Author:

Auto theft is no longer just a city crime story — it’s a nationwide insurance crisis. Despite efforts to curb auto theft, the impact of stolen vehicles and damage due to auto break-ins is pushing the value of auto theft claims into triple-digits — and the person who ends up paying the cost are everyday Canadian drivers.

In 2023, the value of auto theft claims in Canada hit a staggering $1.5 billion, according to the Insurance Bureau of Canada (IBC) — the highest ever recorded. And while there’s a slight dip in thefts in 2024, the financial scars are still fresh, and every Canadian driver is footing the bill through rising insurance premiums.

Over the last decade, auto theft claims have risen 138%, while the value of those claims has jumped a jaw-dropping 442%. Even though IBC data shows a 19% drop in theft claims in the first half of 2024 — with 17,647 claims valued at $544.7 million, compared to 21,907 claims worth $764.6 million in the first half of 2023 — the costs remain historically high.

The reason? Modern car theft isn’t a smash-and-grab. Today, it’s increasingly driven by organized crime networks, targeting high-end SUVs and exporting them to markets in the Middle East and West Africa. Even one successful theft of a luxury vehicle can cost insurers — and, in turn, drivers — tens of thousands of dollars.

Auto theft cost on Canadians

"Concerted actions by law enforcement, insurers, governments and drivers to combat theft are showing results, but more remains to be done," said Liam McGuinty, IBC’s vice-president of strategy, in a statement.

McGuinty explained that this triple-digit increase in the number and cost of auto theft claims has a serious impact on Canadian drivers. "Canada’s auto theft rates have soared in the last 10 years, placing pressure on drivers’ insurance premiums, compromising public safety and causing Canadians concern and trauma." McGuinty concedes that the frequency of theft dropped in the first half of 2024, but maintains that "auto theft in Canada remains significantly above historical trends."

How auto theft differs from province to province

While Ontario and Quebec saw some relief in early 2024 — theft claims dropped 16% and 41% respectively — other provinces are still on edge.

• Alberta: Theft claims rose 1% year-over-year in early 2024, but the value of those claims increased 11% — reflecting higher-end vehicles being stolen.
• Nova Scotia: Up 27%
• New Brunswick: Up 14%

Long-term trends still show steep increases over the past decade:

• Ontario: +291%
• New Brunswick: +203%
• Nova Scotia: +87%
• Alberta: +48%
• Quebec: +36%

Why are thieves getting away with it?

Thefts are increasingly high-tech. Criminals use relay attacks to hack keyless entry systems, clone VIN numbers (a tactic known as “re-VINing”), and ship stolen cars through Canadian ports, primarily in Montreal and Halifax. Despite increased federal funding to improve detection at ports, the pace of thefts continues to outstrip law enforcement efforts.

A 2024 CBSA investigation found that more than 75% of recovered stolen luxury vehicles were already loaded into shipping containers — destined for overseas resale before owners even noticed their cars missing.

How to protect your vehicle and your budget

Auto theft isn’t just a nuisance — it’s directly linked to rising insurance premiums. IBC warns that the average comprehensive coverage cost is rising in high-theft regions, particularly Ontario and Alberta. The price of protecting your car now reflects the odds of it disappearing from your driveway.

Regardless of the province or territory you live in, being prepared for the unthinkable with auto insurance can be a life-changer, and it doesn’t take much work to get coverage.

With YouSet — a digital insurance brokerage — the process of buying auto insurance is simple. All you need to do is fill in a bit of information about yourself, your vehicle and the coverage you want, and YouSet will provide you with a list of personalized, affordable insurance options.

You can choose the best option for you, complete the purchase within minutes and be ready to shield yourself against the economic stress that comes with car theft.

What government is doing

The federal government has committed $28 million to fighting auto theft in 2024 and beyond. Efforts include:

• Scanning technologies for ports
• A national task force to address re-VINing
• Expanded cooperation between CBSA, RCMP, and international agencies

In Ontario, new provincial regulations now allow insurers to better share VIN data and flag high-risk resale vehicles.

What can you do?

To protect your car — and help stem the tide — IBC recommends:

• Installing steering wheel locks or kill switches
• Parking in garages or well-lit areas
• Using tracking services or etching the VIN on glass
• Reviewing your insurance policy to ensure theft protection is included

The vehicles thieves love to steal

Not surprisingly, thieves tend to target certain types of vehicles. According to IBC data, new, high-end luxury vehicles continue to be popular targets for auto thieves, due in part to their desirability in illegal international markets.

"Fighting auto theft requires a whole-of-society approach. Now is not the time to take our collective foot off the accelerator in this fight," McGuinty said. "The auto theft crisis continues to negatively impact Canadians’ pocketbooks and their sense of safety. The property and casualty insurance industry remains committed to working alongside all orders of government and stakeholders to continue to address the national auto theft crisis."

While this increase in auto theft might urge you to double-check if you have the best car insurance possible, the fact that it’s so rampant that insurance premiums are rising might mean you need to look for other places in your budget to optimize your finances too.

With Rates.ca, not only can you find the ideal auto insurance policy for you, but you can also find the best home insurance, mortgage rates and credit cards.

You can use Rates.ca to find the cheapest car insurance near you, and right after use it to find the most ideal credit card to support your financial habits so you have a comprehensive understanding of the best way to handle your finances.

Bottom line

Auto theft in Canada may have peaked in 2023, but it remains a billion-dollar problem. Whether or not your car has been targeted, your insurance premiums are paying for someone else’s loss. And without aggressive federal and provincial action, the cost of doing nothing will continue to rise.

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

The ever-increasing threat of tariffs from our southern neighbour seems to be the only thing on people’s minds these days. While their implementation has been more on-again, off-again, in the first few months of 2025, their full impact would be financially burdensome for Canadian businesses across all sectors.

A new analysis from the Public Policy Forum conducted by Navius Research examines the potential impact on each province, as well as how Canada may be able to hit back via retaliatory tariffs.

"We undertook this study to provide quantitative guidance to policymakers in real-time," Inez Jabalpurwala, the forum’s president and CEO, said in a statement.

"The work reveals emergent areas of focus for Canadian leaders, including the urgent development of east-west, and west-east trade in Canada and beyond."

Sectors in every province would experience a form of decline, from gasoline and diesel refined in New Brunswick, aluminium exports from Quebec, steel and automobiles from Ontario, potash and uranium from Saskatchewan and oil and gas from Alberta.

What may actually happen if these tariffs are implemented?

The sector that will be most impacted by President Trump’s tariffs is vehicle manufacturing, potentially enduring a $93.8 billion hit in Ontario over a five-year period, while Quebec’s aluminum industry would stand to lose $12.7 billion over the same time frame.

However, the news is not all gloom and doom for Canadians. The report notes that sectors that are primarily trading between nationally or with Asia and Europe may be insulated from US tariffs and may actually experience growth during this period.

"Sectors with access to broader markets, such as offshore oil production in Newfoundland and LNG (liquid natural gas) production on the west coast, may actually benefit from tariffs," said Jotham Peters, managing partner at Navius Research, "which might be a guide for how Canada can insulate its economy in the future."

"Greater trade networks to either the east or west coast will help insulate Canada from trade shocks with the US and can act as leverage for the next tariff threat."

And what happens if Canada hits back?

On the flipside, Public Policy Forum’s analysis of the effects of a 25% retaliatory tariff on imports of 23 classes of US goods into Canada reveals more significant damage to the US than to Canada.

Some of the impacted industries include: food, pharmaceuticals, fabricated metals, alcohol and tobacco, manufactured goods, steel, plastics, cement, non-ferrous metals, paper, mining products, clothes and wood products.

The report also reveals how tariffs on some sectors would benefit Canada more than the US — the first being Canada has adequate opportunities to substitute away from US goods, such as with alcohol imports.

Secondly, there are certain industries that may be negatively impacted by US tariffs but have sufficient production capacity to meet needs across the country, such as steel in Ontario and Quebec.

The forum recommends avoiding tariffs on goods that rely on a highly integrated supply chain between the two countries, such as vehicles.

Furthermore, Canada would do itself more harm if it retaliates with tariffs on oil, electric products, raw wood, natural gas, chemicals, refined petroleum, machinery, biofuels, agriculture and vehicles.

This article A potential $93.8 billion hit over a five-year period: New study shows how Trump’s tariffs could impact provincial economies — but there are opportunities elsewhereoriginally 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 American Express Cobalt Card has emerged as the top overall credit card in Canada for 2025, according to a new report released this week by Money.ca. The rankings, which evaluated more than 200 Canadian credit cards across 135 unique criteria, highlight the best-in-class options for consumers in a challenging financial landscape.

Money.ca’s Best Credit Cards in Canada 2025 report named the American Express Cobalt Card the Gold Winner, recognizing its unmatched rewards program, generous welcome bonus, and strong travel insurance coverage. The card earns 5x points on eats and drinks, 3x on streaming, 2x on transit and travel, and 1x on all other purchases. It also offers up to 15,000 Membership Rewards points in the first year.

“Canadians are navigating higher prices and tighter budgets, so the value offered by a credit card matters more than ever,” said Cory Santos, Money.ca’s credit card editor. “The Cobalt stood out for delivering exceptional rewards in the areas where Canadians spend most — food, travel, and entertainment.”

Silver and bronze winners offer strong value

In second place, the BMO CashBack World Elite Mastercard earned Silver, standing out in the cash back category. Cardholders earn up to 5% cash back on groceries, 4% on transit, and 3% on gas. The card’s 10% welcome cash back offer and premium travel perks make it a strong contender for high-earning households looking to maximize daily spending.

Rounding out the podium, the Scotiabank Gold American Express Card took bronze, winning praise for its travel-friendly features, including no foreign transaction fees — a rarity in Canadian credit cards. The card offers up to 40,000 Scene+ points in the first year, along with 5x rewards on dining and entertainment and a wide suite of insurance protections.

Data-driven methodology

The 2025 rankings are based on Money.ca’s proprietary scoring system, which considers factors including reward value, annual fees, travel perks, balance transfer offers, insurance, and redemption flexibility. The full methodology involved over 27,000 data points — offering one of the most in-depth reviews of the Canadian credit card market.

Full rankings available

The complete list of winners — including best travel, cash back, no-fee, and low-interest cards — is available now at Money.ca/credit-cards, as is Money.ca’s new user-friendly credit card comparison tool, which puts the power of this extensive research into the hands of readers.

About Money.ca

Money.ca is a leading financial platform committed to providing individuals with comprehensive financial education and resources. As part of Wise Publishing, Money.ca is a trusted source of reliable financial news, expert advice, comparison tools and practical tips.

Disclaimers

American Express Cobalt Card: Contact American Express for the most up-to-date referral bonus figures. American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and current product information, click the Apply Now link. If you apply and get approved for an American Express Card, (I/we) may receive compensation from American Express, which can be in the form of monetary payment.

BMO Cashback World Elite Mastercard: BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information.

Scotiabank Gold American Express: Conditions Apply. Visit here for the Scotiabank Gold American Express Card to learn more. See Card Provider’s website and Card Application for complete card details, terms and current offers. Reasonable efforts are made to maintain accuracy of information.

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

There’s a famous quote that goes "the only thing ‘wrong’ with dogs is that they can’t live forever." A dog’s lifespan can range anywhere from nine to 15 years on average, and when you consider a dog as part of the family, that’s just not enough time. But what if there was a pill that could extend your dog’s life? Good news — that pill just came one step closer to reality.

More time with our best friends

Loyal, a biotechnology startup focusing on canine health solutions, received a significant milestone on Wednesday, February 26, when the Food and Drug Administration (FDA) granted their new medication a "reasonable expectation of efficacy" certification.

Before veterinarians can begin prescribing this anti-aging treatment, the FDA must still verify its safety and confirm the company’s ability to scale up manufacturing. Loyal expressed confidence in meeting these requirements, citing "extensive data" supporting both aspects, and projects receiving conditional FDA approval by the end of 2025.

The company is seeking FDA approval for their beef-flavored pill to be used in dogs that are at least 10 years old and weigh a minimum of 14 pounds. According to Loyal, the medication targets "metabolic health," which naturally deteriorates as dogs age.

While promising, the treatment does have limitations. Loyal indicates that the medication could extend a dog’s healthy lifespan by at least one additional year (that’s seven dog years!).

Next steps

Loyal plans to introduce its medication through the FDA’s conditional approval pathway for animal drugs. This process permits companies to begin marketing treatments deemed safe and likely effective by the regulatory agency. Simultaneously, the company continues collecting additional evidence to conclusively demonstrate the drug’s efficacy while it’s already available to consumers.

There’s no word on how much the pill will cost pet parents, but Loyal said that it wants to make treatment accessible to as many dogs as possible, ideally for less than $100 per month.

Read More: A surprise trip to the vet can cost $1,000 or more. Don’t get caught off guard. See how pet insurance can ease the stress — and cost — of caring for fur babies. Protect yourself now

How much more do I need to budget (if my dog lives longer)?

The average cost of owning a dog in Canada averages between $660 to $4,430 per year, depending on the breed you own. And if you consider your pet as part of your family, this added cost to keep your dog with you for another year is a drop in the bucket. But these are the senior years of your dog’s life and there are going to be added costs, including special dietary needs, supplements and more frequent vet visits. This means you would need to budget for the higher end of the cost spectrum. Be sure to take these factors into consideration when putting together a budget.

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

A Toronto man says he was left financially and emotionally drained after being held liable for more than $20,000 in fraudulent credit card charges — even though he reported the suspicious activity as soon as he spotted it.

Jordan Judge discovered the unauthorized charges in 2023 on a card issued by one of Canada’s largest banks. He promptly contacted the institution’s fraud department and filed a report. Despite his efforts, the bank’s investigation concluded the transactions were legitimate, and he was told he would have to pay the full balance.

"I reported the fraud as soon as I noticed it, but they still held me responsible," Judge told CBC’s Go Public. "I thought I was doing everything right — and I was still left with a $20,000 problem."

Unable to resolve the issue through the bank’s internal review process, he said he ultimately had to take out a personal loan to repay the debt.

Bank promises review, but protections vary

The card in question was issued by Scotiabank. In a statement to CBC, the bank confirmed it had reviewed the matter according to its procedures but said it was also "reviewing this matter further to ensure our clients are fully supported."

Scotiabank added that it is “committed to continuous improvement in how we detect and respond to potential fraud.”

Under the bank’s cardholder agreement, customers must report unauthorized transactions promptly, often within 30 to 60 days, to be eligible for reimbursement. But this timeframe can be challenging for customers who may not notice suspicious activity immediately, especially in cases involving sophisticated fraud schemes.

Credit card fraud is rising across Canada

Financial fraud is increasingly common in Canada. According to the Canadian Anti-Fraud Centre (CAFC), total reported losses surpassed $567 million in 2023, up from $530 million in 2022, a record high. Credit card fraud made up a significant portion of those losses.

The CAFC has identified identity theft, phishing scams, and account takeovers as some of the most prevalent fraud types targeting Canadians. In its 2023 annual report, the agency cautioned that fraud remains significantly underreported, meaning the true scale of financial harm is likely much greater.

In public advisories, the CAFC has urged Canadians to remain alert, take proactive steps to secure their personal information and report suspicious activity immediately. The agency emphasizes that fraud tactics are becoming more sophisticated and harder to detect, especially with the use of digital tools and social engineering techniques.

How to protect yourself from credit card fraud

There are practical steps Canadians can take to reduce their risk of becoming a victim of credit card fraud:

• Enable real-time alerts for every credit card transaction
• Check statements monthly, even for rarely used cards
• Use complex, unique passwords for banking and email accounts
• Activate multi-factor authentication wherever possible
• Lock or freeze cards immediately if anything looks suspicious

Several Canadian banks also offer mobile tools that allow customers to temporarily disable their cards, receive fraud warnings, and monitor spending patterns.

The Financial Consumer Agency of Canada (FCAC) recommends that consumers store physical cards securely, avoid using public Wi-Fi for banking and be cautious of unsolicited texts or emails requesting personal information.

What to do if you’re affected

If you suspect fraud, report it immediately to your bank and to the Canadian Anti-Fraud Centre. Keep records of all communications and documents.

If your dispute with a financial institution remains unresolved, you can escalate it to the ombudsman for your bank or to the Ombudsman for Banking Services and Investments (OBSI), which offers an independent, impartial review process for consumer complaints.

The Financial Consumer Agency of Canada also accepts complaints related to federally regulated financial institutions and provides detailed guidance on the dispute process.

A cautionary tale and call for transparency

While this Toronto case is unique in its details, consumer protection advocates say it highlights the importance of clear communication between banks and customers, and the need for consistent, transparent fraud policies across the financial sector.

In March 2023, the federal government announced plans to enhance the powers of the FCAC and create a single external complaints body for banks — a move praised by consumer groups for increasing accountability and fairness.

Sources

1. CBC News: Scotiabank holds customer responsible for almost $20K in credit card fraud (June 2, 2025)

2. Government of Canada: Canadian Anti-Fraud Centre’s Annual Reports

3. Government of Canada: Canadian Anti-Fraud Centre

4. Ombudsman for Banking Services and Investments (OBSI)

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

The ongoing trade tensions between the U.S. and Canada and the rest of the world have impacted national and global economies in innumerable ways. Take for example, parents’ ability to save for their child’s higher education. According to a survey from Embark, roughly half of parent respondents say these tensions have affected their investment strategies and their ability to save for their child’s education.

"This survey shows that new parents are facing a perfect storm: A lack of sleep, everyday challenges of raising young children, rising costs, and now, trade tensions," Andrew Lo, Embark president and CEO, said in a statement.

"It’s easy to get discouraged by market volatility, but even contributing a little each month to your child’s RESP can make a big difference over time. Government grants alone can match up to 20% of your RESP contributions, delivering immediate value before factoring in compound growth and investment gains.”

Sleepless nights, costly decisions: How parenting stress impacts family finances

Raising kids is rewarding, but also exhausting in ways that go well beyond the bedtime routine. According to a recent survey, 79% of parents with young children are regularly woken up during the night, and 41% report being chronically sleep deprived, getting six hours of sleep or less.

Sleep loss doesn’t just take a toll on emotional and physical health. It can also cloud judgment and derail financial planning. More than one in three overtired parents admitted to regretting financial decisions made while running on empty.

When it comes to long-term goals such as saving for post-secondary education, that stress is showing up in clear ways. Asked about barriers to opening a Registered Education Savings Plan (RESP):

• 32% said they don’t have enough disposable income to start one
• 27% worry their financial situation could change, making it hard to commit
• 19% are concerned about meeting regular contribution expectations

The takeaway? Even well-intentioned parents can struggle to prioritize future planning when today’s demands, and sleep disruptions, weigh so heavily. Understanding these challenges is the first step toward building better financial resilience, even during the most sleep-deprived seasons of parenting.

Balancing parenting and finances

There’s a lot going on in the average parent’s life. The survey also found a little over two-thirds of parents believe it’s difficult to find the time and energy to focus on both their family’s current needs and long-term financial goals.

With the cost of education steadily increasing, 60% of parents worry they won’t be able to afford the rising cost of education. Embark estimates that children born in 2024 are projected to pay 36% more compared to what people pay for post-secondary studies today.

Despite this, saving for their child’s education is a top financial priority for 82% of parents, ranking higher than paying down debt (77%) or saving for retirement (72%).

Nearly two-thirds also say they spend a lot of time thinking about how they’ll afford post-secondary education, and 70% wish they had more knowledge about saving and investing for it.

Survey methodology

The survey was conducted using the Leger Opinion online panel to survey 1,000 Canadian parents with children under the age of five between April 30 and May 6.

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

If you plan on retiring and rely primarily on the Canada Pension Plan (CPP) you may have heard you will end up being perpetually cash-strapped. So, does that mean you should stay at your job? Learn to survive on noodles? Or work more to build up savings?

To help you decide, you first need to understand how your CPP is calculated and what you can expect in your retirement years.

As of January 2025, the maximum monthly amount you can get, if you started collecting CPP at age 65 is $1,433.00. Doesn’t sound like a lot, but it gets worse. Turns out most Canadians don’t even get the maximum amount of monthly CPP income. For instance, in October 2024, the average monthly CPP payment to anyone aged 65 and just starting their retirement payments was $808.14.

Living on less than $1,000 — put another way, living on CPP alone — is no easy feat, especially when inflation continues to drive living costs upward.

And yet so many Canadians rely on CPP as their primary income source in retirement. According to an Ontario Securities Commision survey, 85% of Canadians rely on the federal Canada Pension Plan (CPP) as the vital foundation for their retirement income. Additionally, a 2024 Healthcare of Ontario Pension Plan survey found that almost half (49%) of unretired adults have saved nothing for retirement in the last year, while all Canadians continue to worry about having enough money in retirement (58%).

For those young enough, this should be a wake up call: To start saving for the non-earning years.

For others, it’s a reminder: It’s possible to live on CPP, along, but to make it work, you’ll need to make some sacrifices. To help, here are three suggestions.

Delay your CPP claim for a larger monthly benefit

You can sign up for CPP once you reach age 60, but delaying it for a few years — say until age 65 — allows you to collect your full-CPP monthly benefit (rather than a reduced rate, based on the extra years you are collecting the income). By delaying your CPP claim until age 65, you get your complete monthly benefit based on your individual earnings history.

You also get credits for delaying your CPP claim — a credit for each year past age 60 that you delay. This translates into an 8.4% increase in your monthly benefit, per year, up to a maximum of 42% if you wait to collect CPP at age 70.

By delaying CPP payments, continuing to work and finding smart cost-saving strategies, you could end up in a position where the CPP benefit you collect starting at age 70 is sufficient to live on, without additional savings.

If you can’t wait until 70, try to hold off until 65 to avoid a significant reduction to your monthly benefit.

Scale back your living costs and stick to a tight budget

Only a third of Canadians (33%) currently have a financial plan and 59% do not have a household budget for the year.

If your retirement plan is to live on CPP alone, you must be prepared to budget carefully and limit your spending on non-essential items. That could mean doing most or all of your cooking at home instead of dining out, and limiting yourself to free hobbies such as hiking or community events.

That said, staying busy without spending money by spending time with like-minded people is possible. With the right company, you can enjoy hiking, gardening or discussing your latest library finds over coffee rather than doing activities that force you to open your wallet.

Reduce your housing costs by downsizing

Housing costs account for about 30% of expenses among Canadians across all provinces, according to Advanis.

If you’re forced to rely solely on CPP during retirement, you may need to take steps to reduce your housing costs, and downsizing could be a great solution.

Downsizing could do more than just save you money (as it should allow you the option to pay less rent or reduce those mortgage payments). If you’re a homeowner, downsizing could mean cheaper property taxes and lower maintenance expenses. It also typically costs less to heat and cool a smaller home than a larger one, so there could be some significant savings there, too.

Sources

1. Government of Canada: CPP Retirement pension: How much you could receive

2. Ontario Securities Commission: Profiles of Retirement (Jan 10, 2024)

3. Healthcare of Ontario Pension Plan: New research from HOOPP and Abacus Data finds half of Canadian women have less than $5,000 in savings; most Canadians feel unprepared for retirement (Jun 20, 2024)

4. BMO: One-third of Canadians expect to curtail their spending in 2025 (Dec 17, 2024)

5. Advanis: Housing affordability across Canada (Jun 26, 2024)

This article I’m 65, tired of working and have very little savings — is it possible to live off CPP alone? Yes, but you’ll need to make these 3 big sacrifices 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’ve ever tried and failed to stick to a budget, the problem may not be with you but with your budgeting strategy. Different forms of financial management suit some personalities better than others — select the wrong one and you could find it difficult to stay on track.

The different money personality types

To help you create a budget that works for you, we’ve outlined the five most common money personality types — Spender, Saver, Earner, Ostrich and Sharer — and suggested the ideal budgeting technique for each.

#1. Best budget for the Spender personality type

If you’re a big believer in “YOLO” and shopping therapy, you may be a Spender. Other signs are:

• Money burns a hole in your pocket; you spend it as soon as you have it
• Buying stuff makes you feel great
• You put current wants ahead of future needs
• You may continue to spend even if it lands you in debt
• You don’t have much in savings or investments

Objective

Your spendthrift ways leave you vulnerable for the future, so you need a system that prioritizes long-term savings (and debt repayment, if necessary) and gives you a strict spending limit.

Best personal budget for you: Pay yourself first

Pay yourself first, also known as a reverse budget, is a good option because it takes savings out of your bank account as soon as you’re paid – before you have a chance to spend it.

By scheduling automated transfers to an emergency fund, RRSP or credit account (if you’re trying to pay off debt), you make savings a top priority. Then you can use the rest of your income for bills and other spending.

Bonus budgeting tip

You could also consider using an investment app such as Moka, which allows you to set small weekly investments into the best money compounding market, the S&P 500.

#2. Best budget for the Saver personality type

If you think a dollar saved is better than a dollar earned, you may be a Saver. You may also:

• Have more than enough set aside to meet both short- and long-term goals, but continue to save beyond that
• Find it painful to part with money
• Avoid paying full price on necessities and reject discretionary spending of any kind
• Need the security of a large nest egg to feel safe
• Don’t like to carry debt; you might even pay off your mortgage early

Objective

There is such a thing as too much saving. Money is a means to an end, not an end in itself. You need a system that will help you feel secure, but also encourage more spending where appropriate.

Best personal budget for you: 50/30/20 budget

Try the 50/30/20 budget, which divides your net income into three areas: 50% goes toward needs (any fixed expense, such as groceries, housing, transportation, insurance and other living expenses), 30% goes toward wants (e.g., variable expenses, such as restaurant meals, entertainment, vacations, tech toys, etc.) and 20% is for savings and debt repayment (such as credit card debt, student loan repayment).

Clearly, you’ve got that 20% covered. This budget will show you exactly how much more income you could be spending on your needs and wants, so you can hopefully be coaxed into enjoying your money without feeling guilty that you aren’t saving enough.

Bonus budgeting tip

A cash back app like Avion rewards might also help you feel better about spending, as it automatically rewards you with cash back for eligible purchases.

#3. Best budget for the Earner personality type

If you measure success by income level, you could be an Earner. You may also:

• Get satisfaction from the amount of money you earn, regardless of whether you spend or save it
• Have a plan for career advancement and financial achievement
• Be a workaholic
• Take pleasure in knowing that your income is higher than that of your peers
• Monitor your investment accounts closely because you enjoy watching your assets grow

Objective

While you know exactly how much money you’ve got coming in, you may not pay much attention to what’s going out. So, you need a comprehensive system that not only shows you where all those hard-earned dollars are going but also ensures you’re devoting enough resources (including time) to non-work pursuits.

Best personal budget for you: The zero-based budget

The zero-based budget is right on the money because it accounts for all your income earnings. Use a budget spreadsheet or a budgeting tool, such as YNAB, to log amounts for all your expenses, debt payment, purchases, savings, investments and charitable contributions.

Properly done, every dollar of your income will have a designated purpose, without any money left over at the end of the month. You’ll see whether you’re on track for retirement and any other savings goals, and what areas of your life you might be ignoring, say, like vacation spending.

#4. Best budget for the Ostrich personality type

If you typically ignore your finances because it stresses you out, you could be an Ostrich. You might also:

• Leave pay stubs and account statements unopened
• Miss payments or go into overdraft/debt because you’re not paying attention
• Disregard prices when shopping
• Think money management is too hard to learn
• Tell yourself you’ll save “eventually”

Objective

You need a simple strategy that will force you to consider what things cost and if you can afford them.

Best personal budget for you: The envelope budget

Try the envelope budget, which takes a cash-based approach to money management. It’s easy to follow; at the beginning of the month (after your rent/mortgage payment comes out of your account) you withdraw cash and divide it into separate envelopes for various categories such as groceries, gas, entertainment, debt repayment and savings. When an envelope is empty, that’s it-you can’t spend any more in that category until the next month.

Bonus budgeting tip

Obviously, you’ll need to put away your credit cards if you want this budget to work. Better yet, use a prepaid card like KOHO, which lets you transfer money onto a Prepaid Mastercard® that you can use for purchases in person or online without any chance of overspending. Spending and transaction insights and budgeting tools are also available with KOHO.

If you want to ramp up your savings slowly, consider doing the 52-week money challenge.

#5. Best budget for the Sharer personality type

If you think it’s better to give than to receive-but also put giving ahead of saving and spending on yourself-you’re probably a Sharer. You might also:

• Value others’ financial health above your own
• Offer loans or financial gifts to help friends or family, even if it means you go without
• Rarely shop for yourself
• Put all your extra money and time into helping others, including charities and community groups
• Have little in savings, because you give so much away

Objective

You need to take care of yourself if you hope to be there for others in the future. That means putting away enough for retirement savings and emergencies first; then you can give to your heart’s content.

Best personal budget for you: The values-based budget

The values-based budget is perfect for anyone who finds joy through a specific use of money – whether that be travel, a hobby or helping others. It’s similar to the pay-yourself-first strategy, in that you start by making sure you’re putting enough away in an emergency fund and retirement savings and you’ve got your living expenses covered.

Then look at what’s left over, how you’re spending it and whether that makes you happy. Any costs that “don’t matter” to you should instead be used to pay for what you value.

Find the right budget for you

The above budgets aren’t mutually exclusive — feel free to mix and match as appropriate. After all, you may find that you are a hybrid model of the above money personalities: a “Saver-Earner,” for example, may want to use the 50-30-20 budget as well as a budgeting app to keep them on track. Whatever works for you is the way to go.

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

I love to bundle up. And I’m not talking about adding extra layers of clothing when it’s cold outside. I mean that I enjoy saving money when companies offer bundling bonuses or discounts to customers who get more than one product from the same merchant. It’s an especially popular marketing strategy with telecommunications, software and food companies (who hasn’t gotten a Big Mac Value Meal to save money on fries and a beverage?).

In recent years, Canadian financial institutions have begun to catch on to the popularity of product bundles, offering a wide variety of different packages to encourage customer loyalty, while saving clients money on their banking needs. Here’s a general look at some of the different kinds of multi-product bundles available at various Canadian banks.

Banking account services/product bundle rebates

Many banks offer premium, all-in-one bank accounts with a variety of features and products for a set monthly fee that is at a much lower price point than what it would cost if you were to pay for all your transactions individually.

For example, a bank might offer a premium bank account that charges a monthly $30 fee but features a plethora of products and services that would be much more expensive if paid for individually.

Possible products and services include things like:

• A free premium credit card (a savings of $120 yearly)
• Unlimited daily transactions for things like withdrawals and Interac e-transfers, which often cost at least $1 each
• A set amount of free bank drafts (which can average $8 or more each)
• A free safe deposit box (that can cost $60 a year)
• Overdraft protection (which can cost around $5 a month)
• Paper chequebooks (approx. $20)

Just from the above items and services, depending on how often you make withdraws and send Interact e-transfers, you would easily make back the $360 a year that you would pay in monthly fees. Better yet, many banks in Canada will even waive the monthly fee as long as you keep a minimum balance (often ranging between $3000 to $6000) in your account for the full month.

Lower fee product bundles

Not all financial institutions offer clients the option of keeping a set minimum amount in an account to avoid monthly fees altogether. Rather, some banks give clients a complete or partial monthly fee rebate based on how many other banking products they have at the bank.

So, for example, if you pay a monthly account fee of $30, some banks will offer a 30% (or more) fee reduction if you also have a credit card, a mortgage and/or an investment account with them, saving you over $100 a year. (If you are considering getting a mortgage with your bank to enjoy a bundle perk, remember that a long-term relationship with your bank can also get you a better mortgage rate) .

Family bundles

Another package that some banks offer is a family bundle. This kind of bonus package allows clients with a specific kind of premium account to invite family members (who live in the same household) to each open their very own separate chequing account and not pay a monthly fee. Given all the fees that chequing accounts are usually subject to at traditional financial institutions, family bundles could save client’s loved ones hundreds of dollars yearly.

Cash/high-interest rate bonuses

Some banks know that nothing speaks louder (or encourages brand loyalty more) than a straightforward chunk of money and a high interest rate. That’s why to attract new clients, some financial institutions feature a one-off amount of bonus money and a generous promotional interest rate for opening an account. Some banks also require that clients “bundle up”: open an account and apply for a bank branded credit card to be eligible for a cash/interest rate bonus.

Not all bundles are created equal

While a bundle can be a smart way to save on bank fees and enjoy a few nice extras, it’s vital to do your research because not all of them are good deals. Not all banking packages offer unlimited transactions or feature a good interest rate. Generally, for a bundle to be a decent value you need to keep all your money and accounts with one bank (such as savings, chequing, credit cards, etc), which means you can’t shop around with other banks to take advantage of things like better interest rates or bonus promotions.

Furthermore, keeping several thousand dollars in a bank account to ensure your monthly fees are waived isn’t as attractive as it looks when you consider that your money could be earning anywhere from 3% or more if you invested it in a no-fee or low-fee GIC or investment account.

It’s hard to overlook these bundling downsides when there are so many safe and user-friendly online banks that don’t charge any fees at all and still offer unlimited transactions and outstanding interest rates on savings and/or chequing accounts. So, before you bundle up, be a greedy consumer and consider all your banking options and how much they really save you. Personally, I’ve found that banking/investing packages from alternative or online banks tend to offer more value than with traditional banks.

Final word

Though terms and conditions vary from bank to bank, doing your research on bundles could end up saving you money and headaches. The convenience of your finances being managed in one place offers peace of mind, but also knowing that you made the smartest choice by bundling because it saves you money, or gets you better rates for other products from your bank, is a satisfaction you cannot beat.

Ask your bank, or friends who bank at other places, and see if there is a bundle package, similar to those mentioned in this article, that could be relevant to you.

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