Category: Moneywise

Recent changes to Social Security are leaving many recipients scratching their heads, as unexpected lump sum payments and overpayments are showing up in bank accounts — all without much explanation.

Brooklyn resident Elizabeth Miller, 65, was shocked and confused when she noticed a large amount of money in her account. “I didn’t know what it was. I had no idea who sent me this,” Miller told News 5 Cleveland “I thought they’d take it back right away. It’s not mine. It was a mistake,” Miller added.

Miller’s situation comes at a time when significant changes to Social Security are affecting people’s payments and she’s not the only one.

Mixed messaging baffles recipients

Different Social Security reps gave her conflicting explanations about why her account balance had suddenly increased. But things didn’t stop there. As more payments and letters arrived, Miller was told the extra funds were actually overpayments she was owed.

Still, Miller remains baffled by the large amounts showing up in her account. “I don’t understand why you would put that much money in my account,” Miller said.

The Social Security Fairness Act was recently passed and aims to eliminate two rules that cut Social Security benefits for certain retirees: The Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) reduced benefits for individuals who worked in jobs not covered by Social Security, like many state and local government workers. In addition, the Social Security Fairness Act ensures these workers receive the full Social Security benefits they’ve earned.

This means that people like Jeff Olds, who received a lump sum payment for his wife, are now eligible for the benefits they missed out on originally.

Olds, a 72-year-old from Brunswick Hills, said after 10 years of normal payments of about $1,600 a month, he received a lump sum of more than $14,000 from Social Security. “I was shocked at first… this never happened before,” he told News 5 Cleveland.

“It’s pretty scary for somebody who doesn’t deal with this every day,” April Roberts, a Social Security expert and CEO of AARIA, told News 5 Cleveland. She noted that lump sum payments will start arriving on March 27. Thereafter, in instances where there was an error, Social Security will recoup legitimate overpayments by withholding 100% of subsequent checks until the balance is repaid.

In some cases, changes to benefits may also follow new income thresholds or changes in the beneficiary’s work status. The problem? Social Security has been sending lump sums before recipients receive letters explaining the amounts. This lack of communication can leave people confused about why they received a deposit, or whether it’s even theirs to keep.

What to do if you spot changes to your Social Security payments

With all the confusion, navigating the changes can be frustrating, so here’s what you can do.

To start, regularly review your statements and make sure your personal information is up-to-date. Set reminders if you need them. If you notice an unexpected deposit from Social Security, call your local office for clarification, but be prepared to wait. “They have access to more detailed information about your specific situation,” Roberts explained.

If you feel that the explanation or payment amount is incorrect, you can file an appeal. If you owe money, you can file a waiver form or arrange a payment plan.

While changes roll out, stay informed and proactive to ensure your Social Security payments are accurate and handled correctly. You can set up alerts to be notified about any new updates to Social Security.

As for Miller, she is still waiting for confirmation letters to explain the lump sum payments in her account. “I think the letters should come before the check to explain that you’re going to be receiving something… for sure, so you don’t have to panic when that much money is placed into your bank account,” she said.

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.

Plans to replace the Sagamore Bridge, a major access point to Cape Cod, have recently sparked controversy as several homeowners face losing their properties to eminent domain.

While many local drivers welcome the infrastructure improvements, affected residents are struggling with uncertainty about compensation, relocation and the impact on property values.

Marc and Joan Hendel, who recently moved to Sagamore’s Round Hill community, were devastated to learn that their home could be taken as part of the project.

“This is heartbreaking to us that they’re just coldly giving us a letter that says we’re going to destroy your home,” Marc told CBS Boston.

The Massachusetts Department of Transportation (MassDOT) plans to replace the aging Sagamore Bridge as part of a broader effort to improve Cape Cod’s infrastructure. The project, which also includes replacing the Bourne Bridge, is expected to take years to complete.

A total of $1.72 billion in federal funding has been secured for the Sagamore Bridge. In a statement released in July 2024, coinciding with the announcement of a major funding award.

“This is a game-changing award for Massachusetts,” Massachusetts Governor Maura Healy proclaimed. “We’ve never been closer to rebuilding the Cape Cod Bridges than we are right now. This funding will be critical for getting shovels in the ground.”

Additional funding is needed for the Bourne Bridge. The construction will involve twin bridge structures to separate traffic flow, improving long-term safety and efficiency.

The government may acquire nearby homes as part of the project, leaving some residents uncertain about their future. The final list of affected properties has yet to be released, but the uncertainty has already disrupted the local real estate market. Many are now weighing their options, deciding whether to sell, hold out for a buyout or challenge the process.

How eminent domain affects home values and market stability

Eminent domain, the government’s legal right to seize private property for public use, can significantly influence home values.

When a government entity signals its intent to take properties for a project, the uncertainty can cause hesitation among buyers, leading to decreased property demand and, ultimately, lower home values in affected communities.

In some cases, properties near eminent domain projects lose value even if they are not directly taken. The potential for construction disruptions, increased traffic and changes in the area may make potential buyers think twice. Since the Sagamore Bridge project is part of a multi-phase project that could take years to complete, market instability in the area may persist.

What homeowners can do about eminent domain

For homeowners who may be impacted by eminent domain, there are steps to take to ensure fair treatment and compensation:

Consult an eminent domain attorney: A real estate lawyer specializing in eminent domain can help homeowners understand their rights and negotiate a fair settlement.

Get an independent appraisal: The government is required to offer just compensation, but independent property valuations can help ensure you receive an appropriate offer. Eminent domain valuation can be complex, and you may not have a second chance if you don’t like the results of your appraisal. Work with an eminent domain lawyer to ensure you get the right type of appraisal.

Negotiate for better terms: Homeowners may be able to contest the initial compensation offer or request relocation assistance depending on state laws and project funding.

Stay informed: Attend community meetings to stay updated on project timelines so you can make informed decisions about your property.

The Sagamore Bridge project highlights the complexities of eminent domain, a process that affects homeowners nationwide. Whether facing a bridge replacement or another public development, property owners must navigate legal and financial challenges.

If you find yourself in a situation similar to these Cape Cod homeowners, stay informed and seek expert guidance to help navigate the process and protect your interests.

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

U.S. President Donald Trump plans to replace income taxes with tariffs, but what does that mean for the average middle-class American?

“Donald Trump announced the External Revenue Service, and his goal is very simple: to abolish the Internal Revenue Service and let all the outsiders pay,” U.S. Commerce Secretary Howard Lutnick told Fox News on Feb. 19. The idea is that once the budget is balanced, taxes will be waived for Americans earning less than $150,000 a year.

However, the flaw in this plan is that tariffs are not paid by “outsiders.” Rather, tariffs are a tax placed on imported goods and services.

“When the U.S. imposes tariffs on imports, businesses in the United States directly pay import taxes to the U.S. government on their purchases from abroad,” according to the Tax Foundation. During Trump’s first term, “the economic evidence shows American firms and consumers were hardest hit by the Trump tariffs.”

At the same time, it would be hard to replace the revenue collected from income taxes with revenue from the planned tariffs. According to a study by the Peterson Institute for International Economics (PIIE), a non-partisan research group, the U.S. imported $3.1 trillion in goods in 2023 while raising about $2 trillion through individual and corporate income taxes.

This means it would be nearly impossible to replace income taxes with tariffs, since the tariff rate would have to be “implausibly high,” according to PIIE. The institute determined that even at a “revenue-maximizing tariff rate,” the U.S. could raise only a fraction of what it raises with income taxes.

Additionally, Trump’s policy could become a victim of its own success. If the result of the policy is that most manufacturing moves to the U.S., there will be fewer imports to tariff, making the replacement of income taxes even more difficult.

The Tax Policy Center speculated there could also be a new consumption tax to help with the revenue shortfall.

"Congress isn’t going to vote any time soon to explicitly replace the income tax with a consumption levy. But aggressive efforts to dismantle the IRS combined with a hollowing out of the income tax base could render the existing revenue system unsustainable. And drive lawmakers to replace it with something else," wrote Howard Gleckman a senior fellow at the Tax Policy Center.

Here are 3 potential impacts on America’s middle class if tariffs replaced income taxes:

1. Prices are likely to rise

It’s difficult to quantify the effects of Trump’s tariff proposals since they’re continually changing.

But research has shown that during the last Trump trade war in 2018, tariffs resulted in price increases of 10% to 30% for goods subject to tariffs and that much of the tariffs were passed on to U.S. importers and consumers.

The Federal Reserve of Boston looked at an additional 25% tariff on goods from Canada and Mexico with an additional 10% tariff on goods from China, and estimated they would add 0.8 percentage points to core inflation (excluding food and energy).

The policy proposed during Trump’s campaign (an additional 60% tariff on imports from China and an additional 10% tariff on imports from the rest of the world) would add 2.2 percentage points to core inflation.

2. After-tax income could decline

These price increases will have a greater impact on middle- and lower-income Americans since these demographics tend to have less disposable income.

To test these effects, PIIE studied what would happen if tariffs were maximized in an attempt to replace income taxes. The result? The tax cut for the middle quintile of income earners would not compensate for the tariff increase and they’d see a net after-tax income loss of about 5%.

This loss in income would be 8.5% for the lowest quintile, while the top quintile would come out 2% ahead. The top 1% would see an increase of 11.6%.

Those losing net income to the tariff-income tax trade-off are unlikely to find much help from improved economic and employment conditions.

3. Tariffs could hurt the economy and cost jobs

Oxford Economics estimates that Trump’s 2018 tariffs on Chinese goods and the resulting trade war cost 0.5% of U.S. GDP. “At its peak, the trade war cost the U.S. economy an estimated 245,000 jobs and on a cumulative basis, real household income was $88 billion lower over 2018–2019 (in 2020 prices), or around $675 per household,” it said.

An argument for tariffs is that domestic companies would become more productive and innovative, but one University of California, Davis study of a past era of high tariffs found that they had the opposite effect.

“Less competitive industries are less innovative, and less innovative industries are less productive,” said author Christopher Meissner. “Tariffs probably weakened the incentives to innovate and come up with streamlined processes that keep companies on their toes and productivity high.”

All told, these forces have the potential to be a drag on the economy and employment that may outweigh any jobs created by the tariffs. A study of 151 countries from 1963 to 2014 found that, in the medium term, tariffs have only small effects on the trade balance but lead to lower domestic output and productivity, higher unemployment and greater inequality.

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

Dating in Canada is hard and making it to the third date is a big deal. Ask any experienced dating app user — where a simple swipe right or left can make or break a budding romance. For single Canadians, making it to the third date adds a bit of pressure — for the expectation of physical intimacy and the impact on the pocketbook.

“I haven’t dated for about a year,” explains Reddit user MountainPerformer210. “One of my biggest pet peeves…was dealing with the third date.”

By the third date, there appears to be an expectation of physical contact — or even sex. It’s an assumption that draws directly from the three date rule.

What is the three date rule?

The three date rule (aka: 3-date rule) suggests that the third date offers the ideal opportunity for potential partners to initiate physical intimacy. The idea is that by the third date, both partners will have a much higher comfort level and a better appreciation of where they’d like to take the relationship.

While this rule is more of a guideline, some statistical evidence suggests that waiting until the third date — or longer — can help improve the quality of a relationship. In a 2014 study, authors Brian Willoughby, Jason Carroll and Dean Busby concluded that “waiting to initiate sexual intimacy in unmarried relationships was generally associated with positive outcomes.”

Perhaps this is why the ‘3-date rule’ has been immortalized in various Hollywood movies and TV shows, including Sex And The City, where the character Charlotte York used this dating trend as her urban romance mantra.

How the 3-date rule can hurt

For those dating in Canada, the three-date rule can be helpful, but it can also add a sense of urgency and implied importance to the third date. This can be a problem as the added pressure can lead to dashed expectations, blown budgets, or both.

To set realistic expectations and reduce the pressure to be intimate before you are ready, it’s best to set clear boundaries, explains dating and relationship expert founder of LoveQuestCoaching, Lisa Concepcion, in an interview with Cosmopolitan.

On the flip side, you’ll need to set dating financial boundaries to avoid depleting your cash reserves while looking for love. Don’t worry, you’re not alone. Building on previous trends, singles continue to prioritize financial transparency in dating. Setting financial boundaries remains a key consideration for many, ensuring that dating experiences are both enjoyable and financially sustainable. This trend towards fiscal responsibility while searching for love isn’t new. In 2023, the Bumble annual survey showed that 28% of dating app users chose to set financial boundaries in their dating lives — showing that the concept of blowing the budget in the pursuit of love is starting fade.

How to set dating financial boundaries

Setting a financial boundary can be uncomfortable but necessary. Consider it a critical skill that’s required to accomplish bigger financial goals.

To set a financial boundary you need to establish and stick to limits, which are dictated by your current budget and future goals.

The only difference with dating financial boundaries is that the limits focus on what you spend on dates — and this includes transit, food, entertainment, gifts and even your wardrobe.

Setting a date budget

To set dating financial boundaries, start with establishing a date budget. Once you know what you’re willing to spend, you can narrow down your options.

To help, consider making a list of restaurants based on price points and always check out the menu online, so you know exactly what to order ahead of time and can estimate what the total bill will cost. Do the same for entertainment options.

By doing this research beforehand, you can easily build out ideas for each date that fit your dating financial boundaries.

Recent trends indicate that singles are embracing more authentic and casual dating experiences. According to Bumble’s 2025 Global Dating Trends, 41% of singles appreciate dating content that shares both the highs and lows, reflecting a preference for genuine connections over extravagant dates. In an earlier Bumble survey, more than half (57%) of daters were clearly more interested in casual, not fancy dates.

Dating in Canada: 3 cheap date ideas, plus tips for keeping costs down

"If you’re seeking third date ideas that are both memorable and budget-friendly, here are three strategies. Just remember, to keep within your dating budget, it’s best to do some research before setting off for a romantic soiree.

No. 1: Take it outdoors

One great strategy to keep costs lower is to set up an outdoor date. This helps eliminate budget creep as it eliminates many budget-buster temptations, such as buying a better bottle of wine or staying for another round of cocktails. To make the most of an outdoors date, make sure you know the weather and have a backup plan — oh, and let your date know so they can dress appropriately.

A few suggestions for outdoor dates include:

• Take in a free concert
• Go to a free festival
• Visit a local Farmer’s Market
• Explore a new neighbourhood
• A park and a picnic
• Plan to complete a photo shoot or movie montage
• Set up a scavenger hunt
• Spend the day at the beach or lake
• Go for a hike
• Rent a tandem bike
• Visit a farm, garden or bird sanctuary

No. 2: Unconventional entertainment

While dinner and a movie or a late-night cocktail are often the standard go-to date ideas, there are plenty of other options. As such, it pays to keep in mind the unconventional entertainment options that can make for a great date.

A few suggestions include:

• Art galleries
• Roller skating
• Ice skating
• Board game cafe
• Aquarium
• Stroll through a farmer’s market
• Bowling
• Check out free concerts
• Go indoor rock climbing

No. 3: Stay home

By the third date, you may want to try a more intimate setting — just keep in mind that this intimate setting is about getting to know one another, not about setting the scene for physical intimacy.

A few suggestions include:

• Cook dinner together
• Watch a movie (great option if you have a good home theatre)
• Download a karaoke app and sing the night away
• Make mocktails together
• Play board games or solve a puzzle together

BONUS: When dating in Canada, you need to tap those deals

For those still interested in the more traditional date options, there are ways to cut costs. The best way is to tap deals, use loyalty programs and look for ways to subsidize your dating costs. To help, here are three strategies:

Strategy #1: Use Scene points or go to a movie on cheap Tuesday

If you’re a movie fan, chances are you already collect Scene points — the loyalty program for Cineplex that lets you collect points that can be traded in for free movie tickets and concession snacks. To maximize your Scene points, consider using a Scene+ credit card, such as Scotiabank’s Scene Visa card. For every dollar spent on the card, you earn Scene+ points (or earn more by shopping at select retailers). For some cards, if you meet a minimum monthly spend you get free movie tickets — perfect for date night!

You can also reduce the cost of your movie date night by agreeing to out on ‘Cheap Tuesday’ — the day Cineplex and Landmark theatres offer discounted movie tickets.

Strategy #2: Use loyalty programs or work perks to get cheaper tickets

Some loyalty programs offer access to discounted tickets. For instance, RBC customers (along with a number of Canadian employees) get free Perkopolis memberships, where they an buy discounted tickets for major attractions across North America, including Toronto’s Royal Ontario Museum.

Another option is looking for deals using coupon sites like Groupon or shopping using deal sites, such as Capital One Shopping or Swagbucks.

Strategy #3: Use cashback to reduce overall costs

Even with a dating budget, it’s a good idea to maximize potential savings when it comes to spending on a potential partner. One easy way to do this is to use a cash back credit card for all dating expenditures.

For instance, if you use the no-annual fee you could earn up to 2% cash back on every purchase made on your date. On a dating budget of $500 per month, that’s $120 in cashback earnings in just one year.

Bottom line

There’s hope for single Canadians looking for love in 2025. If your goal is to find love, without going broke, concentrate on setting your financial and personal limits. The more honest and committed you are to yourself and your own goals, the more attractive you may be to a potential partner.

Sources

1. National Library of Medicine: Differing relationship outcomes when sex happens before, on, or after first dates (Nov 2, 2012)

2. Cosmopolitan: If You’ve Made It to the Third Date, Here’s Everything You Should Know and Expect (July 5, 2021)

This article Dating in Canada: Three date rule + Cheap date ideas 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.

Trump’s escalating trade fight with Canada is sparking backlash in an unlikely place: his own fanbase. Joe Rogan, a high-profile Trump voter and supporter, slammed the economic standoff as “stupid.”

‘Why are we upset at Canada?” he asked fellow comedian Michael Kosta on a recent episode of his podcast The Joe Rogan Experience, “This is stupid, this over tariffs … We got to become friends with Canada again, this is so ridiculous. I can’t believe there is anti-American, anti-Canadian sentiment going on. It’s the dumbest f— feud.”

And it’s not just tariffs rubbing him the wrong way. The 57-year-old also took a shot at Trump’s wild talk of annexing Canada, quipping, “I don’t think they should be our 51st state.”

Recent surveys seem to indicate that most Americans and Canadians share Rogan’s sense of frustration with the ongoing economic battle.

‘Dumbest trade war in history’

At the time of writing, aluminum and steel imported from Canada face 25% tariffs while potash and energy imports face 10%, according to the Conference Board’s live tracker.

Goods covered under the United States-Mexico-Canada Agreement (USMCA) trade agreement are exempt until April 2, which covers about 38% of imports from Canada. On April 3, 25% tariffs will also be imposed on cars imported from Canada.

The Trump administration’s justifications for these tariffs have varied widely, but the president has repeatedly insisted that Canada could avoid the trade war by simply joining the U.S.

“The only thing that makes sense is for Canada to become our cherished Fifty First State,” the president wrote on Truth Social. “This would make all Tariffs, and everything else, totally disappear.”

Few people on either side of the border support this idea.

Angus Reid polled Canadians and found 90% of Canadians would vote “no” to joining the U.S. Meanwhile, 60% of Americans are against the idea, and 32% would only consider it if Canadians are onboard.

The trade war is just as unpopular, with only 28% of Americans in favor of tariffs on Canadian imports, according to a survey by Public First. These economic moves are so unpopular and unjustified that the Wall Street Journal labeled it “The Dumbest Trade War in History”.”

Whether this growing chorus of criticism convinces the Trump administration to dial back trade tensions remains to be seen. For now, consumers and investors must prepare for a volatile economy.

How to prepare

With plenty of uncertainty on the horizon, it’s probably a good idea to make strategic moves to protect your budget and investments for the foreseeable future.

The stock market has been just as volatile as the administration’s trade policy, prompting some investors to seek a safe haven. The price of gold is up 14.5% over the past six months as more investors add exposure to this hard asset.

Meanwhile, consumer behavior is shifting in response to tariff threats. If tariffs push prices up, nearly half of shoppers say they’ll buy less often.

Another 40% are ready to swap for cheaper brands, and half are open to secondhand or local alternatives, according to a poll by Smarty, a shopping rewards app.

The survey also found that many consumers are adopting a “buy now before prices spike” approach to major purchases, such as cars and home appliances. Moving up big purchases and buying essentials in bulk could be a great way to avoid or minimize the costs of this trade war.

Over the long term, if this economic battle persists you may need to add a margin of safety to your annual household budget. If you assume auto parts, clothes and food will cost roughly 25% more in the future, you can bolster your personal finances even if this trade conflict is resolved and the price hikes don’t materialize.

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

Bernadette Joy, CEO of Crush Your Money Goals, went from $300,000 in debt to earning her first million in just eight years — and it all started with one simple but powerful step: taking ownership of her finances.

But before her fortunes began to turn, Joy often felt like she was broke and that her finances were off track. As it turns out, many Americans can relate to this feeling — a recent survey from Empower found that 41% of Americans don’t consider themselves to be financially “well-off.”

By holding herself accountable and confronting the money mistakes that were quietly draining her wealth, Joy flipped the script on her financial future. And as a self-proclaimed “debt-free millionaire money coach,” her goal is to help others to do the same.

Here’s what Joy recommends you can do to stop overspending on common missteps and get your finances on the right track.

Hidden credit cards fees

That shiny new credit card promising free flights, cash back galore and VIP lounge access might seem like a fast track to living your best life, but Joy warns her clients not to be fooled. Many of these credit cards come with hefty annual fees that can quietly chip away at your budget. On top of that, they often carry steeper penalties if you miss a payment, making them even more expensive over time.

While the perks may sound glamorous, they can quickly lose their luster if you’re not earning enough rewards to outweigh the cost — or worse, if the card nudges you into spending more just to "get your money’s worth."

With U.S. credit card balances reaching $1.21 trillion by the end of 2024 — according to the Federal Reserve Bank of New York — it’s clear that debt is already a major financial hurdle for millions of Americans. Add on unnecessary fees, and you could be walking further away from your financial goals.

Skipping retirement contributions hurts twice

When it comes to investing, a lot of people jump straight into brokerage accounts without taking full advantage of tax-advantaged options like a 401(k), HSA or IRA.

“Unless you have put the maximum allowed by the IRS each year in these, you likely don’t need a brokerage account at all,” Joy wrote in her CNBC article.

While there’s nothing wrong with investing in a regular brokerage account, you’re likely paying more in taxes than you need to. That’s because contributions to a traditional 401(k) are made with pre-tax dollars — meaning the money you contribute gets deducted from your taxable income for the year.

For example, if you earn $70,000 per year and put $10,000 into your 401(k), you’ll only pay income tax on $60,000. That’s an instant tax break that could give you more money to save for your nest egg. On the flip side, investments in a brokerage account are made with after-tax dollars, and any gains could be taxed as well.

Investment fees that eat at your wealth

Even if you’re diligently contributing to your 401(k) or investing in mutual funds, hidden fees could be quietly draining your returns. One of the biggest culprits is the expense ratio, a fee charged annually to cover operating costs like management and administrative services.

“While paying an extra 1% in fees might not sound like a big deal, over 30 years, it could mean losing out on six figures in potential growth,” Joy mentions in her CNBC article..

Instead, Joy recommends opting for low-cost index funds over actively-managed funds. Low-cost index funds tend to have significantly lower fees and, over time, those savings add up.

Even small adjustments to your investment strategy today can make a big difference to your future finances.

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

Despite the daily worries of escalating tariffs, economic recession, inflation and who knows what else, many Canadian homeowners don’t seem all that worried about keeping up. A new CIBC poll found the majority of mortgage holders feeling confident in their ability to handle their mortgage payments and make their budgets work.

"As mortgage rates are declining, it’s encouraging to see that despite continued financial pressures, the majority of homeowners remain confident in their ability to manage their living expenses," Daniel Rethazy, CIBC senior vice-president of personal lending, said in a statement.

In fact, 64% of variable rate mortgage holders remain unaffected, reporting little to no impact on their standard of living, as do 59% of those expecting higher renewal rates.

How are Canadian homeowners navigating budget challenges?

It can be difficult enough managing a mortgage without the daily economic uncertainty that 2025 has wrought so far. Six in 10 homeowners renewing their mortgage in the next two years anticipate higher interest rates, with the average expected increase between 1% and 2%. Amidst this backdrop, mortgage holders have a number of key concerns:

• inflation and living costs (94%)
• broader economic conditions (89%)
• interest rates (85%)
• potential US tariffs (80%)

Concerns about election outcomes in Canada are not far behind at 70%.

Determined to make budgets work, over half of renewers expecting a higher rate are tightening their belts by opting for more affordable shopping options and cutting back on discretionary spending such as travel and entertainment.

Many are also shopping for better mortgage rates (42%), seeking additional income sources (24%) and making lump sum payments towards their mortgages (19%).

Homeowner attitudes in 2025

Given that uncertainty, it seems most homeowners are opting for the more concrete option when it comes to their mortgage. Nearly two-thirds (64%) of those renewing their mortgages in the next two years plan to secure fixed-rate mortgages, with 17% leaning towards variable rates and 19% remain undecided.

Amidst fluctuating interest rates, nearly two-thirds (64%) of Canadians with variable rate mortgages report little to no impact on their standard of living, while the remaining one-third experience moderate to severe financial strain.

Despite the housing crisis and current economic woes, 55% of Canadians are homeowners. Additionally, homeownership still remains a highly valued milestone, with 90% of homeowners expressing pride in their achievement.

Survey methodology

The findings come from an Ipsos poll of 1,500 Canadians aged 18 and above conducted online between Jan. 20 and 28, on behalf of CIBC.

Sources

1. Cision: Amid economic uncertainty majority of Canadian homeowners express confidence in managing mortgage payments and budgets (March 24, 2025)

This article Despite economic uncertainty, Canadian homeowners remain confident in their budgetoriginally appeared on Money.ca

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

There’s been plenty of debate about the stubborn wealth and income gap in our economy. But according to NYU Professor Scott Galloway, the real chasm isn’t just between the rich and the poor. It’s between the old and the young.

In a recent conversation with Simon Sinek, Galloway proposed the theory that the economic system favors people who were born early enough to accumulate assets such as real estate cheaply, and now enjoy inflated valuations.

This generational divide is the fundamental cause for widespread economic dissatisfaction, according to him.

“Everything we do is ‘how do we buttress the wealth of incumbents and old people and make it more expensive for young people?” he said. “Their housing has gone up 4x, their education has gone up 2x and, on an inflation-adjusted basis, their income has gone down.”

While recent data confirms a wide wealth divide between generations, subtle shifts suggest the gap is starting to close gradually.

Generational wealth divide

As of Q4 2024, baby boomers held 51% of household wealth in America, according to Federal Reserve data. Altogether, their assets were worth $82.48 trillion. By comparison, millennials had just $16.26 trillion in total assets.

This wealth disparity could be the root cause of dissatisfaction for many young Americans, many of whom are now old enough to start families and need larger homes.

At the same time, there are some encouraging signs. Millennials have been accumulating assets rapidly in recent years, as their share of the national total surged from nearly 1% in 2010 to 10% in 2024. Boomers, on the other hand, now see a drop over the same period.

And according to a 2024 Wall Street Journal report, millennials and older members of Generation Z now have 25% more wealth than Generation X and baby boomers did at a similar age, when adjusted for inflation.

Inheritances could be helping some younger people achieve prosperity. According to NorthWestern Mutual, experts predict the Great Wealth Transfer from baby boomers and Gen Xers to their children will be worth $90 trillion.

However, having wealthy parents isn’t the only path to wealth accumulation.

Beating the odds

If you’re a young person in America from a low- or middle-income family, the odds are stacked against you. However, there are ways to beat the system and out-perform your peers in the wealth accumulation race.

Avoiding or minimizing debt could put you ahead of the game. Roughly 97% of retirement-age U.S. adults still have nonmortgage debt, according to a recent retirement study. This includes things like student loans, auto loans and credit card debt. If you can minimize debt during your working years, you could come out on top in retirement.

Another way to beat the odds is to accumulate assets as rapidly as you can. As of January, the personal savings rate is just 4.6%, according to the U.S. Bureau of Economic Analysis. If your debt burden is lower than most Americans, you could afford to set aside more of your disposable income for savings and investments.

By saving slightly more and investing in a low-cost index fund that tracks the broad stock market, for example, you could gain exposure to the country’s most robust wealth creation engine.

Even on a modest salary, saving 10% or 15% of your income and investing in ETFs or stocks could help you accumulate more than $35,649, the median net worth of an American in their 30s, according to Empower.

Finding side gigs or upgrading your professional skills to boost your earnings could be another way to supercharge this strategy.

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