pro Skater video game series was a massive hit, but even Hawk himself didn’t anticipate just how successful it would become. After the release of the fourth game in the series, he was shocked to learn that the first three games were still in the top 10 sales. The result? A surprise USD$4 million royalty cheque that changed his life.

What’s the takeaway for investors? Be ready to seize opportunities. Sometimes, a single investment or venture can unexpectedly take off, offering life-changing financial rewards. But this only happens if you’re in the right place at the right time, with the right mindset, to take advantage of the opportunity. Like Hawk, it’s important to diversify your efforts and be prepared to reinvest in your future when success comes knocking.

#2. Importance of giving back

Hawk didn’t just sit on his newfound wealth. He used a significant portion of his earnings to give back through his Tony Hawk Foundation, which builds skateparks in underprivileged areas. This not only helps young skaters have a safe place to practice, but also contributes to communities that often lack recreational facilities.

What’s the takeaway for investors? Despite success, Hawk’s experience highlights the importance of reinvesting in your community and supporting causes you care about. Philanthropy can be a powerful way to share your success, and it also builds a lasting legacy. Whether donating a portion of your earnings to charity, investing in sustainable businesses, or supporting local initiatives, giving back can create a ripple effect beyond financial returns.

#3. Staying humble even in success

Despite his wealth and fame, Tony Hawk is known for staying grounded. He doesn’t flaunt his success, preferring to focus on meaningful projects and personal fulfillment rather than flashy displays of wealth. Hawk’s humility is a reminder that staying grounded is key to long-term success.

What’s the takeaway for investors? It can be easy to get caught up in chasing profits and showing off when things are going well. However, staying humble, avoiding risky or showy investments, and keeping your focus on long-term goals can help you sustain your financial success. True wealth isn’t just about money — it’s about how you use it and how it aligns with your values.

Tony Hawk’s investment strategy

Tony Hawk’s approach to investing is another area where he offers valuable lessons. Here’s how he’s diversified his wealth and how investors can follow suit:

Real estate

Hawk has invested in a mix of residential and business properties. Real estate is a tried-and-true investment strategy, offering steady income and long-term appreciation. Whether you’re buying your first rental property or expanding into commercial spaces, it’s a smart way to build wealth over time.

Philanthropy

As mentioned, Hawk has dedicated a portion of his income to philanthropy through his foundation. Beyond personal fulfillment, charitable giving can have tax advantages and can be an integral part of estate planning for those thinking long-term.

Business ventures

Hawk has invested in multiple business ventures, including his skateboard company Birdhouse and various clothing and video game projects. For investors, this highlights the importance of staying connected to your passions. By backing businesses that align with his personal interests, Hawk has been able to stay engaged and motivated.

Stocks and private equity

Finally, Hawk has also diversified into stocks and private equity investments, putting money into tech companies and startups. Diversifying your investment portfolio beyond a single asset class can help mitigate risk and open up new growth opportunities, whether it’s through stocks, bonds, or venture capital.

To start investing im equities, you’ll need to open a direct brokerage account. Open a CIBC Investor’s Edge account before March 31, 2025 and you can start building your own investment portfolio using the mobile app or online trading platform, plus get 100 free trades when you open a CIBC Investor’s Edge account using promo code EDGE2425.

Bottom line

Tony Hawk’s journey from professional skateboarder to savvy investor is full of valuable lessons. Whether it’s being prepared for unexpected success, giving back to the community, staying humble, or diversifying your investments, Hawk’s approach is one we can all learn from. His story proves that the principles of success — whether in skateboarding, business, or investing — often overlap. So, as you roll toward your own financial goals, remember to take a few tips from the “Birdman” himself!

Sources

1. Nine Club Clips: How Much Money Did Tony Hawk Make From Tony Hawk’s Pro Skater?? (June 15, 2018)

This article From half-pipes to high finance: What investors can learn from Tony Hawk’s unexpected success and smart investments 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.