Breakups can be painful, but the pain can be amplified if you relied on your ex-partner to handle your finances.
Elliot from Toronto, called into The Ramsey Show explaining that his separation from his wife has left him both emotionally and financially vulnerable. Although he earns $73,000 a year — it’s unclear if this was in U.S. or Canadian dollars — he’s not confident in managing the family budget by himself.
“She used to handle all of the money in the house, so I’m just kind of figuring things out for myself now,” Elliot said in a clip posted Jan. 6, 2025.
At the same time, he’s also figuring out how to raise his 18-month-old daughter as a single parent. He admits he hasn’t been able to stick to a budget and has struggled to save any money.
Ramsey took the opportunity to highlight how heartbreak can be reflected in bank statements.
Tackle the budget
It’s common in marriages for one partner to take the lead in handling the household budget.
If you’re not used to doing this type of work, you may struggle, if the relationship falls apart and suddenly the responsibility drops on you. Nearly half of Canadians say they’ve lost sleep because of financial worries, according to FCAC.
To be fair, Elliot says he crafted a budget that should be leaving him $300 in savings every month. However, he hasn’t been able to stick to his plans and that excess money always seems to disappear.
Ramsey believes Elliot’s emotional distress could be the reason why his budget plans haven’t worked out as expected.
However, one of the main reasons why budgeting can be challenging is the difficulty of tracking multiple accounts and daily expenses at the same time. Juggling various bank accounts, credit cards, and cash transactions can quickly become overwhelming. That’s where Monarch Money’s expense tracking system comes in.
The all-in-one money app seamlessly connects all your accounts in one place, giving you a clear view of where you’re overspending. It also helps you monitor your expenses and payments in real time.
Whether you’re looking to save, buy a car, pay off debt, or simply control your spending, Monarch Money brings together everything you need to manage your finances effectively. For a limited time, you can get 50% off your first year with the code MONARCHVIP.
Curb emotional spending
Following a budget is challenging at the best of times, but it becomes even harder when you’re dealing with the emotional weight of a breakup. Financial expert Ramsey cautions that emotional spending — like eating out or shopping to combat loneliness — can quickly derail your finances if not addressed. “You’re going through a heartbreak,” he told Elliot. “That pain will show up in your money if you don’t get ahead of it.”
Research from the Bank of Canada also shows that financial stress can cause people to either cut back or overspend, depending on how they respond emotionally.
Elliot admitted he’s not always attentive to his spending, though he didn’t confirm if emotions were driving it. Ramsey recommends taking a proactive approach: before the month begins, assign every dollar a job and track where your money goes.
“The only way to make the money behave is, before the month starts, write every dollar down and where it’s going to go,” Ramsey advised. “You’re in charge of it, but you need to tell it what to do.”
Setting up regular, automated contributions to a high-yield savings account can help curb emotional spending, as every dollar has a designated purpose. Using a chequing account that pays high interest — like the EQ Bank Personal Account — will allow you to earn high interest on your day-to-day spending and be better prepared if you need funds to fall back on.
The EQ Bank Personal Account offers the interest-earning potential of a high-interest savings account, at a rate of 3.50% per dollar, while also having easy access to your money when you need it. The account has $0 monthly fees and no minimum balances. Plus, you can withdraw from any ATM in Canada — for free.
Building your savings in this way can help you create a short-term emergency fund or reserve money for essential expenses like childcare.
Build a strong foundation
As a single parent, prioritizing savings for your daughter’s future can make all the difference in giving her a strong start in life — whether it’s for education, unexpected costs or her important milestones. One effective way to do this is by opening a Registered Education Savings Plan (RESP) through Wealthsimple Investing.
An RESP is a government-registered savings account designed specifically to help parents, grandparents, and guardians save for post-secondary education expenses. By investing in an RESP with Wealthsimple, you can take advantage of the Canada Education Savings Grant (CESG), where the government adds up to 20% on contributions — helping your savings grow faster without extra effort on your part.
You can get a $25 bonus when you open your first Wealthsimple account and fund the account with at least $1 within 30 days.
After securing your child’s education fund, it’s just as important to plan for your financial future. By opening an RRSP and TFSA with Wealthsimple and setting up regular contributions, you can steadily save for retirement or a future home, allowing you to balance both your personal and family’s long-term goals.
Wealthsimple RRSP and TFSA accounts provide a smart, effortless way to invest and grow your savings with low fees and no hidden charges. Designed to help Canadians reach their financial goals, these accounts offer automated investing with diversified portfolios tailored to your risk level. Whether you’re saving for retirement with an RRSP or building tax-free growth with a TFSA, Wealthsimple makes investing simple, accessible, and transparent — so you can focus on what matters most.
The next step is buying a home. When you’re ready to do so, finding the right mortgage can feel complicated and time-consuming. That’s why using Nesto could be a smart choice. Nesto is Canada’s first fully digital mortgage broker, designed to help you find the best mortgage rates quickly and easily.
No matter where you are in the country, Nesto lets you instantly compare low rates on a wide range of options — from 3-year fixed to 5-year variable mortgages.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
