Author:

In today’s turbulent economic climate, marked by President Trump’s recent tariffs on Canada, Mexico and China, concerns about a potential recession are escalating.

As markets react to these developments, investors explore strategies to protect their portfolios.

One such strategy involves inverse exchange-traded funds (ETFs).

What are inverse ETFs?

Inverse ETFs, also known as bear or short ETFs, are designed to move in the opposite direction of a specific index or asset.

For example, if the S&P/TSX 60 Index declines by 2% daily, an inverse ETF tracking this index would aim to increase by approximately 2%.

This mechanism allows investors to hedge against market downturns and presents an opportunity to profit from market dips, instilling a sense of optimism in the face of market challenges.

Benefits of inverse ETFs

• Accessibility: Inverse ETFs provide a straightforward way for investors to hedge against market declines. Purchasing an inverse ETF is as simple as buying any other stock or traditional ETF through your brokerage account, giving you the power to protect your investments.
• Diversification: These ETFs cover various markets and sectors, enabling investors to target specific areas they anticipate will decline. Whether you’re bearish on the overall market, a particular industry, or even commodities like oil, there’s likely an inverse ETF available.

Risks and considerations

While inverse ETFs can be valuable tools, they come with notable risks:

• Short-Term Focus: Inverse ETFs are typically rebalanced daily, aiming to achieve their inverse returns daily. Over more extended periods, due to the effects of compounding, the performance of these ETFs can diverge significantly from the inverse of the target index’s performance. This makes them less suitable for long-term investment strategies.
• Higher Costs: Inverse ETFs often have higher expense ratios compared to traditional ETFs, which can erode returns over time.

Understanding inverse ETFs

Suppose you believe the S&P 500 is overvalued and due for a pullback. Instead of shorting individual stocks or buying put options, you could buy an inverse ETF like the ProShares Short S&P 500 ETF (SH). This ETF aims to return the inverse of the daily performance of the S&P 500.

What does this mean? It means if the S&P 500 drops 1% daily, ProShares Short S&P 500 ETF (SH) should rise approximately 1%, which is what we mean by inverse returns. So, for every 1% drop in the S&P 500, ProShares Short S&P 500 ETF (SH) should increase by 1%.

On the flipside, if the S&P 500 rises 1%, ProShares Short S&P 500 ETF (SH) will decline roughly 1%.

For more aggressive traders, leveraged inverse ETFs exist, such as ProShares UltraShort S&P 500 (SDS), offer even greater chances to profit from market downturns, as it seeks twice the inverse return (-2x).

Buy and sell stocks and ETFs and pay $0 trading fees using the Questrade trading platform.

The role of the VIX and volatility ETFs

Another way investors hedge against market downturns is through volatility ETFs tied to the CBOE Volatility Index (VIX), often called the “fear index.” The VIX tends to spike when the market falls, making it a popular hedge.

Instead of shorting the market directly, you could buy an ETF like ProShares VIX Short-Term Futures ETF (VIXY).

• When stocks decline and fear rises, the VIX increases, and VIXY typically rises.
• When markets are calm or rising, the VIX drops, and VIXY declines.

However, VIX ETFs come with risks. VIX ETFs like VIXY or HUV do not track the VIX index itself but instead use short-term futures contracts. These are subject to contango, a condition where futures are priced higher than spot levels, leading to potential value decay even when volatility expectations rise.

How can Canadian investors use inverse ETFs?

Canadian interest in inverse and volatility ETFs has grown. According to National Bank Financial report, as of Q1 2024, inverse ETFs represented approximately 6.2% of total ETF trading volume on the TSX, up from 4.1% in 2022. This increase in use among investors indicates a rising demand for downside protection.

Canadian investors looking to hedge market downturns using a Canadian-traded ETF can consider the Horizons BetaPro S&P/TSX 60 Inverse ETF (TSX:HIX) or the Horizons BetaPro S&P 500 VIX Short-Term Futures ETF (TSX:HUV.TO), which offer inverse exposure to Canadian and U.S. markets, respectively.

Find out what trading platform works best for your financial goals.

Key takeaways

• Inverse S&P 500 ETFs like SH or SDS or HIX and HUV allow investors to bet against the broader market.
• VIX ETFs offer exposure to market volatility but can erode in value due to the structure of futures contracts.

Is investing in inverse ETFs right for you?

Canadian regulators, including the Ontario Securities Commission, caution that inverse and leveraged ETFs are not suitable for most retail investors due to their daily rebalancing and high risk. They’re best used by sophisticated investors or traders with short-term horizons.

Given the complexities and risks associated with inverse ETFs, they may not be suitable for all investors. If you’re considering them as a hedge against potential market downturns, it’s crucial to:

• Understand the Product: Ensure you fully comprehend how inverse ETFs work, including their daily rebalancing feature and the implications for longer-term performance. This knowledge will empower you to make informed investment decisions, enhancing your sense of control and confidence.
• Assess Your Risk Tolerance: These instruments can be volatile and are generally intended for short-term strategies. Align their use with your risk tolerance and investment objectives.
• Consult a Financial Advisor: Before incorporating inverse ETFs into your portfolio, discuss your plans with a financial advisor to ensure they fit your investment strategy.

While inverse ETFs offer a mechanism to profit from potentially or hedge against market declines, they require careful consideration and understanding. Before proceeding, ensure they align with your investment goals and risk tolerance.

— with files from Romana King

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

A new bill introduced in the U.S. House of Representatives aims to extend the stay period for eligible Canadian snowbirds, potentially boosting cross-border tourism and local economies. The proposed legislation would affect Canadian citizens aged 50 and older.

Known as the Canadian Snowbird Visa Act, the bill would increase the maximum permitted stay from 182 days to 240 days annually, allowing Canadians to spend approximately eight months in the United States without requiring a visa.

Act hopes to bolster flagging U.S. tourism

The legislation, introduced on April 29, has garnered support from lawmakers including Republican Congresswoman Elise Stefanik, who represents New York’s 21st District. Stefanik, whose district shares borders with both Vermont and Canada, emphasized the vital role Canadians play in supporting local tourism and industry in her region.

“Our neighbours to the north provide more visits to the United States than any other country, and they are critically important to North Country tourism and industry,” said Congresswoman Stefanik in a statement. “Providing Canadians who own homes and property in the United States with extra time to visit and boost our economy will help revive Canadian tourism to the United States.”

Republican Representative Ken Calvert, representing California’s 41st District and a co-sponsor of the legislation, emphasizes the bill’s potential benefits for his constituency.

In a recent statement., Calvert highlighted the economic advantages for the Coachella Valley region, particularly cities such as Palm Springs and Coachella that rely heavily on tourism. "This new policy will ultimately create jobs and expand economic growth in the Coachella Valley," he stated, pointing to Canadian visitors as key contributors to the local economy.

Other concerns for Canadians

The relationship between Canada and the United States has faced significant challenges due to various policy decisions and diplomatic tensions. Many Canadians have expressed their concerns by choosing to reduce their interactions with the U.S., including limiting travel and being more selective about purchasing American products.

Additionally, stricter immigration policies have led some Canadians to reconsider travelling to the United States, citing concerns about border crossing procedures and increased scrutiny of international visitors.

Since April 11, the United States implemented strict enforcement of documentation requirements for all visitors, including Canadians. Under these new regulations, anyone staying in the U.S. for 30 days or longer must officially register with the federal government and maintain proper documentation throughout their stay. Non-compliance with these registration requirements could result in serious consequences, including monetary penalties and potential imprisonment.

Sources

1. Canadian Snowbird Act

2. Elise Stefanik: Press Releases

3. Ken Calvert: Press Releases

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

If you’ve been waiting for a sign that Vancouver’s housing market might finally chill out a bit — this could be it.

This spring, Metro Vancouver’s real estate market is showing signs of balance we haven’t seen in a while. According to the Greater Vancouver REALTORS® (GVR), the number of homes hitting the market has jumped significantly, giving buyers more options without sending prices soaring.

In February 2025, 5,057 homes were listed for sale, that’s up 10.9% compared to last year, and well above the 10-year seasonal average. Active listings (that’s all the homes currently for sale) also climbed to over 12,700 — a 32% jump year-over-year.

This is good news if you’re house hunting: more listings mean less pressure to rush into a deal and more chances to find something that actually fits your needs and budget.

Prices are holding steady — and that’s a good thing

Even with more homes on the market, prices aren’t tumbling, but they’re not climbing out of reach, either.

The benchmark price for a typical home in Metro Vancouver was just over $1.16 million in February. That’s pretty much flat compared to the previous month, and only slightly down from a year ago.

Detached homes are the only category that saw a modest bump in price (up 1.8 per cent), while townhomes and condos dipped a bit.

According to Andrew Lis, director of economics and data analytics at Greater Vancouver REALTORS®, this kind of market — with healthy listings and steady demand — usually means prices stay put. “Balanced market conditions typically bring a flatter price trajectory,” Lis said on the GVR website.

In other words, we’re not likely to see major price swings anytime soon. That might not make for dramatic headlines, but it’s exactly the kind of market many buyers and sellers have been hoping for.

What this means for you

If you’re thinking about buying, this could be a sweet spot. More inventory means less competition, and with mortgage rates edging down, your budget might stretch a little further. The Bank of Canada is even hinting at possible rate cuts in the months ahead, which could make borrowing a bit easier.

If you’re selling, you’re in a good position too. Buyers are out there, and they have more confidence right now than they did during the high-rate chaos of 2023 and early 2024. Homes that are priced right and in good shape are still moving.

No matter which side of the transaction you’re on, this is the kind of market where good planning and solid advice can really pay off. A local real estate agent can help you figure out where you stand and how to make your move.

A refreshing change of pace

After years of red-hot bidding wars and rollercoaster rate hikes, Vancouver’s real estate market seems to be catching its breath. With more listings, steady prices and calmer conditions, spring 2025 is shaping up to be a season of opportunity, and maybe even a little relief.

If you’ve been sitting on the sidelines, now might be the time to dip your toes back in.

Sources

1. Greater Vancouver Realtors.com

2. Greater Vancouver Realtors.com: Monthly MLS® Housing Market Report

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

Jim LaMattery, a San Diego residential real estate agent, has been working tirelessly to fight against what he calls “alligator projects.”

The projects are accessory dwelling units (ADU) built by developers, which LaMattery gave the nickname to because of the way alligators “‘pop up’ unexpectedly as they aren’t legally required to give notice to neighbors that they’re coming,” he wrote on his website.

Don’t miss

• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 5 of the easiest ways you can catch up (and fast)
• Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10
• You’re probably already overpaying for this 1 ‘must-have’ expense — and thanks to Trump’s tariffs, your monthly bill could soar even higher. Here’s how 2 minutes can protect your wallet right now

One recent project on Almayo Avenue in the Clairemont neighborhood will house 17 ADUs in the backyard of a single-family home. LaMattery told CBS 8 reporters that each 441-square-foot unit will have one bedroom, one bath and will be rented for $2,600 per month.

“They’re over-built, bloated monstrosities in the middle of our neighborhoods," LaMattery said.

On his website, he argues that these projects — thanks to the Complete Communities Program— will lead to negative repercussions, like placing an unnecessary overload on resources and increasing the cost of housing for other residents.

"My greatest joy in real estate was selling to young people a new home. That, to me, is what the American dream is. This ain’t no American dream," LaMattery told CBS 8. "This is an American nightmare."

A breakdown of the Complete Communities program

The Complete Communities Housing Solutions program in San Diego was developed to help address the housing shortage and lack of affordable housing in the city.

The goal is to meet the city’s Regional Housing Needs Assessment (RHNA) by increasing the number of housing units within the next eight years.

Some of the strategies the program proposes include implementing affordable multi-family housing in areas near transit and for developers to invest in amenities in neighborhoods, like parks and plazas.

However, residents don’t have a say in any of these developer-led projects, as the program allows for “streamlined processing” and doesn’t require any public input or notice, according to CBS 8. This is a cause for concern for LaMattery and other homeowners.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

What’s the big deal with ADUs?

ADUs in general aren’t the problem for those against the alligator projects. Rather, it’s the fact that developers can come in and build them without addressing any potential concerns from others living in the area.

Bill Buchwald, a resident of the Clairemont neighborhood, told CBS 8 reporters he was surprised when one of these development projects popped up. He’s concerned about there being less access for emergency vehicles, more power lines overhead and overcrowding.

"If you get high winds and they arc against the building, everything’s going to go up,” he said, referring to the power lines.

Others, like John Schwartz, told reporters he was worried about more projects in the pipeline, saying that “it’s an exploitation of neighborhoods that shouldn’t be happening.”

While these concerns are real, there are some potential benefits to increasing the amount of ADUs.

For one, it can increase much needed housing supply at a more affordable price for those who may find available options too cost prohibitive.

Since the Complete Communities Housing Solutions program is prioritizing areas with close access to public transit, it could help people without cars find somewhere to live that allows them to travel throughout the city easily.

Still, efforts are in place to repeal the program.

What’s being done to repeal the program

According to Fox 5, the San Diego City Council voted in March to start scaling back the program to prevent developers from taking advantage of neighborhoods. The council is currently reassessing its rules before updating the program.

LaMattery currently has a ballot initiative survey to collect the opinions of those who would like to repeal the program, too. He hopes to get 144,000 responses by the end of this summer.

He is also encouraging San Diego residents to join his “alligator tour” to see the types of ADUs being built and file a complaint with city officials before the assessment period is over.

Other states with similar laws

Over the past several years, states throughout the country have implemented similar plans to address the housing shortage and to create more affordable housing.

For instance, Oregon banned zoning designed only to house single-family homes. A law signed in 2019 requires cities with a population of over 1,000 to let duplexes be built, whereas areas with over 25,000 residents need to allow triplexes, four-unit homes and townhomes.

And in Massachusetts, the MBTA Communities law allows multifamily housing to be built close to transit stations.

How homeowners can fight back

Your best bet is to be aware of what is happening in your community and voice your concerns.

Start by looking up any housing-related news in your local area and what types of housing is allowed there. Consider completing a public records request for any properties you’re concerned about and contact your city council representative.

Attending or staying up to date on city council meetings will give you the opportunity to be more informed of upcoming laws or housing projects before they happen.

What to read next

• Millions of Americans now sit on a stunning $35 trillion in home equity — here’s 1 new way to invest in responsible US homeowners while targeting a 14%-17% IRR
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?

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

Browsing the internet or social media will bring about many first-hand accounts of dating and marriage horror stories that would render even the most hopeless romantic a cynic. Here’s one such story.

Christina MacCrimmon of Ottawa claims she was the victim of ‘love bombing’, that left her nearly $300,000 in debt.

"It’s just unimaginable to think that somebody can honestly do what he has done and still be able to live with themselves the next day," MacCrimmon told CBC News.

How the nightmare unfolded

In the CBC report, MacCrimmon described a whirlwind, two-month romance in which she married Francis Charron, the man she now alleges manipulated her to gain access to her money.

CBC said it has discovered that Charron has also been accused of fraud by multiple people and is facing a number of civil and small claims lawsuits concerning his contracting business.

"He portrayed himself to be that perfect. He found out exactly what I wanted in somebody and then behaved and was that perfect man," MacCrimmon told CBC about falling head over heels for Charron in November, 2023.

But then her world would unravel. He told her that he likely had brain cancer. They married just two months later on January 21, 2024.

MacCrimmon remembers how she would dance in the kitchen with the supposed love of her life.

"He called it ‘Romance Fridays’ and he’d send me these love songs," MacCrimmon recalled. "He treated me with such love and devotion, he just had me on this pedestal."

She alleges he manipulated her into loaning him money by "love bombing" her with affection and compliments, but also by making her feel sorry for him because of his own financial hardships.

According to the Cleveland Clinic, love bombing is a form of psychological and emotional abuse that involves a person going above and beyond for a partner as a manipulation tactic. It looks different for every person, but it usually involves some form of excessive flattery and praise, over-communication of their feelings for you, showering you with unneeded/unwanted gifts, as well as early and intense talks about your future together.

Over the course of their brief two-month relationship, MacCrimmon said she loaned Charron money from her line of credit, allowed him to use her credit card and eventually added him as a supplementary card holder.

"He took everything. This is my whole life, this is my savings. I’m going to be struggling to even retire now," MacCrimmon explained.

Even worse, she is left with no money to hire an attorney to help her navigate the situation she has ended up in, while police also admit that it will take a long time to investigate this particular scenario.

The financial toll of being tricked by love bombing

Falling prey to a love bomber can be costly for victims who may have lost money, assets and perhaps gained additional debt.

According to Women’s Wealth, there are several financial warning signs potential victims should pay close attention to in order to prevent a nightmare from unfolding in their lives. Over-the-top gifts may be the first signal, as someone pours out lavish generosity and expects matching generosity in return.

Rushing into making big financial decisions is another huge red flag, especially if a potential victim starts feeling the pressure to share their bank accounts and investments.

Scammers can also start criticizing a victim’s financial independence, with the goal of introducing thoughts into their heads that weaken their financial autonomy. With that comes guilt tripping, as the scammer places doubts on the victim’s spending habits and suggests they are selfish with their money.

If you’re feeling pressured when it comes to anything financial in your relationship, consider why as this may be a red flag. Financial health is highly dependent on the trust you have with the people who have access to your money.

When it comes to finances, having eyes wide open is the best way to protect yourself. Falling prey to anyone who pretends to have feelings for you when they don’t opens the door to a host of risks, from emotional impact to personal and financial safety. Go into any relationship wisely — but especially a financial one.

Sources

1. CBC: Woman claims she’s victim of ‘love bombing,’ owed thousands (March 5, 2025)

2. Women’s Health: Love Bombing (February 15, 2025)

This article Ottawa woman accuses husband of ‘love bombing,’ leaving her $300K in debtoriginally appeared on Money.ca

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

Invest, save and then invest some more. This is the advice many Canadians receive when seeking a financial plan – the specifics of the investments and savings notwithstanding. But current market volatility may be putting somewhat of a damper on those thoughts of financial independence. Almost half (48%) of all respondents in the annual RBC Financial Independence Poll agreed their key investing concern is market volatility and investment performance.

"We’re having conversations with investors who have a lot of questions amidst all the uncertainty right now. While it can be difficult to provide clear answers, our advisors have experienced decades of supporting clients during market ups and downs and one thing remains constant: the value of having – and sticking to – a good financial plan with a long-term approach, to help get through any periods of turmoil," Craig Bannon, RBC director of regional financial planning support, said in a statement.

Canadians estimate they will need approximately $846,437 to ensure an independent financial future.

Investing across the provinces

The figures required for financial independence are notably higher for respondents living in Alberta ($928,179), Saskatchewan and Manitoba ($958,535) and Ontario ($916,714), as well as for Gen X ($1,128,990) and Millennials ($945,748) across the country.

In BC, this figure is slightly less at $877,503. The lowest is Quebec at $616,954.

Interestingly, Quebec respondents were the least concerned about the aforementioned market volatility at only 43%. BC was the most concerned at 12 percentage points higher.

Still most Canadians were confident in achieving their financial independence despite these concerns with anywhere from 47% (Atlantic Canada) to 55% (BC) believing so.

Generational differences in Canadian investors

To help themselves get there, 49% of all respondents invested during 2024, including 49% of Gen X and 46% of Millennials. As well, 54% of Millennials and 46% of Gen X share the same worries around market volatility.

Across the generations, most invested in mutual funds, then stocks, GICs, pension plans and ETFs. Cryptocurrencies were at the bottom of the list, although 8% of Millennials reported investing in them.

The poll findings also indicated that just over half (51%) of Canadians now have a financial plan (formal or informal). This includes 50% of Millennials and 44% of Gen X, who responded that having this plan made them feel ‘confident’ (42% and 38% respectively) and ‘reassured’ (30% and 35%).

Survey methodology

The 34th annual RBC Financial Independence Poll was conducted by Ipsos through online interviews with 2,000 Canadians aged 18 and above between October 4 to 11, 2024.

Sources

1. Cision: Investing in ourselves: Canadians’ quest for financial independence – RBC poll (March 19, 2025)

This article Canadians are worried current market volatility will impact their future financial independenceoriginally appeared on Money.ca

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

An 86-year-old New Brunswick man is facing a hefty fine for an accident he has no memory of — an incident that took place 65 years ago in Toronto.

Ossie Gildart was shocked to learn that his driver’s licence had been suspended due to an uninsured accident from 1960, after a recent fender-bender led him to Service New Brunswick in Bathurst, according to CBC News.

“I just couldn’t believe it. I couldn’t remember having an accident that I wasn’t insured with,” Gildart told CBC. “[The representative] said, ‘Mr. Gildart, I’m sorry, you can’t take the test, your licence has been suspended.’”

The fine amounts to $4,661.91, which Gildart is expected to pay before his licence can be reinstated. The charge stems from Ontario’s Motor Vehicle Accident Claims Fund, which is used to help individuals recover damages from accidents involving uninsured drivers. However, Gildart is certain he was insured during his time in Ontario.

Long history of licence renewals with no issues

While living in Ontario, Gildart worked as a service technician, a position that required him to have insurance. He was also required to renew his driver’s license annually. After moving to New Brunswick in 1971, he received his Class 1 license and drove trucks for CN Rail. He has never encountered any issues related to the alleged 1960 accident during his years of licence renewals, in Ontario or New Brunswick.

“I was never notified by anybody, for anything. I was never suspended. I never had a problem. I just can’t believe they do this to a senior,” he told CBC.

How New Brunswick enforces old suspensions

Geoffery Downey, a spokesperson for New Brunswick’s Department of Public Safety, explained the situation to CBC News. He said that Service New Brunswick conducts a Canada-wide search for licence suspensions in other provinces. With that said, something popping up on the search doesn’t necessarily mean anyting will come of it. There is, Downey explained, descretion.

“If our investigation proves the reason for suspension is a court-ordered [judgment] more than 10 years old, we have no obligation to another province to suspend or collect the outstanding amount,” Downey said in an email obtained by CBC.

Gildart’s licence has since been reinstated, and his driver’s test was rebooked. However, the $4,600 fine still stands, and he is now required to pay it back in monthly installments of $200.

The Ontario Ministry of Public Business and Service Delivery has noted that individuals facing claims through the program have options to contest the charges. "If an individual is sued and disagrees, they may defend the action that has been commenced against them," said spokesperson Jeffery Stinson in the CBC story. “If a judgment has been issued, they may seek legal advice to move to have the judgment set aside.”

Recourse and possible steps to rectify the situation

1. Request for documentation: One of Gildart’s first steps should be to formally request any documentation related to the alleged 1960 accident from the Ontario Ministry of Transportation. This will include any accident reports, evidence of an uninsured driver and court judgments. Gildart can then examine this material with legal counsel to assess whether there are discrepancies or mistakes in the records.
2. Legal action to set sside the judgment: If the claim has led to a court judgment, Gildart may have grounds to seek the judgment be set aside. Legal experts suggest that individuals in similar situations should consult a lawyer to ensure the judgment was legally obtained and whether there is a possibility of challenging it. This may involve showing that Gildart was insured or that the claim was incorrectly assigned to him
3. Debt payment negotiation: While Gildart’s licence has been reinstated, the fine still stands, and he must now pay $200 per month. If Gildart cannot afford these payments, he may be able to negotiate a reduction or extension. Debt relief services or legal counsel can also help negotiate with the Ministry of Public Business and Service Delivery on payment terms that are more manageable, depending on his financial situation.
4. Investigating any statute of limitations: Gildart should also investigate whether there is any statute of limitations that could bar the claim from being enforced after so many years. In Ontario, the limitation period for many civil claims is typically two years, but this may differ depending on the type of claim or whether the case falls under an exception. Legal advice on whether the claim is valid after more than six decades could be crucial.
5. Consult with an insurance company: They can confirm the history of insurance or if there were penalties related to a lapse in coverage.

Sources

1. CBC: New Brunswick driver gets a $4,600 fine — for an accident that happened 65 years ago (Feb 19, 2025)

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

Ladies, we can be truly savvy with our dollars, especially when it comes to finding a great deal. Women are so good at managing money that 20% of Canadian spouses relied solely on their female partner to set and follow the household monthly budget, according to survey released in 2023 by Loans Canada, the nation’s first loan comparison platform.

However, even those of us accustomed to pinching pennies on a regular basis, can make a few key mistakes. To help, here are the five biggest mistakes women make with their money — ranked from not-such-a-big-deal to stop it right now!

Buying poor quality clothes

When most women are shopping on a budget, they end up with clothing that falls apart or shrinks after a few washes. Instead of buying throwaway fashion — trendy clothes at low prices — consider investing in a few pieces of high-quality closet ‘staples.’

Stores like Club Monaco, which was founded with the concept of offering "better basics," is a quality step-up from fast fasion, and one good option if you want a closet full of useful, wear-anywhere fashion staples.

Another option is second-hand clothing. Even when clothing is used, it still lasts longer than poorly made “fast fashion.” For those open to the idea of shopping and wearing second-hand clothing, can find great options either online or through brick-and-mortar stores that specialize in good quality second-hand clothing. For instance, websites like Poshmark offer high quality name brands at more accessible prices.

Change where you buy your clothes — and what you buy — and you could save hundreds of dollars in a year or two.

Not investing

The stock market is dominated by male investors. Hollywood portrays investing as a boy’s club fueled by adrenaline and testosterone, especially in movies like The Wolf of Wall Street.

But studies show that women who opt to invest in stocks and other equities tend to outperform men. The theory is that women are less reactive to market fluctuations, according to report from Fidelity Clearing Canada — and more apt to sticking with their financial plan and investing strategy. Another theory is that women are less prone to chasing market returns and more invested in stable, long-term strategies — an investment strategy often promoted by finance experts like Warren Buffett.

The good news is that you don’t need thousands of dollars and a broker to begin investing. Women can start trading using an online brokerage account. There are bank-offered brokerage accounts, such as CIBC Investor’s Edge, as well as fintech trading platforms, such as Wealthsimple and Questrade. The key is to find an online brokerage account that suits your needs.

If your aim is to launch a buy-and-hold investment strategy — and avoid the stress and fees of active trading — you’ll want an online trading platform with no- or low-cost trading fees.

Not maintaining a good credit score

Women tend to have worse credit scores than men, according to MSNBC. Men tend to have an average credit score of 630, while women average around 621. Credit scores range from low 500s to 900.

One easily-accessible option for building and maintaining a good credit score is to use a credit card. Used correctly, credit cards are great for building your credit history. However, when credit cards are maxed out, these short-term loan options hurt your budget and your credit score.

If you need to start building your credit history, consider applying for a credit card that caters to people with no- or low-credit scores.

If you need to rebuild your credit score — and part of the problem is a high credit card balance — consider finding a way to reduce the interest paid on this debt. For instance, using a low-interest credit card can help you reduce the interest charged on the outstanding balance. This reduces the amount of money you spend on interest and frees up cash that can be used to pay down the debt. Do this consistently — always making minimum monthly payments on all outstanding debts — and you’ll get out of debt faster and rebuild a robust credit score.

Falling for pyramid schemes

So many mothers are under pressure to ‘have it all.’ Work-at-home pyramid schemes — with people on the bottom making very little money — specifically target women who want to earn an income while raising their kids. The desire to do it all isn’t new and the schemes that prey on this desire are also not new, according to 2021 article published by the Huffington Post.

These companies know how to prey on women’s insecurities — including the idea that you must be popular to be valued and you must earn to have a say in household monetary matters. Don’t fall into this trap. Take the time to educate yourself about pyramid schemes. There’s nothing wrong with wanting it all but you will need to prioritize what’s important, right here, right now.

Undervaluing your skills

Women are still paid 9.2% less than men, on average, even if they have the same education and work experience, according to data released by Statistics Canada.

If you’ve been working for your company for a while, don’t be afraid to ask for a raise or to inquire if a promotion might be available.

Speaking up can be tough, especially if you sense that your boss doesn’t recognize your true value. If you find yourself stuck in a pay situation that probably won’t get any better, it may be time for you to look for new opportunities elsewhere.

— with files from Shannon Quinn and Leslie Kennedy

Sources

1.Loans Canada: Women are better at finances than men; men know it, too: New survey results (Mar 8, 2023)

2.Fidelity Clearing Canada: Why women are a major force in investment circles (Mar 2024)

3. MSNBC: Being a woman hurts your credit score — Here’s what you can do about it (Dec 17, 2018)

4. Huffington Post: MLMs are a nightmare for women and everyone they know (Jan 29, 2021)

5. Competition Bureau Canada: Pyramid schemes

6. Statistics Canada: Intersectional perspective on the Canadian gender wage gap (Sept 21, 2023)

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