Category: Moneywise

Thinking of selling your home? Mark your calendar: Your window of opportunity is right around the corner.

Property listing site Realtor.com’s latest data points squarely at this narrow timeframe as the ideal moment to list your home in 2025. But what’s so special about that particular week, and more importantly, why should you care?

Selling your home at the right time involves combining convenience, maximizing profit and minimizing hassle. According to Realtor.com’s annual analysis, homes listed during the sweet spot of April 13–19 will see market conditions that favor sellers and may sell quicker and at premium prices. Let’s explore why.

Why this week could mean more cash in your pocket

Mid-April is traditionally the heart of the spring home-buying season. Buyers are shaking off the winter doldrums, tax refunds are hitting bank accounts, and the weather is finally cooperating. According to the report, the benefits of listing during this week may include above-average prices, above-average buyer demand, quicker market pace, lower competition from other sellers and below-average price reductions.

Historically during Realtor’s best week to sell, views per listing spike by nearly 18% versus the average week, dramatically increasing your home’s visibility and the likelihood of competitive bidding. Homes during this week have historically reached prices 1.1% higher than the average week throughout the year, and are typically 6.7% higher than the start of the year. Homes actively for sale during this week sold 17%, or roughly 9 days, faster than the average week.

“After two years of high rates … it is likely that buyers will trickle into the market this spring, enticed by improved inventory and slowing price growth across much of the country,” Realtor.com senior economic research analyst Hannah Jones wrote in the site’s report. “If mortgage rates also fall this spring, it is possible that demand will surge sooner and with more vigor.”

Market dynamics

Nobody enjoys weeks of open houses and price reductions. Homes listed during this targeted week spend fewer days on the market compared to those listed at other times, Realtor.com says, reducing the inconvenience and stress of keeping your home perpetually showroom-ready.

But here’s the catch: 2025’s housing market isn’t what it used to be.

After years of sellers having nearly all the power, the market dynamics are shifting noticeably.

CNN reports that sellers are gradually losing the upper hand they enjoyed throughout the post-pandemic boom. Buyers now have more negotiating leverage, and competition among sellers is heating up.

Additionally, economic indicators suggest that home price growth is slowing. Zillow says home values are projected to increase by just 0.6% this year, a marked slowdown compared to increases of previous years. For homeowners aiming to capitalize on maximum equity, this could signal that the peak window for securing top-dollar sales is narrowing.

Buyer confidence and interest rates

Another major factor shaping the 2025 market is interest rates. While mortgage rates have stabilized somewhat after dramatic hikes in previous years, they remain elevated enough to impact buyer affordability. Currently the average 30-year fixed mortgage rate is 6.6%, far above the pandemic lows of 2-3%.

With those higher rates, buyers will scrutinize home values and look for the best deals. Listing your home at the ideal time, when buyer confidence is peaking, can dramatically increase your odds of sealing a quick and profitable sale.

To fully harness the benefits of this prime selling window, preparation is key. Real estate experts strongly advise completing all home repairs, staging your property attractively, and ensuring your pricing strategy aligns with current market trends.

Remember, the most successful sales occur when homes are priced competitively from the outset, leveraging initial buyer enthusiasm to drive bidding wars rather than relying on price cuts.

As market dynamics shift further away from a pure seller’s advantage, timing your home sale strategically will become increasingly critical. The once-automatic assumption that homes always appreciate rapidly may no longer hold true. Sellers who previously waited casually for better offers may now find that patience doesn’t always equal profit.

Realtor.com’s message for homeowners considering a sale in 2025 is clear: Strike while the iron is hot. The week of April 13–19 may be a golden opportunity in a rapidly shifting market. With peak buyer demand, limited competition, and signs of cooling price appreciation, missing this ideal window could mean leaving serious cash on the table.

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

McDonald’s is one of the most iconic American brands out there, and it’s done well through times of uncertainty — including during the COVID-19 pandemic, when it was easily able to pivot to delivery and takeout thanks to technology investments it’d been making for years.

That’s why it’s such a troubling sign that the brand has been performing poorly as of late.

"While we anticipated a challenging environment in 2024, our performance so far this year has fallen short of our expectations," CEO Chris Kempczinski said in the company’s third-quarter earnings call, reported TheStreet.

Kempczinski attributes the company’s poor performance, in part, to the fact that "consumers, especially those in the low-income category, were choosing to eat at home more often," and said that this is an industry-wide trend.

However, he also believes part of the problem may be that McDonald’s has "lost its way and ceded an important part of its brand identity to rivals."

Kempczinski’s warnings about McDonald’s are important because of what they say about the economy as a whole. But those who like to eat at McDonald’s should also consider what the statements suggest might happen to the cost of their favorite fast-food meal.

Poor performance at McDonald’s could be a sign of a troubled economy

The downturn at McDonald’s is important for everyone to pay attention to. The drop in sales — especially by people with lower incomes — could mean that people simply do not feel they have the money to eat out right now, even at inexpensive places like McDonald’s.

The data backs this up. A report by PYMNTS revealed that 98% of people who live paycheck to paycheck have changed their behavior to deal with rising prices at restaurants, including eating out less often or “trading down” to lower-cost items on the menu.

This probably isn’t a surprise to most people who have been coping with economic uncertainty in recent years.

In the aftermath of the pandemic, inflation surged to multidecade highs. Food and energy — two essential expenses you can’t escape — saw especially big price increases, and people are feeling the pain.

In fact, the Pew Research Center found that 63% of Americans described inflation as a "very big problem," in 2025, and one that affects their overall perceptions of the economy, with 45% of people saying the economy is only in fair shape and 31% describing it as being in poor shape.

Sadly, the consequences of struggling consumers extend beyond the impact on McDonald’s profits.

"Restaurants are a canary in the coal mine,” Michael Halen, a senior restaurant and food service analyst at Bloomberg Intelligence told Marketplace in 2024.

“Typically, you know, you see a slowdown in consumer discretionary spending in restaurants before you see it in other places.”

If there is a general slowdown in consumer spending, this raises the risk of a recession as reduced demand means companies tend to cut back, which in turn can increase unemployment and lead to further cuts — all of which impedes economic growth.

McDonald’s is focusing on value, so the price to you could soon fall

While McDonald’s problems may indicate a reason to worry about the economy as a whole, there is a little bit of good news. Kempczinski has said the fast-food chain is going to shift its focus back to providing the best value for customers so people will feel like eating there is within reach — even while overall economic conditions aren’t great.

"We have moved with urgency in partnership with our franchisees to improve our value offerings in most of our major markets," Kempczinski said.

Some examples he cited include discounted happy meals in France, three for 3 pounds meal deals in the UK, and coffee for a dollar in Canada.

"As we have said before, we view good value as including both entry-level items and meal bundles at affordable price points," Kempczinski explained.

This includes Every Day Affordable Price Menus that have "compelling entry-level price points" for things like breakfast, as well as on beef and chicken sandwiches for lunch and dinner.

McDonald’s is not the only fast-food chain looking to capture the limited consumer dollars people feel comfortable spending.

Wendy’s has introduced a $3 breakfast meal, while Jack in the Box plans to offer more value items as well.

“Value is going to be something we talk about for the rest of the year,” Jack in the Box CEO Darin Harris told investors in 2024, reported Restaurant Business, when a slowdown in fast-food consumption was starting to emerge.

“We know the competition is doing that. So we will be in the game.”

So, as McDonald’s focuses on showing people it’s still affordable during challenging economic times, more people may once again start stopping in to the Golden Arches for a good deal — even if economic conditions as a whole have them feeling like they don’t have quite enough.

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

After decades in the workforce, the prospect of a relaxing retirement might seem like paradise. Imagine waking up without an alarm, enjoying leisurely mornings and finally diving into all those hobbies you’ve dreamed about for years. Sounds perfect, right?

But what happens when the novelty wears off and boredom creeps in?

Picture this: Jake is 67 years old, one year into retirement and the leisurely lifestyle isn’t as fulfilling as he expected. Restlessness has him craving the stimulation and social connections work once provided. On top of that, the Canada Pension Plan (CPP) cheques feel a little underwhelming, which had him thinking about re-entering the workforce.

If this description puts a fright in you, you’re not alone. A 2024 report from the National Institute on Ageing found that 43% of Canadians over the age of 50 are at risk of social isolation, while 59% experience some degree of loneliness. Additionally, 36% of Canadians over the age of 50 have very (13%) or somewhat (23%) weak social networks.

So, what’s a frustrated retiree to do? Lucky for Jake, he found a solution. He decided to work as a driver for a ride share and courier company. Now, he gets the social interaction he craves while making a bit of cash. He also works only a limited number of hours.

If you want to go back to work, you don’t have to jump straight back into a 40-hour workweek. Even a part-time gig can offer financial, psychological and lifestyle benefits. Let’s dive into why staying busy could be your secret to a truly satisfying retirement.

Mental stimulation

Picking up a side gig or part-time work during retirement is more than financially rewarding, it can also keep you socially engaged. Work provides plenty of opportunities for social interaction, either with customers or coworkers.

It can also encourage a structured routine, helping to restore a sense of control and purpose. The American Psychiatric Association notes how some research indicates those who maintain a clear purpose experience less stress and greater resilience in challenging situations.

Your expertise has value. If you find work in your old field — let’s say through consulting or freelancing — you have an opportunity to both refine your skills and pass on what you’ve learned. Sharing and growing your knowledge can be gratifying, and you can make a few extra bucks while you’re at it.

Financial benefits

Living on a fixed or limited income can be stressful, especially if you’re trying to balance achieving your retirement goals with paying the bills. Getting a side gig can help ease some of this stress, giving you extra cash flow for expenses that the CPP won’t cover.

Even better, returning to work and finding a gig offering health benefits might cover reduce any prescription costs you may have.

While your CPP payments get adjusted annually the longer you wait to start collecting it (8.4% per year), for many seniors this may not be sufficient in the current cost of living crisis. A side hustle can help limit uncomfortable belt-tightening so you can have money to travel, spend time with family and cross off some of your bucket-list items.

Thankfully, if you choose to continue to work in some capacity after 60 (when you are eligible to receive CPP), you will not reduce how much you earn from the benefit. In fact, you could increase it by means of the CPP post-retirement benefit. The government will automatically pay you this benefit the following year and you’ll receive it for the rest of your life. However, CPP contributions will be cut off when you reach 70 years of age, even if you’re still employed in some capacity.

Preparing for the calm

If you’re nearing retirement and fearing a perceived boredom of life after your career, there’s still time to plan for a stimulating and fulfilling retirement. Let’s look at some ways you can prepare for the lifestyle change:

Experiment now, avoid trouble later: There’s no time like the present — why not pick up some different hobbies before you retire? If you find one or more that really interest you, make that your passion project once you finish work. Consider picking an activity that can involve social interaction via clubs or classes you can join. That way, you get the benefits of social engagement and mental stimulation.

Prepare a routine: Create a daily or weekly structured routine before retirement. In his 2022 TEDx Talk, Dr. Riley Moynes, author of The Four Phases of Retirement, says that phase two for retirees can bring on a sense of loss in identity and purpose. Avoid this by setting daily tasks and focusing on ways to keep yourself busy, ahead of time.

Stay near friends and family: If you’re able, retiring near friends and family can provide a nearby support network and help avoid social isolation and loneliness. If you and your spouse are retiring together, consider building a plan that keeps you both active, engaged and communicative with each other.

Sources

1. National Institute on Ageing: Perspectives ongrowing older in Canada: The 2024 NIA Ageing in Canada Survey survey, by Natalie Iciaszczyk; Gabrielle Gallant; Talia Bronstein; Alyssa Brierley; Dr. Samir Sinha (Jan 28, 2025)

2. American Psychiatric Association: Purpose in Life Can Lead to Less Stress, Better Mental Well-being (Dec 7, 2023)

3. YouTube: The 4 phases of retirement | Dr. Riley Moynes | TEDxSurrey (May 26, 2022)

This article I’m 67, retired and was bored out of my mind until I found a side hustle to keep myself busy while earning extra cash. Here’s how you can stay engaged in your golden years 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.

It’s hardly a secret that home prices are soaring on a national scale. In February, the median existing-home sale price rose 3.8% to $398,400 on an annual basis, according to the National Association of REALTORS.

Despite mortgage rates being elevated, consumers are continuing to purchase homes. And a limited inventory on a national scale is helping to keep housing prices up.

For this reason, it’s important to make sure you’re not getting in over your head as far as a home purchase goes. And you may be inclined to follow the general guidance of keeping your housing costs to 30% of your gross income.

But that formula may have some flaws. And you may want to tweak it to avoid taking on too much house yourself.

Rethinking a general rule of thumb

Home buyers are commonly advised to keep their housing costs to 30% of their gross income or less. For renters, that means rent alone should not exceed 30% of gross pay. For homeowners, that 30% should include not just a mortgage, but also, property taxes, insurance, HOA fees, and any other fixed monthly expense related to being a property owner.

But there are two problems with the 30% rule. The first is that based on home prices today, the typical U.S. wage-earner either can’t afford a home, or can’t manage to keep their costs to 30% of their pay or less.

The Bureau of Labor Statistics puts median weekly earnings at $1,192 in the fourth quarter of 2024. That amounts to about $61,984 per year (assuming 52 weeks of work), or roughly $5,165 per month.

Meanwhile, the average 30-year mortgage rate today is 6.67%, reports Freddie Mac. If we take the median U.S. home price of $398,400 and apply a 20% down payment along with a 6.67% rate on a 30-year mortgage, we get a monthly mortgage payment of $2,050 for principal and interest.

But with a median monthly income of $5,165, that mortgage payment alone takes up almost 40%. And that doesn’t even include other homeowner expenses like property taxes. So it’s clear that the 30% rule doesn’t work based on median wages and home prices today.

The other issue is that calculating housing costs as a percentage of gross pay does home buyers a disservice. The reality is that everyone is responsible for paying taxes, which whittles down paychecks automatically.

Workers also need to carve out room in their paychecks for non-housing expenses, as well as long-term goals like retirement savings. So a more prudent approach to home buying may be to limit housing expenses to 30% of net pay, not gross pay.

How to budget for housing expenses

You can use the 30% rule — either gross or net pay — to budget for your housing expenses if that works for you. But it’s also important to consider your individual circumstances.

In some cases, it may be okay to exceed the 30% mark on housing if your remaining expenses are very low. For example, people who live in cities often don’t need a car and have very low transportation costs.

AAA puts the average cost of owning a vehicle at $1,024.71 per month. If you don’t have a vehicle and walk almost everywhere, you may be okay to spend more than 30% of your pay on housing.

On the other hand, let’s say you have young kids. Care.com puts the average cost of daycare at $343 per week for an infant and $315 per week for a toddler.

Even if you only have a single toddler needing full-time care while you work, that could be costing you $1,260 per month. And you could be spending much more if you have multiple children in daycare. So that would be a reason to keep your housing costs to well under 30% of your pay.

Another reason to keep your housing costs lower than 30% of your pay is if you have expensive debt you’re looking to shed. Experian reports that the average credit card balance among U.S. consumers hit $6,730 during the third quarter of 2024. If you have a balance that’s much higher, though, it’s likely monopolizing a lot of your income, leaving you with less money to spend on a home.

It’s also important to think about your financial priorities. If putting your kids through college is a big goal of yours, then you may want to spend less on housing so you’re able to contribute consistently to an education fund. And if you know your job won’t be providing a pension, there’s more pressure on you to contribute generously to your IRA or 401(k) plan.

Plus, there may be things you want to do with your time that cost money, like travel. The less you spend on housing, the more room you have for that.

For this reason, it’s important to establish a household budget that addresses your needs and priorities, and then see how housing fits in. If you use the 50/30/20 rule for budgeting, it means you’re allocating 50% of your income to needs, 30% to wants, and 20% for savings. But that means you may not have enough room to allocate 30% of your income to housing alone.

All told, the 30% rule for housing costs is a good starting point to work with. But think about how well it fits into your budget and plans before following it.

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

The U.S. budget deficit surged past the $1 trillion mark in February, less than six months into fiscal year 2025.

According to the Department of the Treasury, the federal government so far has spent a $1.15 trillion more than it has collected since October. That’s about $318 billion more than in the same span last year, roughly 38% higher, and a record for the period, per CNBC.

So, how does the national deficit affect you? Let’s take a look at several factors that have contributed to the deficit and how it can impact the finances of Americans.

Contributing factors to the US deficit

Although the specifics may differ from time to time, a budget deficit occurs when tax revenue is lower than the amount being spent. Why is there a gap between money that’s coming in and going out? The calculation is primarily influenced by policies set by the president and Congress. It can also serve as a reflection of the overall health of the economy.

If the economy isn’t doing so well, businesses and individuals typically aren’t earning as much. Or, businesses may invest less into their operations and cut costs, which could lead to stalled growth and higher unemployment. With lower incomes from individuals or businesses, less taxes are collected. And if government spending doesn’t change, it increases the chance of a deficit.

But even if the economy is doing well, policies or legislation that increase spending can still result in a deficit. During the COVID-19 pandemic, increased spending from policies that offered relief to families and businesses led to a higher amount of spending. Even though government revenue was high, the increased spending resulted in a deficit.

In fact, over the last 50 years, the government has operated on a surplus only four times, most recently in 2001.

This puts a lot of pressure on the way the government manages its finances. The U.S. Government Accountability Office (GAO) regularly audits the federal government’s financials. In an article posted Feb. 5, the GAO reported weaknesses at the management level that hindered the government’s ability to operate efficiently and address the country’s long-term financial health.

Some of these include financial management challenges at the Department of Defense, payment errors at several agencies and issues with supporting loan programs like ones through the Small Business Administration.

How the national deficit can impact your finances

The larger the deficit, the more likely the government needs to take on debt to make up for the shortfall, and like other borrowers the government needs to pay interest on its debts. According to the GOA, since 2017, the annual spending on net interest payments has more than tripled. To put it in perspective, in fiscal year 2024, more money was spent on net interest than national defense or Medicare.

If more revenue continues to be spent servicing debt, it could lead to drastic changes. Policies may be put in place to increase taxes or lower the amount of social services and subsidies currently available for Americans. But changes like these require government action, and you may not see this anytime soon.

In the meantime, preparing for rising prices is a smart move. Consider bolstering your emergency fund or padding your retirement savings, or finding ways to cut back in other areas to account for increased expenses.

Strategies to increase your income will help you to bear the brunt of any increased costs and make it easier for you to save and invest. Some best practices include negotiating a better wage with your current employer, finding a new job with a higher salary or working a side gig temporarily.

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

A few months into 2025, and investors continue to navigate a complex financial landscape marked by both opportunity and uncertainty.

Invesco’s Chief Global Market Strategist, Kristina Hooper, highlights key risks investors need to address going into 2025. Whether it’s inflationary pressures or market dynamics, investors who understand these challenges — and proactively prepare for them — can secure their portfolios and take advantage of emerging opportunities.

Hooper highlighted her concerns — and offered high-level strategies to mitigate these risks — in a recent Bloomberg TV interview. To highlight Hooper’s insight, here are the five risks investors need to consider heading into 2025.

1. Resurgence of inflation

One of the foremost risks is the potential for inflation to reignite. Hooper attributes this risk to factors such as pro-growth policies, restrictive immigration measures shrinking the labour pool and extended tariffs. These elements could drive prices higher, impacting purchasing power and market stability.

How to mitigate:

• Diversify portfolios across multiple asset classes to hedge against inflationary impacts.
• Consider inflation-protected securities like Treasury Inflation-Protected Securities (TIPS).
• Focus on sectors resilient to inflation, such as consumer staples and utilities.

Related read: Best defensive stocks

2. Fiscal unsustainability and debt risks

Hooper emphasizes the growing burden of government debt servicing costs, which exceeded the defence budget for the first time in 2024. This unsustainable trend raises fears of a “Liz Truss moment,” where lack of fiscal discipline could spook bond markets and drive up yields.

How to mitigate:

• Monitor fiscal policy developments closely, particularly in major economies.
• Invest in bonds with varying maturities to navigate potential yield volatility.
• Explore opportunities in international markets with more stable fiscal outlooks.

3. Overvaluation concerns in US markets

While US markets have experienced significant gains, some segments are overvalued, raising concerns about the sustainability of current valuations. Hooper notes that small-cap stocks and cyclicals still offer relatively attractive valuations compared to mega-cap tech stocks.

How to mitigate:

• Take profits from overvalued segments and rebalance into undervalued areas like small caps and cyclicals.
• Explore high-dividend-yield opportunities in international markets such as the UK.
• Invest in emerging markets poised to benefit from potential rate cuts by the Federal Reserve.

4. Economic sensitivity and market rotation

As GDP growth accelerates in major economies such as the US, UK and Eurozone, Hooper suggests a rotation toward cyclical stocks and small-cap equities. These asset classes are expected to benefit most from improved economic conditions and rising real wages.

How to mitigate:

• Allocate a portion of the portfolio to cyclical industries and small-cap equities to capture growth trends like defence stocks.
• Maintain a long-term perspective and avoid overreacting to short-term market shifts.

5. Need for diversification

Given the uncertainties surrounding fiscal policies, inflation and market valuations, Hooper underscores the importance of diversification. A well-diversified portfolio can help investors weather risks and capitalize on diverse opportunities.

How to mitigate:

• Spread investments across three major asset classes: equities, fixed income, and alternative assets.
• Balance geographic exposure by including both developed and emerging markets.
• Regularly review and adjust portfolio allocations to align with evolving market conditions.

Bottom line

Heading into 2025, vigilance and adaptability are key. Kristina Hooper’s insights highlight the importance of preparing for inflationary pressures, fiscal challenges and valuation concerns, while positioning portfolios to benefit from economic growth and market rotations. By taking proactive steps — such as rebalancing, diversifying and seeking undervalued opportunities — investors can mitigate risks and stay resilient in an uncertain financial environment.

Sources

1. Bloomberg Markets: The Biggest Risks for Investors Heading Into 2025 (November 21, 2024)

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

Harvard is one of many colleges that have expanded financial aid for students. The change is set to take effect starting in fall 2025, for the 2025–2026 school year.

According to the Harvard Gazette, the expansion will mean that approximately 86% of U.S. families now qualify for Harvard’s financial aid.

Low to no college-related costs could make post-secondary education much more affordable for you or your children. But what exactly is the financial aid Harvard is offering, and how does that affect your college budget?

Harvard’s new financial aid policy

On Mar. 17, Harvard announced that students who come from families that earn $200,000 or less will not have to pay tuition. And for those whose families earn $100,000 or less, food, housing, health insurance and travel costs will also be covered.

“The financial aid program is designed so that Harvard students can study, train, research, create and fully engage in the Harvard experience with minimal constraints,” Jake Kaufmann, director of financial aid and senior admissions officer at Harvard College, told the Gazette.

Students whose family earns $100,000 or less will also receive a grant for $2,000 in their first year and an additional $2,000 in their last year, intended to support them beyond graduation.

For families earning $200,000 or less, students won’t have to pay tuition, though aid beyond that is based on financial need. The university has also stated that it’s willing to work with families who earn more than $200,000 to offer assistance to students.

The income threshold has increased since the Harvard Financial Aid Initiative was launched in 2004. In 2023, the earnings cutoff for students of families receiving full financial aid was $85,000.

How these changes can impact you

Even if you or your child qualifies for financial aid, it doesn’t mean you won’t have to pay anything to attend Harvard.

Although, according to the university, 55% of Harvard undergraduates received financial aid in the 2023–2024 school year, students (or their families) still ended up paying an average of $15,700. These costs could include textbooks, equipment and other living expenses.

For those who only qualify for tuition assistance, this cost can go up since you will also need to cover housing, food, transportation and other related costs.

Although other schools, like Northwestern University, Duke University and the University of Pennsylvania, offer financial aid packages for families earning under a certain income, you would still need to factor in paying out of pocket for some costs.

Sure, these changes could mean that you may be able to budget and save less for college costs. However, you may not get into colleges that offer significant financial aid. Even if the school you get into does, you may not find out just how much you could receive until later on.

Whether or not you receive financial aid, you’ll still need to set aside some funds for your college education. You can consider aiming to save the average amount families pay for college in an education-focused savings account, like a 529 plan or a prepaid college tuition plan.

Currently, the average cost of college per year — including tuition, books and living expenses — is $38,270..

When deciding between types of savings plans , the 529 plan offers a bit more flexibility. The money you save can be used tax-free towards qualifying expenses or tuition at a qualifying educational institution. A prepaid tuition plan typically only allows you to use the credits you purchase towards future tuition costs at certain schools.

Since college is a huge expense, saving now can help you from having to take out larger loans, whether or not you receive tuition assistance. Even if you don’t use all the funds in a 529 plan, the account owner can change the beneficiary — your sibling, for instance, can use the funds towards their college education.

In some cases, the account owner can ask for a refund for the unused amount in a prepaid tuition plan. Some states, like Florida, may charge a fee for doing so.

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

The heart of San Francisco’s Chinatown is under siege — not by bulldozers or policy bans, but by something just as destructive: rising tariffs.

The neighbourhood’s small shops are feeling the pinch from U.S. tariffs on China, which are now at 20%. The owners have weathered economic downturns for generations, shifting demographics, and even the pandemic. These businesses operate on small margins, face tight competition, and serve a largely elderly clientele living on fixed incomes.

Edward Lau, who owns a shop selling China-imported herbal products and supplements for pain relief, is among the business owners worried about the impact. Raising prices to offset higher costs could drive customers away, gravely impacting their livelihoods. However, absorbing these increased costs indefinitely isn’t sustainable.

"It’s becoming more expensive so people will start thinking of alternatives or simply won’t use it … They’ll be hit really hard," Lau told CBS News. "The uncertainty makes it really hard to do business."

Although over 90% of North American manufacturers moved at least some of their production out of China between 2018 and 2023, small mom-and-pop businesses like Lau’s will continue to struggle under current conditions.

The impact of tariffs on small businesses

Tariffs are directly increasing the cost of imported goods — such as merchandise, food items and supplies — that small businesses rely on, both in San Francisco’s Chinatown and across the country.

Beyond higher costs, supply chain disruptions caused by tariffs can make some imports scarce or only available at steep prices.

As a result, owners struggle with strained cash flow and lower profit margins. Without financial reserves or a buffer, many have no choice but to raise prices or adjust their pricing strategies.

The longer these challenges persist, the greater the impact on customers. Many may turn to larger competitors, which benefit from economies of scale and can keep prices down.

How consumers can cope — and help

If rising costs are affecting your go-to products, it can sting. The good news? There are ways to cope with the shift while also supporting small businesses.

• Buy locally sourced alternatives and make direct purchases from small businesses. This eliminates intermediaries, helping to keep costs down.
• Compare prices and hunt for discounts. Taking time to comparison shop, use coupons and plan around sales can make a difference.
• Consider generic brands or bulk purchases when they offer better value.
• Use a cash-back credit card. Many credit cards offer rewards based on spending categories. If you can pay your balance in full each month to avoid interest, you can turn everyday spending into extra savings.
• Consider vintage, refurbished or like-new its. Gently used or vintage goods are often more affordable. Many retailers also sell certified refurbished electronics and furniture at a fraction of the price of new ones. Just check for warranties and authentication where needed.
• Adjust your budget and lifestyle. Small tweaks — like dining out less, finding free or low-cost entertainment or hosting friends at home — can help absorb rising costs on essential purchases.

By making strategic choices, you can ease the financial strain while helping small businesses stay afloat.

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

An Ontario man found out the hard way the responsibilities you take on when you co-sign a loan, and why it’s not a good idea to co-sign a loan for a friend.

“I went in as a co-signer and I had no idea that this could happen,” Mississauga resident Shane Brown told CTV News after learning he is on the hook for $62,000.

“I wanted to help a friend and that’s why I signed the loan. If I would have known what would have happened, I never would have signed it . . . I’m paying for something I’m not even using.”

Hard lesson to learn

For Brown, the predicament began about three years ago when he helped a friend purchase a vehicle because she was having trouble qualifying for a loan. The vehicle was a 2019 Ford Escape and the financing was $62,533.

Brown told CTV News that about a year later he found out that his friend’s ex-boyfriend had vandalized the vehicle to the extent that it was undriveable. So she stopped making the loan payments.

Now, Brown is totally responsible for the $700 monthly payments for a vehicle that has been sitting in an automotive garage for the past year.

“What’s the point of co-signing for somebody,” Brown told CTV. “My friend turned their back against me, how is that supposed to make anyone feel.”

According to MNP, Canada’s largest consumer insolvency firm, the act of co-signing a loan is easy but it’s also very risky.

“If the borrower defaults, the bank will look to you to pay back the loan.”

And this is where it can become tricky for people. MNP says that often people with good credit and little other debt end up filing for bankruptcy because they co-signed a loan and got into financial trouble.

And as Equifax points out: “Co-signing for someone is a significant commitment. So, don’t fill out a credit application without having an in-depth financial discussion with the primary borrower. It’s important to talk to the borrower about their ability to stay on top of their payments and to form a plan in case they fall behind on their financial obligations.”

If faced with a situation like Brown’s, your first step is seeing if you can have your name removed from the loan. But the Financial and Consumer Services Commission of New Brunswick says it can be challenging to remove your name as a co-signer from an existing loan.

“The primary borrower would need to qualify for refinancing or pay off the loan entirely to release you from the loan.”

The issues with co-signing on a loan

Equifax says co-signing a loan may impact a person’s finances in several ways as that person takes on the same financial risk as the primary borrower.

First and foremost, it could increase their debt-to-income ratio which could impact their ability to qualify for their own additional credit. Your credit score could be affected with any late or missed payments.

The biggest impact for a co-signer is being responsible for the payment of a loan if the primary borrower misses a payment.

“Co-signing has the potential to put stress on your relationship with the primary borrower, who is often times a friend or family member. Your finances are tied to theirs for the length of the loan, even if your personal relationship changes,” adds Equifax.

There are several alternatives to taking the step and co-signing a loan for another primary borrower whether it’s for a vehicle or a home. Those include helping out with a downpayment or lending the primary borrower your own money.

So maybe you’d rather not co-sign for someone, but you still want to help. Here are some alternatives to helping someone without agreeing to be responsible for the repayment of a loan.

Fidelity says out that people can help a primary borrower find another loan source.

“Just because one lender requires a co-signer does not mean that all of them will. Each lender will have its own lending requirements. And sometimes it’s worth taking the time to shop around a little.”

Sources

1. CTV News: Ontario man on the hook for $62K after friend stops paying monthly car payments (March 12, 2025)

2. MNP: Co-Signers, Beware! (December 13, 2016)

3. Equifax: What is a Co-Signer?

4. Financial and Consumer Services Commission of New Brunswick: What you should know before co-signing a loan

5. Fidelity: Asked to co-sign? What to know before co-signing a mortgage or loan

This article Ontario man left holding the bag on $62,000 car loan after co-signing for a friendoriginally appeared on Money.ca

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