To top it off, not all spouses have a solid understanding of their joint finances. One study found that only half of Canadians (52%) say they “share everything” with their partner, including a joint bank account, while 38% only share “important” information (1). Moreover, one in 10 say discussing financial matters depends on the situation or don’t discuss it at all.

From surprise debt to unexpected tax consequences, these financial blind spots can cost survivors tens of thousands of dollars or more. What's worse is making financial decisions in the midst of grief can result in a spouse unknowingly losing benefits, overpaying taxes or even falling victim to poor financial advice.

Many of these pitfalls are preventable if couples openly and regularly communicate about money and make a financial plan for the loss of a partner — as uncomfortable of a conversation that may be.

4 financial pitfalls

A sudden drop in income: Losing a spouse means you might face a sudden drop in income, especially if your partner was the main breadwinner or you were reliant on two incomes. If the surviving partner isn’t as familiar with the household budget, some monthly expenses — like bills, insurance and property taxes — could also come as a bit of a shock.

The survivor could be eligible for the Canada Pension Plan (CPP) Survivor’s Pension, which is based on the deceased’s contributions (2). If the survivor already receives CPP, their pension will be combined with the deceased's CPP into a single monthly payment. But the amount you receive isn’t the sum of two benefits; it will be capped at the maximum retirement pension (which is $1,507.65 a month, as of January 2026) (3).

That’s more than the maximum survivor’s pension, which is $803.54 if you’re younger than 65 or $904.59 if you’re 65 and older (4). But that’s still not much, and non-retired survivors may be left with only one or no income. That means they may not be able to afford the lifestyle they’re accustomed to, as they’re now solely responsible for any debts their name is tied to, like a mortgage.

Unexpected debt: Survivors could also discover that their late spouse had debt they didn’t know about — whether it was simply an oversight or a case of financial infidelity. One in five Canadians keep a secret around money or spending in their relationship, according to a survey from Rates.ca (5). Almost one in five (21%) have hidden cash, 14% have hidden bank accounts and 10% have a secret line of credit or loan.

Debts are typically paid out of the deceased’s estate, though that could impact an expected inheritance. However, you may be responsible if you’re the co-signer on a loan or a joint account holder on a credit card (6).

Inability to access accounts: Even if you’re aware of all accounts owned solely by your late spouse, you may not be able to access them right away. As part of the probate process, a bank could freeze the account upon receiving the death notice, waiting for direction from the executor or administrator — leaving the surviving spouse unable to access those funds until the probate period is up.

Probate is the legal process of validating a deceased person’s will, paying debts and taxes, and transferring assets according to the deceased’s wishes. While probate fees and timelines differ by province, the process takes on average about three months (7). But in some cases it can take much longer, depending on the size of the estate or any legal disputes (such as a contested will) that introduces delays (8).

Higher tax brackets: Survivors can be bumped into a higher tax bracket because they no longer have the ability to split income with their spouse — a strategy that allows a household to lower their tax liability by moving income from a higher earner to a lower earner. For the 2026 tax year, the lowest marginal tax rate is 14% on the first $58,523 (9).

If you’re 65+ and receive RRIF income, you can split that income with your spouse up to 50% (if they have a lower marginal tax rate) to reduce the household tax burden. When one spouse passes away, the full tax burden falls to the survivor (10).

Steps to take now

While these risks are real, they’re not inevitable. Awareness — not wealth — is the strongest form of protection. And that starts with communication.

Each spouse should know where all important documents are stored (preferably in a fireproof and waterproof safe or in a safety deposit box). That should include all sources of income and assets, including any pensions and RRSPs, as well as insurance information, bank account numbers, credit and debit card names and numbers, and a copy of the most recent income tax return. It should also include information on any debts or loans.

If you add a joint owner to a bank account or investment account — with rights of survivorship, rather than as tenants in common — then you can avoid probate. Most provinces also allow you to designate beneficiaries for your bank accounts (payable on death) and non-retirement investment accounts (transfer on death) (11). RRSPs, TFSAs and life insurance policies also avoid probate, so long as a beneficiary is named.

It can be useful to work with a financial advisor, but both partners should feel comfortable working with that person so there’s already a trusted relationship in place if one spouse passes away.

Perhaps most importantly, it’s crucial to avoid making any major financial decisions in the midst of grief and overwhelm, which could lead to regrets later on. Once some time has passed and the fog begins to clear, you’ll be in a better place to make complex decisions that will impact your future.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Business Wire (1); Government of Canada (2, 3, 4); Cision (5); Investopedia (6); Willful (7); Adler Law (8); Fidelity (9); RBC Wealth Management (10); Canadian Estate Planning (11)

Statistics Canada reported that food prices climbed 6.2% over the past year, the fastest pace since 2023 (1). By comparison, U.S. food inflation was roughly half that level, based on U.S. Bureau of Labor Statistics data (2). The widening gap has led some economists to describe Canada as the “food inflation capital of the G7,” highlighting the outsized pressure Canadian families face relative to their peers in other advanced economies.

Rising grocery and restaurant costs

CityNews reported that grocery store prices rose about 5% in the past year, while restaurant meals jumped 8.5%. Many Canadians say they are noticing smaller portions and are relying more heavily on sales flyers and visiting multiple stores just to manage weekly food costs.

“I’m buying stuff I used to buy in college and I’m in my mid-30s now,” one Montreal shopper told CityNews. Another described their weekly flyer as their “bible” for finding deals.

While these coping strategies can help in the short term, they come with trade-offs. Tracking discounts and hopping between stores takes time, and cutting back on food quality can carry longer-term health implications.

What’s behind the rising prices

Several interconnected factors are driving higher food costs. Global supply chain disruptions — including shipping delays, rail bottlenecks and port inefficiencies — add costs before food ever reaches store shelves. Trade tensions and tariffs contribute additional pressure, while extreme weather and climate events affect crop yields worldwide. Geopolitical conflicts, including the war in Ukraine, for example, continue to influence commodity and fertilizer markets.

“Once these factors filter through the supply chain, consumers feel them quickly,” CityNews reported. Andrew Barclay, a senior economist at Statistics Canada, told the news outlet that “the main story for food is almost always weather,” noting that geopolitics has played a growing role more recently.

Federal policy has also affected food prices. According to StatCan, last year’s GST/HST holiday temporarily lowered the cost of certain items, including snack foods and candy, but prices rose again once the tax break ended (3).

Sylvain Charlebois, director of Dalhousie University’s Agri-Food Analytics Lab, told CityNews that without the tax break, food inflation would have been closer to 4.2%. “There’s greed, absolutely,” Charlebois said. “I do think that this is something we also need to think about with grocers.”

Costly scandals add to wallet strain

Even as inflation bites, Canadians can look back on past enforcement actions as a reminder that corporate accountability can return money to households. In 2017, major grocers and bread producers admitted to participating in a bread price-fixing scheme that inflated the cost of packaged bread for years.

Loblaw Companies Ltd. and George Weston Ltd. offered $25 gift cards as part of an early settlement, followed by a broader national class action (4). Court-approved settlements later resulted in additional cash payments, with applications accepted throughout 2025. While the application period is now closed, the program will return money to Canadians who were overcharged, illustrating how vigilance and legal recourse can deliver tangible financial benefits.

It also underscores how Canadian households can be at the mercy of market power when trust is abused — and how easily everyday consumers can be overcharged without knowing it.

What consumers can do now

Food inflation may be structural, but households can still take steps to protect their wallets. Tracking long-term price trends through StatCan data can help identify shifts beyond short-term spikes. Loyalty programs, price-matching tools and community food co-ops can offer modest savings when used consistently. Reviewing receipts over time can also reveal where spending habits have quietly changed.

Even though the bread settlement window has closed, staying aware of restitution programs and class actions remains worthwhile. In a period where groceries, housing and utilities dominate household budgets, every recovered dollar matters.

Rising food costs are not just numbers on a receipt. They represent a persistent financial challenge. Understanding why prices are climbing — and where accountability exists — gives Canadians a clearer path to navigating the pressure with more control over their money.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

CityNews (1); Trading Economics (2); Statistics Canada (3); Canadian Packaged Bread Class Actions Settlement (4)

Revenue surged to US$57 billion, up 22% from Q2 and up 62% year-over-year, while the company saw a record US$10 billion sequential revenue jump. CFO Colette Kress said that demand for AI infrastructure “continues to exceed our expectations” as companies race to deploy large-scale AI systems (1).

CEO Jensen Huang went further, describing a shift from text-based generative AI to “agentic” and physical AI, capable of reasoning, interacting with the real world and operating autonomous machines. NVIDIA now sees more than US$500 billion of multi-year visibility for its next-generation GPUs and networking platforms, with orders coming not only from tech giants, but from governments, corporations and emerging “AI factories (2).”

While that may sound distant, Huang argues the implications are immediate. If NVIDIA is right, AI will generate much more than images and chat responses — it will quietly run workloads that influence how people work, invest and navigate daily life, from banking and healthcare to logistics and public services.

AI boom, not a bubble

To NVIDIA, the AI surge isn’t a hype cycle nearing its peak — it’s in the early stage of a decades-long infrastructure build-out. CEO Jensen Huang described the shift this way during the company’s earnings call in November 2025:

“The transition to generative AI is transformational and necessary, supercharging existing applications and business models. The transition to agentic and physical AI will be revolutionary, giving rise to new applications, companies, products and services (3).”

The next phase is about AI systems that can plan, act and interact with the physical world — powering robotics, autonomous logistics and “AI agents” that can take action on your behalf — not only chatbots or image generators. Huang has also said that NVIDIA now has over US$500 billion in multi-year “visibility” for its Blackwell and Vera Rubin GPU platforms and related systems through 2026, driven by demand from cloud providers such as Amazon and Google, governments and large enterprises (4).

NVIDIA argues that AI hardware is becoming a form of economic framework — as essential as cloud computing, telecom networks or even utilities. Rather than AI being a novelty on its own, it’s showing up across real-world sectors in Canada such as:

• Medicine, where AI systems support diagnosis, triage and drug discovery, according to Canadian and international reviews of clinical AI tools.
• Finance, where regulators such as Canada’s Office of the Superintendent of Financial Institutions (OSFI) note that banks are using AI to improve fraud detection and automate back-office work.
• Transportation and logistics, where programs such as the National Research Council of Canada’s Artificial Intelligence for Logistics initiative focus on using AI to optimize routing, warehousing and supply chains.
• Retail, where Canadian innovation hub SCALE AI and industry studies report that AI-powered forecasting and inventory tools are helping companies cut logistics costs and reduce stock-outs.

Data also shows that adoption is spreading beyond Big Tech. Statistics Canada reports that about 14% to 15% of Canadian businesses either use or plan to use AI within the next year, with sectors like Information and Communications Technology (ICT), finance and health leading the way (5).

In this context, the AI boom isn’t being dismissed as a bubble waiting to burst — it’s rapidly growing into a foundational layer of the economy. And if NVIDIA is correct, AI’s implications reach beyond Silicon Valley: they affect how people work, how companies invest and how everyday life operates both nationally and internationally.

What the AI boom means for you

Whether you’re checking your portfolio, planning a career move, or just trying to understand where the world is headed, here are some ways the AI build-out is already touching real life:

AI is already supporting industries Canadians rely on

AI systems are increasingly used in industries most people interact with every day, including:

• Healthcare. AI systems help medical professionals read scans, detect early signs of disease and quickly triage cases. For example, the Canadian Medical Association Journal (CMAJ) has documented how AI tools support radiology and oncology workflows (6). Health Canada also keeps a registry of approved AI-supported medical devices, confirming clinical adoption rather than hype.
• Banking and fraud prevention. Canada’s financial regulators note growing use of AI in customer engagement, plus fraud detection and anti-money laundering (AML) monitoring.
• Transportation and mobility. National Research Council (NRC) Canada actively funds AI for logistics, routing and autonomous systems. Ride-shares such as Uber use AI to predict demand, match drivers and determine pricing in real time.

The job market is shifting

AI is changing more than products — it’s reshaping the professional landscape.

Statistics Canada reports that AI use tends to reorganize tasks and workflows, raising demand for technical, analytical and supervisory positions while automating routine functions.

The roles most at risk for greater automation include mainly routine, rules-based or clerical positions, such as customer support, administrative triage and document review.

However, the main takeaway from labour economists isn’t job elimination — it’s reconfiguration. Workers who can use, manage or collaborate using AI tools are projected to see premium wages.

Investors take note

From an investment perspective, AI is more than a tech story — it’s increasingly classified as a general-purpose technology, similar to electrification or the early internet framework.

Instead of being a fleeting stock trend, investors can consider looking at AI from a broader economic standpoint.

The Organisation for Economic Co-operation and Development (OECD) characterizes AI as a “general purpose innovation” with economy-wide spillovers (7). The Bank of Canada has also been studying AI’s macroeconomic effects on productivity, capital allocation and labour dynamics (8). It helps explain why investor capital is flowing into the broader supply chain beyond NVIDIA, including AI infrastructure layers such as:

• Semiconductors and GPUs
• Data centres
• Cloud platforms
• Networking and interconnects
• Electrical and cooling infrastructure
• Industrial automation and robotics
• Cybersecurity

If NVIDIA’s hypothesis is correct, AI becomes an input cost of the economy, rather than a niche sector — which means its ripple effects impact how people work, invest and interact with services.

What Canadians should know

If NVIDIA’s assessment is true and AI acts as long-term economic infrastructure rather than a passing tech trend, Canadians have three elements to pay attention to:

1. Treat AI as a skill, not a threat

Most economists studying automation argue that the risk of role displacement is highest for jobs where tasks are rule-based and repetitive. However, they don’t disappear overnight; they transform.

In its 2024 AI adoption study, the Conference Board of Canada found that AI-reorganizing work tends to shift tasks toward judgment, communication and tool supervision, rather than eliminating entire occupations outright (9).

For workers, it means the biggest upside is learning how to collaborate with AI — using tools to speed up research, drafting, analytics and operations.

You don’t need to become a machine learning (ML) engineer. For most careers, the competitive edge comes from AI fluency over deep technical mastery.

2. Understand where investment capital is flowing

For investors, the question isn’t “Which AI stock should I buy?” but rather, “Which part of the AI supply chain is scaling fastest?”

Capital is moving into:

• Semiconductors and GPUs
• Data centres and industrial power
• Cloud platforms
• Networking and interconnects
• Cybersecurity
• Robotics and automation
• Enterprise software
• AI-enabled infrastructure

The movement reflects how economists categorize AI as general-purpose technology, similar to electricity or the internet.

Because of that, the risk is less about hype and more about timing — early infrastructure cycles tend to reward patient capital.

3. Build literacy before making financial or career bets

When new tech triggers hype cycles, people often leap before they understand what they’re buying or what skills they truly need.

A growing number of Canadian universities and professional organizations offer AI literacy programs for non-tech workers, including:

• University of Toronto's School of Continuing Studies
• McGill's School of Continuing Studies
• Schulich ExecEd (York University)
• Vector Institute training programs

These programs don’t train engineers; they train analysts, managers, healthcare workers, financial professionals and operators to integrate AI tools into existing workflows.

For most Canadians, literacy beats speculation at this stage of the cycle.

Bottom line

If NVIDIA’s view is correct, AI isn’t a bubble waiting to pop — it’s a long-term architectural build-out.

The best response for Canadians isn’t panic or hype — it’s positioning:

• Learn how to use AI tools rather than compete with them
• Understand where investment capital is flowing rather than chasing headlines
• Build literacy before making career or financial pivots

The upside of an infrastructure cycle is that ordinary people can benefit, not just Silicon Valley. The key is getting in early on the learning curve, not a speculative one.

- With files from Melanie Huddart

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

NVIDIA Corp. Q3 2026 Earnings Call (1); NVIDIA News (2); Yahoo! Finance (3); Times of India (4); Statistics Canada (5); Canadian Medical Association Journal (6); Organisation for Economic Co-operation and Development (7); Bank of Canada (8); Aprio (9)

Bryce told The Wall Street Journal that, at his previous job, “I often felt like I was wasting my time” with clients that were only focused on money (1).

While he doesn’t mention how much his new gig pays, it’s fair to assume he's taken a substantial pay cut. But for this phase of his life, it’s a more fulfilling way to ensure his nest egg is secure.

When Bryce thought about what he wanted to do during the next chapter of his life, he remembered how much he enjoyed being a guest lecturer at law schools and colleges.

So, in September 2023, he retired from practicing law and, the same month, started a new job teaching at West Catholic Preparatory High School in Philadelphia. He expects to keep teaching until age 70, provided he stays in good health.

If you’re thinking of ‘unretiring’ or postponing your retirement, here are a few considerations.

Why traditional retirement doesn’t work for everyone

Not all retirees are content to spend their days playing pickleball or going on cruises. ‘Unretiring’ is becoming more commonplace — whether out of necessity or to find a sense of purpose or structure in retirement.

One in five seniors (21%) aged 65 to 74 worked in 2022, according to Statistics Canada. Of those, 9% were working out of necessity while 12% were working by choice (2).

For many, retiring at 60 is hard to do these days, due to the rising cost of living. BMO’s 15th annual Retirement Survey finds that more than three-quarters of Canadians (76%) are worried they won’t have enough money in retirement because of the cost of goods and services. On average, they believe they need just over $1.54 million to retire (3).

In 2023, the median net worth of Canadians aged 55 to 64 was $873,400, according to StatCan (4). That includes RRSPs, private pension plans, employer-sponsored pension plans and other financial assets (5).

It’s not surprising, then, that many retirees are ‘unretiring.’ There are other ways it can help boost your income, too.

The standard age to start drawing from your Canada Pension Plan (CPP) benefit is 65. You can start as early as age 60 (which means smaller monthly payments) or as late as age 70, which means bigger monthly payments. The monthly increases are maxed out when you turn 70 (6).

So, the longer you work, the longer you could delay your CPP benefit, resulting in a larger monthly benefit when you eventually retire.

If you’re already receiving CPP but choose to go back to work, you’ll still continue to receive your monthly pension payments without it being reduced — and you could boost future payments through additional CPP contributions (7).

From age 65 to 70, making CPP contributions through work is optional. If you choose to keep contributing, those contributions go toward the CPP Post-Retirement Benefit (PRB), raising your future pension amount. After age 70, CPP contributions automatically stop and you can’t earn additional post-retirement benefits either (8).

How to find work when ‘unretiring’

While retirees may face barriers to re-entering the workforce, they could also choose to look for jobs in fields where there are shortages — like Bryce did.

“I knew there was a national shortage and demand for teachers,” he told The Wall Street Journal. He didn’t want to teach at a law school, and felt “I could have a greater impact at a high school level than I would at a college level.”

Retirees looking for meaningful work have several options, such as teaching, substitute teaching or tutoring. “Experience is a valuable asset and retirees have loads of it. If you were an engineer in a previous life, for example, and you have a knack for math, you may want to try teaching it,” according to Guideposts.com (9).

For example, if you’re a retired biologist, maybe you’d find it fulfilling to work in the garden department at Home Depot. If you’re a history buff, maybe you’d enjoy working at the local museum. And if you love being around kids, then maybe a school bus driver would be satisfying.

While men tend to return to technical, managerial or consulting roles, some women seek jobs that align with their passions, according to research from Empower, noting that: “Unretirement is reshaping industries such as healthcare, education and retail. These are popular sectors for older workers, offering part-time roles and opportunities to connect with others (10).”

While unretiring can bring in some extra cash, it could also have health benefits. An analysis of studies found that seniors who return to work often experience an improvement in physical and mental health, as well as a greater sense of purpose (though that does depend somewhat on the job) (11).

While Bryce has most certainly taken a pay cut, he’s getting something else out of his new role teaching teenagers: “While I haven’t discovered the fountain of youth, being around them makes me feel years younger,” he said.

“I get a great deal of satisfaction from seeing them grow intellectually.”

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

The Wall Street Journal (1); Statistics Canada (2, 4); BMO (3); Fidelity (5); Government of Canada (6, 7, 8); Guide Posts (9); Empower (10); PsyPost (11)

In recent weeks, unions representing federal workers say thousands of “workforce adjustment notices” have been issued across departments — a signal that positions may be eliminated or significantly restructured as the government works to shrink the size of the public service sector.

While not every notice results in a layoff, the scale and breadth of the cuts are already having real-world effects — and not just for the affected workers, but for households, communities and businesses throughout Canada.

What’s driving potential federal sector job cuts

The workforce reductions are part of Ottawa’s broader effort to constrain federal government spending, in part, due to the rapid expansion of the public service during the pandemic years.

According to union and government figures, the federal government plans to reduce staffing levels by tens of thousands of positions over several years, relying on a mix of attrition, early-retirement incentives and direct job cuts (2).

Notices have already gone out to employees at departments such as Health Canada, Statistics Canada, Shared Services Canada and Public Services and Procurement Canada (3) — areas that support everything from data collection and cybersecurity to benefit administration and procurement.

That matters, economists note, because public-sector employment has been one of the more stable pillars of Canada’s labour market during recent periods of economic uncertainty — and one of the largest employers across the country (4).

The economic impact of public sector job losses

From a macroeconomic perspective, public-sector layoffs tend to have an outsized effect.

Statistics Canada data show that public administration jobs typically offer above-average wages and benefits, meaning any pullback can quickly translate into reduced household spending. Fewer secure paycheques mean less money flowing into local economies — from grocery stores and child-care centres to restaurants, home renovations and travel.

There’s also a timing issue. Canada’s labour market has already been showing signs of cooling, with job growth slowing and unemployment edging higher in recent months. Adding public-sector layoffs to the mix risks amplifying that slowdown, particularly in regions with a heavy federal presence, such as the National Capital Region (an official federal designation encompassing the Canadian capital of Ottawa, Ontario, the adjacent city of Gatineau, Quebec, and surrounding suburban and exurban areas).

Cuts at Statistics Canada and Shared Services Canada could also have knock-on effects that are harder to measure but no less significant — including delays in data releases, slower digital services and increased strain on remaining staff. Those inefficiencies can ripple outward, affecting businesses and policymakers who rely on timely information and government services to make decisions.

Lack of consumer confidence may have a bigger impact

Beyond the direct economic impact, there’s also the powerful impact of perception and safety. When Canadians feel secure about their work, they tend to plan for the future and spend in the present. Turns out public-sector employment is a bellwether for economic stability — and consumer confidence. When governments cut deeply, it sends a signal that tougher times may lie ahead — prompting households to pull back on spending, delay big purchases or increase precautionary savings.

Union leaders say uncertainty alone is already taking a toll on workers’ mental health and morale, with ripple effects for families and communities (5).

That anxiety doesn’t stay confined to the public service. It spreads through social networks, workplaces and consumer behaviour, reinforcing a more cautious economic mood.

In past cycles, economists have observed that confidence shocks can slow growth almost as effectively as higher interest rates — this is particularly concerning, given that most Canadian households spent the last year grappling with elevated living costs and debt.

How Canadians can brace for tougher economic times

While individual households can’t control government budgets, there are practical steps Canadians can take to reduce financial vulnerability:

Build a stronger cash buffer

Aim to hold at least three to six months of essential expenses in accessible savings — this is your emergency fund. If you find it difficult to start or keep an emergency fund, then consider making small, automatic contributions. Even modest, automatic contributions can make a meaningful difference over time.

Stress-test your budget

Run the numbers assuming a temporary income drop or higher expenses. Knowing where you could cut back quickly — without panic — can reduce anxiety and improve decision-making.

Avoid new fixed commitments

In periods of economic uncertainty, flexibility matters. Think carefully before taking on new debt, upgrading vehicles or locking into higher monthly payments.

Focus on skills and adaptability

For workers in both the public and private sectors, investing in transferable skills — data analysis, project management, digital literacy — can improve resilience if job conditions change.

Looking ahead

Public-sector layoffs are rarely just a government issue. They shape confidence, spending and economic momentum across the country.

As Ottawa presses ahead with spending restraint, the challenge will be balancing fiscal discipline with economic stability — and ensuring that the ripple effects don’t deepen a slowdown Canadians are already feeling in their day-to-day lives.

For households, the message is clear: uncertainty may be rising, but preparation remains the most reliable form of financial protection.

FAQs on potential Federal Government job cuts

Overall, up to 40,000 public service positions will be eliminated over the next several years (and about 10,000 jobs have already been eliminated). In part, this is an attempt to reduce the federal public service workforce, which peaked in 2023 and 2024 with approximately 368,000 employees.

The job losses are planned over several years as the overall reduction in the workforce includes lay-offs, attrition and restructuring, as well as early retirement incentives.

To grasp the impact of the proposed federal job cuts, here is a breakdown of departments affected and the scale of potential job losses.

Public Services and Procurement Canada (PSPC)

• Estimated notices: ~730 (PSAC members)

• Role: Procurement, real estate, contracts, administrative services

• Potential impact:

  • Delays in procurement and contract approvals
  • Slower maintenance and service delivery

Shared Services Canada (SSC)

• Estimated notices: ~530

• Role: IT infrastructure, digital services, cybersecurity

• Potential impact:

  • Slower system maintenance
  • Increased cybersecurity risk
  • Digital service backlogs

Statistics Canada

• Estimated notices:

  • ~350 PSAC members
  • More than 1,900 additional workers identified by other unions
  • 850 staff cuts confirmed, plus a 12% reduction in executives

• Role: National economic, labour and population data

• Potential impact:

  • Delayed data releases
  • Reduced scope or frequency of surveys
  • Weaker economic and labour-market insights

Treasury Board Secretariat

• Estimated notices: ~125

• Role: Oversight of government operations, spending and administration

• Potential impact:

  • Slower internal approvals
  • Weaker governance capacity

Health Canada

• Notices issued: Yes (exact numbers not disclosed)

• Role: Public health policy, regulation, health oversight

• Potential impact:

  • Staffing reductions to indeterminate roles
  • Program and regulatory slowdowns

Immigration, Refugees and Citizenship Canada (IRCC)

• Status: Staff warned of upcoming job cuts

• Role: Immigration processing, visas, citizenship

• Potential impact:

  • Longer processing times
  • Application backlogs

Employment and Social Development Canada (ESDC)

• Status: Job cuts expected

• Role: Employment insurance, benefits, labour programs

• Potential impact:

  • Slower EI and benefit processing
  • Reduced program capacity

Environment and Climate Change Canada

• Status: Job cuts expected

• Role: Climate policy, environmental monitoring

• Potential impact:

  • Reduced program oversight
  • Slower regulatory processes

Regional development agencies

• Atlantic Canada Opportunities Agency (ACOA): ~25

• Canada Economic Development for Quebec Regions: ~11

• Pacific Economic Development Canada: ~2

• Potential impact:

  • Reduced regional business support
  • Slower economic development initiatives

Early retirement program (parallel impact)

• Early retirement notices issued: ~68,000 public servants

• Purpose:

  • Accelerate attrition
  • Reduce layoffs among younger workers

• Status: Voluntary, one-year incentive program

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Yahoo Finance (1); DailyHive (2, 3); Fraser Institute (4); Economic Time (5)

There’s a lot of advice floating around, especially on FinTok — a subcommunity dedicated to finances on TikTok — which can make you feel like you’re not doing enough to squeeze every drop of value out of every dollar you save, invest or spend.

Christine Benz, director of personal finance and retirement at Morningstar, told CNBC Make It that the financial industry has an “optimizing mindset,” so you may start thinking “that you’re doing it wrong if you cut corners (1)."

Some people — which Benz refers to as portfolio optimizers — love the nitty-gritty details of financial planning. But that takes time and a high level of financial literacy, not to mention an interest. And “not everyone is cut out for it,” she wrote in a recent article for Morningstar (2).

Then there are those who want an acceptable option even if it’s not the best. Benz says that taking a “good enough” approach can help you manage your finances with “much less time and hassle,” and you’ll get similar results to a portfolio optimizer (3).

Here are four ways she suggests everyday earners can build wealth without the time or expertise that traditional personal finance advice often demands.

4 ‘good enough’ financial strategies

Many Canadians are short on time while some are intimidated or overwhelmed by financial planning — so they do nothing. But Benz argues that a “good enough” approach can still get you most of the way there. And it beats doing nothing.

Reverse budgeting: Only about half (49%) of Canadians report having a budget, according to a survey by the Financial Consumer Agency of Canada (4). Of those who don’t have a budget, they cite reasons such as finding it boring or feeling overwhelmed about managing money. Benz uses a strategy called ‘reverse budgeting,’ in which a flat percentage of your income automatically goes toward savings and investments each month (5) — so you meet your financial goals while reducing the need for strict budgeting.

Index investing: Some investors try to time the market to maximize their returns. But, even for ‘optimizers,’ it’s tough to do — and Morningstar research found that a buy-and-hold equity strategy still outperforms a portfolio built to time the market (6). Benz recommends index funds, which hold all underlying securities in an index, and which aim to match the performance of a market index (like the S&P/TSX Composite Index) rather than beat it. “To me, index funds are a great intersection of optimization and the ‘good enough’ portfolio,” Benz told CNBC Make It (7).

Simplification: Many high-interest savings accounts have fluctuating rates, so it can be tempting to move your money around in an effort to get the highest rate possible. But that can be a time-consuming process. Instead, Benz recommends sticking with a “low-cost provider that will deliver a persistently competitive yield,” (8) which makes money management less of a hassle (9).

Work with a pro: If you don’t have the time or inclination to manage your portfolio, a qualified financial advisor can do the heavy lifting for you. They also have access to modelling tools not available to the general public. Benz prefers fee-only planners who charge by the hour or for specific services rather than selling you specific financial products. (10)

Will these money moves work for you?

These four moves can be 'good enough' to have a meaningful impact on your finances over the long term. They’re ideal for people who don’t have the time (or the interest) to constantly monitor and adapt their portfolio.

But they typically require longer time horizons — and there’s no guarantee of higher-than-average returns. There are always risks, and any advice should be adapted to your own financial realities.

For example, if you’re a gig worker, reverse budgeting may be challenging since you don’t have a steady income or regular paycheque. The same goes for anyone with complex finances, such as high-net-worth individuals and families. In those cases, you may need to take a more hands-on approach to saving and investing.

And, while index funds are hands-off and low-fee, they aren’t risk-free. If you think you might need capital in the short term, then index funds might not be your best bet since they’re exposed to market volatility and downturns (they’re better for long-term growth).

Investors who like the excitement of selecting stocks may find index funds too limiting (or boring). Others may have ethical objections to some of the underlying securities —such as fossil fuels or tobacco — so index funds may not align with their personal investment philosophy.

These four money moves might be hands-off, but it doesn’t negate the need for financial literacy. Even when you’re working with a financial advisor, you’ll want to have a decent understanding of how your money is being managed rather than completely handing over the reins to another person.

Depending on your situation, you’ll have to decide whether these strategies will move the needle for you in 2026 or if you need a more hands-on approach.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

CNBC (1, 5, 7, 8, 9, 10); Morningstar (2, 3, 6); Government of Canada (4)

For many people, those small “treat yourself” purchases add up, draining cash flow and keeping debt balances high. What starts as the occasional splurge can turn into a habit that feels impossible to break.

Let's imagine Matt, a 28-year-old carrying about $20,000 in student loan debt with an additional $12,000 racked up on credit cards. Instead of putting extra money toward repayment, he admits he spent nearly $10,000 last year on impulse buys — new tech, clothes, takeout and nights out with friends.

Now he wants to break the cycle, ease up on frivolous spending and get serious about his financial future. The challenge isn’t knowing what he should do — it’s figuring out how to finally change the behaviour.

The whys of impulse spending

Impulse spending is incredibly common and it’s not a personal failure. Many people are nudged to spend through targeted ads, limited-time offers and frictionless checkout buttons designed to make buying feel effortless. The Financial Consumer Agency of Canada (FCAC) notes that digital shopping tools and “buy now pay later” (BNPL) options can make it harder for consumers to track how much they’re really spending, especially on non-essential purchases (1).

Those habits come at a cost. Recent data from FP Canada shows that many households are struggling to consistently save as the rising cost of living competes with discretionary spending (2). Meanwhile, the 2025 CPP Investments Retirement Survey reveals that over half (59%) of Canadians fear they will outlive their retirement savings — a gap that can widen over time due to behavioural barriers like impulse shopping and procrastination (3).

The problem stems from rarely feeling that impulse purchases are harmful at the time. A new gadget, takeout on a busy night or a quick online order feels small on its own. But when they’re repeated over weeks and months, those decisions can slow debt repayment, drain savings and delay long-term goals.

Over time, the real cost of spending isn’t only the money spent — it’s the progress that never happens.

How to limit frivolous spending

The good news is that impulse buying isn’t permanent. With a few intentional changes, you can slow it down and eventually get it under control by replacing it with better habits. Here’s an overview.

Use the 24-hour rule

When you feel tempted to buy something online, add it to your cart and close the site. Come back after 24 hours and decide whether you still want or need the item. In many cases, the urge fades. That simple pause can save hundreds — or even thousands — of dollars over a year.

Calculate your hour-to-purchase ratio

Reframe purchases in terms of time, not money. Take your after-tax pay, subtract essentials like rent, groceries and transportation, and see what’s left for “wants.” A $100 impulse buy may represent several hours of work. Asking yourself whether an item is worth that trade-off can stop a purchase cold in its tracks.

Practice a “no-buy” week (or month)

A short spending reset can be surprisingly powerful. Commit to buying only essentials for a week, or an entire month if you’re feeling motivated. No new clothes, gadgets or takeout. It’s less about punishment and more about mindset. It can help break autopilot spending and prove to yourself that you don’t need as much as you think.

Unfollow and unsubscribe

If social media or marketing emails trigger spending, remove the temptation. Unsubscribe from store newsletters, unfollow product-focused accounts and consider using an ad blocker. Fewer prompts mean fewer impulse decisions.

Replace the “shopping hit”

Impulse spending often fills a need for novelty or comfort. Swap it for low-cost alternatives: borrowing books or movies from the library, joining a local Buy Nothing group or spending time on hobbies that create purpose rather than consumption. Remember to keep an eye on costs so the replacement doesn’t become a new spending habit.

How spending limits unlock freedom and savings

Cutting back on impulse spending is about more than restraint — it’s about redirecting your money with purpose. Every dollar you don’t impulsively spend can be redirected to improved financial stability.

Start by choosing a clear order of operations. First, use the freed-up cash to attack high-interest debt, such as credit cards. Reducing those balances lowers the interest you pay each month, which creates even more breathing room in your budget.

Once high-interest debt is under control, keep the habit alive by shifting those same dollars into an emergency fund. Having several months of expenses set aside makes it far less likely you’ll fall back on credit cards the next time life throws a surprise your way.

From there, the transition to long-term savings becomes easier. The money that once disappeared on impulse buys can flow into retirement savings, investments or future goals, without requiring a higher income. The habit stays the same, only the destination changes.

Limiting your spending doesn’t mean you’ll have to say “no” to yourself forever. It means eventually being able to say “yes” to progress — first out of debt then toward financial security and freedom.

Bottom line

For Matt, seeing the full cost of his impulse spending was the turning point. With $32,000 in debt, every unplanned purchase set him back and kept him stuck in a vicious cycle of needless consumption.

If you’re facing the same pattern, the goal isn’t perfection — it’s awareness and redirection. Reduce temptation, set clear spending limits and deliberately reroute that money toward debt repayment first, then savings. Small consistent changes can turn impulsive habits into real financial momentum.

— with files from Melanie Huddart

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Torys (1); Advisor (2); CPP Investments (3)

A new national survey from Neo Financial suggests frustration with Canada’s credit system is rising. Forty-six percent of Canadians say it’s harder to build credit today than it was for their parents’ generation, even when they believe they’re managing their finances responsibly.

The results point to a growing disconnect between how Canadians manage their money in everyday life — and how creditworthiness is still being judged.

“When only half of the country feels the system is fair, it’s not a consumer problem. It’s a structural one,” said Andrew Chau, CEO of Neo Financial, in a statement. "We've identified this as the 'Legacy Lag' where consumer behaviour has modernized, but credit systems and traditional banks are stuck in the past and fail to reward real-time financial behaviour with real-time progress."

Why credit feels harder to build

At the heart of the frustration is a lack of transparency. The survey found that just 21% of Canadians say they know exactly which actions meaningfully improve their credit score, leaving most people unsure whether their financial habits are actually improving their credit meaningfully.

Credit scores affect everything from loan approvals and interest rates, to rental applications and, in some cases, even employment screening. Yet many common financial behaviours aren’t consistently reflected in credit files.

Nearly seven in 10 Canadians (69%) said the credit system should recognize everyday bill payments — such as rent, utilities and phone bills — as proof of financial reliability. For younger Canadians, newcomers and those without long credit histories, the exclusion of these payments can make progress feel slow or out of reach.

A generational disconnect?

The sense that credit-building has become more difficult isn’t limited to one age group, however. The survey found broad agreement that the system hasn’t kept pace with how people actually manage money today.

Automatic payments, subscription services and digital banking now dominate household finances, yet traditional credit models still rely heavily on a narrow set of indicators. For Canadians trying to establish credit without taking on unnecessary debt, that can create a frustrating scenario where you need credit in order to build credit.

Transparency and education key for consumers

The survey commissioned by Neo highlights concerns that echo what many consumers experience firsthand. Building credit often requires patience, consistency and a clear understanding of how scores are calculated — something many Canadians say they don’t have.

For consumers, that makes education and visibility critical. Understanding how credit utilization, payment history and account age affect scores can help avoid missteps. Regularly monitoring credit reports can also help Canadians catch errors or unexpected changes early.

At a broader level, the findings add to ongoing conversations about whether Canada’s credit system accurately reflects modern financial behaviour — or unintentionally leaves certain groups behind.

For now, many Canadians say the process feels opaque and outdated. And for those trying to build or rebuild credit in today’s economy, that lack of clarity can be just as frustrating as the financial hurdles themselves.

A 2024 Sun Life report found that nearly one-third of respondents struggle to plan for retirement, largely due to inflation, higher cost of living and not having enough retirement savings (1). Meanwhile, data from Statistics Canada reveal the average retirement age has been steadily creeping upward to past 65, on average (2).

On the surface, delaying retirement beyond age 65 can look like a responsible financial move. Working longer likely means higher Canada Pension Plan (CPP) benefits, more time to save and fewer years drawing down investments.

But focusing only on the numbers misses an important part of the picture. Working longer can introduce non-financial risks — to your health, flexibility and overall quality of life — that may quietly undermine the retirement you’re trying to protect.

Here’s why delaying retirement until 65 isn’t always the safer option — and what to consider instead.

Optimizing for quality of life

From a purely financial standpoint, working as long as possible looks like a smart move. Delaying retirement can maximize your CPP payments, extend the life of your savings and reduce the number of years you’ll rely on withdrawals.

But optimizing only for wealth can come at the expense of other things that matter just as much — your health, relationships and ability to actually enjoy the life you’re working so hard to fund.

Consider this: Many of the experiences people dream about in retirement — travel, hiking, time-intensive hobbies or active time with family — are simply easier and more enjoyable in your 60s than in your mid-70s or 80s. A trip that feels adventurous at 62 can feel exhausting, risky or downright off-limits a decade later.

Health data reinforces this trade-off. According to the latest data from the World Health Organization (WHO), the average healthy life expectancy (3) in Canada is approximately a decade shorter than average total life expectancy (4). In other words, many people spend a meaningful portion of their later years managing chronic conditions or physical limitations that impact their quality of life, especially if they live well into their 80s or 90s.

Retiring early also gives you more high-quality time to spend with loved ones while still in good health — not just more time, but better time. That might mean deeper connection with your partner while you’re both still feeling vigorous, or being more physically present with your grandchildren instead of conserving energy or managing pain.

None of this means everyone should retire early. But it does mean that delaying retirement to 65 or beyond shouldn’t be treated as an automatic goal. If your priority is quality of life — rather than the size of your portfolio — it may be worth planning for flexibility versus assuming 'later is always better.'

Practical ways to retire earlier — depending on where you stand

If you’re seriously considering retiring before age 65, the next step is to be honest about which category you fall into: already there, nearly there, or not there yet.

If you have enough to retire early

If your savings, pension, Canada Pension Plan (CPP) and other income sources can comfortably cover your living expenses, the biggest hurdle may not be financial — it may be psychological.

Many higher-net-worth Canadians struggle to step away from their work because their identity, routine or sense of purpose is tightly linked to their career. Others worry about boredom or feeling like they’re adrift once the structure of work disappears (5).

If this sounds familiar, the focus shouldn’t be on accumulating more money, but on planning what you’re retiring to — whether that’s part-time work, volunteering, travel, caregiving or creative pursuits.

If you can solve for purpose, retiring before the age of 65 may be far more achievable than you think.

If you’re close but not quite there

If you’re within striking distance, small changes can make a big difference. Increasing your savings rate for a few years, taking on occasional contract or consulting work, or delaying full retirement while scaling back to part-time hours can significantly improve your outlook.

You’re also at a stage where strategic planning matters most. Adjusting when you draw CPP, coordinating withdrawals from registered and nonregistered accounts, or modestly increasing your portfolio risk — with professional guidance — can help bridge the gap without sacrificing long-term security (6).

If you just aren’t there yet

If early retirement feels out of reach today, it’s usually cost of living that’s the culprit rather than investment returns. Downsizing your home, reducing fixed expenses or relocating to a lower-cost area can dramatically lower the income you need to retire.

Even incremental changes — trimming recurring expenses or paying off high-interest debt — can free up cash flow and bring retirement closer than expected.

The hidden risks of working longer

Delaying retirement can improve your finances — but it also exposes you to risks that tidy spreadsheets don’t show.

Health is the biggest wildcard. Even if you’re healthy today, the odds of developing a chronic condition rise sharply in your 60s (7). A job loss, burnout or medical issue can force retirement earlier than planned — often at the worst possible time, before savings and benefits are fully optimized.

There’s also career risk. Older workers are more vulnerable to layoffs and may find it harder to replace lost income at the same level (8). Being pushed into retirement is very different from choosing it on your own terms.

Finally, there’s opportunity cost. Years spent working longer are years you can’t get back — time when travel, hobbies, caregiving or simply enjoying good health may be easier and more meaningful.

Working longer can strengthen a retirement plan, but only if it remains a choice, not a necessity. That’s why building flexibility into your timeline — rather than anchoring everything to age 65 — matters more than hitting a specific number.

Bottom line

Retiring at age 65 may look sensible on paper, but it can come at the cost of health, flexibility and some of the most active years of your adulthood. For many people, the better goal isn’t maximizing the size of their nest egg, but rather the years they’re healthy enough to enjoy it.

If early retirement feels out of reach, focus on building flexibility: lower your living costs, boost savings where possible and plan for options that let you step back sooner — even if it isn’t all at once.

A tighter budget and a few adjustments to your retirement plan could help you enjoy several more years of quality retirement time.

— with files from Melanie Huddart

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Sun Life (1); Statistics Canada (2); World Health Organization (3, 4); Help Guide (5); Society of Actuaries (6); CIHI (7); Retirement Policy (8)

Let’s consider the hypothetical case of Nick and Katia. Nick works in finance and earns roughly $700,000 annually, while Katia works for the federal public sector and earns about $90,000. They’ve been married for 10 years, have no children and share a comfortable lifestyle that includes a large home and two vehicles.

Each month, Katia contributes $1,100 to a joint account for their shared expenses, while Nick contributes $6,500 and also covers extras such as restaurants, entertainment and vacation travel. They hire a housekeeper one day a week, but Katia handles most of the daily labour that keeps their household functioning — cooking, grocery shopping, dishes, errands and filing taxes.

Despite that division of labour, Nick feels he’s carrying too much of the financial load and believes Katia isn’t contributing enough because she earns significantly less. He wants to split household costs evenly and expects both partners to have similar discretionary spending power. Katia would prefer to plan their financial future and openly discuss goals, but Nick refuses.

Now Katia is wondering: Is this normal? And how do couples define “fair” when one partner earns far more than the other?

How couples handle shared finances

Couples manage household finances in different ways, and those patterns have been shifting over time. The traditional model — where both partners pool everything into a single joint account — is becoming less common as more Canadians prioritize financial autonomy and transparency.

Historically, joint accounts were the norm. IG Wealth cites studies from the past 20 years showing that 52% to 65% of married and live-in couples used only joint bank accounts, while 10% to 15% kept their finances completely separate (1).

Other research points to a newer trend emerging — with an RBC poll revealing that among couples aged 18 to 35, over one-third (34%) keep all of their bank accounts and finances separate, while only 10% hold everything jointly (2).

Many couples choose a hybrid approach — maintaining a joint account for shared household expenses while also keeping separate accounts for discretionary spending. This model allows partners to contribute to their shared life without sacrificing financial independence, and it reflects a growing belief that fairness doesn’t always require merging everything (3).

Ultimately, there isn’t a single “right” way to handle joint finances. What matters is that both partners understand the system, agree to it and feel that the arrangement is fair relative to each others' income.

Why a 50/50 split isn’t always fair

Splitting expenses down the middle can feel straightforward, but it isn’t always fair — especially when incomes vary drastically. Equal and equitable aren't the same thing: An equal split looks at the bill, whereas an equitable split looks at the individuals paying it.

Take Katia and Nick’s situation as an example. Nick earns over $600K more than Katia. If they each paid half of the household expenses, the impact on their lifestyle would be radically different.

A $5,000 monthly expense split evenly would cost each partner $2,500, but that leaves Nick with $52,500 a month before tax and Katia with only $5,000. One partner maintains a high standard of living, but the other has almost no discretionary income at all. Over time, that imbalance can create stress, resentment or even secrecy around spending.

That imbalance is why many financial planners favour proportional contribution models when incomes are unequal. Under a proportional model, partners pay a percentage of shared costs that match their share of the household income.

For example, Nick earns about 89% of the income and Katia earns about 11%, so each person would contribute that percentage toward shared expenses. For example, a $5,000 shared monthly expense would see Nick would pay about $4,450 and Katia would pay about $550.

Discretionary spending power matters because it represents autonomy. When one partner has plenty and the other has almost none in comparison, financial control can enter the relationship, intentionally or not. That’s often where arguments begin — not over the bill itself, but over the freedom to participate in the shared lifestyle without feeling guilty, dependent or restricted.

The value of invisible labour

Partners can contribute to the household in more ways than strictly financially. Duties like cooking, planning meals, grocery shopping, managing schedules and appointments as well as filing taxes all make daily life functional for everyone.

Economists refer to these combined responsibilities as invisible household labour — the unpaid, unseen and oftentimes unacknowledged tasks essential for a home and family to effectively function. This work primarily involves mental and emotional effort that disproportionately falls on women, leading to higher rates of burnout and stress (4).

This unseen labour also has measurable economic value. Estimates of what it would cost to replace household labour with paid services vary widely depending on the methodology. According to Statistics Canada, the per capita replacement cost of unpaid household work was estimated at roughly $23,240 in 2019 (5).

In Katia and Nick’s situation, invisible labour creates real economic value by allowing one partner (Nick) to earn more, work longer hours or build a demanding career. Without acknowledging that contribution (Katia), it’s easy for couples to misjudge who is “pulling their weight.” Putting that context on the table helps redefine fairness beyond the paycheque.

Moving forward together

Moving forward as a couple often requires clarity around financial goals, communication about how money is handled day-to-day and recognition of all the contributions that make the household function — not only the ones that appear on a paycheque. When partners avoid these conversations or keep financial details to themselves, misunderstandings can grow into financial secrecy or what some researchers call “financial infidelity,” which may strain trust in the relationship.

In fact, a 2025 TD Bank survey found that many Canadians have financial deal-breakers in their relationships — 71% of those polled said they would consider breaking up with their romantic partner if they found out they had been dishonest about their finances (6).

Money conversations can be uncomfortable, especially when incomes are unequal or when one partner’s financial autonomy feels limited. It helps to set aside time for money talks — intentional conversations when both people are calmly and honestly prepared to discuss income, debt priorities and long-term goals. For many couples, regular check-ins become a way of recalibrating as life changes.

If partners have different ideas of what financial fairness looks like — for example, if one values income while the other contributes more household labour — having an outside perspective can be useful. A financial advisor can help couples understand how to structure shared expenses, define what equity looks like in their situation and plan for long-term goals together.

For couples who struggle with the emotional side of money, a financial therapist or couples counsellor can help unpack the beliefs, power dynamics or resentments that often underlie financial conflict.

In Katia and Nick’s situation, the tension is about more than each person’s salary — it’s about how their contributions are valued. Nick pays more of the bills, but Katia performs more of the unpaid household labour that keeps their lifestyle running. When one form of contribution is recognized and the other is minimized, resentment can build — and that’s where professional support can help couples reframe the conversation and determine what feels fair to both partners.

Bottom line

When one partner earns more and the other takes on more invisible labour, a strict 50/50 split can create tensions and power imbalances. The goal isn’t to divide everything equally, but to divide it fairly.

Couples who openly communicate about their finances — and who recognize each other’s contribution — tend to build financial systems that support their relationship instead of strain it.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

IG Wealth Management (1); RBC (2); TD (3, 6); Gibson & Associates (4); Statistics Canada (5)

According to a new survey from TD Bank Group, 67% of Canadians plan to cut back their spending this year, up sharply from 51% in 2025. Nearly six in 10 respondents said they expect to reduce their monthly budgets by as much as $1,000, reflecting ongoing pressure from high living costs and lingering economic uncertainty.

The pullback is especially pronounced among younger Canadians. The survey found 86% of Gen Z and 77% of Millennials plan to cut spending in 2026, compared with 65% of Gen X and 43% of Boomers. This gap underscores how affordability pressures continue to fall hardest on younger households.

Where Canadians are cutting back

When it comes to trimming budgets, discretionary spending is first on the chopping block. The most common changes Canadians say they plan to make include:

• Eating out less often (55%)
• Making fewer retail purchases (53%)
• Spending less on entertainment such as concerts, sports, and movies (44%)
• Shopping around more to save on purchases (41%)
• Switching from name-brand to store-brand products (39%)
• Cancelling some or all subscriptions (31%)

Beyond cutting expenses, many Canadians are also changing how they manage money day to day. About 30% say they plan to use coupons or try “no-spend” challenges, while 27% expect to thrift more often. One in four respondents said they are considering taking on a side hustle or part-time work to help offset rising costs.

Financial goals without a clear plan

Despite widespread belt-tightening, Canadians’ financial priorities remain largely forward-looking. The survey found top goals for 2026 include saving and investing (47%), managing day-to-day expenses (46%), paying down debt (32%), supporting family or children (29%) and covering housing costs (26%).

However, intention does not always translate into structure. Only 36% of Canadians said they have a formal financial plan for 2026, highlighting a gap between financial goals and concrete planning.

“Intentions are a great first step, but turning them into action is what truly makes the difference,” said Joe Moghaizel, vice president, Everyday Advice Journey at TD, in a statement.

"Simple habits, like pausing to understand your needs versus your wants, can strengthen your financial resilience and help you feel prepared to reach your goals in the year ahead."

Buying Canadian remains a priority

While many look to tighten their 2026 budgets, Canadians also say they are becoming more intentional about where they spend. Nearly two-thirds of respondents (63%) said their desire to buy Canadian is stronger than last year, suggesting cost-conscious consumers are still weighing values alongside price.

"While Canadians are being more intentional with their spending and savings, their desire to support Canadian-owned businesses is evolving from a trend to a habit," said Julia Kelly, vice president, Small Business Banking at TD, in a statement.

When asked how they prioritize supporting the domestic economy, Canadians ranked buying Canadian-made products highest (38%), followed by buying from local small businesses (27%). Fewer respondents said buying from a Canadian brand or a company that employs Canadians was their top priority.

The findings suggest that for many households, spending less does not necessarily mean disengaging from the economy — but rather spending more selectively.

As hosts George Kamel and Jade Warshaw dug into his numbers, the problem became clear. Peter didn’t actually know how much he owed, didn’t follow a budget and had little visibility into where his money was going each month.

Once everything was laid out — forgotten credit cards, a pension loan and old balances — his debt wasn’t US$25,000 after all. It was closer to US$59,000.

That’s still a serious hole to climb out of, but Kamel and Warshaw were both blunt: Peter didn’t have a math problem, he had a spending and planning problem. But it was one that could be fixed with structure, discipline and a realistic budget.

What The Ramsey Show hosts recommend

The first step, the hosts said, was simply seeing the full picture. As Warshaw put it, once everything is written down, “at least it’s not the boogeyman and all the unknowns.” A budget is only reality on paper — and for many people, that clarity alone brings relief.

Kamel agreed.

“Once you do this budget, you’re going to figure out your main expenses,” Kamel said. “Food, utilities, housing, transportation, insurance and minimum debt payments. Anything beyond that, you’re going to get real judicious and cut out.”

Peter admitted that takeout food was draining far more of his income than realized. And it’s a common trap. Dining out, convenience spending and small daily splurges are often where high earners overspend the most money without noticing.

“Eating out — that’s got to go,” Kamel told him. Cutting back may feel uncomfortable, but it works faster than bankruptcy and costs far less than letting interest pile up month after month.

Peter had considered the idea of bankruptcy early in the call, but the hosts strongly pushed back. With his income, they said, bankruptcy would likely cause more long-term damage that far outweighs the short-term relief.

“You are the answer,” Warshaw told him. “Debt is not a shortcut. It’s not the answer."

Debt is common in Canada, especially as housing, food and transportation costs rise. According to Experian, as of Q3 2025, Canadians were carrying an average of C$22,321 in consumer debt, excluding mortgages (2). The Canadian Mortgage and Housing Corporation (CMHC) reports average mortgage debt at slightly over C$300,000 as of Q2 2025 (3).

But the hosts’ point was simple: debt itself isn’t the crisis — lack of awareness and uncontrolled spending is. Once the numbers are clear and spending is brought in line with income, even large balances can become manageable.

How to get out of debt and avoid bankruptcy

If you’re feeling similar financial pressure, the steps Warshaw and Kamel outlined offer a clear way forward.

Set a budget

Start with your take-home income, then list your fixed costs: housing, transportation, utilities, food, insurance and minimum debt payments. Use bank and credit card statements, not memory, to see where your money is actually going. A budget isn’t restrictive: it’s a way to regain control.

Cut your spending

Identify categories that quietly creep up, such as dining out, subscriptions or impulse purchases. Cut back aggressively at first to build momentum. Even modest changes can potentially free up hundreds of dollars each month to put toward debt.

Consider consolidation only when necessary

If you’re juggling several high-interest balances, a consolidation loan can simplify payments and lower your interest costs. More serious options, such as debt relief programs, may reduce what you owe but often come with fees and damage to your credit. These solutions should be last-resort — not a substitute for ongoing overspending.

Increase your income

Cutting expenses has its limits. Extra shifts, overtime, freelance work and side hustles, or selling unused items of value can boost your progress. Even a few hundred dollars more each month can significantly shorten the time it takes to get out of debt.

Why high-income earners can still feel broke

Earning a strong income doesn’t guarantee financial freedom. As paycheques grow, fixed costs grow with them — larger homes, newer vehicles, higher insurance bills and more convenience spending. Without a clear budget, it’s easy for money to disappear before you realize where it went.

That’s why many high earners feel constant pressure, even with six-figure salaries. Usually, the issue isn’t having adequate income: It’s visibility. When spending isn’t clearly tracked and priorities aren’t set, even a good paycheque can feel like it isn’t enough.

It’s a situation exactly as Peter described. But once the numbers were laid out, the stress became manageable and the solution more obvious.

Bottom line

Peter’s story is a reminder that a high income doesn’t protect you from financial stress if your spending is unplanned and unchecked. Debt becomes overwhelming when it’s hidden, ignored or misunderstood — not necessarily when it’s big.

Before considering drastic solutions like bankruptcy or credit recovery programs that can damage your credit, start by writing out each balance, building a realistic budget and cutting back on excessive discretionary spending. Clarity and consistency can turn even a heavy debt load into an easily solved problem.

— with files from Melanie Huddart

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

The Ramsey Show (1); Equifax (2); Canadian Mortgage and Housing Corporation (3)

Despite building one of the largest fortunes in history, Buffett has lived in the same modest house for decades. His choice often gets framed as extreme frugality, but it also reflects something deeper — a buy-and-hold mindset that has shaped his entire investing philosophy.

Today, Buffett is one of the richest people in the world, with a current net worth of about US$154 billion, according to Forbes’ World Billionaires List (2).

When Buffett purchased his home in the late 1950s, he paid a little over US$30,000 for it (3) — equivalent to about US$336,000 today. Over time, the property’s value has risen dramatically, turning what started as a place to live into a powerful example of long-term growth. Still, Buffett has been clear that he doesn’t view housing as a traditional investment. He’s repeatedly warned that costs such as taxes, insurance and maintenance eat away at returns.

Even so, he once described his home as one of the best investments he ever made — because it was bought carefully, held patiently and never overleveraged.

That quiet, steady approach offers an important lesson to Canadian investors — especially at a time when real estate is often treated as a short-term speculation rather than a long-term decision. Here’s where Buffett’s strategy really shows its success, and how it can apply north of the border.

A unique strategy among the ultra-wealthy

Buffet’s home stands out — not because of any grandeur, but because it’s remarkably ordinary by billionaire standards. It represents only a tiny fraction of his net worth. And the gains it produced are small compared with the returns from his broader investment portfolio. Still, without trying to optimize or flip it, Buffett earned an enormous long-term return by simply buying carefully and holding on.

That approach contrasts sharply with how numerous ultra-wealthy individuals treat real estate. Take Jeff Bezos, founder and former CEO of Amazon, as an example. Over the years, Bezos has assembled a large and varied property portfolio, including high-end homes across several U.S. cities and resort areas. Collectively, those properties are worth hundreds of millions of dollars (4).

And there’s nothing wrong with that strategy. In fact, spreading wealth across multiple properties can reduce risk and capture long-term appreciation. But it also requires constant capital, ongoing management and exposure to multiple markets at once.

Buffett took the opposite approach. He bought one home he could comfortably afford, avoided overleveraging and then focused his investment energy elsewhere.

Buffett’s patience is central to his broader investing philosophy. Now well into his 90s, he’s known for holding investments for decades — but not blindly. He invests only in businesses he understands and where he sees durable value — he rarely abandons that view because of short-term market swings (5).

That discipline remained strong during the 2008 financial crisis — while many investors panicked, Buffett stayed the course and used the downturn to buy strong companies at discounted prices. Over time, those decisions paid off (6).

Today, Buffett holds his place as one of the wealthiest people in the world, and Berkshire Hathaway, which he led for approximately 60 years, has delivered decades of strong long-term returns. His real estate “strategy” wasn’t about maximizing property exposure; it was about minimizing distraction, staying patient and letting compounding do the heavy lifting.

The magic of buying and holding

Much of Warren Buffett’s success, especially in the stock market, comes down to a simple idea: patience. He’s long argued that most investors would be better off owning low-cost, broad-market index funds and holding them for decades rather than constantly trading in and out. The same principle can apply to real estate.

A buy-and-hold strategy means not trying to time the market, chase hot trends or panic-sell when prices wobble. Instead, you focus on long-term value and staying power. In Buffett’s case, that meant buying a home within his budget and then never feeling pressure to sell.

In Canada, this mindset matters more than ever. Data from the Canadian Real Estate Association (CREA) shows that national home prices have gone through long periods of stagnation or decline before recovering — including the early 1990s, the 2008-09 financial crisis and recent slowdown tied to higher interest rates and economic uncertainty. Over shorter time frames, housing returns can be uneven and regionally specific (7).

Long-run data from the Teranet-National Bank House Price Index also show that Canadian home prices tend to rise over decades, but not in a straight line (8). Transaction costs, property taxes, maintenance and mortgage interest eat into returns, which is why housing is rarely a “slam-dunk” investment over short holding periods.

That’s why many Canadian housing analysts say ownership works best when you plan to stay put. Research from RBC Economics and the Canadian Mortgage and Housing Corporation (CMHC) suggests homeowners often need five years or more in a property just to break even after closing and selling costs (9). This timeline can stretch even longer during periods of high prices or elevated mortgage rates — as seen in recent Bank of Canada rate-hiking cycles (10) — which slow the pace that a buyer can build significant equity.

Still, if your plan is to live in your home for decades, or even for life, as Buffett has, those shorter-term fluctuations matter far less. Over long horizons, patience reduces risk, spreads out costs and lets time do most of the work.

In other words, Buffett’s real estate “strategy” wasn’t about chasing returns. It was about buying sensibly, staying put and letting compounding — not constant decision-making — quietly build wealth in the background.

Bottom line: Buy for living first, invest with patience second

One of the biggest takeaways to Buffett’s approach is that real estate works best when it’s treated as a long-term decision first rather than a short-term investment play.

Buffett didn’t buy his home to maximize returns. He bought something he could afford, planned to stay put, then focused his investing strategy elsewhere. That mindset matters in Canada, where housing markets can move sideways for years and costs such as property taxes, maintenance, insurance and mortgage interest steadily deplete returns.

Canadian housing data show prices tend to rise over long periods, but the path is rarely smooth. Short-term gains are unpredictable, and frequent buying and selling can turn transaction costs into a permanent drag on wealth.

A buy-and-sell approach reduces that risk. It spreads costs over time, lowers the pressure to time the market and lets patience do the heavy lifting. Whether you’re investing in stocks or buying a home, the principle is the same: avoid over leveraging, ignore short-term noise and give compounding time to work.

For most Canadians that means choosing a home that fits your budget today — not one that assumes perfect growth tomorrow — and then staying put long enough for stability, not speculation, to pay off.

— with files from Melanie Huddart

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Business Insider (1, 4); Forbes (2); Architectural Digest (3); Trustnet (5); CBC (6); Canadian Real Estate Association (7); National Bank of Canada (8); Canadian Mortgage and Housing Corporation (9); Bank of Canada (10)

But instead of feeling closer to his reaching goal, he feels stuck. Home prices have climbed, mortgage rates are higher and his savings don’t seem to stretch as far as they once did. At the same time, Brett realizes that by focusing so heavily on a down payment, he’s largely neglected his retirement savings.

Now he’s questioning his strategy. Should he have been investing instead of saving? Has chasing the home ownership dream actually set him back financially? And at this point in his life, does it make sense to keep pushing for a home — or rethink the goal altogether?

Saving — but still falling behind

Brett isn’t a high-income earner, but he loves his job and the city he lives in. Home prices where he’s based are high, so he’s been doing what many people are told is the responsible move: aggressively saving for a down payment.

He earns $58,000 a year. Even with the rising cost of living, Brett has managed to save roughly 15% of his income, aiming for a 20% down payment. A larger down payment reduces borrowing costs and, once it reaches 20%, eliminates the need for mortgage default insurance — a goal many buyers work toward.

The problem is timing. Over the years Brett has been saving, home prices have risen much faster than wages (1). According to the Canadian Real Estate Association (CREA), the national average home price has increased significantly over the past decade, with steeper gains witnessed in many urban and eastern markets (2). In several cities, benchmark prices now sit well above what single-income earners can reasonably afford.

After saving about $8,750 annually over the course of eight years, Brett now has $70,000 put away for a down payment. But with homes in his area selling for around $700,000, he would need to double that amount — $140,000 — to equal a 20% down payment. Despite years of discipline, he’s less than halfway there.

That’s where the frustration sets in. Brett looks at how much cash he’s accumulated — and how much housing prices have climbed — and he now wonders if saving alone was the right strategy. He also notices that by parking most of his money in low-risk savings, he’s missed out on potential investment growth and fallen behind on retirement savings.

Now he feels stuck at a crossroads: Does he keep saving for a home that increasingly feels out of reach, or rethink the plan entirely — including how much he prioritizes homeownership versus investing for long-term security.

How much of my savings should I invest?

If you'll need your money in the short or medium term — like for a down payment — it usually doesn’t make sense to invest all of it in higher-risk assets like stocks.

It’s all based on your timeline. Investments tend to perform better over long periods, because they have time to recover from market swings and grow through compounding. When your goal is only a few years away, a market downturn could delay your plans or shrink your buying power (3).

That same logic applies to retirement planning. As Canadians approach their golden years, portfolios are typically shifted toward more stable assets. For shorter-term goals like buying a home, the window for recovery is even smaller.

That doesn’t mean everything has to sit in cash. Lower-risk options like high-interest savings accounts (HISAs), guaranteed investment certificates (GICs), money market funds or short-term Government of Canada treasury bills (4) can provide modest returns while helping protect your savings from inflation (5).

Keeping all your money in cash, as Brett has done, carries its own risk: Inflation slowly erodes purchasing power. A blended approach — holding most of your down payment in secure, liquid options while investing a smaller portion for growth — can make sense when your timeline is flexible (6).

If Brett ultimately decides not to buy a home, his situation changes. At age 40, and with a longer time horizon, he could shift more of his savings toward growth-oriented investments such as diversified ETFs inside a Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP), which are better suited for meeting retirement goals.

The right balance between saving and investing depends on timeline, risk tolerance and priorities. Financial plans aren’t static — they should evolve as circumstances change.

Even if Brett isn’t ready to buy a home today, his discipline hasn’t been wasted. He’s built a solid base for next steps. Now comes making the decision on the next best move for that $60,000 that supports both near-term flexibility and long-term security — ideally with guidance from a qualified financial advisor who can help map out realistic options for home ownership or retirement.

Do you really have to give up on homeownership — or just change the plan?

For Brett, the frustration isn’t only about the numbers — it’s about feeling like eight years of effort hasn’t gotten him further ahead. But that doesn’t mean home ownership is off the table. It may simply mean the plan needs tweaking.

One common misconception is that you must save a 20% down payment to buy a home. In reality, the minimum down payment is 5% on the first $500,000 of a home’s price, plus 10% on the portion between $500,00 and $1.5 million. Homes priced at $1.5 million or more will require at least 20% down (7).

For most buyers, putting less than 20% down is allowed — but it comes with a trade-off: mandatory mortgage default insurance. Known as the Canada Mortgage and Housing Corporation (CMHC) insurance, it protects the lender in case you don’t pay, while adding to the overall mortgage cost (8).

That’s why many people aim for a 20% down payment. It lets you avoid insurance premiums to reduce your long-term costs. But aiming for 20% is different from needing 20%. For someone like Brett, who’s been diligently saving but watching prices run ahead of him, a smaller down payment could mean entering the market sooner — while continuing to invest for retirement at the same time.

It’s also worth questioning whether the original goal still fits today’s reality. Waiting longer, buying a smaller home, choosing a different area or prioritizing retirement savings for a few years doesn't mean giving up. It means recognizing that financial plans are changeable — they evolve as markets, incomes and personal goals shift.

Brett hasn’t failed at saving. He’s created flexibility, and that has given him options — even if those options look different than they did eight years ago.

Bottom line

Brett’s story isn’t about failure — it’s about how quickly the opportunity for homeownership has shifted. Eight years of rigorous saving gave him options, even if it didn’t deliver the outcome he expected.

If you’re feeling stuck, revisit your assumptions: You may not need 20% down, and you don’t always have to choose between a home and retirement. Rebalancing your savings, adjusting timelines or buying differently can move you forward without undoing the progress you’ve made.

— with files from Melanie Huddart

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Coldwell Banker (1); Canadian Real Estate Association (2); Fidelity (3); Bank of Canada (4); Investment Planning Channel (5); Tembo (6); Government of Canada (7); Canada Mortgage and Housing Corporation (8)

The move comes under the guidance of Recipe Restaurant Group International, Canada’s largest full-service restaurant company. Recipe purchased all eight existing Olive Garden restaurants in Western Canada from U.S.-based Darden Restaurants and now has the rights to expand the brand nationally.

“With these upcoming openings, we’re taking an important step in expanding Olive Garden’s footprint into new Canadian markets,” Frank Hennessey, CEO of Recipe, told CTV News (1). “This expansion reflects our confidence in the brand, the strength of our partnership with Darden, and our ability to execute thoughtfully and strategically across Canada.”

A second shot at Canada

Olive Garden first arrived in Canada in the 1990s, opening a handful of restaurants in Ontario. They offered the same casual Italian dining experience that had made the chain a hit in the United States, but the expansion never fully took hold. While line ups were long for the first few years, by the late 1990s, all Ontario locations had closed, leaving only a small presence in Western Canada.

The reasons were typical of early cross-border expansions. Supply chains were less efficient, tastes varied regionally and competition from established Canadian casual dining brands made growth difficult. For a while, Olive Garden was simply out of reach for most Canadians east of Manitoba, remembered mostly for its breadsticks and salads.

Now, more than two decades later, the brand is back with a much more deliberate approach. Recipe’s plan relies on measured growth, strong operational experience and a portfolio that includes Swiss Chalet, Harvey’s, Montana’s, East Side Mario’s and other well-known Canadian brands. That network gives the company the ability to manage supply, staffing and service standards in ways the original owners could not.

Retail analyst Bruce Winder told CTV News that the Olive Garden brand should brace for challenges.

"There’s a nostalgia and legacy there so it’s something people are interested in. They are coming during a really tough time and I think they have to be very careful,” he said, pointing to rising costs of food, labour, utilities, rent and insurance.

Even with that caution, the appetite for familiar brands has not disappeared. People who remember Olive Garden from the 1990s, or who have visited locations out west or south of the border, are curious to see how it performs this time around.

Learning from past missteps

Olive Garden’s return also highlights the risks American brands face in Canada. Target’s Canadian expansion is a glaring example of what can happen when an American brand misjudges how their business will work north of the 49th parallel.

Between 2013 and 2015, Target opened 133 stores across the country but struggled with supply chain problems, pricing missteps and customer dissatisfaction. The company closed all Canadian locations within two years, leaving disappointed Canadians and billions in losses behind.

Unlike Target, Olive Garden is not rushing into hundreds of stores. Recipe is starting with two key markets, allowing them to refine operations and service before expanding further. This careful approach is designed to avoid the pitfalls that sank other U.S. chains in Canada. Lessons learned — hopefully.

Timing and opportunity

The timing of the expansion is notable. Ontario’s food service industry is under pressure, with restaurants balancing higher costs for labour, ingredients, utilities and rent against a consumer base that is increasingly cautious about discretionary spending. That alone makes any expansion challenging, even for an established brand with a loyal following.

There is also a broader backdrop at play. Olive Garden is returning at a moment when Canadian consumers are more conscious of where their money goes, shaped by ongoing economic uncertainty and a renewed emphasis on supporting domestic businesses. The “Elbows Up” movement has added a layer of scrutiny for popular American brands re-entering the Canadian market, particularly in sectors where local alternatives are plentiful.

For Olive Garden, nostalgia remains a powerful asset. Many Canadians remember its generous portions, simple menu and casual vibe from earlier decades. And who doesn't love unlimited breadsticks and soup or salad? That familiarity, combined with Recipe’s operational experience and Canadian ownership structure, may help soften some of the resistance that can greet U.S. brands arriving at a sensitive moment.

The first two locations in Vaughan and Ottawa are only the beginning. Recipe has said additional restaurants are in various stages of planning. If the early openings perform well, Olive Garden could gradually expand across Ontario and into other regions, re-establishing itself as a regular fixture rather than a novelty.

In that sense, Olive Garden’s return is a study in patience and persistence. A brand that struggled during its first Canadian run is coming back with lessons learned, a stronger local partner and a more cautious rollout. Whether that will be enough in today’s economic and political climate remains to be seen, but the effort itself underscores a broader truth in Canadian retail and dining: a retreat does not always mean the end of the story.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

CTV News (1)

That was exactly the experience shared on Reddit (1) by someone who had just finished an exterior renovation contract and deposited a $22,000 bank draft only to be told the bank needed extra time to process it due to fraud concerns. The manager even suggested that “cash is king” because it avoids those holds altogether.

"Apparently Bank drafts & certified cheques are now useless and will be treated like personal cheques by all major Canadian banks and 'Cash is king' once again," Redditor user reheadlover69 said in a post.

It’s a frustrating story and it resonates with many business owners, buyers and sellers who think bank drafts or certified cheques are the safest way to transfer large sums of money. But reality is shifting because fraudsters are becoming more sophisticated. Paper instruments such as cheques and bank drafts are no longer the ironclad guarantee many people assume they are.

Fraud is rising and consumers feel the impact

Fraud and scam attempts are on the minds of Canadians and they’re not just isolated stories on Reddit. A 2024 FICO survey (2) reports that 83% of Canadians have received a text, email or phone call they believed was a scam and 44% say family or friends have been victims of a scam, up 5% from 2023. Many Canadians want banks to do more to detect and stop scams before they happen.

When it comes to payment fraud specifically, research from Payments Canada (3) found that 13% of Canadians experienced payment fraud in a six-month period, and among those incidents, money was lost in 59% of cases. Unauthorized transactions and impersonation scams are among the most common types.

Businesses aren’t immune either. Another Payments Canada (4) report found that one in five Canadian businesses experienced payment fraud recently, with a range of scam vectors including fraudulent cheques and online impersonation.

Fake bank drafts are more common than you think

There’s solid evidence that the issue with fake bank drafts is real. In multiple recent Ontario cases, business owners lost six figures after accepting bank drafts that initially looked legitimate. In one instance (5), a company lost over $108,000 and were told the draft “looked like every other bank draft.” Even a teller said it was good, only for the funds to be reversed days later.

In a separate case (6), an Ontario business owner lost nearly $156,000 from a fake draft even after the bank inspected it. The bank later reversed the deposit when the draft was determined to be fraudulent.

These aren’t fringe events. Police in British Columbia have issued warnings (7) about counterfeit bank drafts used to buy vehicles and others have reported multiple fraud encounters in just one week involving fake drafts.

Why banks are cautious

Banks aren’t placing holds just to be difficult. They are responding to the reality that cheques and bank drafts can be forged or altered and that they may be liable if they release funds that turn out to be fake. Banks have the legal right to place holds while they verify an instrument’s authenticity, and those holds can stretch to five business days or longer, especially for larger amounts or when fraud risk is suspected.

Less than 1% of accounts generally have holds placed on deposits (8), but unusual patterns, large amounts compared to typical account activity, or anything that raises a red flag can trigger extra verification.

From the bank’s point of view that verification step protects both you and the institution from having funds reversed later, which happens when a draft turns out to be counterfeit or issued on insufficient funds.

What banks are doing right

Banks have been investing in better fraud detection systems that look for suspicious activity as transactions occur. According to consumer surveys (9), 69% of Canadians want banks to step up real-time protections and alerts to help stop scams before they do harm.

Even though the cheque and draft system is older technology, banks are working with regulators and the Department of Finance (10) on ways to improve how and when funds become available and how to reduce the time needed for verification so legitimate payments clear faster.

What you can do to protect yourself

Here are some practical tips you can use to protect yourself:

Wait for clearance before spending

Bank drafts and certified cheques should be verified through the issuing bank before you pay out the funds or deliver goods. Even if a teller says it looks real, only the actual clearance process confirms legitimacy.

Verify independently

Never rely on phone numbers printed on the draft itself. Always independently look up the issuing bank’s contact information and ask them to verify the draft. Fraudsters may include fake contact information.

Consider electronic transfers

Wire transfers and Interac e-Transfers may have fees but are typically instantaneous and reduce the risk of counterfeit instruments.

Be extra cautious with high-value deals

If you’re selling equipment, vehicles or real estate privately, insist on secure payment methods where funds are confirmed before you release goods.

Use two-factor security and limit data sharing

Fraud reports show personal account takeover and unauthorized transactions often start with compromised credentials. Two-factor authentication and limited sharing of sensitive information can reduce your exposure.

Bottom line

The Reddit poster’s gut reaction that “cash is king” comes from real frustration. But the data shows that cash isn’t inherently safer and, in fact, payment fraud can occur with cash as well as other instruments.

Banks are taking fraud seriously and making changes that protect you, even if it means waiting a few business days to be sure a payment is real. By understanding the risk, using secure payment methods and adopting best practices, you can reduce your own vulnerability and keep more of your hard-earned money where it belongs: in your control.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Reddit (1); CMP (2, 9); Payments Canada (3, 4); CP24 (5, 6); CityNews Vancouver (7); Senate of Canada (8); Government of Canada (10)

Instead, he points to something surprisingly ordinary — something Canadians can use no matter their income level. That's compound interest, something he describes as his "magic trick" to accumulating wealth.

“We started building this little snowball on top of a very long hill,” the Oracle of Omaha told shareholders in 1999. “The nature of compound interest is that it behaves like a snowball.”

The real driver of Buffett’s US$150B fortune

CNBC notes how (1) compounding isn’t just earning returns on your money — it’s earning returns on your previous returns, creating exponential growth as time goes on.

Buffett has emphasized this repeatedly in Berkshire Hathaway shareholder letters, writing that the most powerful force behind his fortune wasn’t brilliance, but time — specifically, starting as a child and compounding into his 90s.

Analysis suggests that 98% of Buffett’s net worth (2) was accumulated after age 65. Even the world’s most famous value investor built his fortune gradually, not instantly.

Why starting early matters more than starting big

Buffett has repeatedly said the average person doesn’t need to pick stocks to benefit from compounding.

At the 2021 Berkshire annual meeting (3), he said, “For most people, the best thing to do is to own the S&P 500 index fund.”

And there's good reason to consider Buffett's advice. The stock market has historically produced average returns close to 10% annually (4), despite recessions and volatility.

Although it's important to note that the timing of when you start matters profoundly. Consider Buffett’s favourite example:

• A 22-year-old investing $10,000, adding $5,000 each year at an 8% return, could end up with nearly $20 million by age 95.
• Start just five years later, and the total drops to about $13.5 million.
• Wait 10 years, and the final value will fall below $10 million.

No change in income, only time.

Why many Canadians still hesitate to invest

A 2023 survey from the Investment Funds Institute of Canada found (5) 38% of young adults are not aware of their investing options. In addition, nearly half (44%) say they don't have enough money to invest.

However, Buffett has long warned that waiting for the “perfect time” can be far more expensive than starting small and staying committed.

He also cautions against panic selling during downturns which break the compounding cycle.

His message is simple: you don’t need luck, secrets or expertise — you need time and consistency.

You don’t need much to benefit from Buffett’s trick

For everyday Canadians, the takeaway isn’t to mimic Buffett’s stock picks or his career. It’s to copy the part that’s available to everyone: Start early, automate consistently and let compounding do the heavy lifting.

Here are some Canadians accounts that can help you get started:

• RRSPs allow for tax-deferred growth (6)
• TFSAs allow investment gains to grow tax-free
• Workplace pension plans and group RRSPs often include employer matching (7), which is free money that many Canadians still leave on the table

When looking to investing in the stock market a la the Oracle of Omaha, low-cost index funds and ETFs align with his recommendations for non-professional investors. This is for three reasons:

• Diversification: They give you exposure to a wide range of securities, so you’re not putting all your eggs in one basket (or relying on just one stock or bond to perform).
• Professional management: Whether it’s a seasoned pro or an algorithm calling the shots, these funds handle the heavy lifting when it comes to research and decision-making.
• Accessibility: Beginner-friendly and easy to access through most major brokerages, making it simple for anyone to get started.

Despite making one of the most enormous fortunes in history, Buffett has repeatedly said money isn’t the end goal.

“The money makes very little difference after a moderate level,” he told shareholders. “If you asked me to trade away a percentage of my net worth for extra years of my life, I’d do it in a second.”

Wealth doesn’t require market timing. Instead, you need to stay in the game long enough for compounding to work its quiet magic.

Even if Canadians will never be Buffett, his most straightforward advice is the most powerful: Make your hill as long as possible. Then roll the snowball.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

CNBC (1, 3); Yahoo! Finance (2); Public (4); Newswire (5); RBC (6); The Globe and Mail (7)

That frustration is exactly what personal finance expert Ramit Sethi has been calling out. On his podcast, I Will Teach You To Be Rich, Sethi argues that younger generations are navigating an economy that looks very different from the one boomers built their wealth on — especially when it comes to housing and pensions.

“Why is it that previous generations were able to buy homes on a single income, but today even saving for a down payment feels impossible?” Sethi has asked (1). In this view, the system changed, but much of the advice hasn’t.

That’s why he’s been critical of traditional, one-size-fits-all money advice from figures like Dave Ramsey and Kevin O’Leary, calling parts of it outdated and poorly suited to today’s cost-of-living realities.

According to Sethi, this isn’t about overspending on small luxuries — it’s about structural shifts that make wealth-building harder than it used to be. And that means younger Canadians may need to focus on different financial priorities than the ones they’re often told to follow.

Old financial frameworks don’t work anymore

Ramit Sethi doesn’t argue that advice from figures like Dave Ramsey or Kevin O’Leary is useless — he argues that much of it was built for a very different economy that existed decades ago.

“Dave Ramsey is still recommending 15-year mortgages and these mythical 12% mutual funds that he refuses to name,” Sethi said, arguing that this kind of advice doesn’t reflect today’s housing prices, interest rates or job insecurity.

He’s equally dismissive of O’Leary’s frequent lectures about cutting out small indulgences like coffee. “Did Kevin O’Leary become worth hundreds of millions of dollars by not buying coffee?” Sethi asked. “No.”

At the core of Sethi’s critique is a structural shift that Canadians know well: To;phe disappearance of employer-funded retirement security.

In the past, many workers could rely on defined-benefit (DB) pensions. Today, most private-sector workers must fund retirement largely on their own through Registered Retirement Savings Plans (RRSPs), Tax-Free Savings Accounts (TFSAs) and workplace savings plans — often with uneven employer matching.

Research shows that the percentage of public-sector employees who have DB pension plans has dropped by about 4% over the past 20 years. As of 2023, private-sector DB pension plans have dropped to 8.2% (2) from 21.9% (3) in the late 90s, as many employers move toward defined-contribution (DC) pensions (2). This means workers carry the full investment risk themselves. Further, roughly 60% of Canadians don’t even have a workplace pension plan at all (4).

Housing is the other major fault line. Older generations bought homes when prices were far lower relative to income and when government policy strongly encouraged ownership through easier credit and expanding supply. Younger Canadians face the opposite reality: higher prices, higher rates and chronic housing shortages in many urban centres mean ownership is further out of reach (5).

Canadian baby boomers continue to hold a disproportionate share of housing wealth, while younger buyers are increasingly locked out or dependent on family help. Surveys from Canadian Mortgage Trends and the Canadian Mortgage and Housing Corporation (CMHC) show that first-time home buyers are older than they used to be and more likely to rely on gifts or inheritances to enter the market (6).

Sethi’s point isn’t that older generations acted unfairly — it's that the rules changed. Advice built for an era of stable pensions, affordable homes and steady wage growth doesn’t translate cleanly into a world where young Canadians must self-fund retirement and compete in tight housing markets.

That’s why, he argues, repeating old scripts about frugality misses the challenges of today. The problem isn’t that younger people are reckless spenders. It’s that they’re trying to build wealth in a system that demands different strategies than the ones that worked in a different era.

How to overcome systemic barriers

If the system is tougher for younger Canadians than it was for previous generations, is there anything you can actually do about it?

Sethi says yes — but it starts with shifting your focus away from micromanaging every dollar and toward the moves that have the biggest impact. “I don’t spend my days with my nose buried in my phone tracking my bank account in two-cent increments,” he said. And he doesn’t think most people should.

Instead, he points to three areas where effort tends to pay off more.

1. Focus on earning more

It still matters to cut back where you can — cancelling unused subscriptions or trimming obvious waste can help. But if your budget is already tight, there’s a limit to how much cutting out can do.

Sethi argues that increasing income is often the more powerful level. That might mean negotiating your salary, switching employers, upgrading your skills or building a side hustle that brings in a few hundred or even a few thousand dollars a month. In a high-cost environment, earning more can create breathing room that budgeting alone can’t.

2. Consistently save and invest

When it comes to building wealth, Sethi emphasizes consistency over guilt. Rather than fretting over every small purchase, he encourages automating savings and investments so progress happens in the background.

By setting up automatic contributions to accounts like Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs), you remove emotion and decision fatigue from the process. The only time you need to revisit those settings is when your income changes and you’re able to save more. Over time, regular investing benefits from compounding — where returns start earning returns of their own.

3. Make conscious, not fear-based, choices

Sethi is also critical of fear-driven money rules that leave people feeling stuck in shame or at a standstill. Blanket advice like “never use credit” or “never spend on anything fun” may sound responsible, but it’s often unrealistic.

Instead, he recommends that learning how to manage risk — and make thoughtful choices — matters more. That means understanding trade-offs, using financial tools responsibly and aligning spending and saving with what actually matters to you, rather than following rigid rules that no longer fit today’s reality.

In short, Sethi’s approach doesn’t deny that systemic challenges exist. It suggests that the way forward is to focus energy where it has the greatest payoff: earning power, automation and intentional decision-making — not constant self-denial.

Bottom line

There’s no shortage of financial advice — but not all of it fits today’s economic reality. Before following any rule or framework, ask whether it’s realistic with your income, housing costs and career stage, or whether it simply relies on fear and shame to force you into compliance.

Focus on strategies that help you earn more, automate saving and make intentional choices with your money. And if you're unclear how to apply those ideas to your own situation, working with a qualified financial advisor can help turn broad advice into a plan that actually works for you.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Youtube (1); The Globe and Mail (2); Federal Retirees (3); C.D. Howe (4); Statistics Canada (5); Canadian Mortgage Trends (6)

These numbers mean the average individual student loan debt is approximately $28,000 (2).

Most students who borrowed know exactly what they owe, since they took out the loan themselves. But things get much more complicated when debt unexpectedly shows up after a parent dies.

What happens if you end up getting surprised with a student loan-sized debt you weren’t expecting?

Imagine this scenario: Dave attended an expensive four-year university program. He covered his first year on his own, taking out around $30,000 in student loans. His parents paid the rest — or so he thought.

Years later, Dave's father died and his mother received a notice showing $90,000 in student loans tied to Dave’s education, all in his father’s name.

Dave is stunned. He never applied for the loans, and he didn’t cosign anything. But the debt was taken out for his education and it’s now sitting in his father’s name.

So what happens next? Does the debt fall to Dave simply because he benefitted from the education? Does it stay with his father’s estate after death?

Here’s what Canadians need to know when a parent’s death uncovers unexpected student loan debt — and when, if ever, someone could be on the hook for it.

Understanding different student loan types

The first step is understanding who actually borrowed the money. In Canada, there are student loans that students take out by themselves, and there are loans taken out by parents to help pay for a child’s education. The difference matters a great deal when someone dies.

Most post-secondary students borrow through the Canada Student Loans Program, often paired with a provincial loan, such as British Columbia Student Aid, Alberta Student Aid, Ontario Student Assistance Program, for example (3). The province of Quebec, and the Northwest Territories and Nunavut don’t participate in the integrated federal program, and offer their own separate, distinct student financial assistance programs. These loans are issued in the student’s name, and only the student is legally responsible for repaying them.

Parents can’t take out a federal Canada Student Loan on behalf of a child. If Dave’s father borrowed money through the federal student loan program, it would have required Dave’s name, consent and legal responsibility — which isn’t the case here.

Instead, when a parent borrows to help cover a child’s tuition, they usually do so in one of two ways:

• Personal loans or lines of credit taken out in the parent’s name
• Private education loans offered by banks or credit unions, issued in the parent’s name

In both cases, the parent — not the student — is the borrower and is solely responsible for the debt (4), which means Dave is not automatically responsible for the $90,000 in loans if they were taken out in his father’s name and he didn’t cosign.

But that doesn’t mean the debt simply disappears, either.

When a borrower dies, outstanding debts — including personal loans and private education loans — typically pass through the borrower’s estate before any remaining assets are distributed to heirs (5).

According to the National Student Loans Service Centre (NSLSC), if a person dies with a provincial or federal student loan debt, the NSLSC can forgive the debt and it will not pursue the decedent’s estate to cover repayment. However, this forgiveness excludes private student loan debt, wherein private student loan lenders reserve the right to either forgive student loan debt or pursue repayment through the person’s estate (6).

Whether the loan is forgiven or repaid depends on the type of loan, the lender’s policies and whether the estate has sufficient assets to cover repayment. What’s clear is that benefiting from an education doesn’t make a child legally responsible for a parent’s student-related debt.

The key question in cases like Dave’s is whose name is on the loan documents, not who went to school.

Understanding what creditors could go after

In Canada, a parent’s debt doesn’t automatically pass to their children. Creditors generally can’t pursue surviving family members unless they cosigned a loan or were joint borrowers. Simply benefiting from a parent’s spending — including education costs — doesn’t make a child legally responsible for the debt.

However, creditors can usually make a claim against the estate. Before assets are distributed to heirs, outstanding debts may need to be paid from estate assets such as cash, non-registered investments or property owned solely by the deceased.

How the Registered Education Savings Plan can help

One reason stories like Dave’s are so unsettling is that they often stem from ad-hoc borrowing rather than long-term planning. One of the most effective ways to plan for covering post-secondary education costs — without relying on loans — is through a Registered Education Savings Plan (RESP).

An RESP is a long-term, tax-advantaged account specifically designed to help families save for a child’s education. Contributions aren’t tax-deductible, but the money grows tax-deferred, and withdrawals are taxed within the student’s tax bracket, which is usually at a much lower rate.

When you open an RESP, you can ask your providing financial institution to apply for additional government support. Through the Canada Education Savings Grant (CESG), the federal government matches 20% of annual contributions, up to a set limit, helping your savings grow faster over time (7).

RESPs are flexible, and funds can be used for a wide variety of post-secondary programs including university, college, trade school or apprenticeships either within Canada or abroad. And if a child doesn’t pursue post-secondary education, there are rules that allow families to redirect or unwind the plan.

Opening an RESP is straightforward. They’re available through banks, credit unions, robo-advisors and investment firms. Parents, grandparents or other relatives can open one — you can even open one for yourself — and the account belongs to the subscriber, which adds a layer of clarity and control.

For families worried about education costs and future debt, RESPs offer something loans never do: certainty. Saving gradually, with government help, can reduce the risk of surprises later — and prevent education funding from becoming an estate issue.

Bottom line

Dave’s situation shows how student debt can surface in stressful and unexpected ways after a parent dies — especially when education costs were covered through loans taken out behind the scenes. Responsibility for that debt depends on whose name is on the loan, the loan type and whether the estate has assets to cover it.

Looking ahead, families can reduce this risk by planning early and using tools like RESPs, which allow savings to grow with government support and clear ownership. The practical next step is to consider today how education will be funded further down the road — and if possible, shift toward saving gradually rather than relying on borrowing in the moment, which could create complications later down the line.

- With files from Melanie Huddart

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Office of the Superintendent of Financial Institutions (1); Robertson College (2); Government of Canada (3, 7); College Ave (4); Royal Bank (5); Consolidated Credit Canada (6)

The idea traces back to a 2005 marketing campaign by a UK travel company that tried to pinpoint a day when weather conditions, debt levels, time since Christmas and New Year’s resolutions, low motivation and other factors combine to make people feel particularly down. The formula behind it is widely criticised and not scientifically validated, so Blue Monday as the single saddest day of the year isn’t backed by research. But feeling the darkness this time of year most definitely is.

In Canada, the impact of cold, dark days, post-holiday bills and the winter blues are very real phenomena for many people. In fact, seasonal affective disorder (SAD), a periodic form of depression that is believed to be related to the lack of sunlight, affects thousands of Canadians each year. Roughly 15% of the population report experiencing at least some symptoms consistent with seasonal affective disorder during winter — such as low energy, mood changes and increased sleep — and about 2 to 3% experience more serious forms of SAD (1).

While a single Monday in January cannot be labeled as the saddest day of the year with any empirical evidence, winter’s combination of reduced daylight, longer nights and extra financial pressures can create a perfect storm of emotional and financial stress.

Why winter hits some of us harder

Long northern winters can shift your body clock and mood. SAD is a recognized pattern of depression that starts in late fall and lasts until spring. It’s linked to a decrease in sunlight that can affect the brain’s serotonin levels, which play a role in regulating mood.

The so-called winter blues are a milder but widespread reaction to shorter days and harsher weather. Experts say this can feel like persistent low energy, lack of motivation and a slump in mood — the kinds of feelings people associate with mid-January’s Blue Monday.

If you’re also feeling the pinch of heightened holiday spending, rising costs of living and lingering debt, those emotional dips can feel deeper. Financial stress doesn’t just strain budgets, it has a measurable impact on health and wellbeing.

Money worries are hitting Canadians hard

The latest Financial Stress Index from FP Canada and Leger showed 42% of Canadians say money is their top source of stress, more than health, relationships or work (2).

Nearly half of Canadians say they’ve lost sleep because of financial worries according to the Government of Canada's financial wellness survey (3). In fact, financial stress doubles the likelihood of reporting poor health and quadruples the risk of sleep problems, headaches and other physical issues.

Those aren’t just abstract stats — they describe the everyday reality for many Canadians juggling bills, groceries, rent or mortgage payments while also trying to save for the future.

When money stress meets winter blues

Put together, seasonal mood challenges and financial stress can compound. Feeling worn down by winter weather makes it harder to take proactive steps on your finances, while money worries can feed anxiety and low mood. It’s the combination that can make a day like Blue Monday resonate even if it’s not scientifically the “bluest.”

What you can do to protect your wellbeing

Here are practical, evidence-based steps you can take this winter to boost both your mental health and your financial well-being.

Check in with yourself and others

First, normalize how you’re feeling. Many people experience a low mood during the winter and money worries. If your mood worsens or you feel overwhelmed, reach out to a health professional or a trusted friend. You’re not alone.

Boost daylight exposure

Even on grey days, daylight helps regulate mood. Try to get outside during daylight hours, sit near windows when you can, or rearrange your space so more light reaches where you spend most of your time.

If getting natural sunlight is a challenge, consider purchasing a light therapy lamp. Research shows that bright light therapy using a specially designed light box that mimics natural daylight can help ease depressive symptoms during the winter. It works by influencing brain chemicals linked to mood and circadian rhythm, and many people with seasonal affective disorder notice improvement after regular morning use (4).

Studies have found that light therapy is a recommended first‑line treatment for SAD and can significantly reduce symptom severity compared with dim light (5).

Keep moving

Physical activity releases endorphins that can improve mood and energy. Aim for 20 to 30 minutes of movement a day, even if it’s a walk.

Build small financial habits

Financial stress can feel overwhelming, but small consistent steps can build confidence and control:

• Create a simple budget and track where your money goes each month
• Set up automatic savings, even small amounts, to build an emergency fund
• Prioritize paying down high-interest debt where possible
• If you feel stuck, consider working with a financial planner. Research finds Canadians with professional guidance feel more hopeful about their finances over time.

Reach out for support

If feelings of sadness or depression last more than a couple of weeks or interfere significantly with daily life, it’s important to seek support from a healthcare provider.

Remember this winter will pass

Blue Monday serves as a reminder that the third week in January can be tough, but it doesn’t define your year. With intentional steps and support, you can ease both the financial stress and the winter blues — and build resilience to enjoy brighter days ahead.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Canadian Psychological Association (1); FP Canada (2); Government of Canada (3); Pub Med (4); Mayo Clinic (5)

“If you’ve got any musical talent you should write this one, ‘cause it could really take off,” Coleman joked.

Elijah told the hosts that he and his ex-fiancée are expecting a baby. Even before the child is born, he’s been sending her US$500 in child support every month, hoping to do the right thing — despite not knowing what role, if any, he’ll have in their child’s life.

“She hasn’t really guaranteed me that I’m even going to get to have a relationship with our baby,” he said.

As the conversation unfolded, Elijah shared that his ex already has two other children by two other fathers who paid child support, but later became estranged. That detail raised red flags for the hosts, who felt Elijah’s good intentions may be working against him.

Coleman’s response was frank. “You dodged a bullet,” he told Elijah. “This is not a woman that I think you want to settle down with. We’ve got two other dudes, two other kids — she is taking advantage of you. She doesn’t value you.”

While both cohosts agreed the situation carried emotional concerns, they didn’t fully agree on what Elijah morally or financially owed — especially before a legal parenting arrangement was in place. As they dug deeper, the advice became less about money and more about boundaries, expectations and protecting himself from manipulation.

The trouble with informal child support

Elijah told the hosts that he and his ex were once engaged, but the relationship ended before they discovered she was pregnant. Hoping to make things work, he suggested they reconcile. For a short time she moved in with him, along with her two other kids, but the arrangement quickly fell apart and she moved out with the help of a former partner.

After that relationship ended, Elijah said she reached out asking for financial help. She’s currently living rent-free on her grandmother’s property and has no steady income.

“Her only income source is child support,” Elijah said. “If I’m not supporting her, nobody is. She’s the mother of my child. I don’t want her to go hungry while she’s growing our baby.”

Wanting to do the right thing, Elijah started sending her US$500 a month, basing the amount loosely on what her children's fathers had paid in the past. But once those payments stopped, she began asking Elijah for more money. He said his ex began asking for two to three times more than what he was already providing — even as she continued to refuse any clear coparenting plan.

“It’s really hard to not feel that I’m being taken advantage of,” he admitted.

Coleman didn’t hesitate. He told Elijah that informal arrangements often lead to blurred lines and pressure, and advised him to stop sending extra money beyond what he originally agreed to. In his view, Elijah was being asked to shoulder financial problems he didn’t create.

But Warshaw pushed back. She argued that financial instability could affect how Elijah’s child is cared for and said it wasn’t as simple as drawing a hard line and walking away.

But on one point, both hosts agreed: This situation needs to move out of an emotional realm and into a legal one.

In Canada, child support amounts are determined using federal and provincial guidelines, typically based on income and custody arrangements — not informal agreements or shifting demands. A court order can also establish clear expectations around parenting time and responsibilities, reducing confusion and emotional pressure on both sides (2).

Getting a judge involved, Warshaw said, doesn’t mean being unkind or adversarial. It means putting structure around a situation that has become emotionally charged — and ensuring decisions are made in the child’s best interests, not out of guilt, fear or manipulation.

What expectant fathers need to know about child support

According to Statista, 1.84 million children live in single-parent households as of 2024, and child support plays a key role in their financial stability (3).

While many parents have formal, court-ordered child support arrangements, informal agreements — where one parent sends money without a legal order — are also common, especially early on in the arrangement. However, Canadian family law experts and courts consistently caution that informal payments offer little legal protection to either parent.

Under Canadian law, child support amounts are determined using the Federal Child Support Guidelines, which are applied to courts across provinces and territories, with Quebec using its own provincial model (4). These guidelines base support primarily on income and parenting arrangement, not on informal negotiations or pressure from an ex-partner.

What can begin as “doing the right thing” may quickly become financially risky when payments are undocumented and expectations are unclear — especially before a legal parenting framework is in place.

That’s why family-law guidance in Canada strongly encourages parents to formalize child support through the courts or a written agreement. A formal order helps ensure support is fair, predictable and focused on the child’s needs — covering essentials like housing, food, clothing and school costs — while protecting both parents from ongoing disputes (5).

Here are some key points expectant fathers should understand before agreeing to any form of child support:

You have rights — but they must be legally established

In Canada, parental rights and responsibilities must be legally established, typically after a child is born. While expectant fathers can prepare in advance, decisions about custody, parenting time and support are generally made once legal parentage is confirmed (6).

Child support is usually enforced after birth

Because paternity is normally determined after a child is born, courts generally enforce child support only after birth (7). Importantly, sending money informally during pregnancy may not be credited toward future child support obligations unless it’s clearly documented and recognized by a court or agreement.

Off-the-books payments can create long-term problems

Informal payments made without a court order or written agreement have certain downsides that include:

• They may not count toward official child support
• They don’t guarantee parenting time or decision-making rights
• Can lead to escalating demands without clear limits

Canadian courts rely on documented, guideline-based support, not verbal promises or goodwill gestures (8).

Supporting your child doesn’t mean funding unrelated expenses

In Canada, child support is owed to the child, not to subsidize an ex-partner’s broader lifestyle or financial shortfalls unrelated to the child’s care. Courts assess support based on the child’s needs and the parents’ incomes — not the financial gaps left by previous partners or other household obligations (9).

Documentation protects everyone

A court-ordered or formally registered child support agreement can help:

• Set clear expectations
• Reduce emotional pressure and conflict
• Protect both parents from future disputes
• Ensure support decisions are based on law, not guilt or fear

Informal agreements make this structure difficult, if not impossible to achieve (10).

Bottom line

Elijah’s story highlights how quickly good intentions can turn into financial and emotional risk when money, guilt and unclear boundaries mix. In Canada, informal child support arrangements offer little protection, leaving parents exposed to ongoing pressure and disputes.

The safest move is to formalize support through the legal system, document all payments and establish parenting expectations early. Doing so helps keep decisions focused on the child’s well-being — while protecting your finances, your rights and your long-term stability.

— with files from Melanie Huddart

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

The Ramsey Show (1); Government of Canada (2, 4, 5, 6, 8, 10); Statista (3); Shulman and Partners LLP (7); Connect Family Law (9)

New research from the Financial Consumer Agency of Canada (1) sheds light on where people go for money guidance, and which groups are most likely to miss out.

The findings come from the 2024 Canadian Financial Capability Survey, a nationally representative study of nearly 8,000 Canadians conducted in early 2024.

While about three-quarters of Canadians report getting financial advice from at least one source, 65% had not sought any advice in the previous 12 months, pointing to significant gaps in access and engagement.

“Reliable, timely financial advice empowers Canadians to make informed decisions,” said Shereen Benzvy Miller, Commissioner of FCAC, in a statement (2). “While emerging risks like AI-driven advice, social media ‘finfluencers’, and fraud require caution, trustworthy advice is available for every budget — including free support for those facing financial hardship.”

Friends and family remain the top source

When Canadians do seek financial advice, they tend to start close to home. The survey found that 37% turned to friends or family, making this the most common source of guidance. Another 33% relied on trusted institutions such as banks, investment firms or insurance providers.

Professional financial advisors ranked lower, with just 25% of respondents saying they consulted one, while 20% turned to online sources other than social media. Only 9% reported using social media as a source of financial advice overall.

The most common reason Canadians sought advice was general financial planning, including savings and investment strategies — an area where informal advice may not always be well-matched to individual circumstances.

Younger Canadians rely more on informal advice

Age also plays a major role in where people turn to. Canadians aged 18 to 34 were twice as likely to use social media for financial advice (18%) and were most likely to rely on friends or family (57%). They were also the least likely to consult a professional advisor, with just 20% doing so.

By contrast, those aged 55 and older were more likely to pay for financial advice, particularly for retirement and tax planning. Overall, about one-quarter of those who sought advice paid for it, with paid advice most often used for savings and investment planning, tax strategies and retirement planning.

Who is least likely to seek advice

The survey highlights clear disparities in access to financial guidance. Canadians who were least likely to seek advice included:

• Those with a household income under $60,000
• Those with high school education or less
• Canadians with a disability, or living with someone who has one

In many cases, these groups face the greatest financial pressure — yet are the least likely to access professional or institutional advice.

Free advice plays a critical role

For Canadians who do seek help, free advice remains the dominant option.

Nearly three-quarters chose a free source, particularly for general financial planning, retirement questions and insurance decisions. Younger Canadians, women and lower-income households were especially likely to rely on free guidance.

FCAC says the findings point to a need for more inclusive, accessible financial literacy approaches, especially as new advice channels emerge and financial scams grow more sophisticated.

Trustworthy help exists at every price point. Knowing where to look, and when to seek more specialized guidance, can make a meaningful difference to both long and short-term financial well-being.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Government of Canada (1, 2)

That’s the situation one caller found himself in when he reached out to The Ramsey Show. Despite owning his home outright, Josh was struggling to make progress on a HELOC he had used for renovations. Each month, he and his wife were only managing the interest-only payments, so the balance wasn’t shrinking (1).

Josh's solution sounded logical on the surface: Roll the HELOC into a 15-year loan to force principal payment and bring some structure to the debt.

But as cohosts Rachel Cruze and Jade Warshaw asked more questions, a different picture emerged. The couple earns US$11,500 (C$16,000) a month, has no mortgage and their biggest financial strain comes from lifestyle choices — including significant private school tuition for their four children.

Once those details were clear, the cohosts were direct. Converting the HELOC into a new loan wouldn’t solve the problem. It would simply reshuffle it. The real issue wasn’t the type of debt — it was how their money was being allocated each month.

Why the hosts say the payment wasn’t the problem

From the cohosts’ perspective, Josh’s problem wasn’t about cash flow — it was about motivation.

“You have no mortgage. Where’s the problem here to pay $450 a month or more? You could pay $1,000 a month to pay off this HELOC,” Cruze said.

“Yeah, it would just take forever,” Josh replied, a response that shifted the conversation.

“There’s the problem,” Warshaw said. “It has nothing to do with the payment. It has to do with the fact that you’re… tired of paying this and want roll it into a mortgage instead”

Cruze was blunt. “Where’s all your money going, Josh? I’m confused.”

Cruze explained that, as a rule of thumb, rolling a HELOC into a mortgage only makes sense when the balance is more than half of your household income. In Josh’s case, the US$65,000 (C$90,000) balance was well below that threshold, given the family’s US$146K (C$203,000) annual income and lack of a mortgage.

That led to a different recommendation: Don’t restructure the debt — attack it.

“Shop at Aldi. Don’t go out to eat. Don’t go on vacation. Cut subscriptions. Do nothing until this is paid off,” Cruze said.

In other words, the hosts advised treating the HELOC like an emergency. By temporarily scaling back their lifestyle and directing every extra dollar toward the balance, the family could quickly eliminate the debt‚ instead of stretching it out for years under a new loan and calling it progress.

To HELOC or not to HELOC

A HELOC lets you borrow money against the your home equity. It works like a revolving line of credit with your property as collateral. It usually comes with a lower interest rate than unsecured debt, but the Financial Consumer Agency of Canada (FCAC) warns the stakes are much higher if something goes wrong (2).

The main risk is straightforward: If you can’t repay the balance, the lender ultimately has a claim on your home. Most HELOCs also have variable interest rates, which means your borrowing costs — and sometimes your payments — can quickly rise when interest rates increase (3).

The variable interest was one of the reasons Josh wanted to convert his HELOC into a mortgage. Mortgages can often feel safer, with lower interest and the option of a fixed rate for a predictable payment, rather than fluctuation.

In practice, though, converting a HELOC into a mortgage usually means taking out a new mortgage, or refinancing an existing one and using that money to pay off the line of credit. That process comes with legal fees, appraisal costs and other closing expenses. More importantly, it turns flexible, short-term debt into long-term mortgage debt (4).

In Canada, homeowners who already have a mortgage and a HELOC may need to refinance and increase their mortgage balance to absorb the line of credit. While this can lower the monthly payment, it can also extend the debt over many years and increase the total amount of interest paid (5).

That’s why many financial professionals caution against repeatedly rolling non-mortgage debt into your home loan — increasing the risk if your income ever drops (6).

In Josh’s case, Cruze and Warshaw felt the numbers didn’t justify the trade-off. With no mortgage and a HELOC balance well below the household income, they argued the safer move was to focus on quickly paying the debt off — not stretching it out under a new loan and thinking it’s getting him further ahead.

How to pay off a HELOC

Cruze and Warshaw told Josh that the solution wasn’t a new loan — it was a return to basics. In Ramsey terms, that meant going back to “Baby Step Two,” the stage focused entirely on eliminating non-mortgage debt. It’s the second in a series called the 7 Baby Steps in a debt-reduction, wealth-building plan developed by Dave Ramsey.

At its core, it means picking a repayment strategy and sticking with it. One common approach is the “debt snowball” method, where you aggressively pay off your smallest balance first while making minimum payments everywhere else. Each payoff builds momentum, which can make it easier to stay committed (7).

Another option is the “debt avalanche” method, which targets the highest-interest debt first. This approach usually saves money over time, but it can feel slower and more discouraging at the start — especially if the largest and most expensive balance takes years to clear (8).

For a high-income earner like Josh, the hosts were clear that converting the HELOC into a mortgage would amount to “kicking the can down the road.” The issue wasn’t affordability — it was unwillingness to endure some short-term discomfort.

Refinancing or rolling a HELOC into a mortgage can make sense, but it comes with trade-offs. Closing costs, longer repayment timelines and increased risk to your home can all offset the benefit of lower payments. In some cases, restructuring debt can also make it easier to borrow more and stay in debt longer if spending habits don’t change.

In Josh’s case, Cruze and Warshaw argued that the simplest option was also the toughest one: accept that the renovations and private school tuition have consequences, cut back aggressively for a defined period and eliminate the $65,000 HELOC outright.

For other homeowners in a similar position, the lesson is to carefully weigh your income, risk tolerance and long-term goals before turning short-term borrowing into long-term debt tied to your home.

Bottom line

Josh’s situation shows that refinancing debt doesn’t always fix the real problem — it can just make it easier to live with it longer. When you have a strong income and a HELOC balance that’s manageable relative to your earnings, the most effective move is often the hardest one: cutting back, reprioritizing spending and paying the debt off directly.

Before rolling short-term borrowing into long-term mortgage debt, take a hard look at your cash flow and goals. In many cases, focused effort and a clear plan can get you out of debt faster — without putting your home at greater risk.

— with files from Melanie Huddart

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Youtube (1); Government of Canada (2, 3, 5); Mortgage Intelligence (4); Credit Canada (6); Ramsey Solutions (7, 8)

According to a new annual report from Alberta’s Superintendent of Insurance, property and casualty insurers lost more than $1.2 billion on auto insurance in 2024, paying out 18% more than they took in from drivers. The findings come amid ongoing government limits on how much insurers can raise rates, even as claims costs continue to climb.

The Superintendent warned in a statement that “escalating claims costs due to inflation, bodily injury claims severity growth, vehicle theft rates and weather-related losses will continue to exceed the Good Driver Rate Cap,” suggesting financial pressure is unlikely to ease in the near term.

Why insurers are losing money

Alberta has been under some form of auto insurance rate intervention since 2023. After a year-long pause on rate filings, the province introduced a “Good Driver” rate cap of 3.7% in 2024, which rose to 7.5% in 2025 and will remain at that level through 2026.

While the cap was intended to protect drivers from sharp premium increases, the Superintendent’s report shows it has coincided with mounting losses across the industry.

In 2024, 35 auto insurance carriers operating in Alberta reported financial losses, and several insurers have since exited the market or scaled back the coverage they offer.

For Alberta drivers, that has had real consequences. Insurance brokers increasingly report difficulty finding coverage, particularly for higher-risk drivers or specialized policies, as competition continues to shrink.

Rising costs behind the scenes

The report points to several cost pressures that are outpacing Alberta’s current insurance rate cap:

• Legal costs related to auto claims have risen 34% over the past two years and are projected to grow again this year
• Care and recovery benefits for injured drivers are up about 25%, with further increases expected
• Auto theft costs have climbed 21%, adding to insurers’ claims burden

At the same time, insurers have faced higher levies. Over the past three years of rate intervention, Alberta has increased its Health Levy on auto insurers by 70%, further squeezing margins.

“This new report confirms once again that, rather than helping Albertans, the rate cap is harming the competitive market that consumers depend on,” said Aaron Sutherland, Vice-President, Pacific and Western, at the Insurance Bureau of Canada, in a statement.

What this means for Alberta drivers

While rate caps have limited premium increases for many drivers, the report suggests there are some key trade-offs.

Fewer insurers and tighter underwriting can mean less choice, stricter eligibility and challenges securing coverage — especially for drivers with claims histories or unique insurance needs.

The IBC argues that Alberta’s proposed Care-First reforms, expected in 2027, could help reduce legal costs and stabilize premiums if combined with measures to attract insurers back to the market.

For now, Alberta drivers face a mixed reality: premiums are capped, but the system behind them is under serious strain. How long that balance can hold, and whether it ultimately leads to higher costs or fewer options, will depend on how quickly claims costs are brought under control and competition returns to Alberta’s insurance market.

In 2020, the couple had no mortgage, no loans and no credit-card balances. But once the pandemic restrictions eased and “the world opened up again,” that discipline slowly slipped. Before long, he and his wife made a series of lifestyle upgrades leading them to mounting debt.

Their spending didn’t come from one emergency. It crept in through travel plans, new vehicles and celebratory purchases that felt justified at the time. “Things started opening up after COVID and we’re like, we would like to go here, we would like to go there,” he told the hosts.

That mindset soon expanded to cars. The couple bought brand-new vehicles — including cars for each of their children — one of which still carries about US$17,000 in debt. Add a leased vehicle and nearly US$29,000 in zero-interest credit-card balances, and what started as freedom spending turned into a full financial reversal.

On paper, the couple looks secure. Carlos said their household income is close to US$300,000 annually. But the temptation to keep upgrading hasn’t faded. “The brand new Royal Caribbean ship is docking next month,” he said. “And I’m like, ‘Oh, we gotta check that out!’”

The hosts didn’t mince words. Here’s why they say high income doesn’t guarantee financial maturity — and what anyone prone to lifestyle creep can do to break the cycle.

When “revenge travel” turns into lifestyle creep

Carlos and his wife’s story will sound familiar to many Canadians in their 40s and 50s. After the pandemic, a mix of pent-up demand, rising asset values, a renewed sense that “life is short” and a booming stock market pushed many households to loosen the purse strings. Travel, home upgrades and new vehicles became a way to celebrate getting through a difficult period.

The surge in spending even earned a name: “revenge travel”(2). The idea is simple: make up for the trips and experiences lost during pandemic lockdowns by saying “yes” now before the chance slips away again.

But as 2023 turned into 2024 and 2025, the picture changed. Higher interest rates, stubborn inflation and the slowdown of pandemic-era savings began to affect how households spent their money (3). Many lower- and middle-income Canadians pulled back as costs rose, while higher earners were better positioned to keep spending.

Canadian economists and policymakers have noted this growing divide. Rising borrowing costs and higher prices for essentials have squeezed many families, even as households with stronger incomes and paid-off homes continue to drive discretionary spending (4). The result is a two-tier economy — one where some people are tightening their belts, another where others are booking trips and upgrading their lifestyles.

Carlos didn’t sound overly concerned about taking on new debt. He even acknowledged that his own paycheque had temporarily stopped, while his wife was still getting paid. That admission set off alarm bells for Ramsey hosts Rachel Cruze and John Deloney.

“You've missed two humongous lessons,” Deloney told him. “There’s always a day after the party, right? And in between those days after the party, you live like this is the last party that’s going to happen.” Living as if every celebration is the last one, he warned, can quietly undo years of hard financial work. Spending without a plan for what comes next doesn’t only create debt — it builds stress that can linger for a long time.

Part of becoming (and staying) debt-free is managing your emotions

Carlos’s slide back into debt shows how easily emotions can overpower logic. After years of discipline, he and his family reached financial milestones many people never see. With a high household income and no debt, it felt safe to upgrade their lifestyle. New cars, travel and indulgent spending slowly became the norm — until the numbers stopped working.

On the call, the Ramsey hosts pushed Carlos to confront a hard truth: a strong income doesn’t cancel out risky spending habits. A “we deserve this” mindset can quietly turn financial success into vulnerability if spending overpowers discipline.

His experience isn’t about bad intentions — it’s about human behaviour. Many Canadians feel stressed or embarrassed about their debt, yet delay making changes because giving up comfort feels painful. Others tell themselves things “will work out somehow,” especially when paycheques are big. Entitlement, denial and avoidance can pull people back into debt long after they think they’ve outgrown it (5).

“Dave always says that children do what feels good,” Rachel said. “Adults devise a plan and follow it.” John agreed, adding, “The greatest thing you can give to your wife is to say, ‘Hey, for the first time in our marriage, I want to act like grown-ups.’”

The discipline that helped Carlos and his wife build successful careers and become debt-free didn’t disappear — but it did become lax. Without guardrails, even well-earned success can lead back to financial stress.

That pattern isn’t unique. For many families across the country, household debt remains high, emergency funds are thin and higher living costs and interest rates have made even small balances harder to manage. Even households with solid incomes can find themselves relying on credit for unexpected costs or lifestyle upgrades if shrewd spending habits give way to flagrant indulgence.

Bottom line

Carlos’s experience shows that staying debt-free has less to do with how much you earn and more to do with the habits you keep. Reaching financial milestones can create a false sense of safety, but without structure, unnecessary debt can creep back in.

The way forward is simple, if not easy: keep a written budget, automate savings and set limits that prevent lifestyle upgrades from becoming new obligations. True financial security isn’t measured by income and appearances — it’s the breathing room between your life and your expenses.

- with files from Melanie Huddart

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

The Ramsey Show (1); Forbes (2); Kranzler Financial (3); Statistics Canada (4); Credit Counselling Society (5)

When cohosts Jade Warshaw and Ken Coleman asked what was driving her behaviour, she didn’t hesitate.

“It’s trauma,” she said, explaining that she’s undergoing Eye Movement Desensitization and Reprocessing (EMDR), a form of therapy designed to help people process past experiences.

Even while doing that deeper work, Breanne says she wants to change her spending habits right away. She knows the problem is affecting her finances — and her future.

But Breanne really wants to break her overspending habits now, even while she’s in therapy. She recognizes it’s a serious problem.

Each month, she estimates she spends up to half her US$4,800 (C$6,700) income on fast food, gifts for her daughter and impulse purchases. Over time, that pattern has contributed to roughly US$90,000 (C$125,000) in debt, including credit cards, personal loans and student loans.

Warshaw and Coleman praised Breanne’s honesty and courage in sharing her story so openly.

“You’re way tougher than a lot of people,” Coleman said. “I want you to harness that.”

The cohosts then guided Breanne through some practical steps to regain control of her spending — and challenged her to take one symbolic but meaningful action live on-camera to break the cycle (1).

Dealing with trauma and compulsive spending

The Ramsey Show cohosts were quick to acknowledge that money problems don’t always start with math — they often start with mental health.

There’s no precise statistics for compulsive buying in Canada, but Canadian health authorities recognize that problematic spending can be linked to stress, trauma and emotional coping behaviours (2).

Overspending that is driven by emotion or trauma doesn’t respond well to a budget alone. When spending becomes a way to cope with feelings rather than to meet basic needs, willpower and spreadsheets often fall short.

In those cases, therapy can play a crucial role. Cognitive Behaviour Therapy (CBT) is widely used in Canada to help people identify triggers, interrupt automatic responses and reduce compulsive urges over time. Addiction Resource Canada (ARC) outlines CBT as an effective, evidence-based approach for treating impulse-control and behavioural patterns linked to emotional distress (3).

Breanne is also using EMDR to work through trauma. EMDR is most commonly used for post-traumatic stress, and while it’s sometimes applied to compulsive behaviours, evidence is still emerging. The World Health Organization (WHO) recognizes EMDR as a trauma-focused therapy, but notes that treatment should be tailored to the individual and combined with practical support when needed (4).

That’s why Warshaw and Coleman suggested therapy alone might not be enough. They recommended pairing emotional work with clear behavioural safeguards.

One strategy they discussed was a form of “reverse psychology”: when the urge to spend hits, Breanne should pause and imagine how she’ll feel afterward — the regret, stress, guilt — instead of the brief rush that she experiences in the moment. Over time, that mental pause can weaken the automatic link between stress and spending.

Warshaw also pointed to habit design, citing author of Atomic Habits, James Clear, and his idea of making good behaviours automatic while adding friction to bad ones. For example, Breanne could set up automatic bill payments every paycheque so less money is immediately available for impulse purchases.

Finally, the hosts encouraged a symbolic step: Physically cutting up credit cards on-camera. Rituals like this can serve as a clear boundary — not only financially, but emotionally — marking a break from past patterns and creating accountability.

For people working through trauma, combining therapy with behavioural safeguards can be powerful. Therapy helps process the emotional roots of behaviour, while rules and rituals buy time for urges to pass. Breanne shared that she’d already cut up her credit cards, but still felt uneasy doing the same with her debit cards, a hesitation that reflects just how difficult real change can feel in practice.

What to do if you’re struggling — with or without therapy

If parts of Breanne’s story feel uncomfortably familiar, you’re not alone — and you’re not broken. Compulsive spending is often a response to stress, habit or emotion, not a lack of discipline. Here are some steps that can help, whether or not therapy is part of your journey right now:

Consider therapy. Ideally work with a therapist experienced in trauma or impulse control or money-related stress. Approaches like CBT, EMDR or other trauma-informed practices can help you understand triggers and build healthier responses over time.

Set up practical safeguards. Whether or not therapy is accessible to you, change usually needs practical guardrails. Start by making spending harder in the moment. Put credit cards out of reach, ask a trusted friend or family member to temporarily hold them or lower your limits where possible. Keep only one low-limit debit card for necessities.

Create friction around nonessential spending. Try using cash instead of credit or debit, setting a 24- or 48-hour waiting period before making purchases or doing a quick “pain check” by asking yourself how you’ll feel after the purchase, rather than just during it.

Use budgeting tools. Tracking matters — use a simple budgeting tool or banking app to record every dollar, review all transactions at the end of the month and look for patterns. Awareness alone can reduce impulsive behaviour.

Lean on accountability. Don’t try to do all this completely alone. Accountability helps — whether that’s a friend, partner, support group or financial coach. Having someone who knows what you’re working on can make it easier to pause, with a partner, regroup and choose differently when the urge to spend hits.

Compulsive spending is rarely only about money. As Breanne's story shows, it’s often tied to stress, habit and deeper emotional patterns.

If you’re struggling, start small: Add friction to spending, track your money honestly and lean on accountability supports. And if spending feels out of control, secretive or tied to emotional distress, it may be worth reaching out for professional help — not as failure, but rather as a step forward toward relief and stability.

—With files from Melanie Huddart

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

The Ramsey Show (1); Government of Canada (2); Addiction Resource Canada (3); World Health Organization (4);

The 2025 Financial Stress Index from FP Canada reveals that financial uncertainty remains a major source of anxiety. Almost half (42%) of people say concerns about rising costs and falling short on savings weigh heavily on their overall well-being (1).

If you’re lying awake at night thinking about inflation, savings, interest rates or the cost of care as you age — that's completely normal. Still, retirement isn’t only about how much you’ve saved but also about whether you’ve reached the standard financial and lifestyle benchmarks for potential retirees.

If you’ve hit a few key milestones, it may be a sign that your retirement is more secure than it may feel. Here are five clear signs you’re ready to retire well in Canada in 2026 — and why you may be able to stop stressing.

1. You’ve paid off your home

Carrying debt into retirement is becoming more common — especially mortgage debt. Rising home prices and longer amortization means more Canadians are entering their retirement years still making home loan payments.

A growing share of mature households — almost 30% — now carry mortgage debt compared with previous generations, reversing the long-held tradition of entering into retirement mortgage-free (2). While today’s retirees may have higher home values, they also face more ongoing obligations than seniors did a few decades ago.

Managing monthly interest payments can be stressful at any age. But that pressure can feel heavier in retirement, as income is fixed and unexpected costs — from home repairs to health needs — are harder to absorb.

That’s why entering retirement without a mortgage is such a powerful position to be in. If you’ve managed to pay off your primary residence before retiring, you’ve removed one of the biggest expenses from your budget — and given yourself more flexibility, stability and well-being than a sizeable portion of your peers.

2. You’re relatively healthy

Canada’s universal health-care system removes one of the biggest financial concerns retirees face in other countries: the fear of catastrophic medical bills. Doctors visits, hospital care and many medically necessary procedures are publicly funded, which provides an important layer of financial protection as you age.

That said, health care isn’t completely “free,” and health issues can still affect your budget. Prescription drugs, dental care, vision care, mobility aids and home care often involve out-of-pocket costs — especially for seniors without employer benefits.

Long wait times for specific procedures can also raise indirect costs, such as paying privately for faster services, travelling to another province (or country) for treatment on your dime or relying on paid help at home while waiting for care. The Canadian Institute for Health Information regularly reports that wait times remain a concern for many patients, particularly for specialist care and elective surgeries (3).

Health challenges can also limit your flexibility. Chronic conditions may negatively impact your ability to travel, downsize your home or take on part-time/volunteer work in retirement. If you’re in relatively good shape, you’re likely to face fewer unexpected expenses and enjoy more choice over how and where you spend your time and money.

Good health doesn’t guarantee a stress-free life, but it does put you in a stronger position than many of your peers.

3. You’re living below your means — consistently

Retirement rarely unfolds exactly the way it looks on a spreadsheet. Even with careful planning, many retirees discover their day-to-day costs end up higher than expected — especially as prices rise and new expenses crop up.

Research and industry surveys (4) (5) consistently show that keeping spending in check is one of the biggest challenges retirees face, particularly as costs for housing, food and services continue to climb. Financial planners often note that retirees who underestimate expenses early on may feel pressured to make up for it later, when there’s less flexibility to adjust income (6).

These issues highlight why consistently living below your means is such a strong signal that you’re doing something right. If your spending has stayed lower than you planned — or you’ve built enough of a margin to absorb higher costs without stress — you're doing something incredibly right.

Over time, that discipline lowers the risk of outliving your savings and gives you something equally valuable: choice. It creates room for occasional travel, helping family members or simply enjoying small comforts without worrying that every extra dollar spent could throw your retirement off course.

4. Your children are independent

Rising housing costs, student debt and a tougher job market have made it harder for many young Canadians to get fully established. As a result, more adult children are leaning on family support — whether that means living at home longer, getting help with rent or receiving occasional financial assistance.

Statistics Canada data shows that a growing share of young adults live with their parents longer than previous generations, often because of affordability pressures around housing and education (7). While that support can be given willingly and lovingly, it can still put strain on parents’ finances — especially for those who are retired or close to retirement.

Having financially independent children is a meaningful milestone. If your kids are covering their own living costs independently, you’re in a stronger position to focus on your own needs, goals and security.

However, life happens — you may need to help out again somewhere down the road. But in the meantime, your retirement plan isn’t quietly carrying an extra, ongoing expense.

For many retirees, that independence brings both financial relief and peace of mind.

5. You have a margin of safety in your portfolio

Most people carry a mental “magic number” for retirement — the amount they believe will cover their lifestyle so they feel content. In Canada, that number varies widely depending on housing costs, health, family responsibilities and whether income will also come from sources like the Canada Pension Plan (CPP), Old Age Security (OAS) or workplace pensions.

The challenge is that retirement plans are built on assumptions. No one can predict future inflation, market returns, potential inheritance amounts or interest rates with precision over the next 20 to 30 years. That uncertainty is why financial planners often stress the importance of flexibility rather than hitting a single, exact target (8).

Having a margin of safety — even a modest one — can make a significant difference. If your retirement savings are larger than what your plan says you strictly need, you’re better positioned to handle market turndowns, higher living costs or unexpected expenses without panicking. That cushion can also give you more freedom in how you draw income, adjust spending or delay big purchase decisions.

Exceeding your retirement target is rare, which is why it’s such a strong signal when it happens. Data from the Employee Benefit Research Institute’s 2024 Spending in Retirement Survey reveals only 17% of retirees claimed they saved more than what was needed for their sunset retirement (9).

If your portfolio has room to absorb shocks without forcing lifestyle cuts, it suggests your retirement plan has resilience — not only on paper, but in real life.

Bottom line

Remember, retiring well is about resilience rather than hitting one perfect number. If you’ve paid off your home, stayed healthy, kept spending in check, raised financially independent children and built a safety net into your portfolio, you’re likely in a more solid position than you realize.

You’re probably living below your means if:

• Your monthly spending stays consistently lower than your set income
• You can handle higher costs or surprises without dipping into debt
• Market fluctuations don’t cause panic or force you to overhaul your lifestyle
• You have room for indulgence — travel, hobbies or helping family — without guilt
• You don’t feel pressured to “optimize” every dollar just to stay afloat

If your plan is flexible and your spending leaves some breathing room, you may already be doing enough. Focus on maintaining that margin, regularly review your plan and let go of the idea that retirement has to feel financially stressful to keep you covered.

— with files from Melanie Huddart

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

FP Canada (1); Canadian Mortgage Professional (2); Canadian Institute for Health Information (3); Businesswire (4); The Globe and Mail (5); AOL (6); Statistics Canada (7); Morningstar (8); EBRI (9)

Surveys consistently show that Canadians who are approaching or are already in retirement, concerns about retirement income security weigh heavily on their minds. A national retirement study reported by Benefits Canada found that 61% of retirees worry that their savings won’t last as long as they do — a concern that often outweighs other financial risks (1).

But what if there were ways to reduce that prospect — and potentially stretch retirement savings further — not by saving more, but by rethinking how money is invested and drawn down once withdrawals begin?

That question sits at the heart of the research by U.S. financial planning experts Michael Kitces and Wade Pfau. Their work is widely cited in Canadian publications and followed by Canadian financial planners through professional education, conferences and continuing-education programs (2). Kitces and Pfau's analysis of long-term market data challenges some traditional assumptions about retirement investing — particularly the idea that risk should always decline the moment someone stops working (3).

Under some conditions, their research suggests that an unconventional approach to asset allocation in retirement can significantly improve the odds of financial success. In some scenarios, it can leave retirees with substantially more wealth over time than conventional strategies — not because they took bigger risks, but because they carefully managed when they took them.

Here’s a closer look at how that approach works, and what it could mean for Canadian retirees.

Rethinking risk in retirement

Most retirees are advised to steadily reduce risk as they age. A common guideline suggests shifting more money into bonds and away from stocks the moment retirement begins, also known as the rule of 100. This guidance is based on the assumption that older investors can’t afford market swings (4).

The rule says you subtract your age from 100 and the remainder is equivalent to the percentage of your portfolio you put into stocks. The rest goes into more conservative, safer investments such as bonds. As you age, you slowly move more money into bonds, to reduce risk in the event of a sudden market downturn.

That advice sounds sensible — but research by Kitces and Pfau suggests it can backfire if markets fall early in retirement. Their work on retirement withdrawal risk and asset allocation focuses on what’s known as sequence-of-returns risk.

Sequence risk refers to the danger of experiencing poor market returns early in retirement, when withdrawals begin. If retirees are forced to sell investments during a downturn to cover living expenses, those early losses can permanently reduce the size of their portfolio — even if markets recover later.

Kitces and Pfau propose a different approach. Instead of the rule of 100, their research suggests the reverse: that retirees may benefit from relying more on safer assets in the early retirement years, then gradually increasing exposure to growth assets later. The goal is to protect the portfolio during its most vulnerable phase while allowing long-term investments time to recover and compound in the background.

This framework aligns especially well with Canadian retirement plans.

Most Canadian retirees receive predictable, inflation-adjusted income through Canada Pension Plan (CPP) and Old Age Security (OAS), which provide monthly payments regardless of market performance. Financial advisors may describe these benefits as a form of bond-like income that can help cover basic expenses.

Because part of a retiree’s income is already stable, there may be less pressure to sell investments during market downturns, particularly in the early retirement years. That stability can give you more flexibility in how and when you draw from your savings.

Best-case scenario

To understand why timing matters so much in retirement, Kitces and Pfau tested their strategy across many historical market scenarios. The most favourable outcomes tended to occur when retirees avoided major stock losses early in retirement (5).

Imagine two retirees, Geoff and Gisèle. They both retire with $1 million each and plan to withdraw $40,000 a year, adjusted over time, to cover living expenses.

Geoff follows a traditional approach. He starts retirement with 80% of his portfolio in stocks, gradually reducing that exposure as he ages. Gisèle does the opposite. She begins retirement conservatively, with only 20% in stocks, slowly increasing her exposure to growth investments later on.

Now imagine the markets fall sharply right after they retire — similar to what happened during the tech crash in the early 2000s.

Because Geoff heavily invested in stocks from day one, his portfolio took a significant hit. Worse, he still needs to withdraw money to live on, which forces him to sell investments while prices are down. Gisèle, on the other hand, relies more on safer assets early in retirement, allowing her to fund withdrawals without selling stocks at depressed prices.

That early difference compounds over time.

Using real historical market returns over the following two decades, Kitces and Pfau found that under this scenario, Gisèle’s portfolio could still be worth around $1.5 million years later — while Geoff’s portfolio could shrink to just over $300,000. The gap isn’t caused by better stock-picking or higher returns, but by avoiding losses at the worst possible time (6).

Put another way, Gisèle ends up with a portfolio several times larger simply because she reduced her exposure to market risk early in retirement, then allowed growth to play a bigger role later.

To be clear: this is only one hypothetical scenario based on specific assumptions and a particular market sequence. Future returns and performance never follow a specific script.

Bottom line

The example here highlights a powerful lesson for mature adults. In retirement, when you take risk can matter just as much as the amount of risk you accept. Experiencing market losses early, while you’re also withdrawing income, can permanently shrink a portfolio, even if markets recover later.

For many retirees, using safer income sources in the early years and allowing growth to play a bigger role later can reduce that risk. The practical next step is to review how your retirement income is funded in the first five to 10 years and make sure you’re not forced to sell growth investments during a downturn.

- with files from Melanie Huddart

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Benefits Canada (1); Kitces (2); Objective Financial Partners (3); Kiplinger (4); Government of Canada (5); Fiology (6)

Whether you earn $50,000 or $500,000 a year, a straightforward budgeting framework can help you feel more in control of your money. That matters more than many people realize.

A 2025 survey found that just over 500,000 Canadians — less than 2% of the country’s population — earned $200K annually or more in 2020 (1). Meanwhile, rising costs for essentials like groceries, housing, utilities and transportation have left many households struggling to keep up, as incomes fail to match inflation.

The good news is that having financial structure can make a difference. With that said, here’s a closer look at the “15/65/20” system — a simple approach designed to help households build stability, reduce stress and make progress no matter where their starting point is.

15/65/20 system

The 15/65/20 system is a modern twist on the popular 50/30/20 rule, popularized by U.S. Senator Elizabeth Warren in All Your Worth: The Ultimate Lifetime Money Plan (2).

At its core, the system divides your income into three buckets — savings, essentials and discretionary spending — with one key principle: prioritize saving first.

As billionaire investor Warren Buffett famously stated, “Do not save what is left after spending, but spend what is left after saving (3).” People who build long-term financial security tend to lock in savings before making other spending decisions.

The first step is setting aside 15% of your monthly income for savings and investments. If you’re starting from scratch, that money can help you build an emergency fund to cover several months of essential expenses. Once that safety net is in place, you can shift more of that 15% toward long-term investing.

Next, comes the hardest part: keeping essential expenses to about 65% of your income. That’s challenging because necessities take up a large share of most household budgets. Statistics Canada’s Survey of Household Spending consistently shows that housing, food and transportation are the three biggest expense categories for Canadian households (4).

Small changes in these areas can make a huge difference, such as choosing cheaper housing, driving a lower-cost vehicle, using transit when possible and cutting back on food waste. Even modest savings on essentials can help keep you within the 65% target.

The remaining 20% is for discretionary — or “guilt-free” — spending. This is money you can enjoy without second-guessing, whether that’s shopping, dining out, entertainment, travel or hobbies, because your savings and essentials are already accounted for.

The strength of the 15/65/20 system isn’t about perfection, it’s about clarity. Giving every dollar a job helps build stability while still leaving room for enjoyment.

When the 15/65/20 system needs adjusting

The 15/65/20 system isn’t a one-size-fits-all solution. It works best as a flexible guideline built around three ideas:

• Save and invest first
• Keep essential spending in check
• Spend what’s left on nonessentials

Your own specific situation might call for some changes as you go. For example, many Canadians carry meaningful non-mortgage debt. Equifax Canada reports that the average consumer holds more than $20,000 in non-mortgage debt, which includes credit cards and personal loans (5). If that sounds familiar, it can make sense to focus on paying down high-interest debt before aggressively investing.

Housing costs can also make the 65% target harder to reach. A Rentals.ca survey from 2025 shows that 62% of renters spend 30% of their income on shelter, a level often used to flag housing affordability pressure (6). When rent or housing costs eat up that much of your income, something has to give elsewhere.

Food costs add another layer to necessary expenses. StatCan data show that lower-income households spend a larger share of their income on food than higher-income households, leaving less room for savings or discretionary spending as prices rise (7).

In situations like these, the most realistic move may be to temporarily scale back discretionary spending while you stabilize essentials, or work on boosting your income. The goal isn’t perfection — it’s progress.

Bottom line

The 15/65/20 system isn’t about hitting ideal numbers — it’s about creating structure when money feels stretched. Rising living costs and debt mean many Canadians need to adapt the framework to their reality, whether that’s paying down high-interest debt first, trimming essentials or cutting back on discretionary spending.

Even small changes can add up over time. So, start where you are. Focus on steady progress. And use the system as a guide — not a rulebook — to regain control of your finances.

—With files from Melanie Huddart

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Statista (1); United States Federal Credit Union (2); Corinthian Wealth (3); Statistics Canada (4, 7); Equifax (5); Rentals.ca (6)

A new survey from HomeEquity Bank finds older Canadians are driving key trends in technology adoption, travel spending and health and wellness — with implications that extend well beyond retirement planning.

Canadians 55+ now make up roughly one-third of the population, and their financial behaviour is becoming a leading indicator for where consumer demand is headed next.

“We believe life after 55 is an opportunity, not a limitation,” said Yvonne Ziomecki-Fisher, Chief Customer, Brand and Advice Officer at HomeEquity Bank, in a statement. "Older Canadians are not just participating in the digital age; they're driving the change, adopting AI and using technology in ways that align with their vision for vibrant and independent living."

Older Canadians are leaning into technology — including AI

One of the more striking findings is how quickly older Canadians are embracing new technology. The survey found four in 10 Canadians aged 55+ are interested in trying AI features in the apps and tools they already use, while 35% plan to experiment with AI in 2026. Interest is even higher among those aged 55 to 64.

Rather than viewing AI through the lens of job disruption, many older Canadians are using it as a personal assistant, helping with everything from trip planning and language translation to budgeting tools, fraud detection and smart-home features that simplify daily tasks.

Comfort with online spending continues to rise

That digital curiosity and confidence is also translating into real economic activity.

The survey found 81% of Canadians 55+ feel comfortable completing online transactions, including shopping and booking travel. Spending across categories such as travel, health and wellness, hobbies and entertainment is expected to stay the same or increase for most respondents — a contrast to broader belt-tightening narratives.

That comfort also raises the stakes around financial security. As older Canadians become more active online, they are inevitably more exposed to fraud scams, underscoring the importance of clear, secure and user-friendly digital tools.

Domestic travel remains a priority

Travel also continues to rank high on the priority list. Nearly half of older Canadians (47%) plan to travel more within Canada in 2026, and 70% expect to maintain or increase their travel budgets.

For many, travel is seen as a core lifestyle expense, rather than a discretionary luxury. Comfort, accessibility and convenience matter, suggesting demand will remain strong for travel options that reduce physical strain and simplify logistics.

Health and wellness spending comes first

Perhaps most telling is how older Canadians are prioritizing health.

The survey found 90% plan to maintain or increase spending on health and wellness, including fitness, nutrition, and preventative care. Three-quarters say they would cut other spending before reducing health-related expenses, and 81% expect spending on hobbies and recreation to hold steady or rise.

“The fact that Canadians 55 and better would reduce spending elsewhere to preserve their health and wellness budget shows how central well-being has become,” Ziomecki-Fisher said.

Three years later, the coworker’s payments stopped. With payments no longer being made, Sharon’s husband was forced to come clean about the debt now sitting on both their shoulders.

Although Sharon admitted she initially turned to artificial intelligence (AI) to make sense of this situation, she ultimately decided to contact The Ramsey Show for guidance (1).

At the start of the call, Sharon explained that she and her husband had chosen to keep their finances separate after he ran up credit card debt early in their 12-year marriage. Before that, Sharon says they had been debt-free.

When cohost Ken Coleman asked how much remained on the loan and what the vehicle was worth, Sharon said she still hadn’t gotten the full picture. Her best guess was that roughly US$20,000 remains on the loan, while the car itself may be worth around US$5,000.

Cosigning can create exactly this kind of risk. The Financial Consumer Agency of Canada (FCAC) explains that when you sign a loan as a joint borrower (called cosigning), you become equally responsible for repaying what’s owed — meaning if the principal borrower stops paying, the lender can come after you for the unpaid balance (2).

Sharon told the hosts she loves her husband dearly and “would love to try to recombine” their finances. But she acknowledged that “he’s a bit too much of a nice guy making the wrong decisions.”

Coleman and cohost Jade Warshaw agreed that the issue goes well beyond the numbers. “I can look at these numbers,” Warshaw said, “but I don’t think it’s going to solve the problem here today.”

The steep price of financial infidelity

When it comes to the immediate money problem, Warshaw said the path forward is limited. Sharon and her husband need to get the official loan records, confirm exactly what’s owed and “start stacking up some cash,” because there’s no easy way around paying the shortfall. But the situation highlights two serious financial risks that go beyond this one loan: cosigning debt and financial infidelity.

Cosigning a loan can put enormous pressure on the person who signs. The FCAC makes it clear that when you agree to be a joint borrower, you’re fully responsible for the debt — even if the other party stops paying, and even if you no longer have access to the asset (in this case a vehicle).

Late or missed payments can damage the cosigner’s credit history, and the debt counts toward their debt-to-income ratio, which can make it harder to qualify for future loans or credit. Because your finances are tied to someone else’s habits and behaviour, cosigning creates long-term vulnerabilities that can linger for years.

As risky as cosigning is, the deeper issue in Sharon’s case is about trust.

Financial infidelity happens when one partner hides or lies about important money decisions. That can include secret bank accounts, undisclosed debt or major financial commitments made without prior discussion. Canadian consumer experts warn that keeping secrets around debt and credit can undermine financial stability and strain relationships just as much as the dollar amount owing (3).

Many Canadians agree that financial infidelity is an extreme breach of trust, with 58% of respondents to a Fig survey claiming that lying to a partner about money matters is as bad as cheating (4).

The emotional fallout from financial infidelity can be intense. Financial secrecy often triggers feelings of betrayal, anxiety and loss of security — especially when the hidden decision puts both partners in financial danger. As Warshaw noted during the call, Sharon sounds “like a woman who is almost done.”

While it’s always best to avoid this situation, couples facing financial infidelity aren’t necessarily out of options. Rebuilding trust usually starts with full transparency, clear boundaries around money decisions and, in many cases, outside help — both financial and within the relationship — to prevent repeating the same patterns.

Moving forward after financial infidelity

Recovering from financial infidelity takes honesty and accountability, and it starts with ending the secrecy. That means openly sharing all bank accounts, debts, recurring expenses and financial commitments so both partners are working with the same information.

Once everything is on the table, couples need a way to talk through what happened and why. Those conversations can be uncomfortable, which is why bringing in a neutral third party — such as a marriage counsellor — can help keep discussions focused and productive. As Warshaw explained on The Ramsey Show, the goal is understanding “what caused the split” and “what must be true” for the relationship to move forward.

Rebuilding trust also means creating a shared plan. Setting clear financial goals and building a budget together gives couples a practical way to move ahead. The FCAC recommends budgeting jointly so both partners can track spending, plan for ills and understand what needs to be adjusted.

If credit damage is part of the fallout, working together to catch up on missed payments and avoiding new debt can help stabilize the situation.

It’s also essential to recognize that financial infidelity is about more than just the dollars and cents. Feelings of betrayal, anxiety and shame can have devastating effects on intimacy.

Financial therapists often stress that avoiding money conversations only deepens the damage. As cohost Ken Coleman noted in interviews about financial behaviour, money conversations are difficult precisely because they’re emotional — which makes open, ongoing communication necessary, not optional.

“It doesn't mean we avoid it; it means we need to communicate more around this and financial infidelity. Achieving financial fidelity requires having deeper, honest conversations about all the parts of your money life.”

Rebuilding trust after financial infidelity

Financial infidelity is rarely only about one bad decision — it’s a breakdown of trust that can quietly harm a relationship. Moving forward starts with full transparency, shared goals and clear boundaries around money decisions.

If rebuilding trust feels difficult, outside help from a counsellor or financial professional can provide structure and accountability. The most important step is committing to open, honest conversations so problems are addressed early, not hidden until they reach a crisis.

—With files from Melanie Huddart

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

The Ramsey Show (1); FCAC (2); RBC (3); Canadian Press (4);

This type of dual care is quite common in Canada. According to Statistics Canada, in 2022, 13.4 million Canadians (42%) aged 15 and older provided unpaid care in the previous 12 months to children under 15 years old or youth over 15 as well as adults with a long-term condition, disability or aging-related needs (1).

StatCan also finds that sandwich caregiving is most common in middle adulthood, including people aged 45 to 64, when many households are balancing kids at home with support for parents or parents-in-law (2).

A significant portion of those adult children are married or partnered themselves, which can create tension when spouses disagree on how much support to provide, and what that means for their own goals.

Let’s create a hypothetical yet highly relatable scenario: Say you and your spouse are in your early 50s. Your two kids are in high school and you’re hoping to help pay for their post-secondary education while still keeping your retirement within reach a little over a decade from now

With $500K in savings and a solid household income, that plan feels achievable. But then comes a complication: Your spouse’s parents begin to struggle financially after your father-in-law suddenly loses his job and was forced into early retirement, leaving him with a smaller pension than expected.

At the same time, higher housing costs, property taxes and everyday expenses have eaten away at their savings. Downsizing isn’t an option at this time, while selling their home would likely mean giving up the community and support network they rely on.

Now your spouse wants to help bridge the gap. She’s asking whether you can use part of your nest egg to help cover her parents’ monthly expenses while they adjust to their new reality. A few thousand dollars may not derail your plans, but you worry that ongoing support could quietly become a long-term obligation.

Before emotion takes over, it helps to step back and run the numbers. The question isn’t only whether you can help, but how much support you can afford without putting your children’s education or your own retirement at risk.

Assessing the impact on your nest egg

Your family’s goals are all in competition. You want to help your children pay for their post-secondary education, support aging parents through tough times and still retire comfortably while in your 60s.

The first step is to find professional advice. A fee-only financial planner can help you see how different choices affect your long-term plan, including whether it makes sense to borrow at a reasonable rate instead of pulling money out of investments that are intended to grow over time.

The Financial Consumer Agency of Canada (FCAC) encourages Canadians to look at the big picture – including budgeting, debt and savings goals — before making trade-offs that could be hard to undo (3).

But if you do decide to use part of your savings, it’s important to understand the trade-offs — starting with education costs.

One of the most affordable options for students is to live at home while attending a local university or college. Tuition costs are only part of the total cost of post-secondary education. Living expenses, books and supplies quickly add up, too.

According to Statistics Canada’s tuition fee report, average trade tuition varies by province but generally falls in the mid-thousands per year (before additional costs), with many families also facing rising fees over time (4). That said, living at home can cut out a huge portion of additional costs, making meaningful savings over a four-year degree.

If you’re planning for two children to attend college or university, even moderate annual expenses can add up.

One way some families manage this is by setting a clear contribution limit: agreeing to cover the cost of the local option, while leaving any additional expense for a more distant or specialized program up to the student.

Secondly, you want to help your in-laws after the financial strain they’ve faced over the past few years. The good news is, their home is paid off, so they don’t have mortgage or rental payments.

Even so, owning a home comes with ongoing costs. According to StatCan, households continue to face significant monthly expenses such as utilities, property taxes, insurance and maintenance, even without a mortgage. The “Survey of Household Spending” shows shelter-related costs remain one of the largest spending categories for older households, even when the home is owned outright (5).

Beyond housing, everyday living expenses continue to add up. StatCan’s household spending data show that households spend thousands of dollars monthly on essentials such as food, transportation, utilities, household services and personal care.

Taken together, it’s reasonable to assume your in-laws’ monthly expenses could approach $4,000 or more, depending on where they live and their specific needs, even without rent or mortgage payments. That context helps frame the real question: How much help can you offer without sacrificing your own plans?

One option is to provide clear, time-limited support. For example, agreeing to contribute $500 a month for six months could offer short-term relief while you and your spouse have more difficult conversations about longer-term solutions — such as downsizing, tapping into home equity or adjusting spending. Putting a defined timeline around the help reduces the risk that temporary support quietly becomes a permanent obligation.

The goal isn’t to avoid helping, it’s to help in a way that remains sustainable for everyone involved.

Getting through a stressful season

Even after those two big hits — helping your kids with school and supporting aging parents — you’re still working, earning income and continuing to build other assets, such as your home and long-term investments. Yes, watching your savings drop to just over $400,000 certainly stings. It’s a setback. But it doesn’t mean your retirement plans are wasted.

In fact, many Canadians approaching retirement have far less than what they originally intended, often because life intervenes along the way. What matters more than hitting a perfect number is whether you still have time, income and flexibility. And in your early 50s, you do.

It’s also important to remember that retirement income in Canada doesn’t come from savings alone. Because you’ve already worked for decades, you’ll likely qualify for Canada Pension Plan (CPP) benefits, which provide a lifetime, inflation-adjusted monthly payment based on your contributions and when you start collecting.

Most Canadians will also receive Old Age Security (OAS) starting at age 65, with higher payments available if you delay up to age 70.

Once this expensive phase of life passes — when your kids finish school and your parents’ situation stabilizes — you’ll have more room to rebuild. You can continue to contribute to Registered Retirement Savings Plans (RRSPs) until the end of the year you turn 71, giving you valuable time to boost retirement savings after age 50.

The time is right to also bring a professional’s opinion into the mix. A fee-only financial planner can bring clarity and help you reassess timelines, plan withdrawals and help ypu make informed decisions about when to take CPP and OAS — so this stressful financial chapter doesn't permanently shape your retirement.

Bottom line

Balancing finances to provide for kids’ educations and aging parents, plus your own retirement, is stressful. But it’s only a temporary setback that doesn’t have to completely derail your own long-term plans. The key is setting clear limits — how much help you can offer and for how long, while also revisiting this plan as circumstances evolve.

Remember that continued income, future RRSP contributions and public pensions can help you recover once this phase passes. If the trade-off feels overwhelming, professional advice can help you protect your future while supporting your family now.

—With files from Melanie Huddart

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Statistics Canada (1, 2, 4, 5); FCAC (3)

“We want to know if we’re way over our heads or if this is actually feasible,” Joseph asked The Ramsey Show cohosts Jade Warshaw and George Kamel (1).

Joseph said his girlfriend is an insurance agent earning commission, and he runs his own business. Together, they bring in about US$10,000 a month — but that income isn’t guaranteed. They’re planning on a down payment of up to US$130,000, plus a matching contribution from her parents, on a house that hasn’t even been built yet.

“Numbers aside, you’re in way over your heads,” Kamel said. “There’s not even a ring on the finger and you’re going to sign up for a mortgage and put your names on a deed together?”

Here’s why the hosts warn Joseph not to “leapfrog” into an higher-cost lifestyle before their finances are stable — and what young Canadians just starting out should consider before becoming house poor.

When aspiration doesn't meet financial readiness

Housing affordability in Canada varies widely by region, but a C$700K home already sits above the national average in many markets. According to the Canadian Real Estate Society (CREA), the national average home price in 2024 sat closer to the mid-C$600,000 range, with many smaller cities and mid-sized markets well below that level (2). That means a C$700,000 build would often fall into the upper end of a local market, rather than a starter home.

A widely used affordability guideline in Canada is to keep total housing costs below about 30% your gross household income. That figure typically includes the mortgage payment, property taxes, heating, insurance and basic utilities. The Canadian Mortgage and Housing Corporation (CMHC) uses this benchmark when helping buyers assess what they can realistically afford (3).

That guidance is especially important for households with variable or commission-based income. The Financial Consumer Agency of Canada cautions that irregular earnings can make it harder to manage fixed monthly payments during slower periods, increasing the risk of financial stress if income unexpectedly drops (4).

Even with a large down payment, the ongoing commitment matters. A mortgage on a C$700,000 home can translate into thousands of dollars a month before adding other homeownership costs like insurance and maintenance. Canada’s mortgage stress test also requires borrowers to qualify at a higher rate than they’ll actually pay, leaving less room for error if income fluctuates (5).

“I love to plan. I love goals.” Warchsaw told Joseph. “But you’re setting yourself up in a situation where everything must go as planned for this to work out,” And, even if everything goes exactly to plan, the couple could spend years feeling stretched — owning a nice home on paper, but lacking flexibility, savings and breathing room in real life.

Grow into a lifestyle that matches your financial reality

If Joseph and his girlfriend were looking to mortgage a C$700,000 home in Canada, there is a chance they wouldn't even get approved.

Canadian lenders look closely at income stability, existing debt, credit history and the size of the down payment before approving a mortgage. Variable or commission-based income often makes that process tougher.

And even if they did qualify, a home that leaves you house poor can quietly squeeze every other area of your life. When most of your income goes toward housing, there’s less room for emergencies, savings or future plans — which can push people toward credit cards or loans just to stay afloat. Canadian consumer guidance from organizations like the CMHC consistently warn that relying on credit cards to cover everyday expenses is a sign housing may be stretching your budget too far (6).

Joseph also shared that he and his girlfriend hope to start a family in the next few years. That adds another layer of cost and uncertainty. Statistics Canada data shows that raising children significantly increases household expenses, especially around housing, childcare and transportation — costs that are harder to absorb when a budget is already tight (7).

“Why not get engaged, get married, rent together, save up on your own and then purchase a house or build when you’re financially ready?” Kamel suggested.

That slower approach would give the couple time to build a solid emergency fund, grow their income and get a clearer picture of what they can truly afford. Canadian financial planners often recommend having three to six months of expenses set aside before taking on a large, long-term commitment like a mortgage.

Rather than jumping straight into a high-end build, Kamel encouraged the couple to consider a more modest home or continue renting while they strengthen their finances. Starting smaller can mean a lower mortgage, more flexibility and the ability to pay off their debt faster — then upgrade later, once their income and savings are more stable.

“It’s okay for it to take a while,” he said. “That’s actually healthy.”

Bottom line

Building a home can be a meaningful goal — but timing matters. With variable income, unfinished schooling and big life changes ahead, moving too fast into an expensive home can leave young couples stretched and vulnerable.

A safer path is to slow down, stabilize income, build savings and let your lifestyle grow alongside your finances. Buy or build when your budget has breathing room, not when everything has to go perfectly just to make payments.

- with files from Melanie Huddart

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

The Ramsey Show (1); Canadian Real Estate Association (2); Canadian Mortgage and Housing Corporation (3); Financial Consumer Agency of Canada (4); Scotiabank (5); Fairstone (6); Statistics Canada (7)

After the 51-year-old father shared a Facebook post about the challenges of caring for a son with celiac disease, a woman he didn’t know reached out with what seemed like kindness and concern.

“I don’t know you, you are my recommended friend on FB … so I added you, hope this doesn’t disturb you,” the message read, according to CNN (1). “I find your post about your son very heartwarming. Maybe we can connect?”

Novak agreed. Soon, the two were regularly exchanging messages on WhatsApp, sharing photos, voice notes and words of affection. Over time, the woman — who identified herself as Ailis — reportedly made Novak feel understood and valued in a way he hadn’t felt in years.

Then the tone of the conversations shifted from romance to money. Ailis began encouraging Novak to invest in what she described as a safe, high-return crypto strategy. The website she directed him to showed rapid gains and promised even bigger returns if he added more cash.

Trusting both the relationship and the numbers he read on the screen, Novak started transferring his savings. By the time he realized something was wrong, a large portion of his life savings — US$280,000, or roughly C$380,000 — had vanished.

Novak had become the victim of a sophisticated online fraud scheme known as “pig butchering,” a scam that builds emotional trust before draining victims of their finances.

“I lost everything. I lost my kids’ future. I lost my future,” Novak told CNN. “I cried every day. How do you tell your 78-year-old mom who has medical problems that everything’s gone?”

What are pig-butchering scams?

“Pig butchering” is a long-term scam that blends romance, trust-building and fake investment opportunities — often involving cryptocurrency.

The term comes from the farming practice of fattening up pigs before they’re slaughtered. Scammers spend weeks or even months building a relationship, gradually “fattening” their target with attention, affection and reassurance to gain trust. Only after trust is established do they introduce what looks like a safe, high-return investment. The early gains appear real but are entirely fabricated, according to the Canadian Anti-Fraud Centre (CAFC) (2).

Canadian authorities warn that many of these scams are run by organized criminal networks operating internationally. The CAFC says investment and romance scams are increasingly sophisticated, often involving fake trading platforms, scripted conversations and sustained contact designed to build trust before taking money from unsuspecting and vulnerable people (3).

In some cases, international investigations have found that the people carrying out the scams are often victims themselves — trafficked or coerced into working long hours to groom targets online. The International Criminal Police Organization (Interpol) has flagged this as part of the growing scale and organization behind modern online fraud (4).

These scams typically begin on everyday social media platforms, including Facebook, Instagram, WhatsApp, Telegram, dating apps and even text messages. Once a victim is emotionally invested and convinced the profits are real, scammers push for increasingly larger deposits. When the money runs out or questions start, the scammers usually disappear without warning.

Who is at risk of being targeted?

Online romance and investment scams — including “pig-butchering” schemes — are a serious and costly problem in Canada. In 2023, Canadians reported more than $50.3 million in losses to romance scams alone, according to figures associated with the CAFC. And these reports likely represent only a portion of actual cases, since many victims don’t report (5).

These scams often start from the same platforms we use every day — such as social media, messaging apps or online dating sites — and build slowly over time. Scammers typically create a fake profile, develop an emotional connection and then shift the conversation to money, urging victims to send cash or invest in fake opportunities (6).

Because these scams are designed to blend emotional manipulation with financial targets, no single group is completely safe. However, people with savings, investments or access to credit are often more attractive targets because scammers hope to pressure them into making larger transfers once they establish trust. Reports also show that some larger organized networks worldwide are behind many of these schemes and use sophisticated tactics to make the scams look legitimate before disappearing with a victim’s money (7).

How to protect yourself from these scams

Unsolicited messages on Facebook or any platform should be an immediate red flag — especially if the person quickly becomes flirtatious or overly attentive. Be cautious if they refuse to video chat, avoid basic questions or start promoting “risk-free” crypto or investment opportunities. The Competition Bureau of Canada warns that these are common tactics used in romance and investment scams (8).

It also helps to set boundaries before replying to a random message. Romance scams often rely on love bombing — an intense form of attention meant to lower your guard (9). If someone starts asking about your finances, savings or investments, stop and ask yourself who benefits from that information. The Competition Bureau Canada cautions that in legitimate relationships, money discussions don’t happen early or under pressure (10).

Under no circumstances should you allow someone you’ve never met in person to access your phone or computer using remote-access software. This is a common tactic used to steal personal information or drain accounts, according to international law-enforcement warnings (11).

If you believe you’ve been scammed, act quickly. Contact your local bank or financial institution immediately to see if transfers can be stopped or flagged. Suspected fraud should be reported to the CAFC, which collects information and works with law enforcement across the country. Also, contact your local police service, especially if significant money has been stolen.

At the first sign that someone may not be who they claim to be, start collecting evidence — especially if they ask for money up front. According to consumer warnings, recovery scams are a well-documented form of follow-up fraud that targets victims a second time by exploiting desperation and hope (12).

How AI makes these schemes harder to spot

Artificial intelligence (AI) is making scams more sophisticated and difficult to identify. Fraudsters use AI tools to generate polished messages, realistic photos and even fake voice recordings. This allows them to impersonate people more convincingly and at a much larger scale. Global law-enforcement agencies warn that AI can help scammers tailor messages to a victim’s interests, emotions and personal details, making the approach feel unusually authentic (13).

AI is also being used to automate parts of the scam. Instead of one person chatting with the victim, scammers can run multiple conversations at once, maintaining constant contact and quickly adjusting responses to keep targets engaged. The Competition Bureau of Canada notes that fraudsters increasingly rely on advanced digital tools to manipulate trust and create urgency before victims have time to question what’s happening (14).

Bottom line

Modern scams have risen above poor grammar and obvious spelling mistakes as a giveaway for discerning online users. Even messages that sound thoughtful or emotionally aware can be fake.

Romance-investment fraud thrives on trust, urgency and false promises of easy returns. As AI tools improve, experts say the best defence is still the same — slow down, independently verify claims and never send money or personal information to someone you haven’t met and confirmed in real life. Be wary of anyone you don’t know reaching out to connect — it’ll help keep you and your hard-earned savings and investments safe.

— With files from Melanie Huddart

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

CNN (1); Canadian Anti-Fraud Centre (2, 3, 7); Interpol (4); Scotiabank (5, 6); Government of Canada (8, 10, 12, 14); Learning Network (9); Office of the Privacy Commissioner of Canada (11); CTV News (13)

A key driver of that slowdown was a sharp decline in international students following federal policy changes. Ottawa introduced caps on study permits and tightened eligibility rules in 2024 and 2025 to rein in temporary resident growth and address concerns about program integrity and student visa misuse. The impact was immediate: International student arrivals in 2025 were nearly 60% lower than in 2024, while overall international enrollment fell by about 21% (2).

International students had become a major source of rental demand in many cities, particularly near college and university campuses, often competing for purpose-built rentals and investor-owned condos. As that demand dropped, rental markets that had tightened year after year began to loosen. CMHC noted that areas with large student populations were among the first to see higher vacancies and slower rent increases, especially in student-oriented neighbourhoods.

The housing data, however, reflects only part of the adjustment underway. Fewer international students also mean less tuition revenue for post-secondary institutions and reduced spending in local economies that grew around student populations. As colleges and universities cut costs and local businesses adapt to lower foot traffic, the economic effects of Canada’s international student reset are extending beyond housing and into jobs, services and municipal finances.

Campuses adjusting to lower enrollment

Canadian colleges and universities have relied heavily on international tuition revenue to fund classrooms, research, facilities and staffing. The sudden drop in students has forced institutions to cut costs, trim programs and reduce staff.

At Kwantlen Polytechnic University in British Columbia, international enrollment plunged nearly 60% year over year. The university announced in September that it would have to cut up to 45 full-time positions, leave 20 unfilled vacancies open, slash $3.3 million in discretionary spending and not renew some temporary contracts (3).

Ontario’s Centennial College suspended 49 programs in 2025 after significant revenue losses tied to declining international student numbers (4). Saskatchewan Polytechnic confirmed layoffs of staff due in part to lower international student enrolment and revenue shortfalls, underscoring how the impact extends within Canada (5).

Conestoga College in Ontario provides one of the clearest examples of how federal policy changes have reshaped post-secondary institutions and their surrounding communities. Once among the country’s largest recruiters of international students, the college reported just over 8,500 international students in spring 2025, down from more than 22,600 a year earlier, a decline of roughly 60% driven largely by fewer new study permits (6).

The drop placed significant pressure on revenue, as international tuition had become a major source of operating funds. While Conestoga reported a $121-million surplus for the 2024–25 fiscal year, it projected a budget deficit for 2025–26 as enrollment declined. The college responded with cost-cutting measures and workforce adjustments. In spring 2025, nearly 180 support staff received layoff notices and hiring was scaled back. By December 2025, after issuing notices to 181 full-time faculty, Conestoga announced an additional 197 layoff notices to support staff during a virtual town hall, marking the largest round of workforce reductions in its recent history (7).

Program suspensions, operational consolidation and other adjustments followed. The impact extended into the Kitchener–Waterloo regional economy, where international students had been a major source of housing demand and consumer spending. Rental markets near Conestoga campuses softened, with higher vacancies and slower rent growth replacing the intense competition seen during earlier student boom years, according to property managers and housing analysts (8).

Local businesses that relied heavily on student foot traffic, including cafes, restaurants, retail shops and transit-adjacent services, have also adjusted to lower patronage. While comprehensive data directly linking business performance to enrollment changes is limited, reporting and union commentary point to an economic recalibration in traditionally student-oriented districts.

Conestoga’s experience underscores how exposed some institutions and host communities became after years of rapid international growth. When student numbers fell sharply, the effects were structural — affecting finances, staffing and regional economies.

Broader economic implications for communities

Beyond campuses and businesses, the reduction in international students is impacting the social and economic vibrancy of entire communities. Students historically filled part-time roles, supported consumer demand and contributed to cultural and volunteer programs. A smaller student population means fewer customers, fewer workers for service roles and less money circulating locally.

Regions including Vancouver, Toronto, Montreal and smaller university towns are seeing how shifts in population dynamics can influence housing markets, retail activity, transit use and municipal revenues tied to consumption and housing. Communities are now reassessing economic strategies that had become closely tied to international student growth.

Housing, jobs and tuition: what Canadians need to know

The international student decline is beginning to show up in everyday life. Renters may see slightly higher vacancy rates and slower rent growth, but that relief is limited if weaker local economies lead businesses to cut services or hold back wages.

Service-sector job openings may emerge as roles once filled by students become available, but softer consumer demand reduces overall employment stability. At the same time, post-secondary institutions are reviewing tuition policies, program offerings and recruitment strategies to stabilize finances, adding uncertainty for current and prospective students.

A new economic normal

Canada’s post-secondary sector and many local economies are entering a new reality in 2026. The drop in international students, driven by federal policy, is reshaping housing demand, employment patterns, education finances and community spending. Understanding how these changes intersect can help Canadians better navigate housing, work and financial decisions in cities where student populations once played an outsized economic role.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

CMHC (1); Government of Canada (2); Vancover Sun (3); CityNews Ottawa (4); PA Now (5); Conestoga College (6); CityNews Kitchener (7, 8)

Tipping expectations keep expanding

A 2025 survey by H&R Block Canada (1) found 82% of Canadians believe tipping is expected in more places than ever before. Nearly 60% said they are tipping more than they did a year ago, even as 90% believe tip amounts are too high.

Wayne Smith, a professor of hospitality and tourism management at Toronto Metropolitan University, describes the phenomenon as “tip creep.” “We’re tipping in more places than people traditionally ever did,” he told CTVNews.ca (2).

Many Canadians feel that pressure even when service has not changed. Reddit user Odd-Appeal6543 asked the r/Canada (3) subreddit who it is we should really blame. “Are we really that stupid? We see more tip prompts and just… obey?”

When the machine changed the math

One of the biggest changes to tipping culture happened quietly, with the widespread adoption of digital point-of-sale (POS) machines.

Before handheld terminals became standard, tips were typically calculated on the pre-tax subtotal. You paid your bill, did the math yourself and left a percentage based on the cost of the meal, not the taxes added by government.

Today, POS machines calculate suggested tips after tax, automatically increasing the total amount tipped.

The cumulative impact is striking when looking at the average Canadian. According to Restaurants Canada’s 2025 Foodservice Facts report (4), Canadians spend about $1,035 per person per year dining out at full-service restaurants.

If tips on that amount were calculated at 15% pre-tax, the total tips you would have paid over the year would be about $155. With POS machines suggesting 18% (minimum) on the post-tax total, those same tips rise to roughly $186. That’s an extra $31 per person in tips, for the same meals, without ordering anything additional or receiving better service. That's not pennies, especially for households that already monitor their spending closely.

Higher prices, higher tips and rising frustration

The frustration grows because menu prices have also gone up sharply. According to Statistics Canada, the consumer price index for food purchased from table service restaurants rose 3.3% in 2024. Food inflation has outpaced overall inflation for nine consecutive months.

As Reddit user HOLEPUNCHYOUREYELIDS put it, “If my bill used to be $40 at a restaurant and now that same bill is $60, the server is still making a bigger tip if I do 15%. So why the [hell] is the default creeping up to 20%?”

Marc Mentzer, a professor at the University of Saskatchewan’s Edwards School of Business, told CTV News (5) that tip percentages have continued to rise even as prices increase. “The percentage tip is gradually edging upwards but not as fast as restaurant prices going up,” he said.

Still, higher prices mean the dollar value of tips keep climbing.

Social pressure by design

Experts say digital terminals also create social pressure. Smith describes a feeling many Canadians recognize. “Now with the machine, they’re standing and watching. There’s a social anxiety,” he said.

Reddit user PvtHudson argues that discomfort is intentional. “Companies that design the software on pay terminals intentionally make it uncomfortable to not tip,” they wrote on Reddit, pointing to bright screens, oversized tip buttons and buried zero tip options.

Others say small choices by businesses can make a difference. Redditor Hautamaki shared, “There’s a Domino’s near my home where the cashiers will press no tip for you before even handing you the machine. I will keep going back to that place.”

Wages, responsibility and who should pay

As of 2026, minimum wages across Canada generally range from about $15 to $18 per hour depending on province. In Ontario, the general minimum wage is $17.60, while British Columbia’s is $17.85. By contrast, the Ontario Living Wage Network estimates a living wage of about $27.20 an hour in the Greater Toronto Area.

Some Canadians question why customers are still expected to bridge that gap. Reddit user The_Frozen_Inferno wrote, “People are strapped for cash these days and can’t afford to top up someone else’s wages when their own wages aren’t enough.”

Mentzer agrees that tipping has long allowed employers to rely on customers to supplement income. “It’s just widely accepted that customers will make up the difference between what the employer pays and what the employee ought to get paid,” he told CTV.

Where your tip actually goes

Many diners assume tips go directly to the server, but that is not always the case. In Ontario and British Columbia, for example, tips can be redistributed through tip pools as long as rules under provincial employment standards are followed. In Quebec, tip pooling is allowed only when it is voluntary and agreed to by most tipped employees.

“The typical customer is not aware of how tipping money is redistributed behind the scenes,” Mentzer said.

That uncertainty fuels resentment. DesireeThymes wrote on Reddit, “I have asked before who gets the tip. And so often it’s the business not the employee anyways.”

Canadians feeling tapped out

If you’re trying to manage costs but still want to enjoy dining out every now and again, small choices can help. You are allowed to use custom tip options or select zero when service does not warrant extra pay. Asking whether tips are pooled or calculated pre tax can also inform decisions. Supporting businesses that pay higher wages or reduce tipping pressure sends a clear market signal.

As Reddit user RevealIndependent996 put it simply, “Just press no tip. Problem solved.”

Tipping culture in Canada is changing, but so are household budgets. Understanding how machines, percentages and taxes quietly inflate the final bill gives Canadians one more tool to take control of their spending.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

H&R Block (1); CTV News (2, 5); Reddit (3); Restaurants Canada (4)

When he later checked the account balance, he discovered the funds were gone. His brother — listed as a joint owner — had withdrawn every cent from his mother’s CD.

After taking the money, the brother cut off all contact.

The caller and his mother are completely devastated. He asked Dave Ramsey (1) whether he should take the matter to court.

“I couldn’t care less if he’s pissed off,” Ramsey said. “I want to put him in front of an 18-wheeler.”

Ramsey stressed that, from a legal standpoint, the brother may have done nothing wrong.

His mother's money was in a joint account, and Canadian and U.S. banks operate similarly: any joint account holder (2) can withdraw the full balance at any time unless restricted by a formal agreement.

A family decision with unintended consequences

The caller explained that his mother had undergone surgery for a brain tumour and struggled with her health. After their father passed away, they suggested placing the inheritance into an auto-renewing CD for security.

To keep administrative matters simple, he added his brother’s name to the account — assuming all siblings would split the money equally later.

“We thought it'd be like an easy split, putting it on a CD. I didn't think of anything else,” he said.

The brothers fell out in October. Months after their conflict, the caller learned that his brother had withdrawn the inheritance in March 2024.

The bank confirmed that, because it is a joint account, either owner has full legal authority to remove all funds.

“You guys were so dumb. You put his name on it… I’m not sure it’s legally stealing because his name was on the account.” Ramsey said.

The financial guru noted that while the mother could hire a lawyer, it likely wouldn’t succeed. Similarly in Canada, if a family pursued a civil case, joint ownership usually supersedes verbal agreements or informal expectations.

If the perpetrator spent the money, a judgment likely won’t recover it.

“Courts don’t make people have money when they don’t have money,” Ramsey said. “You’re going to spend $10,000 chasing your mom’s money.”

The caller said his mother — who relies on disability assistance and government subsidies — does not want a long legal battle. Ramsey agreed that emotionally and practically, the best option may be to walk away.

Why situations like this are more common than Canadians realize

Family-perpetrated financial exploitation is difficult to prove (3) because victims sign account forms without understanding the legal context.

According to the National Council on Aging, family members are involved in nearly 47% of incidents of elder abuse (4). Additionally, the Government of Canada notes how (5) elder-abuse networks are the most common form of financial abuse in the country.

Once an adult child is a joint account holder, they become the co-owner of the funds.

How Canadian families can avoid similar mistakes

Here are some ways Canadian families can avoid the same fate:

• Avoid joint family accounts: Joint accounts grant full ownership and withdrawal rights (6) to all account holders. Instead, ask your financial institution about “transfer on death” (TOD) (7) or “payable on death” mechanisms.
• Have formal estate-planning documents: Estate planning eliminates confusion and protects seniors from accidental and intentional financial harm. At minimum, families should establish a legally drafted will, a power of attorney for property, executor instructions and asset lists.
• Review accounts and documents: Families should review account ownership and beneficiary designations after significant events such as the death of a spouse, illness and changes in family dynamics.

In the end, the emotional fallout for this family may last far longer than the financial loss — and serve as a warning for families to protect aging parents with clarity, documentation and professional advice before any problems arise.

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The Ramsey Show (1); Government of Canada (2); BMO (3); National Council on Aging (4); Government of Canada (5); Nelligan Law (6); RBHF (7)

Married for only three months, Sarah says she’s realized her husband is “not as financially responsible” as she believed, and he’s been “secretive about his debt,” she told The Ramsey Show (1). The discovery has left her worried about what could happen if they merge their money too soon.

Sarah bought a home in 2023 and has been working to get her own finances on track. She plans to pay off her car within the next year and is steadily tackling a few remaining debts. However, her husband is pushing to combine accounts — a move she fears could pull her deeper into financial trouble.

But Dave Ramsey disagrees. Merging finances, he says, “is the only way to get transparency and accountability on where every dollar is going.”

Here’s why he believes keeping money separate may be doing more harm than good.

Building a foundation of trust

While Ramsey believes couples should fully combine their finances after marriage, not everyone agrees. For example, Canadian investor and Dragon's Den personality Kevin O’Leary has long argued that couples should protect themselves financially beforehand — through prenuptial agreements — a view Ramsey says can undermine marriage.

O’Leary also points out that financial issues are a leading source of marital strain, stressing that openness regarding money early in a relationship can help avoid bigger problems later (2).

In Canada, surveys show money issues are a major source of stress and conflict for many couples. According to the 2025 “Love and Money” survey by Money Matters, 47% of Canadians have experienced financial disagreements with their partner, and over half of those report losing sleep after arguing about money (3).

Other polls reveal that many partnered Canadians identify day-to-day spending as a source of conflict, and around 35% report concerns about a partner’s financial habits, or admit they aren’t always truthful about their spending habits (4).

That distinction matters in Sarah’s case. She told The Ramsey Show that her husband claims he had paid the gas bill — only for her to discover there was still a US$1,200 (C$1,700) balance owing when she contacted the gas company. From that call alone, it’s unclear whether this reflects deliberate secrecy or simple disorganization.

Money experts point out that secrecy isn’t always malicious. Shame, stress or fear of conflict can lead people to hide debts or spending habits — especially if one partner earns much less than the other. Research shows that 41% of Canadians delayed talking about money to their partner until after the relationship became serious, even though financial transparency is widely seen as important to maintaining trust and harmony (5).

In Sarah’s situation, income disparity adds another layer. She earns US$62,000 (C$86,000) while her husband’s hourly wage fluctuates from between US$300 (C$415) and US$500 (C$695) a week, which is an inconsistency that can make budgeting and covering bill payments stressful. Opening a joint account wouldn’t necessarily mean losing control of money — it would give her a clear picture of total income, spending and bill payments.

While keeping everything separate might feel safer at first, without transparency, doubts and misunderstandings can linger. As Ramsey told Sarah, “The primary reason people get divorced [is] when contempt rolls in, so you’ve got to solve for that, or this marriage isn’t going to make it.”

How to merge finances

Sarah and her husband are already working with a marriage counsellor, but there are practical steps they can take to get financially aligned. One common approach is a “yours, mine and ours” setup — where they use a joint account for shared expenses, paired with separate accounts for personal spending.

A joint bank account allows both partners to deposit, withdraw and pay bills from the same account — and it makes both partners responsible for the transaction they each make, according to the Financial Consumer Agency of Canada (6). This setup can reduce confusion about who pays for what, but it also requires clear communication and agreement about how the money is used.

Many couples find value in blending joint and individual accounts. A poll of young Canadian couples found that approximately one-third keep completely separate bank accounts, while others use a mix of joint and personal accounts to manage shared and individual goals — a structure that can help maintain both transparency and autonomy (7).

A practical way to begin working together is creating a household budget and deciding how much of each person’s income goes into the joint account. Once that’s decided, paying bills, saving for shared goals and tracking spending becomes easier. Budgeting tools and guidance can support the process as well.

Once the budget is in place, set up some regular check-ins — for example, a monthly “money date” where you discuss what’s working and what needs adjusting — to help keep both partners aligned. Tools like automated bill payments can reduce the risk of incurring late payment penalties and interest, and ease overall daily financial management.

Replace a 50-50 household finance model with proportional income contributions

When one partner earns significantly more money than the other (like Sarah and her husband), a proportional contribution can feel fairer. Instead of splitting everything 50-50, each person’s contribution would be based on their share of the total household income — a practice many financial advisors suggest can reduce resentment and keep both partners engaged in shared money decisions (8).

Dave Ramsey takes a firmer stance. If all income is pooled and both partners agree ahead of time where every dollar is going, he told Sarah, then “[her husband] has agreed to his pending level and you have too, before it occurs." If one partner regularly ignores that shared plan, Ramsey says “you’re dealing with someone who can’t keep a contract now with his wife” — and that reveals a trust problem.

Bottom line

Merging finances isn’t about giving up control — it’s about creating clarity and trust. Sarah’s experience also holds a broader lesson for others: Before combining accounts, make sure you fully understand your partner’s full financial picture — including income, debts, spending habits and credit score.

Agree on how that money will be managed and create systems that support transparency, such as shared budget and regular check-ins. Whether you choose joint, separate or blended accounts, the goal is the same: a financial plan you both understand, accept and follow.

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Youtube (1, 2); Money Mentors (3); Ipsos (4); TD (5); Government of Canada (6); Investment Executive (7); National Bank (8)

Many younger Canadians expect some form of inheritance from their parents or grandparents. A recent Vanguard Canada survey revealed more than half (57%) of Gen Z say they expect to receive or have already received an inheritance. However, only 34% say it’s critical to their retirement plans (1).

Let’s imagine Jack. At 42-years-old, His father has recently died, leaving him with $3.5 million in stocks and $500,000 in cash and other assets. Jack still owes $100,000 on his mortgage and carries about $25,000 in other debt.

Suddenly, he’s facing questions few people are prepared for: What’s the smartest way to handle such a large windfall? Can this money last him for the rest of his life? How could poor choices eat drain the money quickly?

Four million dollars is life-changing, but it isn’t fail-safe. The same Vanguard Canada survey found that many respondents assumed any inheritance they received would help fund their retirement or cover major expenses, even though larger estates often go to more affluent families — meaning how the money is used matters a great deal more for long-term security.

For Jack, or the average Canadian anticipating an robust windfall, protecting and growing this inheritance isn’t about picking the right stocks or bonds. It’s about slowing down, understanding taxes and planning implications, and making thoughtful choices before emotion or lifestyle creep take over. Here's what you should consider.

Think before acting

When you receive a large inheritance, the first thing to understand is how it’s taxed, and how it isn’t. Canada doesn’t have an inheritance or estate tax. Instead, when someone dies, most assets within the estate are taxed on a “deemed disposition,” which can trigger a capital gains tax on the decedent’s final return, according to the Canada Revenue Agency (CRA) (2).

If the estate has already reported and paid tax on those gains, the person inheriting the asset typically starts with a new cost amount based on fair market value at the time the person died. This means selling soon after may result in little to no additional capital gain, depending on what happens to the asset’s price after the date of death.

Other considerations

Taxes are only part of the story, though. The bigger risk is rushing into decisions you can’t undo. Canada’s investor-education site GetSmarterAboutMoney.ca from the Ontario Securities Commission warns that windfalls can quickly disappear when people spend too fast, invest without a plan or make decisions based on emotion (3).

So, slow down. Paying off high-interest debt — or even your mortgage — can be a solid move, but avoid big upgrades right away, like buying a more expensive home or locking yourself into higher monthly costs before you’ve built a long-term plan.

And be careful who you tell about your windfall. The Canadian Investment Regulatory Organization (CIRO) notes that sudden wealth can attract scammers and high-pressure pitches, encouraging investors to stay alert to these and other fraud risks (4).

What should you do with your inheritance?

A smart first step after receiving a large inheritance is to pay off high-interest debt and make sure you have a solid emergency fund. With the rest, aim to invest in a diversified mix of assets rather than putting everything into one stock or sector.

A good foundation for this approach is understanding the basics of investing — how different investment types work and how risk and return relate — something you can speak to a financial advisor about.

Diversification means spreading your assets across different kinds of investments so one bad performer doesn’t drag down your entire portfolio. That might include a mix of stocks, bonds and other products, or using broadly diversified funds that hold many securities rather than individual company shares. Keeping costs low is also important, as high fees can eat away at your returns over time — something new investors need to watch out for.

One approach new investors can take is to use Exchange-Traded Funds (ETFs) that track global markets, including Canadian, U.S., and international companies.

These funds let you adjust how aggressive or conservative your portfolio is based on your risk tolerance and when you plan on accessing your funds. Some people use simple rules like reducing stock exposure with age, but working with a financial professional can help you tailor your mix to meet your goals.

Early retirement

If you’re considering retiring early or working part time, planning your withdrawal strategy matters. Common guidelines suggest limiting annual withdrawals from a large portfolio so it lasts many decades. However, Canadian planners note this isn’t a guarantee, particularly if you retire much earlier than the average retirement age.

With a well-structured plan, you may be able to gradually reduce your work hours, support your lifestyle without riskier bets and still leave room for future goals. Whether that means family support, legacy planning or simply for peace of mind.

Bottom line

A large inheritance can offer lasting security, but only if you move slowly and plan carefully. Paying down debt, investing in a diversified, low-cost portfolio and resisting big lifestyle upgrades early on can help protect this windfall for decades.

Before making major decisions, take time to understand your goals, your timeline and risk tolerance. Then consider getting professional advice on how to turn a large inheritance into a sustainable, long-term plan.

—With files from Melanie Huddart

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Vanguard (1); Government of Canada (2); Ontario Securities Commission (3); CIRO (4);

New data from Canada Mortgage and Housing Corporation (CMHC) shows rental market conditions softened in 2025 as more supply came online and vacancy rates rose — a shift that has slowed rent growth, without meaningfully improving affordability in most markets.

CMHC said the average rent for a two-bedroom purpose-built apartment rose 5.1% to $1,550, only slightly slower than the 5.4% increase recorded in 2024.

At the same time, the national vacancy rate rose to 3.1%, up from 2.2% a year earlier and now above its 10-year average, reflecting a market that is no longer tightening at the pace seen in recent years.

“The tight conditions that defined rental markets in the past few years in Canada’s largest cities loosened in 2025,” said Tania Bourassa-Ochoa, CMHC’s deputy chief economist, in a statement (1).

“However, affordability is still a challenge in most markets, as the supply of units affordable to lower income households remains low.”

More supply is giving renters slightly more leverage

CMHC attributed the shift in rental conditions to historically strong completions of purpose-built rental units, combined with slower demand driven by weaker population growth, fewer international students and softer labour market conditions — particularly among younger renters who typically drive new household formation.

As vacancies rose, CMHC reported that landlords in many major cities lowered rents on new leases to remain competitive. The agency found that turnover rents for two-bedroom units declined in Vancouver, Calgary, Toronto and Halifax, reversing the sharp increases seen in 2023 and 2024.

The report also noted that purpose-built rental operators increasingly offered incentives such as one month rent-free, moving allowances and signing bonuses to attract new tenants — a sign that competition has returned in markets where supply has grown fastest.

Why average rents are still rising

Despite softer conditions for new leases, average rents paid by all tenants continued to rise in 2025.

CMHC found that roughly 40% of the increase in average two-bedroom rents came from tenant turnover, as vacated units were repriced at higher levels when new tenants moved in.

Rent price growth varied significantly by region in 2025:

• Montréal and Halifax saw rent growth accelerate, largely driven by higher increases applied to existing leases
• Vancouver and Edmonton recorded slower rent growth as landlords faced rising vacancies and declining occupancy
• Calgary held two-bedroom rents relatively steady as strong demand absorbed a rapid expansion in rental supply

CMHC also noted that stricter rent guidelines in Toronto and Vancouver limited increases for sitting tenants, making turnover rents a larger driver of overall rent growth in those markets.

Condo rentals added competition — but remain costly

CMHC said the rental market also saw added competition from condominium apartments, particularly in Toronto and Vancouver. Owners facing weaker resale conditions shifted more units into the rental market, increasing supply and competitive pressure on purpose-built rentals.

Even so, condo rentals remained significantly more expensive. The average rent for a two-bedroom rental condominium rose to $2,305, up 4.8% year over year, while the vacancy rate for condo rentals sat at just 1.3%, well below purpose-built rental levels.

For renters, the findings suggest that conditions are no longer worsening in many major cities. Higher vacancy rates have increased choice and reduced competition for some units, particularly for renters able to move or negotiate. That said, rents remain high, and affordable units continue to be in short supply.

For small landlords, the shift brings its own pressures. As turnover rents soften and vacancies rise, CMHC said landlords will have less room to raise rents when units change hands, which is expected to limit overall rent growth going forward.

Looking forward, CMHC expects affordability to improve gradually as long as vacancy rates remain elevated and income growth stabilizes. For now, the agency’s data points to a market that has eased slightly — but one where housing costs are still out of reach for many Canadians.

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650 CKOM (1)

A 2025 BMO survey revealed that Canadians consider $1.54 million to be the “magic number” for retirement (2). So, if you have more than that amount, you could be ready to start enjoying your sunset years.

On the other hand, you may choose to keep working and growing your wealth. Many high-net-worth Canadians stay in their careers well past traditional retirement age — often because they enjoy the work and value the routine. Even legendary investor and entrepreneur Warren Buffett continued working into his 90s.

Still, working longer isn’t the right choice for everyone. If you’ve already hit your financial goals, stepping away earlier can offer benefits that go beyond money. Here are three reasons retiring around age 62 may be worth considering once you reach your financial milestones.

You’ve outgrown the 4% rule

The 4% rule, developed by William Bengen in the 1990s, has long been a go-to guideline for retirement planning. His research showed that retirees could likely make their savings last about 30 years by withdrawing 4% of their portfolio in the first year of retirement, then adjusting that amount each subsequent year to keep up with inflation.

For many Canadians, the rule offers a useful starting point. It helps frame how much income a portfolio might safely generate without retirees outliving their savings. Once your savings reach a specific level, however, it can become more of a reference point than a hard limit.

With a $1.5 million portfolio, a 4% withdrawal would deliver about $60,000 income a year before taxes. Add income from government pensions like the Canada Pensions Plan (CPP) and Old Age Security (OAS), your total cash flow could be more than enough to support a comfortable lifestyle. If your investments perform better than long-term averages, you may even find yourself accumulating wealth rather than drawing it down.

Reaching this $1.5 million milestone gives you options. If work no longer brings you satisfaction, you may not need to continue with it just for the paycheque. Extra cash flow can be redirected to what matters most to you — whether that’s helping family, supporting charities or spending more time on pursuits that are meaningful to you.

Room for better tax management

Retiring around age 62 with a $1.5-million portfolio often gives you the flexibility to delay government benefits — and that can be a smart tax move. In Canada, this usually means holding off on CPP and OAS while drawing income from personal savings instead.

CPP can be taken as early as 60, but delaying it increases your monthly payment by 0.7% for every month you wait after age 65, up to age 70. This gives you a boost of as much as 42% for life, according to the federal government (3).

OAS also grows if you delay it, rising 0.6% monthly after age 65 for a maximum increase of 36% at age 70.

Waiting to collect these benefits can lower your taxable income in your early retirement years, potentially keeping you in a lower tax bracket. That creates room for strategic tax planning — such as drawing down from your Registered Retirement Savings Plan (RRSP) — before your savings must be converted to a Registered Retirement Income Fund (RRIF) by age 71, when minimum withdrawals become mandatory.

The lower-income window can also be used to shift money into a Tax-Free Savings Account (TFSA), realize capital gains gradually, or smooth income over time to avoid higher marginal tax rates later. If you have a seven-digit portfolio, managing taxes often becomes a bigger concern than running out of money. Retiring earlier can give you time and flexibility to plan those moves carefully, and keep more of what you’ve saved.

Longer healthy retirement

Canadians are living longer than ever, but longevity doesn’t always equal good health. According to Statistics Canada, the average life expectancy is 81.9 years — 79.9 years for men, and 84 years for women (4).

However, the more important question is: How many of those years are likely to be spent in good health? The World Health Organization (WHO) tracks something called health-adjusted life expectancy (HALE), which estimates how many years people live without major illness or disability. In Canada, HALE is about 71 years — meaning the average Canadian spends roughly a decade dealing with health limitations later in life (5).

So, should you retire early?

Retiring earlier may mean drawing from a smaller portfolio, but it can buy you something money can’t replace: healthy, active time to enjoy your sunset years. If you’ve already met your financial goals, consider whether working longer truly improves your life, or simply grows a balance you may never get to enjoy. For many Canadians, stepping away from work sooner can be the more rewarding choice.

—With files from Melanie Huddart

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Financial Post (1); BMO (2); Government of Canada (3, (4); World Health Organization (5);

Instead of downsizing, Soda purchased a larger property to accommodate her father and her son living with her, along with buying new kitchen appliances and groceries every week, she told the outlet.

“Financially, it’s a bigger burden for me than for anyone,” Soda said. “But that was my choice.”

The desire to age in place — living in your home rather than moving into a long-term care facility or retirement home — has become a nearly ubiquitous desire for Canadians. A recent HomeEquity Bank survey found that 90% of Canadians over the age of 45 want to age in their own homes (2). But only 13% of respondents have thought about the costs of personal support workers as part of this plan, and only 6% have actually financially planned for it.

And as the Canadian population continues to age, the cost of aging in one’s home is only going to increase. The question is, who’s going to bear that financial burden?

Canada’s aging population and the rising costs

According to data from Statistics Canada (3), the number of Canadians that are aged 85 and older could triple to 2.5 million people by 2046. Moreover, that age group is one of the fastest-growing population groups according to the agency, which increased 12% since 2016 up until the 2021 census.

As Canada’s population continues to age, the costs for healthcare, home upgrades and other necessities for aging in place also rise. Estimates from the Canadian Medical Association (CMA) suggest that by 2028, the aging population will add $93 billion to health care costs (4).

For seniors hoping to remain at home, that means higher out-of-pocket expenses — and potentially greater reliance on family.

How much does it really cost to age in place?

So, with this desire to skirt retirement or long-term facilities altogether, it's important to understand what out-of-pokcet expenses can arise post-retirement. For instance, installing important safeguards such as handrails or grab bars can cost anywhere from $50 to a couple hundred dollars. Larger upgrades such as accessible showers also cost a pretty penny — anywhere from $10,000 and up, say experts. A wheelchair ramp can potentially set you back $5,000 as well.

Home upgrades are necessary for aging in your own home, but there’s also personal support and/or nursing care to consider. The CMA notes how average personal support care for in-home patients ranges between 4.9 hours per week to 22.2 hours per week for high-need patients (5). Meanwhile, data from Right at Home home care providers suggest that personal support worker fees are approximately $35-40 an hour and in-home nurses cost $80 an hour (6). That means personal support care alone could cost anywhere from $184 to $833 a week ($736 to $3,332 a month), not including nursing costs.

You must also take into account the costs for meal planning from outside sources if you are unable to cook on your own. Meals on Wheels, a non-profit service, charges $8.60 for a hot meal in Ottawa or $53 for seven frozen meals (7).

Based on current care and meal service costs, aging in place can range from roughly $950 a month for seniors with minimal support needs to nearly $4,000 a month for those requiring higher levels of care. This is before factoring in housing costs such as property taxes, utilities, transportation and maintenance.

On the other hand, long-term care homes can be less financially burdensome, with prices ranging from $1,000 per month for subsidized ward rooms to $6,000 per month for fully privately funded facilities (8).

Unfortunately, it isn’t necessarily the person aging in place that bears these costs, but those closest to them. This can put immense financial strain on family members, like Soda, that work to accommodate their parent’s wishes to age outside of a long-term care facility. Some family caregivers have reported spending over $100,000 to care for their aging parents, according to the Globe.

How to prepare you and your family to age in place

Aging in place might be a high ideal, but it can also be financially and emotionally out of touch with your finances and your family members’ expectations. Here are some tips to help you decide on if aging in place is right for you and your family.

• Start conversations early. While it might be uncomfortable to discuss your long-term health, do not put off discussing aging in place. All family members need to be on the same page regarding their commitments to caregiving and financial support.
• Create a realistic budget. Compare the detailed costs of aging in your home versus living in an assisted care or retirement facility to see if your current finances, government pensions and/or benefits can support either. Remember that seniors have access to a number of government subsidies that can help offset these costs.
• Save for the change now. Rather than starting to save when you get older, start to save for aging in place right now. While it is standard to tap into your home equity through a reverse mortgage or home equity line of credit, having a safety net through savings can make a big difference.

A decision that affects the entire family

Aging in place is something that nearly all Canadians can hope for, but it is critical to realize that decision isn’t one that affects just you — it affects your entire family. Make sure to have early, candid discussions about it well before you need to make a decision to prepare. While it might be difficult to broach the topic, setting expectations for the future can reduce stress when the time comes to age in your home.

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The Globe and Mail (1); HomeEquity Bank (2); Statistics Canada (3); CMA (4, 5); Meals on Wheels (7); Fairstone (8)

This winter, many retirees are pausing. Not cancelling travel altogether but reassessing where their dollars, time and peace of mind are best spent.

A mix of new U.S. entry requirements, a weaker loonie and political rhetoric aimed at Canada has made the annual migration feel more complicated. According to a poll by Snowbird Advisor (1), 15% of respondents said they no longer plan to travel to the United States this winter, a notable shift for a group that has long returned to the same destinations year after year.

New rules are creating anxiety, not clarity

Last spring, the U.S. began enforcing additional requirements for foreign nationals staying longer than 30 days, including biometric data collection at some ports of entry and an alien registration process visitors are expected to carry proof of. The Canadian Snowbird Association says its members have reported inconsistent experiences at land borders, adding to confusion.

For Paul MacLellan of Oshawa, ON, that uncertainty became the deciding factor. After eight winters in Myrtle Beach, S.C., he and his wife Debbie are sitting this one out (2).

“We had to do that online and it wasn’t easy to do and we weren’t sure whether we’d done it right,” MacLellan told CTV of the registration process. “So then we’re always feeling maybe there’s a threat we were going to get pulled over because of our licence plate and we maybe we didn’t have the paperwork. It was just an uneasy feeling.”

Instead, the couple is redirecting their winter budget closer to home and overseas.

“We got this extra money we’re not using, so we might as well spend it up here,” he said.

Others say the experience on the ground feels unchanged

Not everyone is staying north of the border. Some snowbirds say the headlines have been louder than the reality.

Richard Reid, who has spent 10 winters in Mesa, Ariz., says his latest border crossing was uneventful.

“That probably took us less time to go through at the border crossing in Vancouver this year than it had in any previous years,” he told CTV.

Once settled in Arizona, he says the anxiety faded quickly.

“Once we got here and said hi to all our mostly American friends… it was just like we’d never left.”

Safety and values are part of the calculation

For others, the decision is about more than paperwork or exchange rates.

Jan Vallillee, recently retired in Yellowknife, decided against the U.S. this winter after friends changed their plans. As a member of the LGBTQ2S+ community, she says personal safety weighs heavily. “We are part of a minority group and it seems like the current administration in the United States appears to have a little bit of an issue with various minority groups,” Vallillee told CTV. “Safety is key.”

She also pointed to the emotional toll of travelling somewhere that feels politically hostile.

“It has nothing to do with the population. It has everything to do with the current administration. And fear.”

Where snowbirds are taking their dollars instead

Mexico, Portugal, Belize, Southeast Asia and even Canadian destinations are seeing increased interest from retirees opting out of the U.S. this year. For many, affordability plays a role. With the Canadian dollar under pressure, destinations where the loonie stretches further are appealing.

Carolyn Riley of the Ottawa Valley told CTV her last Florida trip felt different.

“It just didn’t feel good hearing that sort of thing from people that you had known for the last three years,” she said, referring to comments she heard after President Donald Trump was sworn into office. This winter, she and her husband are heading to Mexico.

“We like warm weather, and of course the dollar is pretty good,” Riley said.

A service check before you book

If you are weighing your own snowbird plans, a few practical steps can help reduce stress and avoid costly mistakes:

• Confirm U.S. stay requirements directly with U.S. Customs and Border Protection, including biometric screening and registration expectations
• Carry proof of compliance if staying longer than 30 days, including any registration confirmation
• Factor in currency risk when budgeting long stays. A five or 10 cent swing in the loonie can materially affect a multi month rental
• Review travel insurance carefully, especially coverage tied to trip length and destination
• Consider alternatives where visa rules are clearer or the Canadian dollar goes further, particularly for fixed income retirees

For some, like Judy McConnell of Saskatchewan, the choice is straightforward.

“We’ve spent a lot of money on this motor home and we need to use it,” she told CTV. “We are still going to go into the States no matter what the political climate is.”

For others, this winter is about trying something new or simply staying put. Either way, the era of autopilot snowbirding appears to be over, replaced by more careful planning and, for many retirees, tougher questions about where they feel welcome, safe and financially comfortable.

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Snowbird Advisor (1); CTV News (2)

The new survey suggests households are putting debt reduction and day-to-day cash flow ahead of longer-term financial goals, reflecting ongoing pressure from higher living costs.

According to CIBC’s annual Financial Priorities Poll, paying down or eliminating debt is the top financial priority for Canadians in 2026, cited by 16% of respondents, tied with keeping up with bill payments at 16%.

At the same time, Canadians’ financial confidence has cooled somewhat, unsurprisingly. While 70% say they feel confident about achieving their financial goals next year, that figure is down from 76% in 2025, signalling a slightly cautious outlook as Canadians reassess as we head into 2026.

Some confidence remains — but with less margin for error

The poll suggests Canadians still feel reasonably resilient, but that confidence is becoming more fragile. Just over half of respondents (55%) said they feel prepared to weather an unexpected financial shock, down from 59% a year earlier.

That erosion matters because it reflects shrinking buffers, rather than collapsing optimism. Many households still believe they can manage, but with less room for surprise expenses, income disruptions or more rising costs piled on.

“While confidence in future financial goals remains high, it’s clear that Canadians are feeling some near-term pressure around the management of cash flow and month-to-month expenses,” said Carissa Lucreziano, vice-president of financial planning and advice at CIBC, in a statement.

For consumers, the takeaway is that financial stress is increasingly about liquidity and timing, not just long-term planning. Even households that feel stable are paying closer attention to bills, balances and short-term obligations.

Debt and bills come first — but Canadians aren’t abandoning long-term goals

The renewed focus on debt repayment reflects ongoing cost-of-living pressures. With essentials like groceries, housing and utilities still taking up a large share of household income, many Canadians are prioritizing financial stability over accelerating wealth accumulation.

At the same time, the poll suggests caution hasn’t turned into paralysis. Forty-three percent of Canadians say they plan to start or increase investing as a New Year’s resolution, signalling an effort to keep longer-term goals in view.

Canadians appear to be looking for ways to make progress without overextending — reducing high-interest debt, staying current on bills and approaching investing more selectively than in past years marked by volatility.

A cautious reset as Canadians head into 2026

The data from CIBC suggests that confidence remains relatively high, but it’s paired with tighter discipline and more realistic expectations about what households can carry.

For many Canadians, that reset is showing up in practical ways:

• Tackling high-interest debt before taking on new commitments
• Protecting or rebuilding emergency savings
• Being more selective about spending and investing decisions
• Delaying larger financial moves until cash flow feels more secure

“Personalized advice and proactive planning can make a real difference in structuring a plan that makes sense for your current situation and can build confidence in achieving long-term goals for you and your family,” said Lucreziano.

Heading into 2026, the prevailing mindset appears less about optimism or pessimism and more about control — an effort by households throughout Canada to steady the financial ship before pushing forward again.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

PR Newswire (1)

New data from Visa shows holiday retail spending in Canada rose 4.4% year over year, pointing to resilient consumer activity even as cost-of-living pressures remain elevated.

And that’s despite recent consumer surveys suggesting that many Canadians were preparing to rein in holiday expenses. For example, a Rakuten Canada survey (1) found nearly half of Canadians planned to spend less this holiday season than last year, citing rising prices and economic uncertainty.

What the Visa data says about how Canadians spent

Visa’s holiday analysis, which tracks retail sales over a seven-week period beginning November 1, suggests shoppers remained active, but increasingly deliberate.

In-store shopping continued to dominate, accounting for 88% of holiday payment volume, while online spending rose 7% year over year, supported by extended promotions and the convenience of e-commerce.

Certain categories stood out. Clothing and accessories were the fastest-growing segment, posting a 10% increase, nearly double last year’s pace. General merchandise stores saw a 9% lift, as consumers gravitated toward one-stop shopping, while health and personal care spending rose 5.4%.

Visa chief economist Wayne Best framed the season as a shift in how Canadians approach discretionary purchases. “This season also marked a turning point, with artificial intelligence shaping how people discover products, compare prices, and interact with offers,” he said in a statement. “This led to a more informed, more intentional consumer, ensuring they could stretch their discretionary spending.”

Why spending rose even as Canadians tried to be cautious

The contrast between Visa’s spending data and Rakuten’s survey results suggests many households entered the holidays with restraint in mind, but still opened their wallets when faced with familiar seasonal pressures.

Rakuten’s findings showed 48% of Canadians planned to spend less than last year, and a large majority said they were actively looking for ways to cut costs, such as waiting for sales, stacking discounts or reducing gift lists.

Yet Visa’s data indicates that while Canadians may have hunted harder for value, they didn’t step away from spending altogether. Instead, they appear to have shifted how and where they spent, favouring promotions, convenience and categories tied to personal use rather than big-ticket indulgences.

For consumers, that behaviour reflects a balancing act that requires careful management of ever-tightening budgets, without giving up altogether on holiday spending habits.

What this means for household finances heading into January

The concern for many households is not December spending itself, but what will follow.

Holiday purchases often coincide with higher winter utility bills, and lingering inflation in essentials such as groceries can continue to strain cash flow early in the new year.

Recent warnings from credit counsellors suggest some Canadians are already feeling stretched, with more people seeking guidance before January bills arrive. Against that backdrop, the holiday spending bump captured by Visa may translate into tighter budgets and tougher trade-offs in the weeks ahead.

Above all, Canadians appear to be spending more carefully, not freely, using tools, technology, and promotions to stretch dollars rather than abandoning discretionary purchases altogether.

As 2026 approaches, that pattern may persist: cautious optimism at the checkout, paired with ongoing pressure behind the scenes.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Global Newswire (1)

The woman, who goes by the pseudonym Denise to protect her identity, told CTV News's W5 investigation team she saw a video on Facebook of billionaire Elon Musk promoting a lucrative investment opportunity (1). Denise initially transferred $250 to Musk’s alleged platform and was told she received US$30 (C$42) in profit two days later. She also explained how she received documentation showing that her investments were growing, which prompted her to take out a second mortgage on her home and invest hundreds of thousands of dollars more with the fraudulent company.

When she tried to withdraw funds, Denise was told she needed to pay additional taxes and fees, so she took out another $500,000 from family and friends and her credit cards.

When she realized she was dealing with a scammer that had used an AI-generated scam video to con her out of her life savings, Denise pleaded with the fraudster — to no avail.

“Well, I guess you’ll have to sell it [your home],” the scammer told her before hanging up.

Advanced AI cryptocurrency schemes on the rise

As AI-generated videos are becoming harder and harder to distinguish from reality (2), bad actors are using the technology to coerce Canadians to invest in elaborate cryptocurrency schemes to drain their bank accounts.

According to the Canadian Anti-Fraud Centre’s (CAFC) 2024 Annual Statistical Report, investment scams made up nearly half of the $643 million that was defrauded from Canadians last year (3), and that number is suspected to be much lower than what is actually stolen. Moreover, Canadians targeted by fraud sent the most amount of money to bad actors via cryptocurrency, averaging around $23,815 per transaction, the agency reported.

To pull off such elaborate heists, criminals are training AI models on images and videos of authoritative figures to create fake videos of them promoting a fraudulent crypto platform or other investment scheme (4). Once the AI is properly trained, it can create a synthesized version of a person to speak, move and act in extremely believable ways.

To make matters worse, scammers aren’t training these models on just anyone. They’re deliberately mimicking public officials, well-known celebrities and influencers to emotionally exploit Canadians and create an immediate sense of trust and reliability. For instance, Prime Minister Mark Carney had his likeness used in an AI-deepfake scam to promote a fake investment platform earlier this year (5).

Other world-renowned Canadians that have had their image and likenesses used in similar schemes include Michael Bublé, Rick Mercer, Sidney Crosby and Mary Berg (6).

How to avoid elaborate AI video scams

With AI video technology likely to only improve, it can be anxiety-inducing to try and parse through what’s real and what’s fake in the world of online investments. Here are some expert-backed tips to help spot AI scammers in action and properly vet investment opportunities that may seem to good to be true (7).

• Watch for video glitches. AI scam videos aren’t perfect. If a public figure or celebrity is endorsing an investment, watch for odd facial expressions, longer-than-usual pauses in speaking or inconsistent lighting. These are tell-tale signs of an AI deepfake video.
• Check official communication channels. If a major public figure is endorsing an investment opportunity, chances are the information is on their public website or has been reported on in the mainstream media. Don’t rely on social media or online videos alone when deciding where to invest.
• Always err on the side of caution. AI investment scams often present an offer that seems too good to be true, such as well above average returns. If you have an accountant, financial advisor, lawyer or just a financially-savvy friend in your circle, lean on them for advice if you think you’ve found a winning investment, as they might provide some much-needed skepticism if things seem too good to be true.

If you do fall victim to an AI scam, do not shame yourself — plenty of educated and financially-literate individuals have made the same mistake in a moment of inadvertant ignorance. Instead, act quickly and report the scam to your local police and the CAFC. Also contact your bank and Equifax/TransUnion if you shared any banking information with scammers. If you made an investment through a fake website, report it to the Competition Bureau of Canada, a federal agency that keeps businesses in check.

While it can be difficult to get your money back after a scam, it is possible — especially if you have enough information to take the bad faith actor to court.

Bottom line

Denise’s harrowing story reveals a disturbing trend: AI investment scams are making it harder to parse investment fact from fiction. But this does not mean Canadians should bury their heads in the sand and steer clear of investing altogether. Instead, they need to remain vigilant in scouting out new investment opportunities and remember this time-testing idiom: “If it’s too good to be true, it probably is.”

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

CTV News (1, 5); Spectrum Local News (2); CAFC (3); McAfee (4); CBC News (6); CBA (7)

Take the hypothetical case of Max, a 31-year-old who was earning $4,500 a month and recently got a $500 raise after three years with his company. His income is now $5,000 a month, but it doesn’t feel like a win.

In the time since his last raise, Max moved and saw his rent increase by $250 a month. His utilities are up $100, and higher food prices add another $100 to his grocery bill. That said, most of his raise has already been spoken for.

As a result, Max still feels stretched. He puts off car repairs, closely tracks fuel spending and checks his bank balance before making everyday purchases — even with more money coming in.

So how can Max turn that extra $500 into real progress instead of watching it disappear? Here are some practical ways to make a raise actually count.

Raises and the rate of inflation

A raise increases your paycheque — but that doesn’t always mean you’re better off. Your buying power only improves if your raise is higher than inflation. If it isn’t, your money simply doesn’t stretch as far.

Canada saw a sharp rise in inflation after the pandemic. According to Statistics Canada, inflation averaged about 6.8% in 2022 — reaching a 40-year high — and 3.9% in 2023, while averaging 2.4% in 2024 (1). That rate is still above the Bank of Canada’s 2% target for price stability.

What does this mean in real-world practice? If you receive a 2% raise while inflation is running closer to 2.5%, your cost of living is rising faster than your income, even though your pay is higher on paper.

Unless you adjust how you spend — for example, cutting back on discretionary purchases, finding cheaper options or using less energy as utility costs rise — a raise may not give you the extra breathing room you’d hoped for. Instead, it may just help you keep pace rather than get ahead.

How can you make the most of a pay increase?

One of the smartest moves that Max or any Canadian can make when getting a raise is to redirect some of the extra money before it blends into your regular spending.

For example, if you receive a 2% raise, you could immediately increase your Registered Retirement Savings Plan (RRSP) or group RRSP contribution by 1%. Doing this automatically keeps you living on roughly the same take-home pay while putting more toward long-term savings.

When you redirect your money early, it has more time to grow and compound, which can make it meaningful in the long run. You can also use part of your raise to support other financial goals, such as:

• Build or top up an emergency fund
• Save for large upcoming purchases, such as car or home repairs, or even a vacation
• Pay down debt, especially high-interest balances
• Increase your savings in a high-interest savings account (HISA) or a Tax-Free Savings Account (TFSA)

If inflation is outpacing your raise, you may still need to be mindful of your spending. But any cost-saving habits you’ve already adopted — like cooking at home, using coupons toward groceries and lowering your utility use — can continue while the extra income is put somewhere else.

Beware of “lifestyle creep”

Lifestyle creep happens when your spending quietly increases as your income rises. Small upgrades — more restaurant dining, pricier groceries, extras subscriptions or nicer conveniences — don’t always feel significant on their own, but can quickly add up and make that raise disappear.

When you aren’t mindful of it, lifestyle creep can leave you earning more without actually feeling better off. Savings stall, debt sticks around longer and financial goals keep getting pushed back — even though your paycheque is bigger.

Being aware of lifestyle creep doesn’t mean avoiding enjoyment. It means deliberately choosing where your money goes instead of letting higher costs become the default.

Bottom line

A pay raise only improves your finances when you’re intentional with it. For Max or other Canadians wondering how to make a raise more financially advantageous, redirecting that extra income toward savings, debt repayment or long-term goals before it reaches your spending account helps prevent it from being absorbed by everyday costs. When you make deliberate choices early, a raise becomes a tool for building a stronger financial future — not just a slightly more expensive routine.

—With files from Melanie Huddart

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Statistics Canada (1)

Let’s consider the hypothetical case of Suzanne: She’s 60, lives in Winnipeg and has worked as a university librarian for most of her career. She earns $87,000 a year and plans to keep working until age 67 so she can collect her full pension benefit.

Suzanne has been married twice. Her first marriage ended in divorce and they had no children. Her second marriage ended five years ago when her husband died, leaving her with the $750,000 in his retirement accounts. During their time together, they lived in his home with his children from a previous marriage.

When her second husband died, he left the house to his children. Suzanne remains close with her blended family, but the arrangement means she doesn’t truly own the home she lives in. As retirement gets closer, she wants a place of her own — somewhere she can settle in for the long term.

Now Suzanne is facing a big question: Does buying a first home at age 60 make financial sense, especially with retirement only seven years away? We break down the numbers and explore whether buying a home later in life can be a smart move when nearing retirement.

Can Suzanne afford to buy a first home before retiring at age 67?

Suzanne’s financial situation is solid — but it isn’t unlimited.

She estimates her defined-benefit pension will pay about $4,000 a month once she hits retirement age at 67. On top of that, she expects to receive Canada Pension Plan (CPP) benefits and Old Age Security (OAS).

According to the Government of Canada, the CPP average monthly payment for new beneficiaries is around $848.37 (1). OAS payments vary by income and qualifying years, typically up to about $740 a month for ages 65 to 74, before clawback (2). Based on Suzanne’s contribution history, these amounts combined add up to roughly $2,200 a month, depending on when she starts collecting.

Her late husband’s $750,000 in retirement savings provides an important cushion. However, that money will need to last 20 to 30 years, presuming an average life span of 83.9 to 84.9 years (3), with the possibility Suzanne could live well into her 90s. Using a conservative 4% withdrawal rate, those savings could generate approximately $30,000 a year, or roughly $2,500 a month before tax.

With workplace pension, CPP and OAS combined, Suzanne could earn around $8,700 a month in retirement income. That’s comfortable, but it doesn’t leave much room for error — especially as cost of living, inflation, home maintenance costs and other expenses add pressure over time.

If Suzanne bought a home near the Canadian benchmark price of about $680,000 as of late 2025 (4), a 20% down payment would approximately cost $136,000 up front, leaving her with a $544,000 mortgage. At current mortgage rates — ranging anywhere between 3.89% and 5.59%, depending on the term (5) — and 25-year amortization, her monthly payment can range anywhere between $2,890 to $3,200, depending on the mortgage she selects. This is the monthly amount before property taxes, insurance and maintenance are factored in.

Non-mortgage housing costs

Once these additional costs are included, Suzanne’s total monthly housing bill climbs further:

Property taxes. Average property taxes in Canada typically range from about 0.5% to 2.5% of a home’s assessed value, but some areas can be higher (6). On a home worth $680,000, Suzanne could see her annual property taxes could fall anywhere between $3,400 to $10,200, or about $280 to $850 a month, depending on where the home is located.

Home insurance. The data on average premiums across Canada indicate homeowners typically pay around $780 to $2,500 a year for home insurance, depending on the province, coverage level and risk factors. That works out to approximately $65 to $210 a month on average for a detached home (7).

Maintenance and repairs. A common rule of thumb is to budget about 1% of a home’s value on annual maintenance and repairs — equivalent to $6,800 a year, or about $560 a month for Suzanne.

At the upper end, Suzanne’s expected monthly nonmortgage housing costs would be approximately $1,600, not including utilities. Keep in mind, property taxes increase over time, and major repairs such as replacing a roof aren’t accounted for in this estimate.

That level of spending would eat up more than half of Suzanne’s projected monthly retirement income — especially once her mortgage payment, utilities, groceries and transportation costs are added in.

Suzanne also needs room in her budget for unexpected expenses and enjoying her retirement. At 60, with seven working years left, protecting her liquidity and keeping monthly obligations flexible should be priority.

A more cautious approach may be to delay buying, or look into smaller, lower-maintenance options like a condo — ideally with a larger down payment to reduce ongoing costs. Another option is to continue renting and direct more of her income into savings, keeping her options open until her pension, CPP and OAS are fully in place.

The advantages of renting vs. owning

There are some upsides to renting your home versus owning it outright.

Suzanne’s current living arrangements may not be permanent. While she may be paying little to no rent today, informal housing arrangements between family members can change quickly. If her stepchildren decide to sell the home or ask for market-level rent, Suzanne could be forced to make a new housing decision before she’s financially or emotionally prepared.

For now, renting in Winnipeg remains relatively affordable compared with many other Canadian cities. The Canadian Mortgage and Housing Corporation shows the average rent for a two-bedroom apartment in Winnipeg was $1,571, and a one-bedroom was priced just over $1,230 as of October 2025 (8).

These rent levels mean Suzanne could keep her main housing costs to under one-quarter of her projected $8,700 monthly retirement income, leaving her plenty of room for any additional health care or surprise expenses — and maybe enough to enjoy her retirement.

Bottom line

Buying a first home at 60 isn’t entirely out of reach, but it does demand a careful balance between emotional security and financial flexibility. For someone retiring on around $8,000 a month, taking on a $680,000 home can strain cash flow and reduce liquidity.

In many cases, a more modest purchase — or renting while your investments grow — can better protect long-term stability. Ultimately, the right choice is the one that delivers the greatest peace of mind, whether that comes from owning a home or keeping a strong financial cushion for life’s uncertainties.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Government of Canada (1, 2); Statistics Canada (3); Wowa (4, 5); Spring Financial (6); Zolo (7); CMHC (8)

Amherstburg faces a bitter loss as jobs disappear

Diageo said the Amherstburg plant will cease operations by February 2026 as part of a strategic decision to reshape its North American supply chain (1). The closure will affect about 160 to 200 jobs at the plant that bottles Crown Royal products destined largely for the U.S. market.

Unifor Local 200, which represents the workers, reported that plant employees overwhelmingly ratified a negotiated closure agreement, with 89% voting in favour, giving enhanced severance protections ahead of the shutdown (2). The union has said it will now work with local and provincial officials to attract new investment and preserve workers’ livelihoods (3).

For Amherstburg — where the bottling plant has been among the largest employers — this loss carries real economic weight. Local officials have warned the closure will reduce the town’s tax base and create ripple effects for ancillary services and spending (4).

Some workers have retired, while others have found jobs at nearby facilities, including the Stellantis auto assembly plant in Windsor, or in trades-related positions (5). John D’Agnolo, president of Unifor Local 200, said the province has supported workers by connecting them with colleges and funding local action centres to train or reskill employees for other sectors. “We’re down to about 101 employees,” he told Global News. “Hopefully, we’ll get to the point where everybody’s employed.”

From bottles to the big picture: Ontario’s manufacturing shift

While the direct job losses at Crown Royal are concentrated, they occur against a backdrop of broader trends in Ontario’s manufacturing sector:

Food, beverage and tobacco product manufacturing — the subsector that includes facilities like Crown Royal’s — employed 116,700 people in Ontario in 2023, representing 1.5% of the province’s total workforce and 14.4% of Ontario’s manufacturing jobs (6).

That subsector generated $14.8 billion in GDP in 2023, accounting for 15.3 % of total manufacturing GDP in the province (7).

These figures show how food and beverage manufacturing remains a meaningful piece of Ontario’s economy, even as employment has fluctuated. Provincial forecasts suggest moderate employment growth through 2024 to 2026 (8), reflecting broader economic pressures, capital investment trends and shifts in consumer demand.

Nationally, Canada’s food and beverage processing industry, which includes beverage production, was the largest manufacturing employer in 2024 with 318,400 jobs and goods valued at $173.4 billion, or 20.3% of total Canadian manufacturing sales (9).

Crown Royal closure sparks political showdown

The closure unfolded amid public political tension. The Ontario government criticized Diageo and threatened to retaliate by removing Crown Royal from LCBO shelves, a move Premier Doug Ford said he would “100 per cent” follow through on at the end of February (10).

Diageo ultimately kept its Manitoba and Quebec facilities while shifting Ontario's bottling work to the United States. The union emphasized acting while workers were still at the plant. D’Agnolo noted that although the agreement was signed under a deadline, earlier action would have been more impactful.

While the provincial government has stepped up to support workers through the transition, the union continues to advocate for removing Diageo products from the LCBO as part of its broader response.

A Canadian icon with a global footprint

Crown Royal remains one of Diageo’s most important Canadian brands. According to Brand Finance (11), the whisky had an estimated brand value of about C$3.2 billion, making it one of Canada’s fastest‑growing brands, despite being owned by a foreign company.

Industry reporting also notes that Crown Royal is the top‑selling Canadian whisky worldwide and North America’s most valuable whisky brand — in fact, Canadian whisky makes up roughly 7% of Diageo’s global net sales (12).

Despite this, Diageo has cited operational efficiency and supply‑chain resiliency as drivers of the Amherstburg decision (13). The company says whisky destined for Canadian consumption and non‑U.S. export markets will continue to be bottled in its Valleyfield, Que., and Gimli, Man., facilities.

A Canadian icon leaves home

The closure marks a sad day for this iconic brand. For both the workers and town of Amherstburg, a major employer vanishing leaves gaps in the local economy, from family incomes to small businesses that depended on the plant’s activity.

Crown Royal’s move also raises bigger questions about Canada’s place in a global economy where foreign corporations make decisions that can ripple through local communities. It shines a light on the fragile balance between efficiency, profit and national pride, especially when a brand so tied to Canadian identity is shifted abroad.

At the same time, the response of unions, local leaders and provincial programs highlights the resiliency and adaptability of Canadians. Workers are finding new paths, retraining and rediscovering opportunities even in the shadow of a major closure.

Crown Royal may continue to pour whisky across borders, but for Amherstburg and the thousands of Canadians whose lives are intertwined with the brand, the closure marks another blow to our economy in a time when Elbows Up may struggle to sustain brands we once proudly called our own.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Global News (1, 5, 10); City News (2); Unifor (3); AM800CKLW (4); Government of Canada: Job Bank (6, 7, 8); Government of Canada: Agriculture and Agri-Food Canada (9); Brand Finance (11); Diageo (12); AInvest (13)

But the day before they were supposed to check in, reality hit.

“I emailed, no response. I emailed again, no response. We called and got a Verizon response saying ‘this number is no longer active,’” Kramer told The Washington Post (1).

The Kramers had been scammed — and they’re far from alone. The Federal Trade Commission (FTC) received nearly 10,000 fraud reports in Q2 2025 and thieves took US$40 million (C$55.3 million) — US$5 million (C$6.9 million) more than the prior year (2).

And Canadians are just as easily subjected to scams like this. Fraud and financial scams are a major growing problem across Canada — including travel and other parts of daily life.

In 2024, the Canadian Anti-Fraud Centre (CAFC) received more than 108,000 fraud and scam incident reports resulting in losses totalling more than $638 million. And most experts believe the true total could be much higher due to underreporting (3).

Cybercriminals are becoming increasingly sophisticated, using tactics that even savvy travellers might miss. From fake booking sites and rental scams to impersonating and phishing fraud, scammers are finding new ways to trick people into sending money or personal information.

Be on the alert for these common scam tactics.

Scam #1: Phony rental listing

Fake vacation rentals are one of the most common travel scams. Scammers often copy real online rental listings — including professional photos and detailed descriptions — and repost them as their own. In some cases, the property doesn’t even exist.

These scams can be hard to spot at first, but there are warning signs to watch for. Common red flags include:

• The same property appears on multiple sites, but has little to no guest review history
• The listing contains spelling mistakes, awkward wording, incorrect grammar, or low-quality or stock photos
• The “owner” asks you to communicate or pay outside the booking platform
• The person claims to live outside Canada and can’t meet or speak to you directly
• You’re pressured to act quickly, or asked to pay using methods with limited consumer protection, such as e-transfers, wire transfers, prepaid cards or money-transfer services, instead of a credit card

Legitimate rental platforms usually keep all communication and payments within their system to protect both renters and hosts. If someone pushes you to move the conversation off-platform, or to pay in a way that can’t be reversed, that’s a strong sign something is off.

Take an extra few minutes to double-check a listing you’re interested in — it could save you thousands of dollars and help ensure your vacation doesn’t turn into an expensive disappointment.

Scam #2: Fake travel website

Some scammers create fake travel websites that closely copy well-known booking platforms. These sites can look almost identical to the real thing — same layout, colours, logos and even similar web address. Sometimes the only difference is a small change in the site’s URL.

When you enter payment details on one of these fake sites, you’re not actually booking a flight or hotel. Instead, you’re directly handing over your credit card information to cyber criminals, who may access it while you’re still on that site — without actually booking anything for you.

Here are some indications you’re on a fake site:

• The website address has small changes, such as extra words, hyphens or spelling errors
• The deal looks far cheaper than what you see on official airline or hotel sites
• The page is missing basic security features, like “https” at the beginning of the URL, or a padlock icon in the browser bar
• You’re pushed to enter payments details without clear booking confirmation

To stay safe, double-check the web address before you book and consider typing it in yourself instead of clicking links from ads or emails. A few extra seconds of caution can protect your money and your personal information.

Scam #3: Social media-based hotel hoax

Sharing vacation photos on social media may seem harmless, but scammers mine these posts and use them to target travellers in real time.

Using advanced tools — including artificial intelligence (AI) technology — fraudsters can sometimes figure out where you’re staying based on the details in your photos. These include building design, pool layouts, restaurant interiors or branded signage. They don’t need geotags or location settings to find you.

Once they believe they’ve identified your hotel, scammers send messages that appear to come from the hotel’s front desk or management team. The message typically claims there’s a billing issue — for example, a failed credit card authorization, or an extra charge that needs approval.

The goal in these messages is to create urgency around resolving the “problem.” While the message might include links to the real hotel website, the phone number or reply option connects you directly to the scammers, who ask you for your payment details.

Watch for these warning signs:

• Unexpected billing messages after you’re checked in
• Requests to resolve payment issues by phone or text, rather than at the front desk
• Pressure to act immediately
• Requests for payment using wire transfer, gift cards, e-transfers or payment apps

If there’s ever a legit billing issue, hotels will discuss it with you in-person at the front desk. When in doubt, don’t click links or call numbers sent in messages — go to the front desk and speak directly to staff to clarify and resolve any issue.

Avoid posting real-time vacation photos — wait until you’ve checked out or returned home to share your memories to keep yourself safe.

Scam #4: “Urgent” messages

Scammers often rely on creating panic or urgency to get results. One common tactic is sending messages that demand immediate attention, before you have time to think

For example, you might receive a message claiming a problem with your flight or hotel reservation that needs to be fixed right away. The goal is to make you react quickly — typically, by clicking a link or calling a number — before you stop to question whether the message is real.

Once you respond, you could end up on a fake website or speaking directly to a scammer who asks for your credit card details or personal info.

Be extra cautious if a message includes:

• A text from a company you don’t remember signing up with
• A frantic, or threatening tone that pressures you to act immediately
• Links or phone numbers you haven’t verified
• Claims that your reservation, benefits or account will be cancelled if you don’t respond right away

Legitimate companies usually don’t demand immediate action by text. If you’re unsure, don’t reply or click anything — instead, contact the company directly using the phone number or website you know is real.

Scam #5: False CAPTCHA

Even regular website actions can be used to trick travellers. In a fake CAPTCHA scam, a pop-up claims to verify that “you’re not a robot.” But instead of protecting the site, it can expose your device to malware.

These scams often appear on fake or compromised websites. You might be prompted to complete unusual “verification steps” that go beyond clicking a checkbox and selecting images. Following through on these instructions can give scammers access to your computer, allowing them to steal passwords, banking details or other personal information.

Red flags to watch for include:

• CAPTCHA requests that appear outside normal login or checkout pages
• Prompts asking you to perform manual actions on your keyboard or device
• Verification steps that feel unrelated to booking, singing in or paying
• Pop-ups that rush you or warn something bad will happen is you fault to comply

Legitimate CAPTCHA tests are simple and stay within the website itself. If you’re asked to do anything unusual, close the page and don’t continue. When in doubt, stick to well-known booking sites and avoid clicking links from ads or unsolicited messages.

The coming wave: deepfakes and voice cloning

The scams already covered are bad enough, but there’s an even more advanced threat on the rise: deepfakes and AI-driven impersonation. These are scams that use AI to create fake voices, audio or video that appear real and trustworthy.

Scammers and cyber criminals are increasingly using this technology to trick people. Canadian authorities have warned that AI-generated voice messages and calls pretending to be officials, or even people close to you, are becoming more common.

Criminals will use synthetic voices to resemble a person familiar to you to steal personal information or money. The Canadian Centre for Cyber Security and the CAFC are tracking these malicious campaigns and cautioning Canadians about these voice-cloning impersonation scams (4).

Deepfake technology uses convincing video or audio scams to make them more convincing and personal. Scammers may impersonate bank agents, government officials and even friends and family members to create a sense of urgency to pressure you into giving up sensitive data or making a payment.

Financial losses from scamming incidents continue to climb in Canada. According to the Competition Bureau Canada, consumers have lost more than $2 billion due to scamming since 2021 — again, with only a fraction of incidents actually reported (5).

These trends make it more crucial than ever to stay alert. Fraudsters are using increasingly sophisticated techniques that are completely fake to make connections with unsuspecting victims. The best defence is to slow down, verify contacts separately and never act on pressure or urgency alone when money or personal information is at stake.

How to protect your finances before you travel

A little preparation before your trip can go a long way in protecting your money.

Start by using a credit card or debit card instead of e-transfers or wire transfers. If your card details are compromised, your cash doesn’t just vanish — and many credit cards offer fraud and chargeback rights that can help you recover unauthorized charges.

Next, turn on real-time purchase alerts through your bank’s app. These notifications let you know right away if a charge is made, so you can act quickly if it’s something you don’t recognize. You can also ask your card issuer about temporary spending limits or travel controls, which may reduce the risk of fraud while you’re away.

Be cautious about paying for accommodations up front. Avoid paying in full unless the booking is verified, refundable and made through a reliable platform. Finally, keep digital copies of your travel confirmation, receipts and messages with hosts or hotels. If a dispute arises, having clear records on hand can help easily resolve issues.

A few small steps before leaving can help ensure your trip is memorable for the right reasons — not because of a fraud headache.

How to recover if you get scammed

If you think you’ve been scammed, act right away. Contact your bank or credit card company as soon as you notice something wrong. The faster you report it, the better your chances of stopping further fraudulent transactions and recovering your stolen money.

Next, report the incidents to the Canadian Anti-Fraud Centre (CAFC). This is Canada’s national fraud reporting agency, and filing a report helps track scams and may support investigations. You can report online or by phone for free.

If money was taken or your identity was used, you may also need to contact your local police service — especially if your bank or insurer asks for a police report to proceed with a claim.

If the scam involves a booking platform such as Airbnb, Vrbo, Expedia or other travel site, report it to the company immediately. Many platforms offer purchase protection or dispute processes if you booked and paid through their official website.

Finally, collect and save all related records, including emails, texts, screenshots, booking confirmations and transaction details. Having clear documentation will make it easier to dispute charges, file reports and protect yourself if issues come up later.

The best defence is a good offence

Recovering from a scam can be stressful, but taking quick, organized action can limit the damage and help you move forward. Travel scams are becoming more common — and more convincing — especially as fraudsters use social media, fake websites and AI tools to target travellers.

The best defence is a good offence: Prepare, slow down, verify bookings, use protected payment methods and question anything that creates a sense of urgency. If something goes wrong, acting quickly and reporting it can limit the damage and help protect others from the same scam.

—With files from Melanie Huddart

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Washington Post (1); Tableau Public (2); Government of Canada (3, (5); CAFC (4)

While the national Consumer Price Index rose 2.2% year over year in November, grocery prices jumped 4.7%, marking the fastest increase since December 2023 and putting fresh pressure on everyday budgets just as holiday bills come due.

That strain is already showing up in Canadians’ financial behaviour. The Credit Counselling Society (CSS) says the number of people seeking credit counselling rose 11% in November compared with the same month last year, a notable early increase ahead of the typical January surge (1).

“Even though inflation appears stable at 2.2 percent, many Canadians are still feeling the pinch in their daily lives,” said Peta Wales, President and CEO of CCS, in a statement. “Rising grocery costs and holiday spending are leaving households with less flexibility to manage debt, and we’re seeing people reach out earlier than ever for guidance.”

Why grocery inflation is hitting harder than the headline number

Food costs tend to weigh more heavily on household finances than many other inflation categories, because they are both necessary and recurring.

CCS notes that while overall inflation has cooled, grocery prices remain elevated, squeezing discretionary room for families already navigating higher housing, transportation and utility costs.

Among Canadians seeking help, the financial picture has deteriorated. CCS says the average unsecured debt load reached $35,000, up from $31,000 a year earlier, suggesting that higher costs are increasingly being bridged with credit rather than savings.

The timing is also significant. November and December are typically months when households stretch budgets for gifts, travel and seasonal expenses, often deferring the consequences until the new year. This year, CCS says that deferral window appears to be shrinking.

An early warning ahead of January bills

Historically, January is the busiest month for credit counsellors, as holiday spending collides with regular monthly obligations. Last year, CCS saw a 51% jump in demand for counselling from December to January.

With more Canadians already seeking help this fall, CCS warns the coming January could be more severe than usual. “Historically, counselling demand spikes in January after the holiday bills arrive,” said Isaiah Chan, Vice President of Programs and Services at CCS, in a statement.

“With more Canadians already seeking help this year, it’s clear that financial strain will reach unprecedented levels heading into the new year.”

For consumers, the message is that stress is emerging earlier in the cycle — a sign that household buffers are thinner than they were a year ago.

• Prioritizing essential bills first, such as rent, utilities and minimum debt payments
• Reining in last-minute holiday spending, including reconsidering traditions or making lower-cost substitutions
• Managing grocery costs deliberately, such as rotating a set of lower-cost meals to bring food spending under control
• Avoiding new high-interest debt, including relying on credit cards or buy now, pay later options for everyday expenses
• Seeking guidance early, before missed payments or late fees become an issue

“We’re already seeing Canadians struggling with everyday expenses on top of holiday bills,” said Mark Kalinowski, financial educator and CCS spokesperson, in a statement.

“By reviewing your budget, prioritizing essentials, being cautious with buy now, pay later options, and seeking guidance early, you can stay on top of payments and reduce stress when January bills arrive.”

What’s key for households heading into 2026

The rise in counselling demand suggests that even as inflation stabilizes, affordability pressures remain acute at the household level, particularly for essentials like food. For many Canadians, the challenge is no longer just rising prices, but a shrinking margin for error.

As 2026 approaches, CCS’s data points to a clear risk: households carrying higher unsecured debt and facing elevated grocery costs may find themselves exposed if income or employment conditions soften.

Acting early, CCS says, can be the difference between a manageable reset in January and a more prolonged financial setback.

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Newswire (1)

A new survey from KPMG Canada suggests uncertainty around cross-border trade is becoming a growing concern for consumers already facing high prices in the new-vehicle market.

The survey found that three-quarters of Canadians fear ongoing trade tensions will push vehicle prices sharply higher, potentially pricing many buyers out altogether. That concern is emerging even as 61% say they expect to be in the market for a new vehicle within the next five years, highlighting a widening gap between demand and what households believe they can realistically afford.

“With U.S. tariffs disrupting the industry, Canadians in the market for a new vehicle are looking to the brands they trust at prices they can afford,” said Dave Power, Partner and National Automotive Sector Leader at KPMG in Canada, in a statement (1). “Affordability remains critical, and consumers are increasingly paying attention to where vehicles are built.”

Price anxiety is reshaping how Canadians think about buying new

Affordability continues to dominate vehicle buying decisions in Canada. According to the survey, 80% of Canadians say price is the most important factor when purchasing a new vehicle, followed closely by brand trust and reputation (71%).

Nearly 4 in 10 Canadians plan to spend between $30,000 and $50,000 on their next vehicle, while 23% say they won’t spend more than $30,000 — a price point that has become increasingly difficult to find in today’s new-vehicle market.

And invariably, U.S. and Canadian tariffs are adding to that pressure. Nearly a quarter of respondents say trade-related costs have already priced them out of buying new, and another 38% say a further 10% to 15% price increase would push them out of the market entirely. For many households, even modest increases could be enough to change purchase plans.

Where vehicles are built is starting to matter to buyers

Beyond sticker price, Canadians are paying closer attention to where vehicles are made. Seventy-two percent say it’s important that their vehicle is assembled or built in Canada, reflecting growing concern about domestic jobs, supply chains and economic resilience.

"Car buyers are looking for vehicles that meet their lifestyle, are affordable and have a positive economic impact on the country,” said Power. “It's not surprising that Toyota and Honda, which each have a large manufacturing presence in Ontario, resonate most with Canadian consumers.”

Meanwhile, 72% of Canadians worry vehicle prices will rise if Canada loses protection under the Canada–U.S.–Mexico Agreement (CUSMA), which is set for review next year. Any disruption to long-standing supply chains, the survey suggests, could quickly translate into higher prices at dealerships.

For consumers, this adds another layer of uncertainty: Even if interest rates stabilize, vehicle prices may remain under pressure from trade policy decisions beyond buyers’ control.

One option is to skip dealership-financing — known for higher interest rates — and use a lower-interest loan. Spring Financial offers loans from $500 to $35,000. Apply and get approved for a loan in just 3 minutes.

EV interest is growing — but affordability is the deciding factor

Interest in electrified vehicles (EVs) continues to rise, but affordability remains the clear limiting factor. More than half of Canadians (55%) say they plan to purchase an environmentally friendly vehicle next, led by hybrids, followed by plug-in hybrids and fully electric vehicles.

That interest, however, is highly conditional. Respondents consistently pointed to the need for lower prices and more reliable charging infrastructure before EVs can become a realistic option for a broader share of buyers.

The survey also shows growing caution toward newer market entrants: Only 25% would consider buying an EV from a major technology company, down sharply from 2022.

Overall, the findings point to a market under strain not because Canadians lack interest in new vehicles, but because many fear the economics are no longer working in their favour.

While price sensitivity is rising and budgets are tighter, trade policy is also now firmly part of the affordability conversation. Until there is more clarity, many buyers appear to be bracing for higher costs — and questioning whether buying new will remain viable at all.

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Newswire (1)

Let’s take Jordan as an example. She’s 49 years old, and has received a $22,000 year-end bonus from sales commissions. However, she also carries significant consumer debt — $56,000 across her three credit cards.

So far, Jordan has been paying roughly $2,000 toward this debt, including interest. While it’s a meaningful payment, it hasn’t left her much breathing room for other expenses, or allowed her to pay her debt faster.

Now she’s facing a key question: How should she use her $22,000 bonus to improve her situation — and not only reduce her balance owing, but actually get ahead?

Jordan’s position is far from unusual. Credit card debt has been climbing across the country — TransUnion Canada reported the average consumer credit card balance climbed to $4,652 in 2024’s third quarter. This is a 6.97% increase from the year prior as more Canadians carry balances month to month instead of paying them in full (1).

For midlife households, that debt often stacks on top of mortgages, higher cost of living expenses and inflation. With less budget flexibility, high credit card interest rates can quickly turn everyday spending into a long-term burden — making it harder to get ahead without a concise plan.

Here are several ways anyone in a similar position to Jordan could use a one-time bonus to reduce debt, lower interest costs and improve long-term cash flow. The right choice depends on credit score, risk tolerance and how much structure you need to stay on track.

Leverage the bonus to consolidate — and tackle high-interest debt

One option is to use the bonus as leverage — either to qualify for a consolidation loan or to reduce how much you need to borrow.

When you consolidate debt into one loan, you’ll replace several balances with one monthly payment. This can make your finances easier to manage rather than juggling multiple creditors with different payment dates. However, debt consolidation is usually only an option if you meet minimum credit score requirements.

If you qualify, using a bonus or lump sum of cash as a down payment on the loan can reduce how much you need to borrow or immediately lower your interest costs.

For many people, this approach saves time, stress and paperwork. It’s often simpler to stay on track with a single payment rather than numerous bills. And if the new loan has a lower interest rate than your current debt, consolidation can also help you pay less interest overall — so you can get out of debt faster.

Apply the bonus to one of these common debt repayment methods

The snowball method focuses on paying off your smallest debt first, while still making minimum payments on all your other debts. Once the smallest balance is gone, you roll that payment forward into the next smallest debt, and so forth until all debt is paid.

This approach builds momentum, and each debt you pay off gives a sense of progress to keep you motivated. As more debt is eliminated, the amount you can put toward the remaining bills grows — just like a snowball increasing in size as it rolls downhill.

Alternatively, the avalanche method uses a different approach. Instead of paying off the smallest debt first, you focus on the debt with the highest interest rate, no matter how big or small the balance is. Once that amount is paid, you move to the next-highest rate.

The avalanche method usually saves more money over time, since you’re reducing the interest that builds up on your debt amount. Paying less interest can help you get out of debt faster, and may help boost your credit score as your balances decrease.

In Jordan’s case, the bonus could be used to wipe out one or more balances up front to accelerate either strategy, freeing up cash flow sooner.

Switch to a different credit card

If Jordan has a strong credit score, moving part of the $56,000 balance to a balance-transfer credit card could stretch the $22,000 bonus further for greater impact.

Balance-transfer credit cards often charge lower interest rates than regular credit cards — at least for a limited time.

But before you apply, watch out for balance-transfer fees, which are typically 3% to 5% for the amount you transfer. The fee should make sense compared to what you’re currently paying in interest. If the fee costs more than the interest you’d save, the switch may not be worth it.

Some credit card issuers offer a promotional 0% interest period on balance transfers. These deals are only temporary, so it’s important to choose a card with a promo period that’s long enough for you to make sufficient progress. The goal is to pay down as much of the balance owing as soon as possible before the regular interest rate kicks in — which can be as much as 19.99% or higher — to avoid adding new interest on old debt.

Tap into your home equity

If Jordan owns a home and has some equity under her belt, it may be an option to use it to pay down high-interest debt. For homeowners, a bonus like Jordan’s could also be paired with home equity — using the cash to reduce balances first, then refinancing the remainder at a lower rate.

Many banks offer home equity lines of credit (HELOCs), which often have lower interest rates than credit cards, making it easier to reduce your interest costs and focus more of your payments on the debt.

That said, this option comes with risks. Fees or setup costs may apply, and your home is used as security against the loan. It’s crucial to compare the total cost of borrowing through a HELOC with what you’d pay if you kept your debt on your credit cards.

When used with discipline, home equity can be a useful tool to lower interest and simplify payments. However, without a plan, it can turn short-term debt into a long-term problem — and you could risk losing your home if you fail to make payments — so it’s worth taking the time to carefully run the numbers first.

Speak to a professional advisor

When you’re deciding how to use a large bonus, a financial advisor or professional credit counselor can help you clearly see the trade-offs and suggest the smartest next steps. These can include advice on budgeting, housing costs and the best way to tackle your debt.

Before you meet with anyone, take the time to check the counsellor’s credentials and make sure they’re fully qualified to give advice. When you’re ready, gather documents showing your income, debt, assets and monthly expenses. This helps the advisor understand your financial situation for more useful guidance.

Many non-profit credit counseling agencies offer support at low cost, or even for free. They can sometimes help you set up a debt-management plan, where they work with your creditors to lower interest or stretch out payments terms.

With this type of plan, you make one monthly payment to the counselling organization, and they pass the money on to your creditors. An arrangement like this can simplify your finances and help you stay on track.

Professional help won’t erase your debt overnight, but it can give you a clear plan and steady support — making it easier to regain control of your finances and move forward with confidence.

Bottom line

A $22,000 bonus can be more than a short-term win: It can be a turning point. Used strategically, it can lower interest costs, simplify payment and help you regain control faster than monthly payments alone. The key is choosing the approach that best fits your credit profile, risk tolerance and money-management habits — and using the bonus as a driver, rather than a one-time fix.

—With files from Melanie Huddart

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We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Trans Union (1);

Many financial experts say even small steps — like monitoring your credit report, reviewing your budget or cutting unnecessary spending — can make a huge difference in your financial health.

Here are eight simple money moves you can make in one hour or less that could help improve your savings, stretch your dollar further and support your long-term financial goals — no stress required.

1. Put your money to work in a high-interest savings account (HISA)

If your extra cash is parked in a savings account earning almost no interest, it’s actually losing value over time as prices rise. Many traditional savings accounts at major banks pay very low rates — sometimes as little as 0.01% — which hardly offers any growth. For example, some basic savings accounts pay no significant interest on balances under $10,000.

Meanwhile, high-interest savings accounts pay higher rates, often as much as 1% to 3% or more, depending on the bank or online provider.

For example, if you have $10,000 sitting in a regular savings account at 0.01% interest, you might earn several dollars in interest over a year. But in an HISA that has a rate of around 2.5%, that same $10,000 could earn around $250. Some accounts give promotional offers that can take it even higher for a limited time, and you may earn a higher interest rate with a higher cash balance.

Why an HISA makes sense:

• Many online banks and credit unions offer competitive savings rates, often higher than regular savings accounts found at big banks
• Some institutions offer introductory rates — for example, 4% or higher for several months for new clients — which typically change to a lower rate after the promo ends
• A Tax-Free Savings Account (TFSA) offers high-interest savings without taxing you on interest you earn

HISAs doesn’t lock your money in like other investments. It’s a safe place to grow your cash, with the flexibility to use it as you need it.

Look for a high-interest savings account (HISA) that consistently offers high earning rates and strong promotions. For instance, the no-fee high-interest savings account from Simplii Financial let's you earn 4.5% interest for the first 5 months (on deposits up to $200K). But you need to open an account before January 31, 2026 (terms and conditions apply).

2. Double-check your credit report

It only takes a few moments to review your credit report, and it’s worth doing on the regular. Mistakes can show up on your file, and they can hurt your credit score without you realizing it.

The Financial Consumer Agency of Canada (FCAC) warns that credit reports can sometimes include errors, such as late payments that you made on time, or accounts you don’t recognize. The government recommends you check your report often, even if you haven’t been a victim of fraud.

Since your credit score determines the interest rates you qualify for when you borrow, errors matter. A lower credit score means higher mortgage rates, vehicle loan costs or being denied credit altogether. Over time, these higher rates can add up to tens of thousands of dollars in extra interest, especially on a large loan, like a mortgage.

There are two main credit bureaus in Canada: Equifax and TransUnion, and you’re entitled to your free credit report from both. Be sure to consult your report from both bureaus, as their information and score criteria isn’t identical. When you check, look for:

• Payments flagged as late, when you paid them on time
• New accounts of collections you don’t recognize
• Inaccurate account balances, or accounts that should be closed

If you find an error, you can dispute it for free. The credit bureaus must investigate and correct or remove any incorrect information. The 15 minutes it takes to review your report is essential to protecting your creditworthiness.

3. Cancel unused subscriptions

Free trials are easy to sign up for, and equally easy to forget about. Many of us continue to pay for subscriptions they no longer use, sometimes for months or even years. And the cost adds up fast.

An Angus Reid poll found just over one-third (32%) of Canadians had cancelled at least one streaming service in the previous six months as consumer budgets became tighter (1). It’s a good idea to check on what you’re paying for, and whether you still use it.

Subscriptions that can quickly fade into the background without regular use include:

• Apps and software
• Gaming or music services
• Online shopping memberships
• Fitness plans or gym memberships
• Meal kits and delivery programs

Set aside an hour to review your bank and credit card statements. Place your subscriptions under three categories to help scale down: keep, cancel and decide later. Another strategy to keep subscriptions from piling up unused, is to set a reminder to cancel any free trial before it renews.

Cutting out even a couple small monthly charges can free up money to put toward savings or debt repayment.

4. Top up your Registered Retirement Savings Plan (RRSP) contributions

You might already be saving for retirement through a Registered Retirement Savings Plan (RRSP) — but are you putting in as much as you comfortably can?

The maximum contribution to your RRSP is set by the Canada Revenue Agency (CRA). It’s based on 18% of your earned income, up to an annual maximum. Your personal limit shows up on your CRA Notice of Assessment, so it’s easy to check.

Every year, the CRA adds a new RRSP contribution room based on your income. If you don’t use it all, any unused portion rolls over into the following year, indefinitely.

For example if you just started earning $80,000 annually and decide to catch up on years where you haven’t made RRSP contributions, you can use that unused portion to bulk up your contribution for that year. Any extra room, you can use in subsequent years.

If you have a group RRSP through your employer, you can increase your contribution amount, and it only takes a few minutes. As little as a 1% increase can strengthen your retirement savings.

You don’t have to “catch up” all at once. Using even a bit of your unused RRSP room each year can make a meaningful difference over time.

To get started, open a no-fee RRSP high-interest savings account with EQ Bank. For a limited time, get up to $200 cash when you add new deposits to your EQ Bank RRSP account.

5. Set your bills on pre-authorized debit

This might not sound like a huge money-saving move, but automating bill payments can protect you from making mistakes that will end up costing you in the long run.

If you forget to pay a bill on time, you’ll likely get charged interest or a late-payment fee. For example, credit cards are especially expensive when you carry a balance. Many standard credit cards charge purchase interest rates around 19.99% or higher, and store or specialty cards charge even more.

Setting up a pre-authorized debit (PAD) helps protect you against this. Most Canadian banks and service providers offer this service, so your bills are paid on time every month. You can usually set up PAD for:

• Credit card minimum payments
• Phone, internet and utility payments
• Insurance premiums
• Subscription services

Setting payment reminders or PAD as a simple way to stay on top of bills and avoid any unnecessary fees.

The easiest way to automate your bill payments is to set up recurring payments through your bank. Avoid fees by using the Simplii Financial No Fee Chequing Account. Open an account before January 31, 2026 and earn $300 and a $50 Skip The Dishes gift card. (Terms and conditions apply).

6. Put the brakes on pricey auto insurance

Car insurance premiums are another expense that keeps rising. According to the Consumer Price Index (CPI) from Statistics Canada, passenger vehicle insurance premiums rose 7.3% year-over-year in October 2025 (2). Rate increases were especially noted in provinces like Alberta and Ontario.

In Ontario, the Financial Services Regulatory Authority (FSRA) reports the average annual insurance premium in Ontario reached approximately $2,120 by mid-2025 — and urban centres such as the Greater Toronto Area (GTA) could saw even higher rates (3).

An effective way of lowering what you pay is to shop around and compare insurers. Insurance companies use different formulas to set their premiums, so the same driver could pay different prices across various providers. Comparing quotes lets you find the best coverage at a better price.

Some major insurers and brokers offer online tools for quick quotes. Use your current policy information to compare things like:

• Coverage limits
• Deductibles
• Optional add-ons

Switching your policy when you find a better deal can find you savings without sacrificing the protection you need.

7. Use a 0% balance-transfer credit card (carefully)

If you’re trying to pay down credit card debt and most of your payment is going toward interest, a 0% balance-transfer credit card could help — if you use it the right way.

Some credit cards offer a 0% promotional interest rate on balance transfers for a limited time. These offers let you move existing debt from high-interest cards to a new card where you pay no interest for a set period, often several months.

It usually takes only a few minutes to apply, but approval isn’t guaranteed: If your credit score is low, you’ll be rejected. Many balance-transfer offers also charge a one-time transfer fee, often a small percentage of the amount you move over.

There’s also an important catch: the 0% rate is temporary. After the promotional period ends, any remaining balance will start accruing interest at the card regular rate, which can be high. That’s why this strategy is only effective if you have a clear plan.

The goal is to pay down all, or as much of the balance as you can before the offer expires so you avoid adding new debt.

Some issuers clearly explain how promotional balance transfers work, including the time limit and associated fees. As always, read the fine print of any promotional offer carefully so you fully understand the terms and conditions.

When used carefully, a balance-transfer card can be a useful tool to pay off debt faster. But without mindfulness and dedication, it can leave you with the same debt — plus interest — once the promo period ends.

Transfer the balance from a high-interest credit card to the Tangerine Money-Back Credit Card and pay only 1.95% on the balance for the first 6 months (and 22.95% on any unpaid balances after 6 months). You'll pay a Balance Transfer Fee of 1% on the amount transferred, but earn up to 10% cash back (up to $100) on the first two months of spending.

8. Search for lost money or unclaimed money

You might be owed money you didn’t even know about. People often lose track of funds when they move, change jobs or forget about old accounts. This can include things like uncashed cheques, forgotten bank balances or old pensions.

Two government-run programs make it easy to search:

1. The Bank of Canada (BoC). Check for unclaimed balances from accounts — like old savings accounts or term deposits — that financial institutions have transferred to the BoC after they’ve become dormant due to inactivity. The BoC’s Unclaimed Properties Office holds billions in dormant balances waiting to be claimed.

2. The Canada Revenue Agency (CRA). The CRA keeps a list of uncashed cheques issued by the federal government — including tax refunds, GST/HST credits, Canada Child Benefit (CCB) payments and other benefits. Many Canadians don’t even realize they have money out there waiting for them.

Track your financial goals the smart way. Try Monarch Money to plan, budget, and grow your wealth without overspending. Try for free using code WISE50 to get 50% off your first year.

Bottom line

Working on your finances can seem daunting and be a pain point for so many people. But it’s not necessary to spend hours on budgeting or poring over complex spreadsheets to improve your finances and keep them healthy. The small moves outlined here can be done in an hour or less.

On their own, they seem minor, but combining them can have significant impact. When you make them a habit, the benefits add up. They can protect your credit, lower your costs and help your money grow. The key is to focus on the steps that matter most for your specific circumstances, goals and needs.

— With files from Melanie Huddart

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Angus Reid (1); Statistics Canada (2); FSRA (3)

The contradiction has less to do with inflation and more to do with behavior. Larger, newer and premium vehicles — particularly SUVs, trucks and electrified models — made up a growing share of sales. This pulled the average higher even while like-for-like prices softened across much of the market.

And that dynamic has made it harder for shoppers to separate real value from year-end pricing theatre.

“A real deal is one that’s priced below the typical market range for the same year, make, model, mileage and condition,” said Dan Park, CEO of Clutch, in an interview with Money.ca. “At year-end, many price cuts simply bring an inflated starting price closer to market.”

Many models got cheaper in 2025

Clutch’s Rearview Recap 2025 shows that the upward pressure on prices came less from across-the-board increases and more from what entered and moved through the used-car market.

SUVs continued to take share from traditional cars, with compact and subcompact crossovers increasingly replacing sedans as the entry-level choice for many buyers.

Trucks, meanwhile, remained a powerful force on pricing: they account for a smaller share of sales than SUVs, but their much higher transaction prices mean even modest shifts can move the national average. Add in a rising share of electrified vehicles and higher-trim inventory, and the people’s choice becomes clear.

For consumers, this distinction matters. A rising average does not mean every used car is getting more expensive. But it does mean that more affordable options are becoming harder to find, especially if buyers fixate on newer model years or popular body styles.

Why year-end “deals” can be misleading

Park says year-end promotions often rely on presentation rather than true value. The most common tactic is anchoring: listing a vehicle at an ambitious price, then advertising a drop that merely brings it back in line with the market.

Another is emphasizing trims, features, or headline averages without adjusting for what buyers actually pay for those extras in the used market.

“If the national average price is up, a seller can frame almost anything as ‘below average,’ even if that specific model has been getting cheaper all year,” Park told Money.ca.

His advice is to ignore the story around the discount and focus on like-for-like comparisons.

If a vehicle is still priced above comparable listings with similar mileage and condition, the deal is likely cosmetic. Buyers who benchmark against real market ranges, rather than advertised markdowns, are far more likely to find genuine value.

Where value still exists for cost-conscious shoppers

Despite the shift toward larger and pricier vehicles, affordability has not vanished — but it has become more concentrated.

Value remains strongest in high-volume, practical models where supply is relatively healthy and ownership costs are predictable. Compact sedans continue to anchor the sub-$15,000 segment, while familiar, value-oriented SUVs still dominate the under-$20,000 range.

On the electrified side, the picture is changing quickly. Used EV prices declined year-over-year as supply improved, making mainstream models more accessible than in prior years — particularly in provinces with strong charging infrastructure.

“Value hasn’t disappeared,” Park said. “It’s shifted toward models with depth of supply and more predictable ownership costs.”

The tradeoff, however, is age. Lower-priced vehicles naturally skew older, which can introduce higher maintenance risk. That has pushed many buyers to look beyond sticker price and think more carefully about total cost of ownership.

For those looking to buy a vehicle using financing, consider a lower-interest loan. Spring Financial offers lower-interest loans from $500 to $35,000. Apply and get approved for a loan in just 3 minutes.

What affordability really means in 2026

As higher-trim and electrified vehicles make up more of the used market, Park says Canadians need to broaden how they define affordability.

“Sticker price is only part of the equation,” he said. Insurance, fuel or charging costs, maintenance and resale value all shape what a car actually costs over time. A cheaper vehicle with higher insurance or repair risk can quickly erase any upfront savings, while a more expensive model with lower running costs may pencil out better in the long run.

Clutch’s data also shows that where you shop matters, too.

Provinces with older, value-heavy inventory continue to offer more options below key affordability thresholds, while markets with newer or more electrified fleets tend to have fewer low-price choices. There could be meaningful savings on the road for buyers willing to shop around, or even outside their home province.

What to watch if you’re buying in early 2026

Looking ahead, Park expects prices to remain sensitive to inventory mix rather than sudden shifts in demand.

“Prices may drift upward again, not because cars are suddenly getting more expensive, but because newer, larger and electrified vehicles and hybrids are entering the used market,” Park said.

“EVs and hybrids are likely to keep gaining share, while affordability at the very low end — especially under $20,000 — will remain tight,” noted Park.

That puts a premium on both timing and flexibility. Those who are open to buying older model years, different body styles, or even traveling in order to buy out of province are better positioned than those waiting for prices to fall across the board.

“In 2026, the advantage will go to informed buyers who understand how the market is shifting,” Park said, “not those waiting for a single headline number to turn in their favour.”

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Clutch (1)

Credit counsellors say the trend isn’t driven by reckless spending, but by the increasing difficulty of covering everyday expenses — and by how newer forms of credit spread those costs across multiple payment plans.

Mark Kalinowski, a credit counsellor in Calgary, says more than a quarter of the clients he worked with this year were under the age of 35, the highest share he has seen in his career (1). Many arrive overwhelmed and frustrated, unsure why they can’t seem to get ahead despite working and trying to manage their finances.

“They’ll come in and sometimes they’ll cry, sometimes they’ll be angry,” Kalinowski told CBC News. “They’re very, very frustrated because they don’t know why their life’s on hold.”

Debt stress isn’t about splurging — it’s about staying afloat

The challenge facing many younger Canadians isn’t just how much debt they carry, but the type of debt they rely on to make ends meet.

Jodi Letkiewicz, an assistant professor currently on leave from York University, says much of today’s borrowing among people in their 20s and 30s reflects basic financial survival rather than discretionary spending.

“This isn’t necessarily, ‘Oh, they’re just going out and partying and spending and shopping,’” Letkiewicz told CBC News. “This is just like basic consumption smoothing. It’s trying to pay bills.”

That distinction matters. When consumers fall behind on short-term obligations tied to everyday expenses, it can signal deeper affordability challenges — particularly in a high-cost environment where wages haven’t kept pace with housing, food, and transportation costs.

One option to help manage debt is to consolidate high-interest loans into one lower-interest loan payment. Spring Financial offers lower-interest loans from $500 to $35,000. Apply and get approved for a loan in just 3 minutes. Use the loan to pay off higher-interest debt and consolidate repayment into one, easy-to-manage payment.

Why buy now, pay later can be harder to manage

One factor adding complexity is the rise of buy now, pay later services, which allow shoppers to split purchases into smaller payments spread across weeks or months.

Letkiewicz says the issue isn’t always the price of individual purchases, but how fragmented those obligations become over time.

“It’s easier than going and getting a credit card, it’s easier than getting a payday loan,” she told CBC News. “It’s not all in one place.”

Instead of seeing one clear balance, borrowers may be juggling several small payments at once — each manageable on its own, but collectively difficult to track. That fragmentation can make it harder to recognize when spending has crossed into financial strain.

Early credit mistakes can linger

Kalinowski warns that missed payments early in adulthood can have long-lasting consequences, since credit issues can remain on a credit report for years.

“If they impact their credit in a substantial way when they’re young, it tends to stick with them for six or seven years,” he told CBC News.

At the same time, he sees a shift in how younger clients approach financial trouble. Compared with older generations, many are more willing to acknowledge a problem and seek help sooner.

“It’s more socially acceptable in their eyes to say, ‘Look, I’ve got a money problem,’” Kalinowski told CBC News. “The sooner you try and fix an issue, the sooner you come up with your solution and you move on with life.”

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CBC News (1)

Let’s suppose your father secretly opened a credit card in your name and wracked up more than $5,000 in charges over the last year. After confronting your dad about the issue, he blew it off as no big deal. But aside from feeling betrayed by your father, his actions have also left you with significant debt that you’re responsible to repay — plus, damage to your credit report.

In need of assistance, you lean on a supportive uncle for help with paying off the charges. And even though you’re the one who was victimized, your father ends up screaming at you when he learns that you went to his brother for help.

You may love your dad, but there’s no denying that he acted fraudulently using your identity, while failing to understand the severity of his actions. You aren’t in the wrong here — he is. And how you decide to respond to the crime he’s committed is entirely up to you.

Options for victims of familial fraud

While having a family member steal your identity is upsetting, the hard truth is that it’s a relatively common occurrence.

Fraud and identity theft are growing problems. In 2024, the Canadian Anti-Fraud Centre (CAFC) received more than 108,000 fraud reports, including identity-related scams, with Canadians losing over $600 million (1). Most of these crimes are never reported to police, especially when family is involved, so the real numbers are likely much higher.

Police-reported data also shows that identity fraud in Canada increased 2% to about 50 incidents for every 100,000 people in 2024 (2). “Identity fraud” is defined as someone using your personal information — your name, date of birth or Social Insurance Number (SIN) — to open accounts or make unauthorized purchases in your name.

Family members often have access to a child’s or youth’s personal information, which can make kids easy targets for identity theft. And when theft is committed by someone close to you, it puts you in a difficult position. You may have to decide between protecting your credit and personal finances, or protecting the parent or relative who committed the crime.

Victims of identity theft are generally not legally responsible for repaying the charges fraudsters have made in their name. Also, any dings on your credit score can be removed from your file once the fraud is proven. But to get to that point, victims must report the crime to police and credit bureaus, such as Equifax and TransUnion Canada. This can be a difficult decision to follow through on if the person responsible is your own family.

In your situation with your father, you decide not to report him to the police. Instead, your uncle helps you repay the fraudulent transactions. While that may avoid a family crisis, it leaves you with damage to your credit profile.

Because you were unaware your dad was wracking up debt in your name for months, missed or late payments may already be on your report. In Canada, negative flags like late payments can stay on your credit report for up to six years, depending on the province or territory you reside in and the credit bureau involved. These flags can make it harder for you to qualify for loans, credit products or even lease agreements.

You can contact the lender to explain the situation and ask it to remove negative marks. But creditors and credit bureaus aren’t obligated to correct your record without a police report. Many lenders will only investigate identity theft when official documentation shows a crime took place.

That said, it would be reasonable to explain to your father that his actions were more than betrayal — they may also have caused significant long-term financial harm. A damaged credit report can raise borrowing costs for years. And beyond the emotional fallout, he now owes you and your uncle the $5,000 to cover the charges, plus any accrued interest.

Protecting yourself from identity theft

Once you’ve become a victim of identity theft, it’s vital to take steps to ensure it never happens again.

Start by gathering any personal documents that your father may have used, such as your birth certificate and SIN card. These documents should be kept secure and in your possession, especially now that your father has proven he can’t be trusted.

Next, check your credit reports to ensure there are no other accounts with unauthorized transactions in your name that you didn’t approve. You can review your credit report any time through Equifax and TransUnion Canada. Even if you haven’t before been a victim of fraud, regularly monitoring your report is a smart habit. It helps spot issues and quickly act before more damage is done.

To add another layer of protection, you can place a credit freeze on your file. This blocks lenders from accessing your report, and makes it impossible for anyone — including you — to open a new credit account without permission. Credit freezes are free and available through TransUnion Canada.

Equifax, on the other hand, offers a comparable tool called “credit lock,” but it’s only available to Quebec residents. For Canadians outside Quebec, a universal step both bureaus support is placing a fraud alert on your file.

The Financial Consumer Agency of Canada (FCAC) specifically recommends contacting both bureaus to request a fraud alert. An initial alert can last from one to seven years. It’s free and can be removed any time.

Bottom line

Taking these steps to protect your credit profile can help with keeping your identity safe in the future. But in your situation, it's also worth having a conversation with your dad about the impact of his actions. If he’s simply unwilling to acknowledge the severity of his choices, consider letting him know that any repeat behaviour will lead to a call to the police.

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Government of Canada (1); Statistics Canada (2)

For most pension executives, the message was clear: Stay far away from crypto. Yet three years later, the tone is shifting. The world’s largest institutional investors — from BlackRock to Singapore’s GIC — are increasing exposure to tokenized assets and digital infrastructure. And quietly, Canada’s pension giants are watching again (3).

After years of skepticism, the conversation inside boardrooms has evolved from “should we?” to “how can we — safely?”

Global Momentum

Institutional adoption of digital assets is accelerating. According to The Crypto Wealth Report 2025, global crypto wealth has surged to US$3.3 trillion, with 590 million people now holding some form of cryptocurrency. What began as a fringe investment class is now reshaping global finance.

Head of Research at Bitcoin Suisse, Dominic Weibel, and contributor to the report, wrote that “digital assets are entering the institutional era.” That means not just trading tokens, but building infrastructure — custody, compliance, and tokenized capital markets — that resemble traditional finance (4).

The Crypto Banking Report 2025 underscores this trend, describing how blockchain rails now support tokenized real estate, private credit, and bond issuances for institutional investors (5).

The report cites the Bullish exchange’s 2025 IPO, which settled US$1.15 billion in stablecoins — the first major public offering to use blockchain settlement at scale. In other words, the world’s financial plumbing is being rebuilt — and traditional asset managers are already plugged in.

Canadian caution and curiosity

For now, Canada’s pension funds are taking a slower path — one focused on infrastructure rather than speculation.

For instance, the CDPQ, which lost roughly CAD $200 million in FTX, has publicly committed to learning from the collapse by investing in fintechs that build custody and compliance tools, not unregulated exchanges. The shift reflects a broader institutional view that the real opportunity lies in blockchain infrastructure, not the volatile tokens themselves.

Mike Foy, CFO of AMINA Bank, captures this sentiment in Crypto Banking 2025 (6): “It’s not about chasing a trend. It’s about ensuring that wealth strategies evolve with the infrastructure powering tomorrow’s financial systems.”

Across Canada, pension executives are commissioning internal studies on blockchain’s potential to improve efficiency in settlement, verification, and recordkeeping. Several are also monitoring pilot projects by European and Middle Eastern sovereign funds that use tokenized assets to reduce transaction costs (7). For Canada’s conservative pension culture — built on diversification, governance, and risk control — this represents a quiet but meaningful shift: From outright avoidance to cautious exploration.

Risk vs. return

Investors shouldn't be fooled: the case for reconsidering crypto isn’t driven by hype; it’s driven by math.

In the decade since Bitcoin’s inception, correlations between digital assets and traditional equities have fluctuated dramatically. During the 2022/2023 downturn, crypto moved almost in lockstep with tech stocks. But in the past year, as institutional interest has grown and decentralized finance (DeFi) has stabilized, correlations have weakened, opening the door to potential diversification benefits.

In the Henley & Partner’s report, author Mike Foy describes a US$2-trillion “bot economy” — a global system of algorithmic agents managing digital assets autonomously. That level of liquidity and automation, paradoxically, may be making digital markets more efficient — and less correlated to single sectors (8).

At the same time, the Bank of Canada continues to monitor crypto’s impact on financial stability. While still cautious, the Bank’s researchers acknowledge that tokenization could “improve liquidity, transparency, and efficiency in private markets” — benefits that align directly with pension fund mandates.

Policy and regulation: A green light on the horizon

With the rise in importance of crypto comes a necessity to consider the asset, yet, no pension chief investment officer (CIO) is going to risk billions without a regulatory safety net. That safety net is slowly taking shape.

The Office of the Superintendent of Financial Institutions (OSFI) has begun outlining guidance for federally regulated institutions on crypto exposure and custody requirements (9). While these early frameworks are conservative, they provide clarity where none existed just two years ago.

The Digital Offshore Report 2025 (10) notes that jurisdictions such as Switzerland, the UAE, and the EU have raced ahead with “crypto-friendly legislation that prizes clarity over secrecy.” Canada’s regulators, by contrast, have chosen prudence — but that prudence could pay off if it results in more credible, enforceable rules.

Dominic Volek, group head of private clients at Henley & Partners, describes this global competition as “a shift from opacity to transparency — from secrecy jurisdictions to compliant digital hubs (11).”

That shift aligns neatly with the risk culture of Canada’s largest pensions, which collectively manage over C$2.4 trillion. When transparency improves and institutional-grade custody solutions emerge, these funds may once again step toward digital assets — this time on their own terms.

Tokenization: The Trojan Horse for adoption

If direct crypto exposure remains off the table for most pension funds, tokenization could become their on-ramp. Tokenization — the conversion of real-world assets like bonds or real estate into blockchain-based tokens — is attracting mainstream attention because it combines crypto’s efficiency with traditional finance’s stability.

In Crypto Banking 2025, Henley’s analysts describe how tokenized private credit and real estate are becoming “the new rails of wealth,” offering faster settlement, fractional ownership, and real-time tracking (12).

For pensions facing low yields and liquidity bottlenecks in private markets, tokenization could unlock faster valuations and lower operational costs — without the price volatility of crypto trading.

The long game

Canada’s pension plans have long been the envy of the world for their discipline and prudence. They invest for generations, not years. That long-term view is exactly why these institutions can’t ignore the blockchain economy forever.

Dr. Niklas Schmidt’s analysis in The AI Crypto Boom (13) captures the magnitude of what’s coming: “We are witnessing a new economic paradigm where digital actors can own assets, make decisions, and create value independently.”

If digital actors can hold and transfer value independently, then asset managers — including pension funds — must adapt to a world where the next trillion-dollar market might exist entirely on-chain.

Bottom line

Canada’s pension giants won’t lead the charge into crypto — and they shouldn’t. Their caution is what protects retirees’ wealth.

But as regulatory clarity improves and tokenization matures, the very traits that make them conservative may also make them credible first movers.

When CPP Investments or OTPP or any other pension investor eventually decide to re-enter the digital asset space — not through exchanges, but through secure, transparent blockchain infrastructure — it won’t just mark their return. It will legitimize crypto as an institutional asset class.

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We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Investment Executive (1); Reuters (2); Henley & Partners: Crypto Wealth Report 2025 (3, 4); Henley & Partners: Crypto Banking 2025 (5, 6, 7, 8, 12); OSFI (9); Henley & Partners: Digital Offshore (10, 11); Henley & Partners: AI Crypto Boom (13)

“For thousands of years, storing wealth meant trusting a physical place with a physical address,” writes Group Head of Private Clients at Henley & Partners, Dominic Volek (1). “Then, in 2009, someone using the pseudonym Satoshi Nakamoto deployed a few thousand lines of code that would render geography optional.”

That shift — from bank vaults to blockchain keys — is quietly rewriting how wealth moves across borders and how governments attempt to tax it. For the CRA, this means the biggest challenge isn’t necessarily tax evasion anymore, it's wealth invisibility.

The rise of borderless wealth

Even as banking went digital, the system remained geographically anchored: Every account had an address, and every client had a tax ID. But crypto erased that requirement.

“Using nothing more than 12 memorized words, a person can hold a billion dollars in Bitcoin, accessible from Zurich or Zhengzhou with equal ease,” notes Volek (2)

This new class of digital wealth is massive and growing. According to Henley & Partners’ Crypto Wealth Report 2025, about 241,700 people now hold more than US$1 million in crypto assets — up 40% from the year before (3).

Globally, US$14.4 trillion in wealth crossed national borders in 2024. But unlike traditional transfers, an increasing portion of this capital no longer passes through identifiable financial institutions. As Volek puts it, “the entire architecture of modern finance assumes that money has a home address — but cryptocurrency doesn’t.”

That makes enforcement of residence-based taxation — the backbone of Canada’s system — far more complex.

A Bitcoin wallet, after all, “exists simultaneously everywhere and nowhere — a Schrödinger’s asset that only materializes into a specific jurisdiction when its owner chooses to convert it to fiat currency or declare it to authorities." explains Volek (4).

Taxing the intangible

The CRA treats cryptocurrency as a commodity under the Income Tax Act, taxing profits as either capital gains or business income once the asset is sold or traded. But in decentralized finance (DeFi), many transactions never reach that point. Canadians can lend, borrow, stake, and earn yield across dozens of protocols — often anonymously and without intermediaries.

“The principle of tax residence assumes that wealth can be assigned a location based on where its owner resides, works, or incorporates,” explains Volek (5). “But what happens when wealth exists in a cryptographic dimension that transcends these categories entirely?”

That question is now shaping and defining any future tax policy worldwide — and across the globe regulators are trying to catch up. The OECD’s Crypto-Asset Reporting Framework (CARF), set to take effect in 2027, will compel governments to collect and exchange data on digital asset holdings much like they do for offshore bank accounts (6).

“The OECD’s Crypto-Asset Reporting Framework, fully launching in 2027, brings amended reporting requirements covering crypto-assets,” the OECD report notes (7). “But even this framework needs exchanges and service providers to cooperate.”

That cooperation is precisely what decentralized finance undermines. Unlike traditional banks, DeFi protocols often have no headquarters, CEO, or compliance department. For the CRA, identifying who owns what — or even where income originates — may soon become impossible.

Regulatory gaps

Regulators around the world face a delicate balance. Too light a touch invites abuse. Too heavy a hand, and capital simply vanishes — digitally.

“The more thoughtful regulators are beginning to recognize that heavy-handed enforcement might well accelerate the very disintermediation they seek to prevent,” Volek warns (8). “If declaring cryptocurrency becomes too onerous or punitive, users have unprecedented ability to simply not declare.”

That risk — crypto flight — has already emerged in Canada. Some investors quietly shift assets to cold wallets, privacy-enhanced blockchains, or offshore exchanges. Others relocate entirely, moving to jurisdictions such as Portugal, Dubai, or Malta, which combine light-touch regulation with favourable tax regimes.

In fact, “sovereign arbitrage" — investors strategically choosing jurisdictions based on their treatment of digital assets — is already an issue in many tax jurisdictions around the globe. For instance, Portugal exempts long-term crypto holdings from tax after 365 days, while Dubai’s Virtual Assets Regulatory Authority (VARA) offers comprehensive oversight with 0% tax on capital gains and salary (9).

By contrast, Canada’s tax treatment remains conservative and complex — leaving investors with uncertainty about staking income, NFT sales, and wallet-to-wallet transfers.

Peer-to-peer networks pose a further challenge. As Volek notes (10), “Implementing such frameworks requires cooperation from exchanges and service providers — infrastructure that decentralized protocols and peer-to-peer networks operate without, creating unprecedented regulatory complexity.”

Solutions and innovation

Canada’s options are limited but urgent.

One proposal gaining quiet attention among policymakers is a digital asset registry — a blockchain-verified ledger for large transactions, similar to the OECD’s Common Reporting Standard (CRS) but built for decentralized networks (11). Others suggest a smart-contract-based compliance layer, where reporting is embedded directly into code. While technically feasible, such systems would require international coordination — and, critically, public trust.

Thankfully, Canada and the CRA aren't creating solutions in a vaccuum. Across the globe, a number of useful taxation models have emerged.

Estonia “pioneered crypto licensing in Europe,” Volek notes, giving non-residents the ability to register and manage companies online while maintaining transparency through digital IDs and open databases (12).

Meanwhile, Dubai’s framework allows digital-asset companies to operate under clear rules while offering tax incentives to attract global talent and investment. Canada could adapt either model, embedding transparency into law while maintaining competitiveness.

The challenge is not technological — it’s political. Digital wealth doesn’t fit neatly within existing definitions of residency, income, or even “currency.” The Canada Income Tax Act was designed for a world of borders — crypto was designed to erase them.

What’s at stake

At first glance, the issue seems remote — a concern for the ultra-wealthy with offshore wallets. But as Volek's data show, crypto is democratizing what used to be the privilege of multinationals and millionaires.

“The transformation of cryptocurrency democratizes capabilities once reserved for the ultra-wealthy,” Volek writes. It “expands financial inclusion on one hand, while straining long-standing mechanisms of taxation and regulation on the other.”

That means the same tools that once required an army of lawyers and shell companies — shifting profits across borders, hedging against inflation, and diversifying citizenship — are now accessible to anyone with an internet connection.

For Canada, this cuts both ways. It could empower entrepreneurs, digital nomads, and small investors. But it also threatens to hollow out the tax base if high-net-worth individuals move assets offshore digitally — without ever leaving Toronto or Vancouver.

Policy crossroads

The OECD framework will give Canada access to more international data on crypto transactions, but it won’t close every gap. Enforcement will depend on cooperation between exchanges, custodians, and national regulators.

And that’s assuming those entities exist — in many cases, DeFi protocols run autonomously, without a legal entity at all.

The CRA has already begun auditing crypto transactions, focusing on centralized exchanges like Coinbase and Kraken, but peer-to-peer transfers remain largely opaque (13).

That opacity could expand as Canadians adopt decentralized wallets or privacy-focused coins, especially if regulatory burdens increase. Policy experts suggest the solution isn’t tighter control but smarter integration — designing tax policy that recognizes digital assets as part of a global financial ecosystem rather than an offshore threat.

“Governments are scrambling to adapt their frameworks to this new reality,” Volek writes, “producing a patchwork of approaches that range from embrace to prohibition. The stakes could not be higher: 590 million people globally now hold some form of cryptocurrency.”

Conclusion: Adapting to a borderless world

Canada’s fiscal health depends on adapting — not resisting — a world where money has no borders. That's because the “digital offshore” revolution is no longer theoretical, it’s coded into the global economy. If Canada wants to preserve both competitiveness and compliance, it must modernize its tax and regulatory systems to reflect how wealth now moves — seamlessly, instantly, and without geography.

That may mean re-imagining the very notion of tax residence, building international partnerships that share blockchain data, or even developing new forms of digital citizenship.

What’s clear is that the vault door has already opened — and what’s inside isn’t gold. It’s code.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Henley & Partners: Digital Offshore (1, 2, 3, 4, 5, 8, 9, 10, 12); OECD (6, 7, 11); Canada Revenue Agency (13)

Just ask Imani and Michael — a U.S.-based couple who earn more than US$265K a year. After 24 years together, the couple spoke to financial coach Ramit Sethi on his podcast, I Will Teach You To Be Rich (1).

According to Imani and Michael, the couple of 24 years earns US$268,000 a year, an income that should offer comfort and stability. Instead, the couple is buried under a mountain of debt: a mortgage, a HELOC, a retirement loan and nearly US$126,000 in high-interest consumer balances. The result of all this debt is financial pressure that doesn't just strain Imani and Michale's budget, but their relationship itself.

Ramit Sethi digs into the couple's financial woes

Imani and Michael’s combined debt obligations total more than US$600,000. However, when the couple recently spoke with Sethi what they outlined was a financial picture that’s a little messier than what the numbers suggest.

Imani, 52, an attorney who tracks every dollar, says she feels “embarrassed” and overwhelmed by how far behind the couple is in their financial goals. Michael, 65, freely spends on tech and gadgets and admits he’s never had a clear financial plan in his life.

“He has run up credit cards buying electronics,” Imani shared in the couple’s application to be on Sethi’s podcast. “He has little to no retirement saved, and we make way too much to be so stressed about money. I don’t know how much longer I can keep doing this.”

Despite working with coaches, testing out budgeting systems and even combining bank accounts, nothing has changed.

According to Sethi, this couple has fallen into a toxic dynamic that resembles a “parent-child” relationship rather than a marital one. Imani constantly manages and monitors, while Michael avoids and overspends. With retirement approaching and resentment rising, the question becomes whether a relationship can survive when two people are fundamentally misaligned about money.

“This dynamic creates ripple effects,” said Sethi. “The dynamic almost never stays just in the financial realm. It seeps into other parts of the relationship. It erodes trust and intimacy.”

Why money issues can break a relationship

Money problems between couples aren’t always just about dollars. They can be about how you were raised, your habits and fears, and what feels “safe” to you. When these values and experiences are misaligned between a couple, conflict is likely to arise.

And these conflicts are common. In a 2025 survey by Money Mentors (2), 47% of Canadians said they’ve had money disagreements with their partner. Further, 1 in 10 survey participants said money stress made them think about breaking up, separating or divorcing.

Another poll from RBC found money is a major pressure point for couples with 77% said finances are a source of stress, and 62% said discussing money causes arguments (3).

For Imani and Michael, their different upbringings shaped their financial habits and outlooks. Michael grew up with a grandmother who provided everything and never discussed money. He spent a 20-year military career where everything was managed for him — housing, pay structure, healthcare and various support services. When he left that environment he suddenly had no structure, financial or otherwise, to replace the strict regimen he was used to.

Imani was raised by a mother who budgeted carefully and avoided debt, and Imani maintained those habits until marriage, children and years of increasing financial pressure chipped away at her consistency.

The result? Two people with opposite wiring who never created a shared financial plan and now feel stuck, frustrated and unable to agree on what their future should look like.

How couples can get aligned on finances

Financial incompatibility doesn’t automatically mean a relationship will collapse but ignoring the situation can set it up for failure. Here are several practical steps couples can take when their money senses differ.

Start with an honest, judgment-free conversation

Many couples never fully discuss how they were raised around money, how they put money matters into practice or what they envision for their financial future. Talking and sharing that context can help a couple understand the roots of their challenges, and shift conversations away from blame toward resolution.

Create a shared, transparent spending plan, rather than a surveillance system

A budget shouldn’t turn one partner into an investigator. Instead, couples should agree on principles around:

• Debt repayment strategies
• Individual “no questions asked” personal spending money
• Long-term savings goals
• Shared monthly expenses

Clear rules can reduce the need for oversight and limit resentment.

Set regular money check-ins

One 20-minute conversation every two weeks can prevent years of resentment. Review upcoming bills, planned purchases, disposable income and whether you’re sticking to agreed-upon goals, then adjust as needed. Schedule the meetings at a time when you’re both free from other pressures and distractions, such as children or work.

Protect your finances if one partner is reckless

If one partner overspends or wracks up secret debt, consider taking steps to safeguard your personal finances, such as:

• Keeping separate bank accounts
• Monitoring credit reports
• Requiring mutual agreement before taking on new debt
• Temporarily freezing joint credit lines

These steps can also help reduce the “parent-child” dynamic that Sethi warns is so dangerous in a romantic partnership.

If debt consolidation ends then consider a lower-interest loan option from Spring Financial Apply and get approved for a loan up to $35,000 in just 3 minutes. Use this to pay off high-interest credit cards and to get out of debt faster.

Ask the hard questions before marriage

It’s easier to build compatibility before the stakes get high. Instead of waiting until after you’re married, engage in money conversations well before you tie the knot.

Discuss topics that cover:

• Career goals
• Expectations for lifestyle and retirement
• How you feel about debt
• Saving and investment habits
• Risk tolerance

If two people fundamentally disagree on money and neither is willing to adjust, it may signal a deeper misalignment on values. Knowing this before marriage can help you make smarter decisions about your relationship.

Know when it’s time to move on

If one partner refuses to stick to a budget, hides purchases, ignores debt or leaves all financial responsibilities to the other person — while conversations and therapy seem to go nowhere — the problem may not be about money: It may be a relationship issue. At some point, one partner may have to choose between protecting their financial future and staying in a relationship dynamic that never improves.

Imani and Michael are far from alone. Plenty of high earners still feel broke, stressed or stuck because they never learned to combine their financial lives with that of their partners in a healthy way.

Bottom line

Whether you’re dating, newly married or decades in, financial compatibility requires honesty, structure and effort from both parties. With those pieces in place, couples can stop fighting and start building the financial future they dream of together.

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We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Ramit Sethi (1); Money Mentors (2); RBC (3)

That image still holds true. In the Henley & Partners Global Investment Risk and Resilience Index 2025 report, Canada ranks at number 11 out of 150 countries, placing it among the world’s safest investment destinations (1). But “safe” doesn’t mean “strong.” Beneath the calm surface, structural pressures — fiscal strain, stagnant productivity, global dependence — threaten to chip away at that resilience.

And the consequences aren’t confined to policy circles or stock exchanges. They ripple into the paycheques, grocery bills and mortgage statements of everyday Canadians.

A new era of risk

“The global political, economic, and social environment that we have relied upon for decades is shifting — rapidly and profoundly,” writes David K. Young in Macro-Economic Development and the Global Resilience Dividend (2).

Technology, geopolitics and climate change now move faster than governments can adapt. What once were “black-swan” shocks — rare, unpredictable crises — have become grey swans: Foreseeable but unmitigated events that reshape the global economy.

For Canadians, that means volatility is no longer the exception — it’s the background noise of daily (and investing) life. Gas prices spike with global conflict. Mortgage rates swing with inflation data. Groceries cost more when droughts hit key exporters.

The result, as Young puts it, is sobering: “We live and work in a riskier world (3).”

Fiscal risk: Debt, deficits and the cost of stability

At first glance, Canada’s fundamentals look enviable: Low inflation risk, steady currency, and modest exposure to natural disasters. But Henley’s analysts warn that our resilience “is weaker than our risk profile owing to the country’s relatively low Fiscal Policy Space score (4).”

In plain terms, Canada’s debt has grown too large for comfort. Among 40 high-income nations, the Fraser Institute found Canada posted the third-largest rise in government debt since 2019 — and the highest increase in the G7 (5). Ottawa’s plans for expanded defence, housing and infrastructure spending will push that ratio even higher.

Why it matters:

• A government with less “fiscal space” has fewer tools to protect households when the next downturn hits. During COVID-19, emergency benefits and business subsidies cushioned millions of Canadians. But the bill for that relief remains, and another crisis could leave policymakers torn between raising taxes, cutting services or risking inflation through new borrowing.
• For working Canadians, shrinking fiscal room can translate into higher interest rates for longer and less support when jobs disappear. It also means a heavier debt burden passed to future taxpayers — including today’s young adults already priced out of home ownership.

The productivity problem: When stability becomes stagnation

Canada’s five-year average GDP growth sits in the “low” category among peer nations. That’s not just a statistic — it’s the quiet drag on every paycheque. Low productivity means workers produce less output for every hour worked compared with their global counterparts. That suppresses wage growth, limits government revenue, and makes domestic businesses less competitive.

Economist David K. Young reminds readers that “economic scale alone does not guarantee strength. Stability and predictability matter most — they form the foundation of resilience and long-term prosperity (6).” Yet predictability without innovation can ossify into complacency.

For households, the productivity gap shows up as slower wage growth and rising costs of living that outpace income. For government, it means fewer tax dollars to fund healthcare, transit or affordable housing. Without new investment in skills, technology and infrastructure, the “resilience dividend” Canada once enjoyed could turn into a liability.

Trade dependence: The double-edged sword

Few economies are as intertwined with a single trading partner as Canada is with the United States. That closeness offers stability but limits flexibility.

Henley’s analysts frame this as external risk — vulnerability to global supply and demand. When U.S. consumer demand slows or oil prices collapse, Canadian export revenues shrink. A more fragmented world, where the U.S. and China jostle for influence, magnifies that exposure.

For Canadian workers, this plays out through the job market. Energy-sector layoffs during oil downturns ripple into Alberta towns. Manufacturing shifts in U.S. supply chains affect Ontario plants. Even small retailers feel the squeeze when exchange-rate fluctuations change import prices.

Reducing that dependency through diversified trade agreements and green-tech manufacturing could buffer those shocks. Yet diversification takes time — and political will.

Technological disruption: The AI wildcard

According to Henley’s macro-economic briefing (7): “92% of companies plan to invest in generative AI by 2028,” predicting widespread “disruption — reshaping industries, labour markets, and even governance itself.”

For Canada, an innovation-driven economy on paper, this transformation presents both opportunity and threat.

If leveraged effectively, AI could lift productivity and help offset an aging workforce. But without robust training, reskilling and wage protections, it could deepen inequality — favouring knowledge workers and displacing those in clerical, retail or logistics roles.

For everyday Canadians, that means the next career shock may not come from a pandemic or recession but from an algorithm. Resilience, in this context, is personal as much as national — the capacity to re-learn, re-skill and adapt as technology redefines work.

Climate exposure: A slow-burn economic threat

Henley’s index gives Canada one of the lowest physical-climate-risk scores globally, largely thanks to geography. But the score belies a harsher truth: climate disasters here are intensifying. Wildfires in 2023 forced mass evacuations and shut down energy operations, costing billions. Floods and droughts now routinely disrupt transportation and agriculture. As Henley & Partner analysts warn (8): “high resilience can obscure emerging vulnerabilities, especially in advanced economies now facing political or fiscal pressures.”

That means Canada’s apparent safety could breed complacency.

For workers, the consequences appear as rising home-insurance premiums, unstable farm incomes, and higher grocery costs. For investors, they show up in shifting capital — away from resource extraction toward green infrastructure and adaptation technology.

Institutional strength: Canada’s core resilience

Despite these headwinds, Canada’s greatest advantage lies in its institutions.

The Risk and Resilience methodology lists governance, innovation, investment, and social progress among the key pillars of resilience (9). On most counts, Canada excels.

The country’s independent central bank maintains credibility; its courts uphold contracts; and its social programs — healthcare, pensions, education — form what Henley calls “the human infrastructure that sustains confidence in institutions and markets alike”.

Why this matters: Trust. Stable institutions lower borrowing costs, attract investment, and provide predictability for businesses. They also give citizens confidence that their savings, mortgages and retirement plans are secure even when global turbulence rises.

For the average Canadian household, that stability translates into steady employment, accessible credit, and a reliable safety net in times of crisis. It’s why international capital continues to flow into Canadian assets even when other markets falter.

Resilience as a shared responsibility

True resilience, Henley & Partner analysts stress (10), “is both top-down and bottom-up: guided by sound policy and strengthened by the collective capacity of citizens, communities, and companies.” For Canada, that collaboration has tangible meaning:

• Government: must balance fiscal discipline with strategic spending — investing in infrastructure, skills and clean energy while keeping debt manageable.
• Business: must prioritize innovation and long-term value over quarterly profits, ensuring productivity gains translate into higher wages and sustainable employment.
• Civil society: must maintain the social trust that underpins cooperation — from public-health compliance to support for immigration, diversity and climate action.

In other words, resilience isn’t just built in Ottawa or Bay Street; it’s maintained in workplaces, classrooms and communities across the country.

Adaptation: The new competitive edge

In The New Geography of Risk and Resilience (11), Henley chairman Dr. Christian Kaelin and AlphaGeo founder Dr. Parag Khanna describe today’s world as “Darwinian” — not survival of the strongest, but of the most adaptable.

Nations that learn to “adapt to perpetual uncertainty,” they argue, will attract talent, capital and innovation.

For Canada, adaptation means modernizing infrastructure for a low-carbon economy, fast-tracking housing to retain skilled migrants, and investing in public transit, broadband and education to improve productivity. It also means fostering entrepreneurship in emerging sectors — from clean hydrogen to artificial intelligence — where the next generation of middle-class jobs will form. For working Canadians, this isn’t abstract policy. Adaptation shapes the industries they’ll work in, the affordability of their cities, and the resilience of their retirement savings in volatile markets.

Takeaway: Stability is a strategy, not a guarantee

Canada’s top-tier ranking in the Global Investment Risk and Resilience Index confirms what many already believe: this is still one of the safest economies on Earth. But it’s also a reminder that resilience is earned, not inherited.

As Henley’s analysts note, the countries that thrive will be those that “convert uncertainty into opportunity” through cooperation, innovation and disciplined governance. For Canadians, that means demanding policies — and workplaces — that don’t just shield against risk, but build strength from it. Because in an age where shocks are constant, true security doesn’t come from avoiding change — it comes from being ready for it.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Henley & Partners Global Investment Risk and Resilience Index 2025 (1; Henley & Partners: Macro-Economic Development and the Global Resilience Dividend (2, 3, 6, 7, 10); Henley & Partners: Risk and Resilience Defined (4, 8, 9); The Fraser Institute (5); Henley & Partners: The New Geography of Risk and Resilience (11)

As blockchain-based financial institutions emerge globally, a new US$4 trillion digital asset market is reconfiguring the foundation of wealth management. These “crypto banks” offer borderless access to tokenized assets, real-time settlement, and programmable finance. For Canadian banks, savers, and policymakers, the implications are enormous — and the window to act is narrowing.

Crypto banks: The new wealth infrastructure

Crypto banks aren’t a futuristic fantasy — they’re here. Built on blockchain rails, they operate outside traditional banking hours and national borders, offering hybrid custody, tokenized assets, and DeFi integration. As Mike Foy of AMINA Bank explains (1), “wealth is no longer limited by borders or traditional financial rails.” These institutions enable everything from instant real estate investments to 24/7 access to private credit and digital securities.

This infrastructure appeals especially to ultra-high-net-worth individuals. As traditional private banks lag in digital innovation, crypto-native solutions offer agility and autonomy. While private banks require days to settle trades and transfers, crypto banks do it in seconds, even across borders (2).

Canada has the chance to ride this wave — or get swept aside by it.

Global momentum: Regulatory clarity as a catalyst

Internationally, jurisdictions like Switzerland, Hong Kong and the UAE are staking their claim by offering clear, progressive regulatory frameworks. Switzerland’s FINMA issued the world’s first crypto banking licenses in 2019. The UAE’s VARA regime and Hong Kong’s tokenized asset initiatives further illustrate how smart policy can attract global wealth flows (3).

The U.S. is also stepping up. The GENIUS Act sets stablecoin reserve standards, while the CLARITY Act outlines digital commodity oversight — key pillars for mainstream adoption (4).

This regulatory clarity is critical. As Dominic Volek notes (5), “cryptocurrency negates [the] requirement” for wealth to have a geographic home, creating a new class of mobile, digital capital that is “accessible from Zurich or Zhengzhou with equal ease.”

Canada ranks number eight in the Henley Crypto Adoption Index, behind countries that are quickly becoming crypto hubs like Singapore, Hong Kong, and Switzerland. The race is on — and Canada is not in the lead.

Canada’s current posture: Cautious progress

Canada isn’t hostile to crypto, but it’s cautious. Regulatory bodies like OSFI and FINTRAC have issued guidance for crypto-related activities, and the CSA continues to monitor digital asset platforms. But compared to more aggressive global players, Canada’s approach is risk-averse and fragmented.

That said, there are signs of experimentation. RBC and Scotiabank have explored blockchain for backend operations. Wealthsimple remains one of the few Canadian firms offering crypto trading to retail investors. But these are cautious steps — not bold moves.

If crypto banks gain further traction and Canadian institutions hesitate, clients may move their capital elsewhere. That’s not speculation — it’s already happening. In 2024 alone, US$14.4 trillion in wealth crossed borders, and 60% of crypto millionaires now pursue citizenship or residence in jurisdictions that support digital assets (6).

Impact on borderless banking and Canadian savers

Crypto banks enable financial access without geographic constraints. With just a smartphone and a digital wallet, a user in rural Alberta can invest in a Singapore tokenized bond or provide liquidity to a DeFi lending pool in Portugal.

This is revolutionary. As noted in the Crypto Banking report, “wealth mobility without geographic or time constraints” is the new norm (7). This empowers Canadians — especially younger savers and entrepreneurs — to participate in global markets directly, bypassing banks that charge high fees or enforce legacy restrictions.

It’s not just tech-savvy individuals who benefit. AI agents now manage assets, optimize yield, and rebalance portfolios in real time. In the words of Dr. Niklas J.R.M. Schmidt (8): “AI agents act as intelligent intermediaries... It’s like having a personal crypto fund manager that never sleeps.” This shifts the value proposition from banking relationships to algorithmic efficiency — challenging how Canadian banks traditionally serve clients.

What this means for Canadian banks and the economy

The rise of crypto banks presents both a threat and an opportunity for Canada’s financial institutions.

On one hand, they could lose high-value clients to foreign jurisdictions that offer more crypto-native infrastructure. Already, 241,700 individuals hold more than US$1 million in crypto, and 450 hold more than US$100 million (9). These individuals are looking for banks that understand the language of smart contracts and tokenized assets — not just GICs and mutual funds.

On the other hand, if Canadian banks embrace this infrastructure, they could offer hybrid custody, programmable asset management, and 24/7 cross-border services — strengthening their appeal both at home and abroad. This could drive inflows of global digital wealth into Canada and stimulate innovation in adjacent sectors like fintech, AI, and cybersecurity.

The broader economic impact is significant. With AI-driven crypto agents already executing over $2 trillion in stablecoin transactions monthly (10), the financial system is no longer defined by national boundaries. If Canada wants to retain its status as a financial leader, it needs to adapt to this decentralized reality.

Risks and realities: Don’t get burned by the hype

This transformation isn’t risk-free. Crypto custody remains a major vulnerability, especially for users unfamiliar with private key management. Compliance gaps and cyber threats are real, especially when dealing with autonomous AI agents and unregulated DeFi protocols.

As the Henley and Partners Digital Offshore report warns (11), crypto’s ability to bypass traditional oversight “blurs the line between legitimate protection and avoidance.” Regulators need to find a balance between enabling innovation and enforcing accountability — a needle that’s difficult to thread.

Still, ignoring the crypto banking revolution is a bigger risk. As Mike Foy puts it (12), “missing this momentum could mean missing out on the infrastructure that will secure, grow, and transfer wealth going forward.”

Bottom line: From local banks to programmable wealth

Crypto banks represent a paradigm shift — one that Canada cannot afford to ignore. With programmable finance, tokenized assets, and 24/7, borderless access to capital, they are redefining how wealth is created, stored, and moved.

Canada has the regulatory base and institutional strength to lead in this space — but it must move faster. The next generation of wealth management won’t be built on geography. It’ll be built on code.

And the clock is ticking.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Henley and Partners: Crypto Banking report (1, 2, 4, 7, 12); Henley and Partners: Digital Offshore report (3, 5, 6, 11); Henley and Partners: AI Boom (8, 10); Henley and Partners: Crypto Wealth Report (9)

While the way these “crypto millionaires” acquired their wealth makes for interesting reading for any investors, it's what they are doing with that money that will have the most impact.

Turns out these newly minted crypto millionaires aren't just diversifiying their portfolio, they’re relocating their wealth. Turns out the preferred locations aren't the celebrity-filled — or financially-rich — locations we're accustomed to reading about. For many, crypto millionaires the destination of choice isn’t New York, London or even Bay Street. It’s Dubai in the United Arab Emirate (UAE), Lisbon in Portugal or Valletta in Malta. The flight of crypto millionnaires includes wealthy Canadians looking to the Persian Gulf or southern Europe to park their digital riches.

Given the digital nature of this asset, the question remains: What would prompt this flight of crypto wealth? The answer lies in a concept that’s reshaping global wealth management: Sovereign arbitrage — the strategic selection of countries based on how they tax, regulate and welcome digital assets.

The global competition for digital wealth

According to data released by Henley & Partners, a global leader in residence and citizenship planning, approximately US$14.4 trillion in wealth crossed borders last year. But it's not just the migration of this asset, but the fact that this capital is moving to jurisdictions where digital assets are clearly defined and lightly taxed. That means traditional offshore centres like Switzerland and the Cayman Islands — offshore havens that once competed on secrecy — are now losing prominance to newer rivals, such as Portugal, Malta and the UAE, who are more competitive when it comes to digital transparency and innovation.

According to Henley & Partners, Portugal has become a poster child for progressive crypto taxation (2). As of 2025, long-term crypto holdings — assets held for more than 365 days — are fully exempt from capital gains tax. Non-fungible tokens (NFTs) and crypto-to-crypto transactions also enjoy preferential treatment under the country’s evolving digital-asset framework.

The United Arab Emirates, particularly Dubai, has doubled down on its ambition to be a global crypto hub. The UAE’s Virtual Assets Regulatory Authority (VARA) oversees a comprehensive licensing framework while maintaining 0% tax on capital gains and salary earnings — a combination few other jurisdictions can match.

Malta, often dubbed “Blockchain Island" (3), remains a trailblazer in European crypto regulation. It was among the first European Union (EU) countries to issue comprehensive crypto-licensing frameworks and Malta continues to attract digital entrepreneurs through its investment migration programs (which provide residency rights alongside regulatory certainty).

Group Head of Private Clients at Henley & Partners, Dominic Volek, notes that this competition represents “a shift from tax secrecy to regulatory clarity” (4). In other words, crypto wealth is now chasing certainty, not concealment.

Canada’s crossroads

While Canada ranks eighth globally on the Henley Crypto Adoption Index 2025 (5), behind Singapore, Hong Kong, the U.S. and Switzerland, its policy stance remains cautious.

Under current CRA rules, cryptocurrencies are taxed as commodities, not currencies. Gains from trading are considered business income if the investor trades frequently, while occasional investors pay capital gains tax. But ambiguity persists around newer areas like staking, mining and decentralized finance (DeFi) yields.

As an OECD report states (6): "Tax policy can contribute to improving transparency and certainty in the virtual currency space. Clear tax rules means that it will be easier to encourage and monitorcompliance and reporting, allowing countries to access more information on transactions and helping them detect illegal activities. Adopting an efficient and adequate taxation framework also helps to improve certainty and minimise costs for investors, individuals and businesses by acknowledging their activities and establishing clear tax liabilities and treatments."

Uncertainty has real consequences. With no clear framework for AI-driven trading bots, tokenized real estate or yield-farming returns, Canada risks losing both talent and taxable income to friendlier jurisdictions. On the flipside, there's also a risk of greater financial losses — both from institutional as well as Main Street money. As the Bank of Canada identified in a 2022 report (7): "Cryptoasset markets continue to evolve and grow rapidly, and price volatility remains high. While they do not yet pose a systemic risk to the Canadian financial system, the lack of a regulatory framework means they operate without many of the safeguards that exist in the traditional financial system. This exposes investors to risks such as large and sudden financial losses due to fraud, price declines or a run on stablecoins."

The migration of capital and people

The Digital Offshore report (8) highlights how this ambiguity has accelerated residency-by-investment (RBI) applications from digital entrepreneurs seeking “jurisdictional optionality.” These programs, offered by countries such as the UAE, Malta, and Antigua, allow investors to secure legal residency in exchange for investments in property, bonds, or national development funds. While the motivations vary, in general it boils down to:

• Access to digital banking infrastructure that can accommodate crypto earnings
• Avoiding double taxation
• Minimizing reporting obligations under OECD’s 2027 Crypto-Asset Reporting Framework (CARF), which will require global exchanges to share user data with tax authorities

And this great migration of crypto assets will only grow over time given that "the same tools multinational corporations used to shift profits across borders are now available to anyone with an internet connection (9).” This democratization of offshore strategy has blurred the line between individual investor and global enterprise. For Canada’s tax system — built around clear definitions of residence and source — it’s presents yet another challenge but this one has no precedent.

The policy dilemma

Given the concerns raised about crypto — the money laundering and the risks of losing an under-regulated asset — the question Canada must answer is whether to compete in this global race or stand apart.

The decision of inaction will be costly, experts warn. Crypto’s borderless nature means capital can exit the country faster than regulators can adapt. The Crypto Banking Report 2025 describes a global “inflection point in wealth management,” where traditional banks and governments risk obsolescence if they fail to adapt to blockchain-based finance (10).

Other countries have already drawn their line in the sand. The GENIUS Act and the CLARITY Act in the U.S. have established new standards for digital-asset oversight and institutional participation, helping attract both capital and innovation.

Canada’s challenge is finding balance. Simplifying its tax code for digital assets could boost competitiveness but also invite volatility. The CRA and Department of Finance must weigh the benefits of innovation against the risk of eroding the tax base. As the Henley & Partners report warns: Clamp down too hard, and investors will simply move elsewhere.

The digital reality: Wealth without borders

The shift to borderless finance isn’t theoretical — it’s here. Bitcoin and stablecoins can be held anywhere, transferred instantly, and accessed globally with a 12-word password. The Henley report (11) captures this succinctly: “A Bitcoin wallet exists simultaneously everywhere and nowhere, a Schrödinger’s asset that only materializes when its owner chooses to convert it.”

That makes “location-based” taxation — a cornerstone of the modern fiscal system — deeply outdated. For governments like Canada’s, it means that wealth is now a moving target. For investors, it means unprecedented freedom and responsibility.

What Canadians can do

For everyday investors

If you’re dabbling in crypto, stay compliant and informed. Report your trades, staking income and mining profits to the Canada Revenue Agency (CRA). Keep meticulous records. And be aware that foreign exchanges may soon share transaction data automatically under the OECD’s CARF system.

But also, understand your options. Residency and citizenship-by-investment programs — once seen as niche — are increasingly tools for diversifying geopolitical and tax exposure.

For policymakers and institutions

Canada has an opportunity to lead by example. It can develop clear, innovation-friendly tax guidelines for digital assets, rather than forcing entrepreneurs to look abroad. Encouraging blockchain innovation within a regulated framework could attract investment, retain talent, and prevent capital flight.

As Mike Foy wrote in Crypto Banking 2025 (12), “Missing this momentum could mean missing out on the infrastructure that will secure, grow, and transfer wealth going forward.”

Bottom line

Crypto has made geography optional — and capital mobile. As countries from Lisbon to Dubai open their doors to digital wealth, Canada faces a pivotal choice: Modernize or marginalize.

The Digital Offshore era isn’t waiting for anyone. Investors have already moved. Now, it’s up to Canada’s policymakers to decide whether they want to compete — or watch the wealth flow away.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Henley & Partners: The Crypto Wealth Report 2025 (1, 2, 3, 9, 10, 11); Henley & Partners: The Digital Offshore and the Future of Cross-Border Wealth (4, 8); Henley & Partners: The Henley Crypto Adoption Index 2025 (5); OECD: Taxing Virtual Currencies (6); Bank of Canada (7); Henley & Partners: Crypto Banking: The New Ultra-High-Net-Worth Infrastructure (12)

A new study from Toronto-based firm MyChoice finds that Canadian households are underinsured by an average of 14.5%, even as total life insurance coverage nationwide has reached record levels.

The disconnect, researchers say, reflects how quickly debt and housing costs have grown relative to savings, leaving many families more financially exposed than they realize.

“Both of these things can be true at the same time,” Vitalii Starov, vice-president of product growth at MyChoice, told Money.ca.

“Nationally, the total amount of life insurance coverage has increased, but much of that coverage was locked in years ago. Since then, mortgage balances have increased, consumer debt has risen, and average salaries are higher, all of which materially change how much protection a household actually needs.”

Debt growth is outpacing protection

Using provincial data from Statistics Canada, CMHC and the Canadian Life and Health Insurance Association, MyChoice compared how much life insurance households currently carry with how much coverage they would need to realistically replace income and clear debts in the event of a death.

Nationally, the study estimates the average household should carry roughly $595,000 in life insurance coverage. Actual coverage, however, averages about $509,000, leaving a shortfall that widens significantly in certain provinces.

Ontario shows the largest gap in the country, where Households need close to $794,000 in coverage, but on average hold about $552,000 — a gap of more than 30%.

“It’s a combination of factors, but mortgage debt is the primary driver,” Starov said. “Ontario households carry the highest average mortgage balances in the country. The gap is also amplified by rising non-mortgage debt and higher average salaries across the province.”

Alberta and Quebec also show sizable gaps of 21% and 25%, respectively, while British Columbia households are underinsured by just over 16%. By contrast, Manitoba and Nova Scotia appear closer to a balance, with average coverage roughly matching estimated needs.

Why many families don’t realize they’re exposed

One reason the gap persists, according to Starov, is that life insurance is often treated as a ‘set-and-forget’ decision.

“The most common mistake is not reviewing coverage regularly or when a major life event occurs,” he said. “Policies are often purchased at a single point in time and then left unchanged, even as families have more children, take on more debt, change jobs, or see their incomes rise.”

As a result, coverage that once seemed sufficient can quietly fall out of sync with a household’s real financial obligations. Rising housing prices have magnified that risk, particularly for younger families who entered the market in recent years with large mortgages and thinner savings buffers.

MyChoice’s analysis shows mortgage debt now accounts for roughly three-quarters of total household debt — meaning an unexpected loss of income could quickly put housing stability, education savings and retirement plans at risk.

What underinsurance can mean in practice

The financial consequences of inadequate coverage can be far-reaching. Without enough life insurance, families may be forced to divert savings, sell assets or take on additional debt to cover everyday expenses, mortgage payments or long-term goals such as post-secondary education.

In households already stretched by higher interest rates and living costs, that pressure can compound quickly. The study notes that rising debt is outpacing both income growth and asset accumulation in many provinces, leaving less room for error when something goes wrong.

At the same time, many Canadians hesitate to revisit coverage because they assume doing so means higher premiums. But according to Starov, that’s not always the case. “The most realistic first step is re-aligning coverage structure, not necessarily increasing spending.”

A more practical starting point

For households that suspect they may be underinsured but feel financially constrained, Starov recommends starting with a review rather than a purchase.

“For many families, it means checking whether their existing policies are still the right type, term length or allocation between partners,” he said. “In some cases, reallocating coverage toward the primary income earner or better aligning term lengths can meaningfully reduce risk without a large increase in premiums.”

He also notes that pricing and underwriting standards vary widely across insurers, making comparison shopping worthwhile, particularly as household finances evolve.

As debt levels rise and savings struggle to keep pace, the MyChoice findings suggest that life insurance is becoming less of a secondary consideration and more of a core element of household financial resilience.

“Many Canadians believe they’re adequately insured,” MyChoice CEO Aren Mirzaian said in the report. “But the numbers simply don’t support that claim. Reviewing your life insurance isn’t optional anymore, it’s a critical pillar of long-term financial stability.”

However, they’re only two names in a long list of celebrities who didn’t leave behind detailed wills — but left lengthy legal battles in their wake instead.

For the average Canadian, legal and administrative costs for the death of a loved one — lawyers fees, probate and court costs — can range from just over $4,000 to more than $11,000, depending on the size of the estate (1). An Edward Jones summary stated that in Ontario, estates starting at $500,000 incurred a fee of 1.5% of the estate’s value (2).

Physical assets aren’t the only estate considerations, either. If you have intellectual property (IP), trade secrets or anything intangible that you want to protect after your death, you can learn a few lessons from these celebrities’ mistakes.

How control of Billie Holiday’s legacy slipped away

Although 44-year-old Billie Holiday died with little money, her recording royalties, images and publishing rights were considered valuable assets.

However, because she didn’t have a will, her abusive third husband, Louis McKay, received her entire estate in 1959, according to Billboard (3).

“It’s not right that someone who was as awful to Billie Holiday as Louis McKay was would then have control of her likeness and her money,” Danyel Smith, the author of the book Shine Bright: A Personal History of Black Women in Pop told the music outlet.

After McKay’s death in 1981, Holiday’s estate was passed on to his heirs, including his widow, Bernice McKay. She then sold the estate to a publishing company in 2012.

“It’s insane, at the end of the day, control of her money and likeness is in the hands of people who didn’t know her or have a relationship with her,” Smith told Billboard.

Intellectual property lives on after death

In Canada, intellectual property (IP) — including copyright, patents, trademarks or trade secrets continue to hold value after the owner’s death. Without having a valid will, your estate will be transferred according to provincial or territorial intestate laws, potentially leading to outcomes you didn’t want, similar to a case like Holiday's.

The first thing you need to do is make a will. Once you list beneficiaries — or just one beneficiary — your IP will automatically be passed on to them, end-of-life care specialists at Eirene note (4).

A beneficiary can be a child, spouse, partner or friend. Make sure the will executor is someone you trust because they will be looking after your legacy and finances after you die.

If you have specific wishes for your IP after death, list them in detail. For instance, the Beastie Boys famously won’t license their music for commercial use. Band member Adam “MCA” Yauch, who died in 2012, even wrote this request into his will, according to Vulture (5).

Also, create a trust for your IP. You can control this in both life and death — with the latter requiring specific instructions, of course. This is particularly helpful if you only want specific people to make decisions and financially benefit from your IP.

If you’re reluctant about making a will

Picasso didn’t leave a will either. The artist’s estate was estimated at US$250 million (C$342 million) in 1980, but was probably worth a lot more, according to Vanity Fair (6).

After six long tumultuous years and US$30 million (C$41 million) dollars in settlement costs later, his estate was divided among his seven heirs.

His lawyer, Armand Antebi, explained why he didn’t make a will: “He never made one because of superstition,” he told the New York Times after Picasso’s 1973 death (7). “A way of avoiding death, one might say.”

It’s reasonable to fear death and avoid talking about it or preparing for it. But as personal finance celebrity Dave Ramsey once said on The Ramsey Show: “If you hate the people in your family, leave unclear instructions and no will. Because they will all fight [for] the rest of their lives over your crap.”

Do yourself and your family a favour and write up a will. If you choose, you can speak with your beneficiaries in advance about how you’d like your will to be executed, so that they can keep your IP and legacy alive in a way that will honour your wishes.

As a general rule of thumb, regularly review and update your will. Many attorneys will advise revisiting your documents every five years or so to make adjustments.

After all, you want to ensure all the initial planning you took — time, money and effort — simplifies everything for your heirs when the time comes to put it to use.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Clear Estate (1); Edward Jones (2); Billboard (3); Eirene (4); Vulture (5); Vanity Fair (6); The New York Times (7)

“Many couples often see the Christmas period as the final straw in their relationship,” Alberta Tevie, a consultant solicitor at the law firm Richard Nelson, told the Daily Mail (1).

While some couples make it through the festivities, the new year often sparks reflection. For those who’ve endured a tough year, January feels like a fresh start — and for some, that means filing for divorce.

But financial realities are making divorce more complicated than ever. With soaring mortgage interest rates and favourable terms locked in during previous years, separating isn’t always feasible.

The cost of splitting up

Dividing marital home equity can feel especially overwhelming when today’s mortgage rates are much higher than in the past. In 2020, the posted rate for a 5-year fixed mortgage rate was around 4.9%. Today, that rate has climbed significantly to 6.09% (2).

For example: A couple with a $400,000 mortgage at a 5-year fixed rate of 4.9% in 2020 would pay $2,302 in principal and interest each month. If one spouse needs to refinance at the current average rate of 6.09% that payment jumps to $2,715.36 — an 18% increase of $414 monthly.

When one spouse needs to refinance during a divorce buyout, higher interest rates significantly increase housing costs. This is the main factor for why many Canadians struggle with home equity divisions.

To make matters worse, most couples sign their mortgage together, making both parties jointly responsible for 100% of the debt (3) — not just “their half.” Donna Cates, a certified divorce financial analyst, explained that in an email to Forbes that if the spouse staying in the house fails to make a payment, the other is legally obligated to cover the full amount, regardless of their relationship status (4).

Is there a way around it?

Divorce doesn’t have to mean giving up on homeownership, but navigating the financial fallout can be tricky. Selling the marital home and splitting the proceeds is often the simplest solution. However, it means losing the low-interest mortgage you may have locked in years ago.

Buying a new home after divorce can feel like an uphill climb, especially when transitioning from two incomes to one. To make it work, start by consulting a financial advisor.

They can help you:

• Develop a realistic post-divorce budget
• Rebuild your credit independently from your ex-spouse
• Explore options to strengthen your financial situation

An advisor can also help you consider alternatives like downsizing, renting or even shared living arrangements to buy time and regain stability.

Divorce is undoubtedly a major life change, but with a solid plan, it doesn’t have to derail your path to homeownership or whatever financial goals you may have.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Daily Mail (1); Super Brokers (2); Government of Canada (3); Forbes (4)

A new national study has found that even among mortgage holders with insurance coverage, financial vulnerability is widespread, and confidence in that protection is often thin, especially as households age and incomes become less flexible.

According to research commissioned by The Canadian Association of Financial Institutions in Insurance (CAFII) and conducted by Pollara, half of Canadian mortgage holders say they could maintain their current lifestyle for less than six months if their primary income were disrupted.

“This study shows a troubling contradiction,” said Keith Martin, executive director of CAFII, in a statement. “Canadians know they’re vulnerable, yet many remain underinsured or uncertain about the protection they do have.”

Financial vulnerability persists despite insurance coverage

The Credit Protection Insurance Segmentation Study surveyed more than 3,000 Canadian mortgage and HELOC holders and found broad signs of financial strain.

Nearly half of respondents said the current economic environment is negatively affecting their personal finances, while 57% expressed concern about potential job loss over the next year. Perhaps most concerning, 50% said they would struggle to pay their bills if the main income earner were unable to work.

Despite relatively high insurance ownership, confidence in that coverage remains low. Only 38% of respondents said they feel confident they could continue paying their mortgage if their primary earner lost income, and 35% said they don’t know how long their life insurance coverage would actually last if needed.

Even among the 73% who believe they have sufficient life insurance, the study suggests that confidence is often emotional rather than based on a clear understanding of coverage terms.

“With average household debt levels so high, these blind spots leave families exposed at the worst possible time,” Martin said.

Older homeowners face distinct gaps in protection

While financial stress spans age groups, the study highlights notable coverage gaps among Canadians over 40, many of whom are approaching retirement or managing mortgages later in life.

Job-loss protection, in particular, appears less common among older borrowers. While life coverage is included in most mortgage-related credit protection insurance, only about two-thirds of policies include job-loss protection overall. Among borrowers over 40, that figure drops to roughly half.

For older homeowners, job disruption can be harder to absorb. Re-employment may take longer, savings may already be earmarked for retirement and refinancing options can narrow with age.

The study suggests these realities make clarity around insurance coverage especially important for Canadians nearing retirement while still carrying mortgage debt.

Confidence, not just coverage, is the missing link

CAFII’s research identified five behavioural segments among mortgage holders, with two standing out as both vulnerable and underserved.

One group, described as “anxious realists,” struggles with affordability but stands to benefit most from protection. Another, “confident planners,” is financially stable but more likely to actively review and renew coverage. Together, these groups account for nearly half of mortgage and HELOC holders.

Affordability and trust remain major barriers. Only 30% of respondents said credit protection insurance offers good value for money, and fewer than one-third said they trust it more than other insurance products.

At the same time, banks and credit unions remain the primary source of information and sales, accounting for more than half of all credit protection purchases — placing financial institutions at the centre of consumer understanding.

A moment to reassess

The study suggests Canadians are most likely to reconsider insurance during periods of financial stress, such as when bills become harder to manage, or economic uncertainty rises.

For homeowners, particularly older ones still carrying mortgage debt, the takeaway is not that insurance is inherently ineffective, but that understanding it matters. Knowing what’s covered, what isn’t, and how long protection lasts may be just as important as having a policy in place at all.

As Martin put it, the challenge for the industry — and consumers — “is not just providing insurance, but making sure Canadians understand and trust the protection available to them.”

But DRIPs aren’t for everyone — and, as with any investment strategy, there are risks and traps worth avoiding.

Here’s how DRIPs work, when they can give you a meaningful advantage, and what Canadian investors should know before enrolling.

What is a Dividend Reinvestment Plan (DRIP)?

A Dividend Reinvestment Plan (DRIP) automatically reinvests the cash dividends you earn on your current holdings into additional shares (or fractional shares) of the same company or exchange-traded fund (ETF).

Key advantages of DRIP include:

• Automatic investing at no commission
• Fractional share purchasing, enabling every dollar to work
• Discounts of 3% to 5% on some Canadian company DRIPs
• Accelerated compounding over long periods
• Built-in dollar-cost averaging, even when you’re not adding new money

These benefits make DRIPs particularly attractive for buy-and-hold investors who prioritize long-term wealth building.

Why DRIPs matter now: Dividends are a major source of market returns

Dividends have historically represented a large share of total equity returns. According to RBC Global Asset Management, dividends contributed roughly 30% of the total return of the S&P/TSX Composite Index between 1986 and 2023 (1).

At the same time, Canadians continue to seek steady, defensive ways to invest in a volatile market. As of 2024, the average dividend yield on the S&P/TSX Composite (TSX:GSPTSE) hovered around 3.2% (2), yet more than 70% of companies in the index paid a dividend (3).

For investors looking to grow wealth steadily — without frequent trading — DRIPs remain one of the simplest ways to harness this power.

When DRIPs work best

• When You’re in the Accumulation Stage: If your goal is growth, not income, DRIPs maximize compounding by ensuring every dividend is reinvested immediately — even when it’s too small to buy a full share. This is also where the fractional-share feature becomes particularly powerful.
• When You Invest in High-Quality Dividend Growers: Companies like Fortis, Canadian Utilities, and the Canadian banks have long track records of raising dividends annually. For example: Fortis has increased its dividend 50 consecutive years —a Canadian record (4) allowing a reinvestment of rising dividends supercharges long-term returns.
• When You Want Hands-Off Discipline:
• When Trading Fees Would Eat Into Small Contributions: Most direct DRIPs charge no commissions, and some offer discounts of up to 5%. Many brokerages (Questrade, Wealthsimple, NBDB) also offer free “synthetic DRIPs,” though they generally do not apply discounts.

How to set up a DRIP in Canada

You have two options: (1) through your brokerage or (2) directly with the company.

Option 1: Synthetic DRIP through your brokerage

Most discount brokerages allow DRIPs inside registered accounts (TFSA, RRSP) and non-registered accounts. The typical process to set up a synthetic DRIP through your brokerage is to:

1. Contact your brokerage (online, through chat or by phone).
2. Complete a DRIP enrolment form.

Once set up, the DRIP will begin with the next dividend payment as long as you hold at least one full share.

Positives of synthetic DRIP

• Easy setup
• Works across many stocks and ETFs
• No forms sent to individual companies

Negativess of DRIP

• No share-price discount
• Brokerages only DRIP whole shares, not fractional

Option 2: DRIP directly with the company (true DRIP)

This method can unlock 3% to 5% discounts on new share purchases.

How it usually works:

1. Visit the company’s investor-relations page
2. Enroll using the company’s transfer method (paper form or using Computershare, TSX Trust, AST)
3. Set up optional cash-purchase plans, if offered

Positives of true DRIP

• Access to purchase discounts
• Fractional shares accumulate automatically

Negatives of true DRIP

• More administrative work
• Must update forms if you move shares between accounts

Where DRIPs don’t work (or don’t make sense)

While DRIPs can be powerful, they’re not universally ideal — and some investors need to consider other investment plans and avoid DRIPs.

In particular, investors who fall into following categories:

Need regular cash flow

Retirees or those drawing income from their investment portfolio may prefer to receive dividends as cash, not reinvest them automatically.

When you’re over-concentrated

A DRIP reinforces your position in a single stock. For less diversified portfolios, this can increase risk over time.

When taxes complicate things

Reinvested dividends in non-registered accounts are still taxable. That means you must still track the income and pay attention to your adjusted cost base (ACB), which increases with each reinvestment.

Failing to track ACB properly can lead to overpaying capital-gains tax when you sell (5).

When the company doesn’t offer a DRIP

Not all dividend-paying stocks or ETFs allow DRIPs, so eligibility must be confirmed before enrolling.

When dividend cuts are a risk

DRIPs can mask trouble in the underlying business. If a company cuts or suspends dividends, investors accustomed to automatic compounding may feel blindsided.

What a DRIP looks like in practice: A quick example

Consider a stock paying a 4% dividend yield, increasing dividends by 5% annually, and offering a 3% DRIP discount. If you hold $10,000 of the stock, this is how your investment would grow with a DRIP:

• Year 1 dividends: $400
• Reinvested at a 3% discount, that’s effectively $412 worth of new shares added to your investment portfolio

Compounded over 20 years, assuming stable share price and dividend growth, DRIPs can boost total returns by 20% to 30% compared with taking dividends in cash. While this is a simplified model it does illustrate why disciplined reinvestment works.

Risks and traps to avoid

Losing track of ACB (non-registered accounts)

Every DRIP share increases your cost base — and failing to track it accurately is one of the biggest mistakes Canadians make.

DRIPing into weak or overpriced companies

A DRIP does not prevent losses. If the company declines, you’re automatically buying more on the way down.

Forgetting to re-enroll after transfers

Moving between brokerages, consolidating accounts, or transferring shares can inadvertently cancel your DRIP.

Misunderstanding fractional-share rules

Brokerages only buy full shares, even though company DRIPs allow fractions. This can lead to different outcomes than you expect.

Becoming over-concentrated

If you're DRIPing into high-yield stocks only, you may be unknowingly increasing portfolio risk.

Bottom line

A Dividend Reinvestment Plan is one of the simplest ways for Canadian investors to automate long-term portfolio growth. Whether you use a brokerage DRIP or a direct company plan with discounted share prices, the combination of: automatic reinvestment, compounding, cost-free purchasing, fractional share accumulation, and dollar-cost averaging. These benefits make DRIPs a powerful tool for anyone in the wealth-building stage. But DRIPs are not passive in the sense of “set it and forget it forever.” You must still: monitor the underlying company, track ACB for tax purposes, reassess whether concentration risk is creeping in and ensure your DRIP settings match your investment goals.

Used strategically, DRIPs can help Canadians build significant long-term wealth — quietly, automatically, and efficiently.

Article sources

RBC Global Asset Management (1); Marketwatch (2); TSX (3); Fortis (4); Canada.com (5)

What made Truth Terminal unique wasn’t its humour — it was its autonomy. It responded to mentions, traded tokens and generated market hype on its own. When billionaire venture capitalist Marc Andreessen sent it US$50,000 (C$70,000) in Bitcoin, not to a company or a person but directly to the AI known as Truth Terminal, it marked a first in financial history: A digital agent participating in markets as an independent economic actor.

It's now estimated that every month more than US$2 trillion (C$2.76 trillion) of stablecoin transactions are conducted by automated bots and AI agents (2). These programs don’t just follow scripts — they read social posts, interpret news sentiment and make trading decisions without human oversight.

This merging of AI and decentralized finance (known as DeFi) has prompted the birth of a new field: DeFAI-decentralized finance run by autonomous AI systems. These “digital employees” can analyze hundreds of protocols, shift assets to the best-performing ones, and harvest yields in seconds. They act as tireless portfolio managers, capable of detecting arbitrage opportunities across exchanges faster than any human trader (3).

"[It's] the beginning of a new economic reality where AI doesn’t just analyze markets but actively participates as an independent actor," explains Niklas J.R.M. Schmidt, a partner at Wolf Theiss and contributor to the When AI Agents Become Crypto Millionaires report (4).

Why it matters for Canada

At first glance, the rise of AI investors sounds like distant concern that doesn't come close to Bay Street and everyday investors. While that may be true (for now), it is important to consider the upside of AI investors — and how our nation can benefit. Canada is home to world-leading AI research hubs in Toronto, Montréal and Vancouver, making it uniquely positioned to shape this transformation.

Fintech startups across the country are already experimenting with algorithmic investing tools. In Vancouver, AI-driven trading systems are being built to optimize retail crypto portfolios; in Toronto, data scientists are designing machine-learning models for predictive asset allocation.

If the DeFAI economy truly scales, these technologies could spill over into mainstream investing. Canadian investors might soon use AI co-pilots that rebalance portfolios, identify tax-efficient trades and even interact directly with tokenized assets on blockchain networks — no broker, advisor or banker required.

However, such innovation brings risk. As Schmidt notes (5), “we’re witnessing an economic paradigm where digital actors can own assets, make decisions, and create value independently.” Without oversight, autonomous trading agents could destabilize markets or manipulate prices — intentionally or not.

The regulatory grey zone

Canada’s financial regulators are only beginning to grapple with this reality. The Office of the Superintendent of Financial Institutions (OSFI) and the Ontario Securities Commission (OSC) have created “innovation sandboxes” for fintech experimentation — but none yet account for self-directing AI investors.

Plus, other jurisdictions across the globe are moving faster. The U.S. recently introduced the GENIUS Act, defining rules for stablecoin reserves, and the CLARITY Act, offering digital-asset oversight frameworks. Switzerland’s Financial Market Supervisory Authority (FINMA) and Hong Kong’s regulators already license crypto banks that rely on AI-enhanced asset management. By comparison, Canada ranks only eighth globally in crypto-adoption readiness behind Singapore, Hong Kong, and Switzerland (6).

This matters because Canada’s slower regulatory pace could push innovation offshore. As the Digital Offshore Report 2025 warns that as wealth “untethers from geography,” jurisdictions offering clearer digital-asset laws — like the UAE, Malta or Portugal — are attracting both human and machine investors (7).

The ethics of machine wealth

Beyond economics, machine-managed money raises deep ethical questions. Who is responsible if an AI manipulates a market or violates securities law? Can an algorithm “own” assets or is the creator liable? These are tough questions — ethically and legally — when these AI agents “operate as fully autonomous economic entities,” able to receive funds and influence prices without any bank account or human signature (8).

For Canada, that means the intersection of AI ethics and financial stability will soon move from academic debate to regulatory priority. The Bank of Canada (BoC) already monitors algorithmic trading for systemic-risk triggers. A decision to extend that oversight to autonomous AI agents now appears to be crucial if we want to prevent what some economists call “autonomous bubbles (9)."

The new face of wealth

As digital assets grow — now worth US$3.3 trillion (C$4.56 trillion) globally, with 241,700 crypto millionaires (10) — the line between human and machine wealth is blurring.

The next evolution may see “machine family offices,” where AIs manage portfolios, file tax reports, even apply for citizenship in digital-friendly nations on behalf of human owners. Schmidt’s conclusion is blunt (11): “As AI agents become more sophisticated, we can expect millions of autonomous agents participating in digital markets and creating new forms of economic activity.”

What it means for Canadians

For everyday Canadians

Artificial intelligence is already reshaping personal finance, from robo-advisors that build ETF portfolios to chatbots that optimize budgeting. The next step will be AI systems that invest on your behalf, learn your risk tolerance and execute trades automatically.

Your call to action: Stay informed and stay skeptical. Learn how your financial data are used, question “black-box” algorithms, and use Canadian-regulated platforms that disclose their AI methodologies.

For investors and policymakers

Institutional investors and regulators must act now. Canada has world-class AI research and a strong banking system but innovation will migrate to other countries if legal uncertainty persists. "Missing this momentum could mean missing out on the infrastructure that will secure, grow, and transfer wealth going forward,” explains Mike Foy, chief financial office at AMINA Bank and author of Crypto Banking: The New Ultra-High-Net-Worth Infrastructure.

The big opportunity is to build a Canadian framework for AI-integrated investing — balancing innovation with accountability. That means updating securities laws, funding responsible-AI research in fintech and encouraging collaboration between the Bank of Canada, universities, and private firms.

Bottom Line

The age of machine millionaires isn’t science fiction — it’s already here. Autonomous agents like Truth Terminal are proof that AI can own, grow, and trade wealth independently.

For Canadians, this revolution poses both promise and peril. It could democratize investing and make financial systems more efficient, or create new forms of risk that no one yet fully understands.

Our challenge is to make sure Canada doesn’t just observe this new economy — it helps shape it. Whether you’re a saver, investor, or policymaker, the time to learn, regulate, and adapt is now, before the code outpaces the law.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Henley & Partners: When AI Agents Become Crypto Millionaires (1, 2, 3, 4, 5, 10, 11); Henley & Partners: The Crypto Wealth Report 2025 (6, 9); Henley & Partners: The Digital Offshore and the Future of Cross-Border Wealth (7, 8)

But while the idea of sipping margaritas under palm trees sounds perfect, the price tag for a tropical getaway can sometimes feel, well, less than relaxing.

The good news? You don’t need to be a millionaire to chase the sun. From the Caribbean to Southeast Asia, and even parts of Africa, there are plenty of affordable tropical destinations where you can soak up the heat, stretch your dollar and still live your best beach life, thousands of kilometres from the frigid Canadian winters.

So whether you’re planning a quick escape or a full-on winter migration, here are 10 cheap tropical destinations to travel from Canada that bring the sunshine, clear blue water and adventure, without costing you an arm and a leg.

1. Mexico

Whether you live out on the west coast in Vancouver or back out east, Mexico is one of the most popular vacation destinations for Canadians. Why? Mexico is close enough to Canada that it is not an extraordinarily long flight, but it’s far enough away to be a pleasant international vacation.

The Yucatán Peninsula is an especially popular region in Mexico, home to popular destinations like Cancun, Playa del Carmen and one of the newest Mexican hot spots, Tulum. This region is packed with some of the country’s best all-inclusive resorts, white-sand beaches and world-class cuisine.

For Canadians travelling on a budget, the lesser-known Playa del Carmen offers an authentic Mexican experience at a fraction of the cost. With a ton of mid-range hotels and local, legit taquerias to satisfy your taco cravings, Playa del Carmen is easy on the eyes and even easier on the wallet.

Why it’s great for Canadians: Most Canadian cities offer frequent direct flights, which makes planning a breeze and keeps the airfare low. Mexico is also one of the few places where you can stretch the Canadian dollar a long way.

2. Dominican Republic

If you are looking to travel a bit further out than Mexico, you may want to consider the beautiful and picturesque Dominican Republic.

You know those postcards of perfect sandy beaches with sapphire-blue water? Yeah, that’s basically what the entire country of the Dominican Republic is like. It’s also incredibly affordable, with world-class resorts and all-inclusive deals in popular locales like Punta Cana and Puerto Plata.

If you are like me and enjoy exploring countries, you’ll find a tropical island jam-packed with lush jungles, breathtaking waterfalls and local markets that offer fresh, vine-ripened fruit and other local delicacies for the equivalent of pocket change in Canada.

Why it’s great for Canadians: You’re going to see a theme in this article: Canadians want to get away from the harsh winters to the sunniest and most affordable places. The Dominican Republic is the definition of an affordable and exotic adventure at a much lower price tag than other locations.

3. Costa Rica

A three-hour flight from the Dominican Republic across the Caribbean Sea brings us to another tropical paradise: Costa Rica.

While you may think of white sandy beaches when you think of Costa Rica, this Central American country has a lot more to offer than just a scenic coastline. Across its vast ecosystem, one can find everything from tropical rainforests teeming with local wildlife to more than 60 active and dormant volcanoes.

Stay at a world-class resort or take up residence in one of the country’s many small guesthouses or surf town hostels. Check out seaside towns like Tamarindo or Puerto Viejo, where you can get sunny, tropical weather at nearly any time of the year.

Why it’s great for Canadians: As vast as Canada is, Costa Rica offers multiple ecosystems that simply cannot be found in our country. The locals speak fluent English, and a family trip to Costa Rica will cost you a fraction of what it would at other tropical beach destinations.

4. Belize

If you read the name Belize and have no idea where it is on a map, you’re not alone. Tucked away just south of Mexico and neighbouring Guatemala and Honduras, Belize is a Caribbean paradise that hasn’t been overrun by tourists… yet.

It’s the only country in Central America with English as its official language, making it an ideal destination for Canadian travellers. Enjoy the incredible beaches, or take your experience one step further by snorkelling and diving along the Belize Barrier Reef. This natural beauty is the second-largest reef in the world and is home to exotic marine life like whale sharks, dolphins and manatees.

Check out the small island off the coast of Belize called Caye Caulker, where you can enjoy a slow, relaxing vibe while partaking in its famous seafood barbecues right on the beach.

Why it’s great for Canadians: Belize is like travelling to a less-busy and more exotic Mexico at a fraction of the price. If you want to try something other than a high-end resort, consider Belize, where the Canadian dollar will go further than it will in other countries.

5. Thailand

When it comes to affordable, tropical destinations to visit, Thailand is one of the first countries that comes to mind. Sure, the country is one of the top tourist destinations on Earth, but there are still plenty of towns and islands that are tucked away from the hustle and bustle of Bangkok.

One trip over to the palm-fringed beaches in Krabi or Koh Lanta will redefine what you think of a relaxing, tropical paradise. If you want a bit more action, party islands like Koh Samui and Koh Phangan are lesser-known but offer a unique experience you can only find in Thailand.

Perhaps the most attractive thing for Canadian travellers is how affordable Thailand is. Sure, the flight is a bit longer than going to the Caribbean, but you’ll pay a fraction of the prices for room and board and some of the best street food on the planet.

Why it’s great for Canadians: There is a reason why people travel from all over the world to Thailand for their tropical getaways. Thailand offers the perfect package of world-class cuisine, breathtaking scenery and an incredible nightlife. Being in Thailand is truly like escaping to another world.

6. Vietnam

Let’s stay in southeast Asia for the sixth destination on the cheapest tropical places to travel for Canadians. Vietnam is another place gaining a lot of popularity among those willing to travel a bit further for a budget-conscious trip to paradise.

The main cities, like Ho Chi Minh City and Saigon, are proper metropolises, but venture a bit outside and you can find a world of delicious food and stunning beaches. Places like Da Nang, Hoi An and Nha Trang offer everything you could ever want from a tropical vacation at a bargain basement price.

Try renting a scooter for just a few Canadian dollars and ride around historic temples and rice fields, while stopping to eat incredible, fresh pho or bun bo hue at world-famous street stalls.

Why it’s great for Canadians: Like Thailand, Vietnam is a longer journey to make, but once you get there, you may never want to come home. Some of the best food in Asia for just a few Canadian dollars, and some of the most beautiful, exotic scenery you’ll ever come across.

7. Philippines

The Philippines is another popular southeast Asian destination that allows you to live like a king on your Canadian dollars. With over 7,000 islands, the Philippines offers near-endless possibilities when it comes to beaches, lagoons, coral reefs and world-class snorkelling.

Manila is the capital city and the largest metropolis, but like in Vietnam and Thailand, heading to the outskirts of the country can unlock some real hidden gems. Islands like Cebu, Palawan and Siargao have crystal-blue waters that will make you think you’re in a real-life stock photo.

You can even go island hopping for a very reasonable price by taking local ferries or affordable, budget flights. Dry season is November to April, which is perfect because it lines up with the cold and wet season in most of Canada.

Why it’s great for Canadians: There is plenty of English in the Phillipines, and like its Southeast Asian cousins, your Canadian dollar allows you to have a trip that is either on a shoestring budget or has you living in spoiled luxury.

8. Nicaragua

Back to Central America for the eighth pick on our cheapest tropical places to travel. Nicaragua is one of Central America’s cheapest destinations and offers a similar tropical experience to its neighbours, like Costa Rica and Guatemala.

Old colonial cities like Granada are a once-in-a-lifetime experience, with rich history and a surprisingly big-city feel. There are also plenty of beaches and surfing areas like San Juan del Sur, or you can check out the beautiful volcanic islands of Ometepe.

Great local meals rarely exceed $10.00 per person, and you won’t ever need to break the bank for accommodations either. Friendly people and that wonderful tropical heat can really help rejuvenate your soul and escape from those frigid Canadian winters.

Why it’s great for Canadians: Hot weather, friendly locals and wonderful scenery. What else could you ask for? Don’t forget to indulge in some of the best coffee in the world while you’re there!

9. Bali, Indonesia

A lot of people think that going to Bali will cost you a small fortune, but there is a reason it made our list of cheap tropical places to travel.

Like the Southeast Asian countries on this list, Bali is half a world away. That means flights are going to cost you, and there are rarely direct flights, even from Canada’s biggest airports. But once you arrive in Bali, you’ll find that it remains one of the most affordable tropical destinations in the world.

The beautiful villas and ocean-side rooms you see on Instagram are surprisingly affordable. As with many destinations, the further out you go, the cheaper it can get. More remote areas like Ubud or Canggu can offer the same otherworldly experience for under $60 per night.

Why it’s great for Canadians: Bali is home to some of the most beautiful beaches in the world. Although it takes a long flight or two to get there, once you arrive, you’ll be treated to an exotic vacation for a very reasonable price.

10. Portugal

Is Portugal tropical? Parts of it are, so it snuck into the final spot on our list. Portugal is easily one of the most affordable places to go in Europe, and even though it uses the Euro, you can still feel that you are getting a good bang for your Canadian bucks.

Portugal has some of the freshest seafood and tropical fruit in the world. It’s not a large country, but each region has its own charm. Whether it is the big city feel of Lisbon, sipping port wine in Porto, or visiting the picturesque beaches on the island of Madeira, Portugal has a wide range of destinations for Canadians to enjoy.

If you are really adventurous, rent a car and take a drive down to the Algarve region, where you will find some of the most beautiful beach towns in the world.

Why it’s great for Canadians: Canadians will appreciate the slow, relaxed pace of Portugal. All citizens learn English from a young age, so there is no language barrier with the locals.

The bottom line

If you’re daydreaming about a tropical vacation but are worried about breaking the bank, we’ve got your back.

So whether you want to be dancing in the Dominican Republic, enjoying the nightlife in Thailand, or eating the freshest seafood on that side of the Atlantic in Portugal, there are plenty of tropical paradises for the budget traveller.

What are you waiting for? Before the cold and snow set in, book your tropical escape and spend the frigid Canadian winter with warm sand between your toes.

FAQs

Where is the cheapest tropical place to go on vacation?

There are plenty of cheap tropical places to go for Canadians. Mexico is often seen as the most affordable because of cheap flights from Canada. Aside from the flight, Thailand, Vietnam and Nicaragua are some of the cheapest tropical places for Canadians to visit.

What is the cheapest exotic place to visit?

Thailand is still the king of cheap, exotic vacations for Canadians. You may have to shell out for the flight, but once you arrive, food, transportation and accommodations are some of the cheapest you’ll find.

Where is the cheapest Caribbean island to visit?

Most of the Caribbean islands are quite reasonably priced. With that being said, the Dominican Republic offers the most affordable Caribbean vacation for Canadians. This is especially true if you can find a nice flight and hotel package, which can end up being less than just the flight to most other destinations.

What is the cheapest but safest country to visit?

Belize and Portugal are the two safest countries on this list to visit, and are also affordable. Both have plenty of tourists, and both countries have plenty of English available, which always makes Canadians feel a little more at home.

Why winter can hit retirees harder

Retirement income for many seniors comes from public pensions — Old Age Security (OAS), Guaranteed Income Supplement (GIS) if eligible, and Canada Pension Plan (CPP) or the Québec Pension Plan (QPP) — plus whatever savings or part-time work you have. For many this is enough to get by, but may not leave much room for luxuries or big winter getaways.

According to recent data, the median after-tax income in 2023 was about $36,400 for a single senior (1). That money must stretch across essentials like housing, heat, food, medications, utility bills and whatever other expenses may come up.

At the same time, the dark winter days and cold weather can limit time outside. If you live alone, weekends and evenings may feel long and quiet. Isolation, limited finances and the lack of a regular schedule can add up — and the winter gloom can weigh more heavily when your options are limited.

Understand what winter mood changes can be

Many Canadians notice a mood slump during the winter. A condition called Seasonal Affective Disorder (SAD), or a milder “winter blues” can play a role. Experts estimate that about 2 to 3% of Canadians will experience full-blown SAD in their lifetime and around 15% will have a milder seasonal mood dip (2).

While SAD may bring pronounced symptoms like persistent sadness, low energy, changes in appetite or sleep, even mild “winter blues” — which includes less energy, more heaviness and reduced motivation — are real and common (3).

Meanwhile, loneliness also matters. A recent survey found that among people aged 75 and older, 14% reported feeling lonely “always or often”, compared with 9% of those aged 65 to 74 (4).

Among seniors aged 65 and older, nearly one in five (19%) said they experienced loneliness in 2019–2020. Women were more likely to report loneliness than men (23% vs.15%) (5).

If you are living on a fixed income and alone, that combination — low light, cold weather, restricted mobility, modest income — can make mood dips, loneliness or a sense of being stuck feel worse.

Simple low-cost steps anyone can try

Even on a limited budget there are things you can do to help yourself feel better this winter. Here are some suggestions:

Let light in

Open curtains or blinds and sit near a window during the day when it’s bright. On milder winter days, a short walk, even around the block, can help. Exposure to natural light and some movement can help reset your body’s internal clock and lift your spirits.

If you spend most of the day indoors and daylight is limited, consider a light therapy lamp that gives roughly 10,000 lux and use it for 20–30 minutes in the morning. Some people find this helpful for seasonal mood dips.

If buying one is difficult on a tight budget, turn to your local community or seniors centre. Many loans or shared-use programmes exist so you don’t have to buy it yourself.

Build a simple routine

Without work, days can blur together. Try a gentle daily rhythm— a regular wake-up time, small morning stretches, light housework, a short walk or some chair-based movement and a set mealtime. Even light activity and regular patterns help mood, energy and mental clarity.

Stay connected on a budget

Social connection matters more than we often realize. A short phone call, a friendly chat with a neighbour or inviting someone for tea can help break up the isolation. Many community organizations, libraries, faith groups or seniors’ centres offer low-cost or free activities, phone check-ins, online gatherings or simple social time with others.

If mobility or transport is a challenge, check out volunteer driver services, community ride-share or shuttle programs. Local volunteer groups often help seniors with errands or can provide friendly visits.

Try out inexpensive hobbies

Some things to consider include: taking out books from your public library, tuning into stimulating radio broadcasts or podcasts, taking up simple crafts, baking or cooking comfort food, or stopping by the local thrift shop to stock up on puzzles can all brighten quiet days without costing much. Even small pleasures make a difference.

If you’re able, volunteering a few hours a month — for example calling someone lonely, helping at a community centre — can give both a sense of purpose and social connection. Many older Canadians find volunteer work rewarding and mood-boosting.

Prioritize essential expenses wisely

When income is limited, every dollar counts. Make sure essential needs come first — heat, utilities, food, medications and housing. If heating costs are high, contact local social services, community groups or seniors’ assistance programs to ask if you qualify for utility or heating subsidies. Use public resources like libraries for free entertainment, community meals or subsidised transit if available.

If you do plan small spending — for instance on a light-therapy lamp, a radio, used books or craft supplies — include them in your monthly budget. That way they don’t crush your finances, while also getting a mental boost.

When home remedies may not be enough

If you find the low mood doesn’t lift, your sleep or appetite changes drastically, you feel persistent sadness, heavy fatigue, hopelessness or start thinking about harming yourself, this could be more than the winter blues. It may be full SAD or depression, especially if it lasts weeks or months.

If this happens, please reach out. Talk to your family doctor. Ask for mental health support. You don’t need to struggle alone.

Also keep in mind that seniors with low income or limited resources often face challenges around transport, mobility or health. Many community and social services exist to help with those issues. You are not alone — others have walked this path and reached out for help.

Where to find local help and support

If you are looking for support, here are a few options that cost little or nothing:

• Call 211 — a free confidential helpline across Canada that connects you with local community supports, senior-focused programs, volunteer ride services, social groups, mental health help and more.
• Visit your public library or community centre. Many run free or low-cost social or activity programs, crafts, walking clubs or times for seniors to meet.
• Check local volunteer or charitable organizations. Oftentimes, they offer help with errands, companionship, or periodic check-ins.
• Talk to a trusted friend or neighbour. Sometimes a short weekly check-in call or a shared walk can make a world of difference.

Stay connected, active and comfortable on a budget

You may be retired. Your retirement income may be modest. But winter doesn’t need to trap you in gloom. With small regular steps — a bit of light, a short walk, a phone call, a gentle routine — your days can feel warmer, brighter and more connected until the sunny days return.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Statistics Canada (1, 4, 5); CMHA (2); DPIC (3)

For Canada, this growing wave of “wealth migration” presents both opportunity and risk. While our nation continues to attract high-net-worth (HNW) individuals — drawn to our country's political stability, strong education system and universal healthcare — it also faces the threat of losing domestic millionaires, entrepreneurs, investors and executives seeking lower taxes, lighter regulation and sunnier climates.

A global wealth migration, redefining power hubs

The Henley report notes that the United Arab Emirates (UAE) will lead global inflows in 2025, attracting an estimated 14,200 new millionaires. Other major gainers include Australia, the U.S., Singapore and Switzerland — nations that have fine-tuned their tax systems and investment immigration programs to appeal to mobile wealth.

Conversely, traditional powerhouses like the United Kingdom, China, India and Canada are expected to see wealth outflows. Analysts link these exits to political polarization, heavy tax burdens and concerns over domestic policy uncertainty.

Dr. Juerg Steffen, CEO of Henley & Partners, writes (2) that this shift is part of a “great wealth flight,” where “capital, talent, and influence are all being reallocated to countries that are deliberately building ecosystems to attract them.”

Canada’s position: Stable, but slipping

Canada has long marketed itself as a safe haven — a nation where wealth feels secure and infrastructure supports long-term investment. Yet, according to 2025 data, Canada slipped out of the top 10 list of best destinations for high-net worth individuals.

While Canada may still attract immigrant investors from Asia and the Middle East — primarily through business and student visas — the outflow of wealthy Canadians is quietly rising. Many cite high taxation, rising living costs and a cooling investment climate as factors prompting relocation.

As report author and Director of Economic Research and Statistics at the Islamic Development Bank (IsDB) Institute, Areef Suleman, wrote (3): "...wealth migration is not driven by the health of the global economy per se but jointly motivated by unfavourable conditions in source countries and favourable conditions in destination countries."

Why millionaires matter to the average Canadian

It may be tempting to dismiss millionaire migration as a niche problem. But as Suleman's report highlights, these individuals disproportionately influence a country’s innovation ecosystem, real estate market and philanthropic landscape.

When wealthy individuals leave, they often take with them capital investment, high-paying jobs and tax revenue. In Canada, this can mean fewer start-ups launched, less venture capital deployed and reduced funding for charitable causes.

Conversely, when the wealthy arrive, they stimulate local economies through property purchases, service hiring and capital deployment. For cities like Vancouver and Toronto, the challenge is balancing that inflow against housing affordability and social equity.

Lessons from the winners

Countries that are winning the wealth migration race — including Australia, the UAE, and Singapore — have done so by creating what Suleman calls “high-trust, low-friction wealth environments (4).” That means streamlined residency programs, strong property rights, and stable tax policies that encourage reinvestment.

"Alternative citizenships and residence rights have become an invaluable asset class in an international investor’s portfolio, providing a gateway to financial opportunity and a buffer against economic and geopolitical uncertainty," explains Christian Kaelin, chairman of Henley & Partners (5). “They see residence and citizenship not as gatekeeping but as growth engines — as a way to attract the very people who will build their future economies.”

Canada’s challenge is that its regulatory complexity, slower immigration processing and high cost of living make it less competitive in this new landscape. At the same time, ongoing debates over wealth taxes and capital gains reform have injected uncertainty into long-term planning.

The next decade: Risk or recalibration?

If Canada hopes to remain attractive to global and domestic wealth, experts say it must clarify its fiscal stance and embrace policies that reward entrepreneurship. That means incentivizing private investment, simplifying residency programs and supporting innovation hubs beyond major metros.

Failure to do so risks eroding the very capital base that sustains growth. As the Henley & Partners report highlights (6), even small annual outflows of HNWIs can have compounding impacts over time — reducing local reinvestment and talent retention.

For working Canadians, that could translate to slower job creation, reduced startup funding and lower tax flexibility for public services.

A call to modernize Canada’s wealth strategy

Canada’s economic story has always been tied to mobility — of people, of ideas and of opportunity. Yet as wealth itself becomes increasingly mobile, policymakers face a pivotal question: Will Canada be a destination for opportunity, or a departure point for ambition?

If the 2025 Henley report is any indication, nations that act boldly to retain and attract wealth will shape the next generation of prosperity. For Canada, the time to act is now.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Henley Private Wealth Migration Report 2025 (1, 2, 6); Henley & Partners: Millionaires on the Move as Global Growth Stagnates (3, 4); Medium (5)

Wages have grown in Canada, but not evenly. According to Statistics Canada (1), real average hourly wages barely kept up with inflation between 2021 and 2024, leaving many workers effectively running in place.

Labour disputes like the 2025 Air Canada flight attendants’ strike make headlines, but they also surface quieter truths about work, pay and power that apply far beyond unionized jobs.

Here are eight practical earning and negotiation lessons Canadians can use — whether they work in an office, a hospital, a classroom or in the gig economy.

#1. Unpaid work quietly erodes your income

In August 2025, after months of negotiations, 10,000 flight attendants at Air Canada walked off the job. The result was chaos at the country's airports, with hundreds of flights cancelled and thousands of passengers stranded all over the world.

The strike quickly became a national talking point, sparking conversations about unpaid work, fairness and how to advocate for yourself. The flight attendants even ignored a federal government back-to-work ruling before opting to enter mediation.

One of the central complaints raised during the Air Canada dispute was unpaid labour — time spent boarding passengers, waiting out delays or performing safety checks without compensation.

The broader lesson: Many Canadians perform unpaid work without realizing it.

Examples include:

• Regularly answering emails after hours
• Arriving early or staying late without pay
• Taking on “temporary” responsibilities that become permanent

The Canadian Centre for Policy Alternatives estimates that unpaid overtime costs workers billions annually in lost wages (2).

Action step: Track everything you do for two weeks. If your role has expanded, your compensation should too.

#2. Knowing your market value is a financial skill

Flight attendants compared their wage increases with those received by other employee groups — and realized they were falling behind.

Here's the thing: You can do the same.

Before accepting a new job, negotiating a promotion and raise or agreeing to annual pay increase :

• Check comparable salaries on Job Bank (3)
• Review private salary surveys (like Glassdoor and Payscale)
• If unionized, look at union wage disclosures where available

Job Bank Canada wage data: https://www.jobbank.gc.ca/wagereport

Action step: Bring market data, not emotions, into pay discussions.

#3. Inflation is a valid negotiation argument

In recent years, inflation reshaped household budgets — but many salaries lagged behind.

Between 2021 and 2023, consumer prices rose faster than wages, according to Statistics Canada data (4).

The Canadian Union of Public Employees (CUPE), which represented the attendants, said that unpaid work meant Air Canada was paying below inflation, market value and even the federal minimum wage. “It's really important for passengers to understand that we are flight attendants, we love our jobs, we belong in the sky,” flight attendant Henly Larden told Good Morning America (5). “We just need ... pay to do our duties and ensure that we are compensated in a fair manner.”

The flight attendants were tired of not being compensated for time they spent boarding passengers, waiting on flight delays and cleaning cabins. This is a reminder for regular Canadians that knowing exactly what work you are getting paid to do can help prevent a sense of resentment towards your employer.

Action step: Frame raises as maintenance of purchasing power, not “extra money.”

#4. Silence weakens your bargaining position

During the strike, public visibility mattered. Support grew as the financial realities of the job became clearer. Flight attendants in the U.S. showed support for their Canadian counterparts. “The inspirational fight of the Air Canada flight attendants is helpful and creates momentum," Sara Nelson, international president of the Association of Flight Attendants, told Reuters (6).

Talking about money can still be seen as taboo, but sharing your financial struggles or successes can create community. This could involve something as straightforward as swapping budgeting tips with friends or taking a financial literacy course with people in your area.

For individual workers — particularly those in non-unionized jobs or working in the gig economy — silence can be costly:

• Employers often assume acceptance if concerns aren’t raised
• Studies show that pay increases and promotions skew toward those who ask

A Harvard Business Review analysis found that employees who negotiate earn significantly more over their careers than those who don’t (7).

Action step: Treat negotiation as a normal part of employment — not conflict.

#5. Collective knowledge beats solo guessing

One national survey (8) taken shortly before the strike showed that almost 60% of Canadians were more likely to sympathize with the flight attendants amid any strike action, as opposed to 12% who sympathized with Air Canada.

“Maybe by giving the flight attendants what they wanted would have been a better idea for everyone,” said Montreal resident Rina Antonucci, whose family’s return flight to Canada from Europe was cancelled, when talking to CTV News (9).

While unions formalize what many workers lack, shared information, having discussions and talking openly about difficulties can help. Even outside unions, peer transparency helps:

• Talking pay ranges with colleagues
• Comparing benefits, vacation and flexibility
• Sharing negotiation outcomes privately

Action step: Find trusted peers and compare notes before major job decisions. Research pay transparency using trusted resources, such as OECD (10).

#6. Benefits matter as much as base pay

The Air Canada dispute wasn’t only about hourly wages — it also centred on how time and effort were recognized.

Canadians often overlook:

• Pension matching
• Extended health benefits
• Paid training
• Flexible scheduling

According to Sun Life, benefits now account for roughly 20% to 30% of total compensation in many sectors (11).

Action step: Negotiate total compensation — not just salary.

#7. Walking away is leverage — if you’re prepared

The flight attendants remained on strike even after the Canada Industrial Relations Board declared the job action unlawful. Despite pressure from the government to return to work, the flight attendants held out for a better offer.

Standing up for yourself can be daunting, whether you are negotiating a salary or disputing a charge on your phone bill. But self-advocacy can help you secure a better financial deal.

Striking workers had leverage because they were organized and financially prepared.

For individuals, leverage comes from:

• Emergency savings
• Transferable skills
• Updated resumes and networks

StatCan data shows nearly half of Canadians couldn’t cover an unexpected $500 expense, limiting their negotiating power (12).

Action step: An emergency fund is also a negotiation tool.

#8. Every pay dispute reveals your earning ceiling — and how to raise it

Some union leaders said they would be willing to go to jail rather than complying with the federal government’s return-to-work order. “We’re going to stay strong,” CUPE president Mark Hancock told The Guardian (13). “And if that means folks like me going to jail, then so be it.”

While it’s unlikely you’ll risk jail time ahead of your next big financial decision, sticking to your guns matters. That means walking away from bad employment contracts or added responsibilities without additional pay.

In essence, the Air Canada strike, and similar labour disputes force you to answer a hard question: Is this job structured to ever pay what it’s worth to me?

If the answer is "no" that doesn't mean you have to quit immediately. Sometimes the answer is:

• Upskilling
• Finding a similar but better compensation job and changing employers
• Changing industries

Workers who change jobs often see larger wage increases than those who stay, according to RBC Economics (14).

Action step: If negotiations stall, reassess the role — not your worth.

Bottom line

This year, the flight attendants rejected several Air Canada contract offers before going on strike and then eventually choosing to go to mediation.

While the strike caused disruptions to summer travel plans for thousands of Canadians, it also raised the issues of invisible work and fair pay.

The Air Canada strike wasn’t just about planes and paycheques. It highlighted something many Canadians are quietly discovering: earning power doesn’t improve on autopilot.

Knowing your value, documenting your work and being willing to advocate — or walk — are among the most powerful financial skills you can develop.

— with files from Grant Surridge

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Statistics Canada (1); Canadian Centre for Policy Alternatives (2); Job Bank (3); Statistics Canada (4); Good Morning America (5); Reuters 6); Harvard Business Review (7); Abacus Data 8); CTV News (9); OECD (10); SunLife (11); Statistics Canada (12); The Guardian (13); RBC (14)

Today, Lucas runs a small NFT design studio that earns in Ethereum and converts profits into stablecoins. He’s part of a growing cohort of Canadians under 30 who are quietly amassing real wealth — not in stocks or property, but on the blockchain.

While Lucas is a fictionalized person, he is a representative of a growing number of Gen Z investors whose wealth isn’t measured in real estate or retirement accounts but through digital, mobile and often anonymous accounts. Their portfolios live on decentralized exchanges rather than Bay Street brokerages.

As the Henley & Partners Crypto Wealth Report 2025 shows, there are now 241,700 crypto millionaires worldwide, a 40% increase in just 12 months (1). And while most early adopters were Millennials and Gen X tech enthusiasts, Gen Z is now the fastest-growing group of new crypto millionaires, particularly in countries like Canada, Singapore, and the UAE.

A generational shift in how wealth is built

Boomers grew their wealth through home equity. Gen X did it through mutual funds and RRSPs. Gen Z is doing it through code.

Unlike older generations, who trust institutions to manage and safeguard wealth, Gen Z’s financial culture is built around decentralization and self-custody — the idea that you own your money directly, without a middleman.

As the Digital Offshore report puts it, blockchain has “democratized capabilities once reserved for the ultra-wealthy,” giving anyone with an internet connection access to the same financial tools global corporations use to shift capital across borders.

To Gen Z, financial freedom is about profit, of course, but it's also about autonomy. They value mobility, transparency and access. In an age of rising housing costs and volatile job markets, crypto offers something traditional systems can’t: the ability to build, store, and move wealth anywhere.

Dominic Weibel, Head of Research at Bitcoin Suisse and contributor to The Crypto Wealth Report 2025, described this new mindset bluntly: “The new laws of wealth are being written in code.”

Crypto as a wealth builder

The numbers tell the story. Crypto’s global market capitalization has surpassed US$3.3 trillion, according to The Crypto Wealth Report 2025 (2). That growth is fueling a new generation of digital entrepreneurs — many under 30 — who are leveraging blockchain not only to trade but to create.

Platforms like Coinbase, Kraken and Wealthsimple Crypto have become the on-ramps for Gen Z investors, offering easy access to Bitcoin, Ethereum and tokenized assets. But this isn’t just about speculation. Many young investors are experimenting with DeFi yield strategies, NFT royalties and tokenized business ownership — mechanisms that produce real, recurring income streams.

Dr. Niklas J.R.M. Schmidt, in The AI Crypto Boom (3), notes that AI-driven trading agents and decentralized finance platforms are “reshaping wealth creation by turning digital actors into economic participants."

For Gen Z, that means algorithms — not advisors — may soon be managing their portfolios.

The Henley Crypto Adoption Index 2025 ranks Canada 8th globally for crypto-readiness, scoring highly in innovation and infrastructure (4). Yet the report warns that without clearer tax and regulatory frameworks, homegrown innovators may migrate to more crypto-friendly hubs like Malta or Dubai.

Values over volatility

Crypto’s appeal to Gen Z is as philosophical as it is financial. This generation came of age during the 2008 financial crisis, climate anxiety and the COVID-era job collapse. Distrust in traditional finance runs deep.

As Group Head of Private Clients at Henley & Partners, Dominic Volek, explains (5) that today’s investors are drawn to jurisdictions “competing on regulatory clarity and cryptocurrency-friendly legislation, not secrecy.”

That same desire for transparency and control is what drives Gen Z’s enthusiasm for blockchain. They see decentralized finance as a social and moral innovation — one that promotes openness, reduces gatekeeping and gives individuals more power over their economic lives.

But that empowerment also comes with risks. Volatility, hacks, and a lack of diversification are common pitfalls. Without financial education and risk management, Gen Z’s digital fortunes can disappear as fast as they appear. As the Crypto Banking Report 2025 warns, custody and security remain “paramount,” especially as investors blend blockchain tools with traditional safeguards.

The challenge for wealth managers

This generational shift is forcing financial advisors, estate planners and tax professionals to rethink their approach to wealth.

A 24-year-old who made a fortune from NFTs doesn’t fit the traditional client mold. Their assets are tokenized, held across multiple wallets and sometimes anonymous. Their heirs may not even know how to access them without the right passphrases.

For wealth managers, that means developing crypto-integrated estate plans, where private keys and digital wallets are securely documented and passed down alongside traditional assets. It also means learning to speak a new financial language — one rooted in code, not cash flow statements.

As Mike Foy, CFO of AMINA Bank, noted (6): “We are at an inflection point in global wealth management. Crypto banks are now defining the next frontier.”

Forward-thinking advisors are already adapting. Some Canadian firms now offer digital-asset custody services, while others partner with fintechs to help clients diversify across crypto and traditional investments. Education is becoming as important as regulation — a point underscored in almost every report regarding crypto.

The inheritance of the future

Unlike their parents, Gen Z isn’t waiting to inherit wealth — they’re coding it.

Whether through trading bots, NFT royalties or decentralized ventures, they’re building intergenerational assets that may never exist in a bank vault or safety deposit box.

That poses challenges for regulators, accountants, and even courts, which must now define what inheritance and ownership mean in a borderless, digital economy. As Volek states: “A Bitcoin wallet exists simultaneously everywhere and nowhere, materializing into a jurisdiction only when declared.”

For Canada, this generational transformation represents both a risk and an opportunity. If regulators provide clarity and advisors embrace innovation, the next generation of Canadian millionaires may not flee to crypto havens abroad. Instead, they could help redefine how wealth is built, managed, and shared at home.

Bottom Line

Gen Z has made one thing clear: the future of wealth won’t be inherited — it will be engineered.

By merging creativity, technologyand financial independence, they’re transforming money from a static store of value into a living, programmable force.

Canada’s financial establishment can either evolve with them — or be left behind as the next generation writes its own rules of wealth creation, one line of code at a time.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Henley & Partners: The Crypto Wealth Report 2025 (1, 2, 6); Henley & Partners: When AI Agents Become Crypto Millionaires (3); Crypto Adoption Report (4); Henley & Partners: The Digital Offshore and the Future of Cross-Border Wealth (5, 7)

For many people, this life stage also means their earnings have peaked, their children are self-sufficient and their mortgage is close to being paid off. Unfortunately, many older Canadians aren’t as fully prepared for retirement as they’d like to be. A 2025 survey by the Healthcare of Ontario Pension Plan (HOOPP) found 36% of adults aged 55 to 64 have $5,000 or less saved for their retirement, with only 21% having over $100,000 in savings (2).

If you’re approaching retirement and find yourself in a similar situation, here are five steps you can take to build your safety net over the next five years.

1. Max out your tax-advantaged accounts

If you’re close to retirement age and have a Registered Retirement Savings Plan (RRSP), you could take advantage of any carry-over room you may have from previous years. Any Canadian with an RRSP can accumulate unused contribution room year after year and carry it forward indefinitely — creating a significant opportunity for you to “catch up” and build your savings over the last five years of your career.

The 2025 RRSP contribution limit is 18% of your income up to $32,490, but many Canadians have far more room available because of unused carry-over from previous years. Check your Canada Revenue Agency (CRA) account for a detailed breakdown of how much contribution room you have. You may be in a better position than you realize to add significant savings to your RRSP, improving your chances to retire comfortably.

2. Maximize your government benefit plans before you collect

Only focusing on the size of your nest egg can make it easy to forget that you also need to plan for withdrawals. Many Canadians can use a simple rule of thumb, such as Bill Bengen’s 4% rule, to plan their retirement.

But as you approach this new phase of life where you’re withdrawing from a fixed amount, it’s critical to plan for how and when you withdraw your money. For example, if you wait until you turn 70 to collect Canada Pension Plan (CPP) benefits, you could significantly increase the monthly amount you receive. Even though you’re eligible to start collecting CPP at 60, the maximum monthly amount you could receive at that age is $880.45. However, if you can wait another 10 years, that amount more than doubles, up to $1,775.

The same principle applies to collecting Old Age Security (OAS). All Canadians are eligible to start collecting OAS at age 65, but if you wait to claim at age 70, your pension amount will increase 7.2% for every year you delay. This means by age 70, your monthly benefit will be 36% higher than if you started collecting at age 65. For context, $691 is the maximum monthly OAS amount you could receive at age 65, whereas if you wait until 70, that amount jumps to a maximum of $940 (4).

But only delay claiming CPP and OAS if you can comfortably cover your expenses in the meantime. According to the Government of Canada website, waiting past 70 won’t increase your benefits — and may even cause you to lose out on benefits you could have earned earlier — so make sure delaying won’t break the bank (5).

3. Stress-test your portfolio against market volatility and fluctuations

Many Canadians build their retirement plans around their investment portfolio — like how much their investments might grow each year and how much they can safely withdraw.

For example, some investors use ~8% as a long-term average return for the stock market, since major market indexes like the S&P/TSX Composite have shown similar average long-term returns (6).

At the same time, financial planners might suggest using a 4% withdrawal rate as a starting point when estimating your annual withdrawal amounts in retirement. However, keep in mind that these are long-term averages rather than guarantees, and it’s a good idea to stress-test your portfolio.

Actual market returns fluctuate annually, and your personal situation may require you to adjust your withdrawals based on other factors such as meeting the demands of inflation and cost of living increases. In addition, if you create a back-up budget or emergency fund, they can help you prepare for such market downturns and unexpected volatility to ensure your retirement savings last you through your sunset years.

4. Ensure your assets are invested for optimal tax benefits

Five years before retirement is an ideal time to review how your savings are invested across different accounts and ensure your money is working for you as efficiently as possible. If you reach your late 50s or early 60s with the bulk of your savings in a single type of account — like a High-Interest Savings Account (HISA), for example — you could end up paying higher taxes later on, as the interest you earn in these accounts is considered income.

If you’ve saved a large amount in a HISA, you might instead choose to maximize your Tax-Free Savings Account (TFSA) contributions in the years leading up to retirement to boost tax-sheltered growth. TFSAs are super valuable in retirement, since you can withdraw any time without penalty and interest isn’t taxable, allowing you to build your savings tax-free. Switching over early can give you more room to grow your retirement savings.

5. Create a sustainable lifestyle plan

Remember that all your financial plans are ultimately dependent on your lifestyle. That means you need a lifestyle plan just as much as a withdrawal or tax plan. If you want to continue working side gigs or part-time hours, include that in your plan. If you want to spend more time travelling, remember to add that to your annual budget.

If you’re five years away from retirement, take a short break to test the retirement lifestyle and see what you enjoy doing with your leisure time. Breaking to adjust sets you up for retirement success without the stress so you can build a lifestyle plan to sustain you throughout your retirement.

Bottom line

The last five years before retirement present the best opportunity to strengthen your finances — from maximizing tax-advantaged accounts to optimizing how and when you start collecting your government benefits. With many Canadians approaching retirement less prepared than they’d hoped, taking the time to plan, stress-test and rebalance your finances can dramatically change how comfortably your savings can support you through your final decades. Applying thoughtful strategies today will ensure your savings will last you well past retirement.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Statistics Canada (1); Healthcare of Ontario Pension Plan (2); Government of Canada (3, 4, 5); S&P Global (6)

The Canadian Real Estate Association says home sales recorded over Canadian MLS Systems fell 0.6% month over month in November. Actual (not seasonally adjusted) activity came in 10.7% below November 2024, suggesting demand remains uneven as the market heads toward year-end.

“At this point it’s looking like the mid-year rally in housing demand has veered into more of a holding pattern heading into 2026, coupled with what looks like some price concessions in November in order to get deals done before the end of the year,” said Shaun Cathcart, CREA’s senior economist, in a statement (1).

“That said, the Bank of Canada’s clear signal that rates are now about as good as they’re likely going to get is the green light many fixed-rate borrowers have no doubt been waiting for, so we remain of the view that activity will continue to pick up next year.”

Market activity cools as listings and sales both ease

CREA’s November data points to a market that has largely stalled since mid-summer, rather than one that is accelerating or deteriorating sharply.

New listings declined 1.6% month over month in November. With sales also down, the national sales-to-new listings ratio tightened slightly to 52.7%, up from 52.2% in October.

CREA notes that the long-term average for this measure is 54.9%, and that readings between roughly 45% and 65% are generally consistent with balanced housing market conditions.

At the end of November, there were approximately 173,000 properties listed for sale across Canadian MLS Systems. That figure was 8.5% higher than a year earlier but 2.5% below the long-term average for that time of year.

Prices soften as sellers make concessions

Price data also showed modest declines, reinforcing signs that some sellers are adjusting expectations to close deals before year-end.

The National Composite MLS Home Price Index fell 0.4% between October and November and was down 3.7% compared with November 2024. CREA said the monthly dip suggests some sellers are making price concessions amid softer demand.

The national average home price was $682,219 in November, down 2% from a year earlier on a non-seasonally adjusted basis.

"November was a soft month for resale housing, with Canadian sales and prices both down," said TD Economist Rishi Sondhi in a note (2).

"However, November's sales dip was small, and sales have climbed for six of the past eight months. As such, we're not throwing in the towel yet on our view that Canadian sales will grind higher through next year, supported by pent-up demand in B.C. and Ontario, and some improvement in job markets in 2026,” Sondhi noted.

Inventory levels also remain largely unchanged, according to CREA. Nationally, there were 4.4 months of inventory at the end of November, consistent with levels seen since July. CREA notes the long-term average is five months, with a seller’s market typically below 3.6 months and a buyer’s market above 6.4 months.

What November’s data signals heading into 2026

Economists suggest that CREA’s November figures point to a housing market that is pausing rather than reversing — with sales holding above spring lows, prices easing modestly and supply conditions remaining broadly balanced.

For buyers and sellers alike, the data suggests that the pace of activity heading into early 2026 may depend less on dramatic price shifts and more on how quickly confidence returns as borrowing costs stabilize and households reassess affordability in the months ahead.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

CREA (1); CBC News (2)

At the mid-point of 2025 and copper's global demand, as a commodity, is soaring. From green energy to electric vehicles to consumer electronics, copper is one of the components helping to power what some experts are calling the next industrial revolution. As prices for copper hit record highs and supply shortages loom the copper reserves across North America — and the companies mining them — could see a surge in value.

One sign of this resource resurgance is the reawakening of a long-dormant copper mine in Utah. Closed in 2019, the mine just roared back to life under new ownership — reflecting the rising global appetite for this critical mineral.

Here's why Canadian investors need to pay attention.

Why demand for copper is surging

According to the International Energy Agency (IEA), global copper demand is expected to accelerate sharply as countries expand electricity networks and electrification efforts. Under current project pipelines, the IEA estimates a significant supply gap could emerge by the mid-2030s unless investment in new mines accelerates — with shortfalls ranging from roughly 20% to more than 30% depending on policy outcomes (1). In other words, demand is expected to far outpace supply.

Then there are global factors. In July, the price of copper reached record highs after current American President Donald Trump announced a 50% tariff on copper imports beginning August 1, 2025. Given that copper is the “metal of electrification” and whether it’s used for wire, plumbing, electronics or electric cars, copper is critical in almost all products. The introduction of the copper tariff will only help to increase the cost of the metal and add to the cost of clean energy, communication, data centre infrastructure, to name a few.

Copper prices have remained elevated and volatile through 2024 and into 2025, driven by tight global supply, rising electrification demand and renewed infrastructure spending. While prices surged at several points, they remain below inflation-adjusted record highs set in 2022, underscoring copper’s cyclical — and often unpredictable — nature.

Re-opening the Utah mine is just the start

Closed in 2019, the Utah copper mine was a victim of a commodity slump that prompted low copper prices. But in 2023, Milford Mining acquired it and began hiring workers, according to a recent Fox 13 report (2). This year, the company struck a deal to sell its copper to Rio Tinto Kennecott, the operator of the Bingham Canyon mine and the Magna smelter. The contract is a strong signal that the price of copper isn't expected to drop anytime soon.

As this small mining town in Utah grows and prospers from copper's resurgance, it's a good reminder that additional mines across North America could also prosper from this metal's valuation growth. Investors looking for opportunities don't need to look far with a number of copper mines already in operation in Canada and managed by publicly-traded firms, including:

NOTE: These are among the major copper producers; Canada has other smaller or junior‑company‑operated copper operations, but those are often private or pre‑production. All of the listed mines are actively producing copper as of mid‑2025; however, the Mount Polley Mine is both copper andgold but currently in care and maintenance mode. It was reopened in 2022 but with uncertain operations and is still considered not actively in production.

Given Canada's role as a natural resource mecca, and its robust supply of copper, this could be the ideal time for an investor to consider precious metals, including copper.

Why Canadian investors could benefit from the copper resurgence

With resource-rich Canada positioned as a major global copper producer, the resurgence in demand for the metal presents a significant opportunity for our economy — particularly as we transition to green energy.

In an S&P Global report (3), it was found that in order to achieve the goal of Net-Zero Emissions by 2050, green energy sectors will increase their demand for resources, including copper resulting in an 82% increase in demand for this precious metal between 2021 and 2035.

In fact, the demand for copper for the next decade will be primarily as a result of the ongoing push to transition to cleaner vehicles and the broader electrification of the economy. Electric vehicles alone use up to four times more copper than vehicles with internal‑combustion engines. Similarly, wind turbines, solar farms and data centres require extensive wiring and cabling.

Like Utah, the increased demand for copper has far reaching impact, on regional development as well as on investor portfolios.

For Canadians investors there's good news: Canada is a meaningful — but not dominant — global copper producer. According to Natural Resources Canada, the country holds roughly 2% of known global copper reserves, placing it among the world’s top producers but well behind Chile and Peru. Canada’s strength lies in its political stability, infrastructure and ability to scale responsibly (4)

To grow, mining operations must attract investors — these invested funds are then used to increase critical mineral production (5). At this point, however, most publicly traded mining operations are producing enough of this resources to meet domestic demand. Global copper demand is expected to grow steadily through 2040 (6), driven largely by electric vehicles, grid expansion and renewable energy infrastructure. S&P Global estimates copper demand tied to the energy transition alone could double by the mid-2030s, requiring trillions of dollars in cumulative investment across mining and processing — far exceeding current production capacity (with estimates that demand will grow to US$12 billion by 2040).

To meet export demands, Canadian mining operations will need to strategically invest and grow even more.

How Canadian investors can capitalize on copper's resurgance

Here’s are three strategies to help Canadian investors benefit from the revived demand for copper:

#1. Direct investment in mining companies

Investing in companies that produce or explore for copper is the most direct strategy investors can use to generate earnings on copper's valuation growth. for investors to benefit. The Toronto Stock Exchange (TSX) and the TSX Venture Exchange (TSXV) are home to a wide range of these companies (7), including (but not limited to):

• Teck Resources Limited (TSX: TECK.A)
• Taseko Mines (TSX: TKO.TO)
• Hudbay Minerals (TSX: HBM.TO)
• Newmont Corporation (TSX: NGT.TO)

To get started, you'll need to open a direct investing brokerage account. Good options include:

• CIBC Investor's Edge: Build your own investment portfolio with the Investor's Edge online and mobile trading platform and enjoy low commissions.
• Wealthsimple: Trade stocks and ETFs commission-free, plus get a $25 cash bonus when you open your first Wealthsimple account (through this link) and fund at least $1 within 30 days. Terms and conditions apply. Visit Wealthsimple for up-to-date terms and conditions.
• Questrade: $0 trading fees, plus trade fractional shares on select equities. New accountholders get $50 cash back when you open a self-directed account with $250.

#2. Favourable exchange rate on the dollar

A Canadian investor can benefit from trading U.S.-listed stocks or equities that trade in USD by strategically taking advantage of exchange rate fluctuations between the Canadian dollar and the U.S. dollar (USD). Here's how:

** When CAD is strong relative to USD (in other words C$1 = US$0.80 or more), it gives Canadians more purchasing power in U.S. markets**

The benefits of this include:

• Ability to buy U.S. stocks “on sale” as you can convert CAD into USD at a more favourable rate, meaning each Canadian dollar buys more U.S. dollars. For example, C$10,000 might convert to US$8,000 instead of US$7,200 (when the Canadian dollar is weaker).
• Opportunity to buy more shares: You can buy more of high-quality U.S. stocks at a lower relative cost.
• Tax-efficient diversification: This is a good time to build or expand your exposure to the U.S. market, potentially improving global diversification without the drag of poor exchange rates.

#3. Canada’s position as a key supplier for the new “green” economy

Copper is a critical mineral for the global push toward a green economy and positions Canada as a key supplier. Aside from investing in mining operations, investors can focus on:

• Global ETFs with a focus on copper: For example, Global Copper Miners ETF (COPX) offers broader exposure and trades in USD.
• Battery metal ETFs: For example, Amplify Lithium & Battery Technology ETF (NYSE: BATT) or Global X Lithium & Battery Tech ETF (NYSE: LIT) offers broader green energy metals exposure and trades in USD.

Bottom line

While the re-opening of the Utah copper mine is a strong signal for a robust return of this precious metal, investors should remember that copper prices are cyclical and sensitive to global growth. Investors should buy during downturns or before major demand inflection points, such as new climate policy or the introduction of new infrastructure deals — growth that will only accelerate the demand for copper and help suppor the price growth for this precious metal.

— with files from Melanie Huddart, David Saric and Romana King

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Fox (1); IEA (2); S&P Global (3); Natural Resources Canada (4); Critical Path (5); S&P Global (6); Interactive Brokers (7)

It was a raccoon.

Staff at a Hanover County liquor store, located in Virginia, arrived to work after American Thanksgiving to find smashed bottles, pools of scotch on the floor and, tucked between the toilet and the bathroom bin, one extremely intoxicated raccoon sleeping it off like a woodland version of a university student after a frosh-night gone wrong (1).

The “masked bandit” had apparently entered through a ceiling tile before going on what animal control described as “a full-blown rampage, drinking everything.” By the time help arrived, the furry intruder was too inebriated to flee — a first, perhaps, in raccoon-human relations.

After sobering up, the animal was transported for “questioning” (which likely involved staring blankly while refusing to make eye contact) before being released back into the wild with nothing more than a hangover and a legendary story.

But between the broken bottles, the blurry CCTV footage and the store’s tongue-in-cheek thanks for providing the raccoon with “a sober ride home,” there’s a strangely relatable undertone: This little creature just acted out what many Canadians feel like doing this holiday season.

But seriously: What this represents for Canadians right now

While this drunken raccoon may have been living its chaotic truth, many Canadians are facing a holiday season packed with financial strain, quiet stress and rising costs.

Here’s what this raccoon caper unintentionally highlights:

1. Stress makes us all do… interesting things

Canadians are heading into one of the most expensive holiday seasons in years, with higher grocery bills, higher interest rates and tighter budgets. If a raccoon can fall through a ceiling and go straight for the budget liquor, surely humans deserve some grace for feeling stretched.

2. People are reaching for coping mechanisms — healthy or not

The raccoon turned to scotch. Canadians might be turning to credit cards, Buy Now Pay Later (BNPL) plans, or retail therapy to “make Christmas happen.” But unlike the raccoon, we do wake up to the consequences — and interest charges.

3. Many families are one small crisis wway from a rampage of their own

The holidays can magnify financial pressure. Year-end bills hit. Winter necessities get expensive. Gift expectations pile up. That raccoon breaking through a ceiling tile isn’t far off from how many households feel emotionally: One bad day away from collapsing into a space they didn’t intend to be.

4. Help exists — and planning can prevent a holiday hangover

This raccoon got lucky: No injuries, no charges and a free ride home. Canadians won’t get the same deal, but they can avoid a financial hangover with a few intentional steps:

• Set a holiday spending cap — and stick to it
• Have the “expectations talk” with family early
• Swap pricey gifts for shared experiences.
• Use loyalty points or cashback strategically.
• Avoid financing festivities on high-interest credit.
• Ask for support if the season feels heavy — emotional or financial

Bottom Line

A drunk raccoon may have captured headlines, but it also captured a mood. Canadians are tired. Stressed. Maxed out. And navigating a holiday season that feels more expensive and emotionally loaded than ever.

If the raccoon gets anything right, it’s this: After the chaos, take a breather. Sleep it off. Start fresh. And don’t go it alone — whether you’re breaking ceilings or breaking budgets.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

BBC (1)

According to a new poll from CIBC, nearly eight in ten Canadians (79%) say travel has become less affordable over the past five years. As a result, more families are choosing to stay closer to home this holiday season, prioritizing savings and lower-cost celebrations.

More than six in ten Canadians (62%) say they are not travelling at all over the holidays. Among them, 31% cite budget constraints, while another 22% say they are deliberately prioritizing saving instead of travel.

Younger Canadians still more likely to travel

Despite widespread affordability concerns, travel is still a central part of holiday planning for some. For example, nearly four in ten Canadians (38%) say they plan to travel this holiday season, though that’s down slightly from 41% last year.

Younger Canadians are driving much of that activity. The poll found that Gen Z respondents are almost twice as likely to travel as boomers, with 50% planning a trip compared to just 26% of older Canadians.

Even among those travelling, plans are becoming more modest. Fewer Canadians are heading abroad, while domestic and regional trips are taking on a larger share of holiday travel.

Staying closer to home — and using points

CIBC’s poll suggests Canadians are increasingly opting for shorter, lower-cost trips this season:

• Just 12% plan to travel internationally
• Around 13% will travel elsewhere within Canada
• And 19% are planning trips within their own province

To manage costs, some travellers are leaning on rewards programs. Nearly one in five Canadians who plan to travel (18%) say they intend to use credit card rewards points to help cover holiday travel expenses.

“Canadians are showing both resilience and adaptability this holiday season,” Carissa Lucreziano, vice-president of financial planning and advice at CIBC, said in a statement.

“Whether it’s travelling within the country or gathering at home, the focus is on connection, comfort, and making smart financial choices.”

Budget pressures extend beyond travel

The findings highlight how closely travel decisions are tied to broader household finances. For many families, holiday budgets are being weighed against competing priorities, including savings goals and rising day-to-day expenses.

CIBC says setting realistic expectations can help reduce financial stress during the holiday season, particularly for families juggling multiple financial commitments.

This year’s travel choices suggest that for many Canadians, the holiday season is less about distance travelled and more about how deliberately each dollar is spent.

RBC’s 2025 Talking Money With Our Kids Poll (1) surveyed Canadian parents about how they approach money conversations with their children and the results underscore that parents are navigating various forms of apprehension. Fifty-three percent are concerned for their children’s financial future, and 59% state that they do not feel fully confident in having financial conversations with their children.

Furthermore, 36% of parents are postponing financial conversations until the need arises or during key life moments, while 16% admit that they haven't had the “money talk” at all. So, if primary caregivers are staying mum on how to navigate financial complexities and build robust money management skills, where are young Canadians getting their information from?

Parents aren’t the only source of financial wisdom

Just because parents are not having these conversions does not mean their kids aren’t learning about money — social media is playing a key part in how teens and Gen Zers are acquiring information and assessing their own financial health.

A separate poll from RBC that surveyed 1,000 Gen Z Canadians found that 64% of felt “financially behind” after browsing social media (2). Fifty-five percent also stated that social media posts can make them feel as though they are struggling, even if they are in a good place financially.

In fact, turning to social media for financial advice is more common for younger Canadians. A survey from the Financial Consumer Agency of Canada (FCAC) found that Canadians aged 18 to 34 are “twice as likely to seek financial advice on social media,” as 18% of respondents used Instgram, TikTok or other platforms to seek out tips, tricks and facts they may not be getting elsewhere (2).

While social media can help young Canadians find their financial footing, it can also harm them. A survey from the Co-Operators noted that a third (31%) of Gen Zs have regrets stemming from taking bad financial advice on social media (3).

However, children and young adults don't have to be left in the dark about how to best utilize and optimize their money — you as a parent can be that exemplar.

How parents can have productive money talks with all ages

This data puts parents in a tough spot — they feel paralyzed to discuss money with their children because of their lack of confidence and resources, but other sources are already giving their kids information and advice. Parents' worries aren’t unfounded either: the cost of groceries ballooned 4% from last year to this fall (4) and 55% of Canadians aged 25 to 44 reported struggling to cover their day-to-day expenses back in 2024 (5). Money conversations matter more than ever as financial struggles become more commonplace.

So, how can parents overcome these worries to empower their children with honest and open financial conversations? Here are some tips to help you have productive conversations with children at any stage (6, 7) along with some helpful resources to give you more ideas on how to start money talks.

Age 3 - 5

• Start by introducing the idea of money and key concepts such as saving vs spending
• Use jars to show kids how to set aside money for spending, saving, donating, etc.
• Have simple conversations to teach them how money is earned through household chores
• Explain coins versus bills and show them what money looks like

Resource: Bank of Canada Museum - Understanding Coins & Bank Notes (8)

Age 6 - 9

• Use games (e.g. playing shopping at the mall) to instill key concepts like wise spending
• Help your child to save up for a specific item (e.g. a favourite toy) so they can understand the value of saving and financial planning
• Reinforce how money is earned by assigning them chores or an setting up an allowance program

Resource: Bank of Canada Museum - Growing Your Savings Project (9)

Age 10 - 13

• Open a bank account with your child and talk about how it is used and the differences between chequing versus savings accounts
• Introduce digital payment options and online spending best practices
• Explain key differences between earning money, loaning money and how credit works
• If appropriate, try using a digital money app to help your child become more familiar with digital payments
• Be vulnerable and open up about some of the tough money lessons you learned as an adult

Resource: Bank of Canada Museum - The Risks and Benefits of Borrowing (10)

Age 13+

• Your child may have a part-time job at this stage, so make sure you walk them through taxes, Canadian Pension Plan deductions, benefits, etc.
• Start having open conversations about credit scores and debt scares
• Explain savings and spending tactics like the 50/30/20 rule
• Create a budget with your teen to show them how to properly track their spending
• Open a low-risk secured credit card with your teen, when they turn 18, so they can start to properly manage credit
• For older teenagers, start discussing what’s an appropriate amount to spend on living expenses (e.g. rent, groceries, utilities) in light of their income

Resource: Bank of Canada Museum - Building a Budget (11)

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

RBC (1, 2), Co-operators (3), Statistics Canada (4, 5), ATB (6), Scotiabank (7), Bank of Canada Museum (8, 9, 10, 11)

In fact, one young man is learning the hard way that the money he earned didn’t offset his upfront investment.

Joseph, 29 years old, recently called The Ramsey Show to ask hosts Dave Ramsey and Jade Warshaw if he should surrender one of the two cars he financed to drive for Uber and Lyft (2).

Joseph explained that he first financed a Honda CRV for US$60,000, thinking that he could pay it off with his earnings. However, while he was initially making about US$2,700 a week, his earnings dropped after Uber changed its eco-friendly program for hybrid vehicles.

Joseph then bought an Acura MDX to qualify for the UberXL program. He put down US$30,000 and took out a US$54,000 loan for the remaining amount — now owes US$2,800 monthly for both vehicles.

Since then, Joseph’s employment situation has changed. He gave up driving and now works another job earning US$22 hourly. He’s behind on his car payments, and his credit score is tanking.

“You financed a Honda for US$60K to drive Uber?” a dumbfounded Ramsey asked, and followed up with some harsh truths for Joseph.

‘You’ve been working for free for Uber’

Ramsey had some harsh words for Joseph, who plunged into this work without first understanding the costs and risks associated with it.

“You weren’t making any money doing Uber and Lyft because you haven’t been smart enough to factor in all the losses on your vehicles. When you factor that in, you didn’t even break even … You didn’t take out gas and repairs either, did you?” he said. “You didn’t even make money on all this. You’ve been working for free for Uber.”

Joseph explained that Uber seemed like a more lucrative job compared to the minimum wage work he had been doing. However, his hasty decisions led him into a bad financial position.

Ramsey advised Joseph to immediately sell the second car he bought. However, he warned that allowing either car to be repossessed could force him to file for bankruptcy.

“If you just turn these cars in, they’re going to sell them for 50% of what you think they’re going to sell them for, and they’re going to sue you for the difference,” he explained.

“You’re going to find out that your Uber career bankrupted you, along with some really stupid decisions.”

What is voluntary repossession?

Voluntary repossession means surrendering your vehicle to your lender because you can’t afford the loan payments. This differs from involuntary repossession — where the lender reclaims the car without your consent.

Aside from missing loan repayments, having your vehicle repossessed is a serious issue that will seriously hurt your credit score. And after you surrender the car, you may still owe money on the loan. As Ramsey said to Joseph, the lender may sell the car for less than your loan price, leaving you on the hook for the difference. You can be sued by the lender if you can’t pay up.

Any type of loan default will negatively affect your credit score. Additionally, your car insurance rate may increase, because your insurer considers you high-risk going forward.

Gig-working the rideshare economy — what you need to know

If you’re considering working for rideshare providers like Uber or Lyft, taking out a car loan to do so is the same as getting a business loan. It’s upfront money that’s your sole responsibility to repay.

Also, driving for Uber, Lyft or another rideshare company isn’t the same as working a regular job: There’s no guaranteed minimum hourly wage, and many inexperienced drivers can find themselves barely breaking even — or in the red — after only one shift.

One driver named Clarke Bowman shared his experience driving for a rideshare with Business Insider (3). “Imagine my surprise when I accepted my first [Uber Pool] ride, picked up two people, drove for 34 minutes and 24 seconds, completed the ride and earned just $9.41,” he said.

Before you invest in a new vehicle, try test-driving with your existing car for at least a few months to get a sense of what you earn on average. That way, a few weeks of good earnings won’t skew your perspective like it did for Joseph. Track your earnings, as well as insurance, fuel, repairs and maintenance expenses to get a reasonable sense of your disposable income before you decide to finance a new vehicle.

How to get your finances back on track

If you find yourself in a similar situation, with car payments you can’t afford, know that you’re not alone. According to Equifax, as of Q1 2025, the overall auto loan delinquency rate rose by 15.3% year over year — the highest since 2009 (4). But there are ways you can get back on track.

If you owe money on a vehicle you can’t afford, your first step is to sell the car privately. As Ramsey advised Joseph, “The best thing to do is to control the price of the sale.” When you sell a car on your own terms compared to repossession, you have a better chance of getting a fair price. Then you can make a plan to cover the balance of your loan.

Ramsey advised Joseph to earn as much as possible in the coming months — maybe even driving for Uber again when he has the time — so that he can pay off the loan and move forward with his financial lessons learned.

If you need to dig yourself out of a financial hole, consider the following steps:

• Track all your expenses. Review your banking, loans and credit card statements from the past year. This will give you a clear picture of both your business and personal expenses so you fully understand where your money needs to go and where you can cut back.
• Pay down high-interest debt first. Make payments on balances that cost you the most money over time, such as credit cards. You’ll save money on interest, free up your budget and improve your credit score over time.
• Build a $1,000 emergency fund. Start with a small buffer against any unexpected expenses that may crop up while you’re getting your finances back on track. Once the debt is fully paid, you can focus on building this fund to cover six months of expenses or more.

Bottom line

The rideshare economy can seem like a quick way to earn income. But Joseph’s experience shows how vehicle expenses, loan debt and unpredictable income can eat away at profits.

Before getting behind the wheel, crunch every number — including fuel, repairs, maintenance and insurance — to make sure you come out on top. And if you’re already struggling with payments, build a solid financial foundation first to avoid falling further behind and damaging your credit score.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

H&R Block (1); The Ramsey Show Highlights (2); Business Insider (3); Equifax (4);

The question remains: is it better to pay off debt, first, or save up for retirement?

Now, the urge to become debt-free is strong — really strong. It feels responsible, safe, and immediately satisfying to pay off debt, particularly large debt such as a mortgage on a house. But what if the rush to pay off low-interest debt is quietly undermining your long-term retirement security? While there is no one right answer, tax expert Jamie Golombek argues that paying down debt actually puts your retirement at risk. In his report, Mortgages or Margaritas: Is paying down debt putting your retirement at risk? (1) he suggests that the urge to pay down debt rather than contribute to a tax-efficient savings vehicle, such as a registered retirement savings plan (RRSP), is more about appeasing emotions than making smart money decisions (2).

The emotional pull of debt freedom

In this report, Golombek surveyed Canadians to help understand what drove them to prioritize debt repayment over saving for retirement. The survey data revealed just strong the emotional pull is for Canadians to become debt-free. Among Canadians asked what they'd do if they had extra funds to spare, 72% of those aged 35 to 54 picked “pay down debt” over “add to an RRSP” (3). A further 56% confessed that the main reason was a simple desire for “the financial freedom of being debt-free.”

As Golombek points out: There’s nothing wrong with that desire — it’s human, understandable — but it highlights a gap between what feels safe and what might mathematically build retirement security (4).

The mathematical case: Investing often wins

To illustrate, let's assume you have $2,500 of extra pre‐tax earnings each year. You could either apply that toward extra mortgage payments, assuming a 4% mortgage rate, or invest in your RRSP or Tax Free Savings Account (TFSA). For simplicity, we'll assume the RRSP investment earns a 6% annualized investment return over 30 years.

If your marginal tax rate stays the same in retirement

If your marginal tax rate, today, was 30% and the early withdrawal rate is the same, then investing would put you almost $45,000 ahead as the decision to pay down debt, according to Golombek's calculations (5).

If your marginal tax rate drops in retirement

If you expect your tax rate to drop in retirement — going from 30% to 20% — the RRSP strategy improves your investment portfolio, boosting it from $ 146,700 to about $167,600 (6). As Golombek explains: if your expected investment return (after tax) exceeds the interest rate on your debt, investing may give you more in the long run.

When paying debt first still makes sense

This isn’t to say you should always invest and never attack debt. If you’re carrying high-interest debt, such as a credit card balance, or lines of credit at 20% or more interest, then paying this debt off first is almost always the best option.

Golombek identifies another reason why tackling debt first makes sense: if you’re very leveraged and wouldn’t weather a rate increase or economic shock, then reducing risk via debt repayment is prudent.

The competing goals of a homeowner/saver

For a mid-career homeowner who has a mortgage and still unsure whether to tackle debt or invest in your RRSP savings, the critical questions to answer include:

1. What is my mortgage interest rate? Is your mortgage rate higher than 5%?
YES→ Begin leaning toward paying down the mortgage, unless you expect exceptionally high RRSP returns and have a long time horizon.
NO → Rates below 5% often favour RRSP investing, especially with tax benefits and compounding.

2. What return can I reasonably expect from investing in my RRSP (net of tax)? Estimate expected long-term investment return (e.g., 4% to 6% real return for a balanced/growth portfolio), then compare that to your mortgage rate. Is your expected RRSP return (after tax) higher than your mortgage rate by at least 1% to 2%?
YES → Advantage RRSP → continue to next question.
NO → Advantage debt repayment → continue anyway for confirmation.

3. What is my time horizon until retirement? More than 15 years to retirement?
YES → RRSP investing becomes more attractive because compounding has time to work.
NO → Mortgage repayment becomes more attractive, especially if nearing retirement and wanting a lower cost base.

4. What is my tax rate now, and what do I expect it to be in retirement? RRSPs are most powerful when your tax bracket today is higher than your expected tax bracket later (say, in retirement). Is your tax rate now significantly higher than what you expect in retirement (at least one bracket difference)?
YES → RRSP advantage. RRSP contributions defer tax at a high rate and withdrawals will be taxed at a lower rate.
NO → Debt repayment advantage. The RRSP tax deferral is less impactful.

5. What is my comfort level with investment risk and debt levels? Do you feel stressed carrying debt or prefer guaranteed returns?
YES → Pay down mortgage.
NO → RRSP investing is reasonable.

6. Do you have a long investment horizon and can tolerate market volatility?
YES → RRSP investing becomes more favourable.
NO → Mortgage repayment provides a risk-free, “guaranteed” return equal to your interest rate.

Focus on RRSP investing

If you answered "Yes" to most of the following:

• Mortgage rate under 5%
• Expected RRSP returns exceed mortgage rate
• More than 15 years to retirement
• Higher tax bracket now than in retirement
• Comfortable with investment risk and debt

... then you should focus on investing in your RRSP (or TFSA). Why? Because investing in your retirement savings plan helps you maximize compounding, tax savings, and future flexibility.

Focus on mortgage repayment

If you answered "Yes" to most of the following:

• Mortgage rate above 5%
• Expected RRSP return similar to or below mortgage rate
• Less than 15 years to retirement
• Similar tax bracket now and later
• You dislike debt or prefer guaranteed returns

... then you should focus on paying down the mortgage. Why? Because paying down this large debt is a risk-free return equal to your interest rate — and reduces financial pressure in retirement.

“If you have a high mortgage interest rate, you might save more by paying down your mortgage rather than investing in your RRSP,” explains Michael Callahan, an Edward Jones analyst, and financial advisor (7).

Consider tax implications

RRSP contributions generate an immediate tax deduction and allow you to defer tax payment until you withdraw from this fund. This is what makes RRSP contributions so powerful — but only if you anticipate your tax rate to be lower in retirement than during your employment years. Plus, mortgage interest on a principal residence is not tax-deductible in Canada, so the benefit of debt repayment is purely the interest cost avoided.

Factor in time horizon and risk tolerance

If retirement is 15 or more years away and you’re comfortable with market risk, investing may be effective. However, if the time horizon is shorter, or you prefer certainty and lower risk, reducing debt may feel more aligned.

Consider liquidity and flexibility

Funds invested in an RRSP aren’t as easily accessible as cash reserves. If you foresee needing cash for emergencies, make sure you have an emergency fund before allocating everything to RRSPs or debt.

Pay off mortgage and invest in RRSP

Quite often you don’t need an either-or decision. By contributing some money to your RRSP and making some extra payments towards paying down your debt, you can achieve a balanced approach to savings and debt repayment. This balanced path preserves growth and reduces leverage.

Split strategy (recommended for most people)

Choose this balanced approach if your answers to the questions are a mix of yes and no. For example:

• Your mortgage rate is around 4% to 5%
• Medium risk tolerance
• 10 to 20 years to retirement
• Hard to predict future tax bracket

Strategy: Put a portion of available money into RRSPs (to capture tax benefits) and a portion into extra mortgage payments.

Why it matters for retirement

For a homeowner in their 40s or 50s, time is both an asset and a constraint. You’re likely earning peak income, tax brackets may be high, and you still have 15 to 20 years until typical retirement. Choosing to delay RRSP contributions or redirect surplus funds purely to mortgage pay-down could mean missing significant growth and tax-sheltered compounding. "Neglecting your long-term savings in favour of debt repayment may result in sacrificing the quality of your retirement,” explains Golombek (8).

Bottom line

For many Canadian homeowners, the urge to eliminate debt is strong — and for good reason. But it’s vital to check the math and not let emotion lead the decision. Ask yourself: can my investments realistically deliver a higher effective return (after tax) than the interest cost of my debt? If yes — and if you’re comfortable with some risk, have time until retirement, and aren’t weighted by high-interest liabilities then shifting some of your extra dollars toward your RRSP may make more sense than throwing every cent at the mortgage. If the opposite holds, prioritize repayment. And if you don’t want to choose, do both.

In short: paying off debt feels great. Investing may feel riskier. But in the long game of retirement, it’s the disciplined, strategic decision-making that builds real wealth — and the emotional satisfaction of being debt-free doesn’t substitute for decades of missed opportunity.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

CIBC (1, 5, 6); CIBC (2, 3, 4); Edward Jones (7); Jamie Golombek (8)

“This decades-long process of an ever-closer economic relationship between the Canadian and U.S. economies is now over,” Carney recently stated in Ottawa.

As a result, the new American tariff policies are putting pressure on Canadian industries that rely on selling goods to the U.S.

“Our workers in autos, steel and lumber are facing real risks from these tariffs,” Carney said. He explained that the uncertainty is causing Canadian businesses to delay important investments because they no longer know what the rules will be.

In short, the “good old days” of easy trade and steady predictability are over — and they’re not coming back.

“Our relationship with the United States will never be the same as it was, even though, in the new protectionist world, we have the best trade deal of any country,” he added.

Canada isn’t the only country feeling the impact. Because the U.S. is the world’s largest consumer of goods and services, broad tariffs could hurt economies far beyond North America. Carney has even warned (2) that Trump’s sweeping tariffs could “rupture the global economy.”

Changes of this magnitude can feel worrisome, but they aren’t new. The world has faced recessions, trade disputes and financial crises before — and citizens have found ways to adapt. While no one can accurately predict what lies ahead, investors can still create a plan and focus on assets that stay resilient when uncertainty rises.

A time-tested safe haven: Gold

Long regarded as a safe haven, gold isn’t tied to any single country, currency or economy.

During moments of uncertainty, investors around the world often move more of their money into gold. It can’t be printed out of thin air like fiat money and in times of heated geopolitical activity, investors tend to pile in — driving up its value (3).

That pattern has shown up again this year, with gold prices rising 50% over the past 12 months and, according to leading financial market data provider the London Stock Exchange Group (LSEG) (4), is “outpacing leading asset classes.” This marks one of the strongest runs since the late 1970s as investors and even central banks look for protection from inflation, currency swings and global unrest (5).

How to invest in gold

If you decide that gold belongs in your portfolio, there are several ways you can invest in it — each with different costs, risks and benefits.

One of the easiest options is to buy gold-linked exchange-traded funds (ETFs), which let you track the price of gold without needing to physically store the precious metal yourself. ETFs offer low fees, can be held in registered accounts like a Registered Retirement Savings Account (RRSPs) or a Tax-Free Savings Account (TFSAs) and provide quick access to buy or sell whenever you need.

You can also buy physical gold, such as coins or bars, through authorized dealers. This gives you direct gold ownership, though it typically comes with added costs for secure storage and insurance.

Another option is gold-related stocks, including shares of mining companies or producers. These investments may rise and fall with market prices and can be more volatile, since they depend on company performance rather than just gold's value.

Real estate: The asset that made Trump’s family rich

If gold is the go-to hedge for moments of chaos, real estate is the long game — something Trump, who started off as a real estate magnate, understands well.

This asset class is still considered one of the most reliable ways to grow and protect wealth over time. Property values and rental income often rise with inflation, which helps real estate hold its ground when everyday costs are increasing (6).

Real estate doesn’t rely on a strong stock market to deliver returns. Even when markets are shaky, well-chosen properties can continue to generate income, providing steady cash flow. If you’re looking to build resilience into your portfolio, real estate can offer stability — and there are more ways than one to invest in it than owning physical property.

How to invest in real estate

If you’re interested in real estate as part of your investment strategy, you have numerous ways to gain exposure — ranging from direct property ownership to hands-off investment options.

**Real Estate Investment Trusts **(REITs) are companies that own and manage properties like apartments, offices, shopping centres or industrial plazas. When you buy a REIT, you’re purchasing a slice of a diversified property portfolio. REITs trade on stock exchanges, offer regular income via dividends and, like gold, can be held in RRSPs or TFSAs.

Real estate ETFs bundle a group of REITs and real estate companies together into a single fund. This lets you diversify your real estate exposure across many property types and markets with a single investment. Like REITs, ETFs can be easily bought and sold on the stock market and may also provide dividend income.

Real estate stocks allow you to invest in individual companies involved in real estate, or firms that develop, build or manage properties. These stocks may offer growth if the companies perform well, but they carry the risks associated with any individual business.

Direct property ownership is the traditional way to invest in real estate. This means buying rentals properties yourself — such as duplexes or condos — and earning passive income from rent, as well as long-term appreciation on the unit itself. However, this route also comes with hands-on responsibilities like maintenance, taxes and tenant management.

Bottom line

In light of Canada’s relationship breakdown with the U.S., you may be looking to steady your finances in the midst of global uncertainty. Gold can offer protection during periods of volatility, while real estate provides long-term growth with regular, passive income. Together, they give investors practical ways to build resilience when economic conditions — and global relationships — suddenly shift.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Prime Minister of Canada (1); CBC (2); Standard Chartered (3); London Stock Exchange Group (4); Business Insider (5); REALnorth Opportunities Fund (6)

Researchers behind Canada’s Food Price Report 2026 estimate that overall food prices could increase between 4% and 6% next year. Beef prices, in particular, are expected to rise sharply, putting pressure on household budgets and pushing up costs across the meat aisle (1).

“We’re expecting another difficult year due to beef prices and, because people are pivoting towards chicken, chicken prices are also on the rise,” Sylvain Charlebois, director of Dalhousie University’s Agri-Food Analytics Lab and lead author of the report, told CBC News (2). “So that’s why the entire category will actually be more expensive, unfortunately.”

Why meat prices are rising

The report points to tightening beef supply as a major factor behind rising prices. Smaller cattle sizes, ongoing trade pressures and fewer ranchers remaining in the industry have constrained supply — a trend researchers say could last through to 2027, at least.

As consumers shift away from beef toward alternatives like chicken, demand for those products has also increased, pushing prices higher across the entire meat category.

Researchers also warn that pantry staples typically found in the middle aisles of grocery stores — such as canned and packaged goods — could become more expensive after years of relatively stable pricing.

“Typically the centre of the store is a go-to place for people who are seeking harbour from inflation,” Charlebois said. “That’s not going to be the case in 2026.”

Overall, the forecast cites several contributing factors to grocery inflation, including trade disputes, labour challenges, energy and input costs as well as weather-related disruptions affecting food production.

Canadians already feeling the strain

With food prices trending upward for several years, many Canadians say they are already changing how they shop and eat.

Toronto resident Sabra Al-Harthi told CBC News she plans to cut back on meat purchases. “I think I might just cut off the meat a little bit; make it a weekend thing,” she said.

Others say they are sticking to essentials only. “Sometimes I only get something on sale, but I’m only getting, like, milk, eggs, bread — the essentials,” Giacomo LoGiacco told the news outlet. “I work a full-time job in a factory and I’m barely scraping by. I live paycheque to paycheque.”

Food bank demand growing

Rising grocery costs are also driving increased demand for food banks across the country.

Neil Hetherington, CEO of the Daily Bread Food Bank in Toronto, told CBC News his organization now serves about 330,000 clients each month — up from roughly 60,000 before the pandemic.

“We’re not adding more food. What we’re seeing is more clients,” Hetherington said, noting the organization works with about 14,000 volunteers citywide. “The number of clients here in Toronto could fill the Rogers Centre eight times every single month,” he added.

What it means for consumers

While the report does not predict a return to the extreme food inflation seen earlier in the decade, it suggests affordability pressures are unlikely to ease meaningfully in 2026.

For many households, that may mean continued trade-offs at the grocery store — buying less meat, switching brands or relying more heavily on sales and discounted food items.

Even modest price increases can add up quickly, especially for families and seniors on fixed incomes.

With food insecurity rising and meat prices expected to climb further, researchers say grocery affordability will remain a key financial challenge for Canadians in the year ahead.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Dalhousie University (1); CBC News (2)

This peculiar looking doll, which celebrates its 20th anniversary this year, is actually based on a book, wherein the elf “watches” kids for good behaviour leading up to Christmas. Kids believe that the elf reports back to Santa every night about who deserves to be on the naughty or nice lists.

But 2005 wasn’t so nice for the company’s founders. Bloomberg reports that this is when Carol Aebersold and her twin daughters, Chanda Bell and Christa Pitts, created the book The Elf on the Shelf: A Christmas Tradition paired with the doll. Neither publishers nor bankers wanted in.

“When you think about traditional financing models, banks don’t really look at a startup elf company as being investment-worthy,” Pitts tells Bloomberg (1).

The family was determined to get 5,000 copies of the book and toy made. So Bell took on credit card debt, Pitts sold her Pennsylvania home and their parents cashed in their 401(k) — an American equivalent to an RRSP — to make it happen.

Their debt literally paid off. The Elf on the Shelf empire has an estimated net worth of US$100 million, according to Bloomberg. As of January 2025, over 31 million Elf dolls, and their pets — yes, it’s a whole universe — have been sold around the world since their 2005 launch (2).

So how can you take a page from The Elf on the Shelf and use debt to build your own North Pole?

Naughty vs. nice debt

Though debt is generally frowned upon by most personal finance experts, some high-profile money gurus, such as real estate investing mogul Grant Cardone, see it differently. “While it’s true that too much debt can be a bad thing, it can be one of the most powerful tools in a real estate investor’s arsenal,” he wrote in a blog post.

He would know. His private equity firm, Cardone Capital, says that its assets are valued at over US$5 billion (3).

Cardone argues in his blog post that there’s “bad debt” and “good debt.” Bad debt is debt that doesn’t contribute to your future wealth growth, like paying off cars and credit cards. But good debt is “used to purchase assets that appreciate or produce income,” like real estate or investments.

Based on Cardone’s take on debt, The Elf on the Shelf founders accrued good debt when they decided to put their credit score, homes and 401(k)s on the line to create a company. Though not everyone creates a viral Christmas toy, Cardone does believe that good debt is one that attempts to produce income.

That said, you can also incur small debts to produce more income. For instance, you can spend a bit of money trying to start a low-level side hustle and see how far it gets you. The better it does, the more money you can put into it.

Expand your money-making

Now that Elf on the Shelf has proven to be a success, the company put huge efforts into expansion to generate more wealth. On its website, The Lumistella Company — the parent company of Elf on the Shelf and run by Bell and Pitts — reports that it has over 100 licensing deals around the world across numerous categories “from sweet treats and sleep solutions to stage productions and collectible toys (4).”

Grant Cardone generated his wealth in a similar way: He used debt to start out investing in real estate), made his money back and then kept investing.

“Real estate is the best example of good debt because it has the potential to generate both capital appreciation and cash flow,” he says.

But if buying huge amounts of property seems out of reach, you can still get your piece of the fruit cake. One way is to invest your money in a real estate investment trust (REIT).

You can also buy shares of REITs just like you would with stocks. You receive a shareholder dividend from the rents collected on those REIT properties, from commercial and industrial to residential.

If all you want for Christmas is more money, “good” debt may be a way to get you there.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Bloomberg (1); The Hollywood Reporter (2); Cardone Capital (3); Lumistella Company (4)

Florida Governor Ron DeSantis took aim (1) at Ontario Premier Doug Ford this week after Ford said (2) he would not travel to Florida this year and encouraged Canadians to “stay here and support local tourism.”

DeSantis responded by highlighting Florida’s record-breaking tourism numbers and even tossed in a Stanley Cup reference, noting the state hosted 34.4 million visitors in the second quarter alone. “Actually we continue to break tourism records (and win Stanley Cups),” he wrote (3).

But beyond the political sparring, Ford’s comments tapped into something deeper — and more personal — for many Canadians, especially snowbirds who are quietly reassessing long-standing winter travel plans.

When a political message reflects snowbirds’ economic reality

For many Canadian snowbirds, the decision to stay home longer this winter isn’t ideological — it’s financial.

A weaker loonie, higher travel insurance premiums, rising medical costs abroad and ongoing uncertainty around U.S. policy have all changed the math. What sounds like a political statement increasingly mirrors what snowbirds are already doing: shortening stays, delaying departures or choosing Canadian destinations instead.

In that sense, Ford’s message didn’t spark a movement — it reflected one already underway.

Stay strong, snowbirds — Florida feels it when you stay home

Still, there's something to be said about the almost-year-long movement to support Canada after President Donald Trump made his initial statement about Canada becoming the USA's 51st state.

Canadian snowbirds aren’t just winter residents — they are a major economic force in Florida. According to Visit Florida data (4), Canadian visitors to Florida fell by about 20% year over year in the second quarter, following a 16.9% decline in the first quarter. In raw numbers, Florida welcomed roughly 640,000 Canadian visitors in the second quarter — a sharp drop from the same period last year.

The financial impact of fewer snowbirds to the Sunshine State is significant. Some estimates suggest that reduced Canadian travel could cost South Florida alone up to US$90 million in lost revenue, affecting hotels, restaurants, rental properties and service jobs that rely heavily on long-stay snowbirds (4).

Across the U.S., the effect is even larger. Canadian travel to the United States overall is down just over 25%, according to Tourism Economics (5), contributing to a projected C$5.7 billion decline in international visitor spending this year. The U.S. Travel Association has identified fewer Canadian visits as the primary driver of that drop (6).

In other words: When snowbirds adjust their plans, it shows up on balance sheets.

Snowbirds are responding to cost, not conflict

This pullback isn’t driven by hostility toward the U.S. — although a portion can certainly be attributed to a reaction to the hostility Canada has felt from America's President. This pullback is also driven by practical realities facing snowbirds (and all Canadian travellers):

• A weaker Canadian dollar stretching fixed incomes
• Rising U.S. travel insurance and health-care costs
• Higher prices both at home and abroad
• A desire for flexibility in uncertain times

Staying strong doesn’t mean giving up winter travel altogether. It means adapting — sometimes year by year.

Canada is capturing those dollars instead

While fewer Canadians are heading south, they’re still travelling. In the same quarter Florida highlighted record tourism, Canadians spent C$20 billion travelling within Canada, compared with C$8.1 billion abroad, according to Statistics Canada — a 28.4% increase in foreign travel spending, but still heavily weighted toward domestic trips (6).

That domestic spending supports Canadian jobs, small businesses and tourism-dependent communities — especially during the winter months when many regions need it most.

Not a boycott — a recalibration

Ford was clear that Canadians remain free to travel where they choose and that Canadians “love our American friends.” His comments weren’t a call for confrontation — they were a recognition that economic choices matter (8).

For snowbirds weighing sun against savings, tradition against flexibility, the message isn’t guilt — it’s validation.

The overall theme: Stay strong, snowbirds. Adjusting your plans isn’t turning your back on anyone. It’s responding to economic reality — and reinforcing Canada’s economic resilience at the same time.

— with files from Mike Crisolago

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

The Toronto Sun (1); National Post (2); X (3); Visit Florida (4);

Florida Commerce (4); Travel and Tour World (6); CBS News (7); Tourism Economics (8); U.S. Congress Joint Economic Committee Minority (9); U.S. Travel Association (10); Statistics Canada (11)

In a 2024 study, the Vanier Institute reported that as of 2021, nearly half (45.8%) of Canadians aged 20 to 29 were living with at least one parent, up from 32.1% a decade earlier (1). Broader age ranges revealed a similar trend, with 35.1% of young adults aged 20 to 34 living with one of their parents. The highest of these numbers resided in Ontario (41.9%) and Nunavut (43.7%) (2).

Canadian researchers and housing experts say the country’s housing affordability crisis has been a significant hurdle to adult children leaving their childhood home to live on their own. Young adults between 20 and 35 report high levels of worry about housing costs, with almost 60% saying rising rent and home prices make it harder for them to strike out and form an independent household (3).

With these data points in mind, imagine this hypotehtical scenario. You're 29-year-old son is living with you, and asking him for $650 in monthly rent is offering him a great deal he shouldn’t refuse. You’re taking on more than just caring for his financial security — you’re also focusing on building a solid retirement fund for your own long-term security.

If your son refuses to financially contribute to the household, it’s time to have a serious conversation to set some boundaries and expectations.

The problem with supporting adult children

A 2024 TD Bank Group survey found that 57% of parents expect to financially support their adult children, with many doing so due to rising cost of living and housing affordability (4).

Similarly, a survey from BMO shows that nearly half (45%) of parents and grandparents plan to provide financial support for their adult children or grandchildren in the next year (5).

To be fair, the economy is tough on everyone, and young adults are no exception. Rising prices have made covering the costs for daily living and housing increasingly challenging. In the spring of 2024, over half (56%) of those aged 15 to 34 reported feeling “very concerned” about housing affordability due to an inflated economy (6).

Based on these stats, it’s understandable that adults in their 20s and 30s might need to live at home while they get on their feet. But the longer you provide financial support to them, the less money you can invest into your retirement savings, ultimately delaying your own long-term goals like having enough money to support yourself in your sunset years.

If financially supporting your children is hindering your ability to save, it’s time to break the cycle.

Setting boundaries and expectations

You may be reluctant to start a conversation with your adult kids about financial responsibility, and you aren’t alone. A 2025 RBC poll found over half (53%) of Canadian parents are fearful about their children’s financial future (7).

Furthermore, 71% say this added layer of stress, combined with concerns about their own finances, is taking a toll on their well-being. And yet a large share still delay having the conversation with their children until the “right moment” comes, or their child raises the topic. Money matters can be a touchy subject within families, even when both parents and children share similar concerns about their financial well-being.

That said, the sooner you have open discussions about money, the better. In fact, you’ll do your adult children a favour by replacing their reliance on you with financial confidence and independence.

First, know their numbers, like how much they earn against their own expenses such as vehicle costs or student loan repayments. Use this information to establish ground rules on how much you expect them to pitch in to live under your roof. Make the connection between how their presence at home translates to higher utility bills and grocery costs.

Then talk about your own financial situation and goals, whether that’s setting aside savings or retiring with enough money to support your own independent living. Explaining that you need your son’s $650 monthly contribution to bump up your Registered Retirement Savings Plan (RRSP) or Tax-Free Savings Account (TFSA) to help see you through retirement might resonate.

Ask your adult children about their own goals. You may even want to work on a budget together or connect them with a financial adviser.

Bottom line

Canadian parents aren’t alone in feeling financially stretched as more adult children stay or return to their family home due to housing costs and financial pressure. But indefinitely supporting grown kids can put your own long-term security or retirement at risk.

Set clear expectations, discuss shared household expenses and offer to help your child build necessary financial skills to ease the strain on the both of you. Ultimately, prioritizing your own goals while encouraging their independence benefits the entire household.

—With files from Melanie Huddart

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Vanier Institute (1); Statistics Canada (2), (3), (6); TD Stories (4); BMO (5); RBC (7)

Last New Year, Narrative Research conducted a survey that found nearly half of Canadians had made resolutions for 2025, with six in 10 respondents saying their resolution was related to their finances (1). Other common areas of resolution were health, relationships and hobbies.

Even if your New Year’s resolutions aren’t specifically related to your personal finances, you can still find ways to set common New Year’s goals that are money-conscious and avoid spending on things you really don’t need to.

Deep clean your home

What’s more refreshing than a clean home? To start the year off right, spend time cleaning and clearing your space. Not only is this good for your home — allowing air to circulate and more efficiently heat and cool your home — it can translate to a clean mental slate, which helps you establish clear intentions and goals for 2026.

Aside from the essential scrubbing and de-cluttering, clearing out your closets of old clothes, shoes and other miscellaneous items can help you take stock of what you already own.

This is a good thing to keep in mind if you’re the kind of person who gets the itch to spruce up your wardrobe at the start of the year. By doing a deep clean, you are fully aware of what you already have/ don’t need to spend money on, and might even find some pre-loved items to donate to a good cause or re-purpose to suit who you are now.

Re-assess your budget

If your budget no longer suits your financial situation and goals, you’ll be able to tell sooner rather than later if you spend the time reviewing and assessing your spending (vs earnings).

The key is to be realistic and to determine if there are areas that could or should be adjusted.

For instance, maybe you need to cancel that streaming service that doesn’t even have your favourite show anymore and costs you $30 per month, or set aside more cash per month in a savings account to work towards the car you’ve been wanting to buy now that you got that pay bump.

You can use a budgeting app to set up your budget and track your finances so you remain organized throughout the year.

Research free services and activities

If you’re hoping to find a new hobby, meet like-minded people or expand your mind in 2026, it is possible to do it for free.

As the new year approaches make a list of things you’re interested in pursuing and research any free options available to you where you live.

One of the most reliable free services are public libraries, which offer far more than just books. Not only is signing up for a library card a great idea if you’re trying to read more this year, but they also offer workshops and activities that can help you learn a new skill or even meet new people.

Community centres, independent bookstores and volunteer organizations are other great places to seek out. Make a list of what types of activities and services are free in your community, and use them as a chance to try something new without forking over a chunk of your paycheque.

Open a savings account and set a goal

Having a financial goal ready for the new year can be a huge motivator, whether it’s a more long term goal like buying a house or retiring early, or a short term goal like taking a European vacation with your partner. Take some time to determine how much you need to save to reach that goal and then choose the savings account best suited to it. If you're thinking more short term, a TFSA could be a good option. Whereas if you're primary goal is to save for retirement, an RRSP could be better suited.

Get on a volunteer list

Volunteering, especially for a cause you are passionate about, can be extremely rewarding. Look into volunteer opportunities in your community that suit your personal schedule and passions and apply.

Volunteering is a great way to meet new people, give back to your community and even gather some perspective, especially when it comes to your own day to day life and finances.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Narrative Research (1)

This is a common wake-up call for Canadians approaching retirement. Government benefits provide a foundation, but they rarely replace enough income to maintain the lifestyle most people want or expect in retirement. This, despite how out-of-favour the Registered Retirement Savings Plan (RRSP) has become among working Canadians. For some, the RRSP is either outdated or too complicated or only useful for high-income earners, but the opposite is true. A well-planned RRSP can be the tool that fills the gap between what government programs provide and what you’ll actually need to live securely and comfortably in retirement.

Here's how an RRSP continues to be one of the most effective ways to save for a quality retirement.

Calculate the retirement income you’ll actually need

Start by estimating your monthly expenses in retirement — housing, food, utilities, transportation, medical costs and discretionary spending. Then compare this total to your projected CPP and OAS income. The difference is the amount your personal savings, including your RRSP, must cover.

Reduce taxes today with RRSP contributions

RRSP contributions lower your taxable income, which can leave more money in your pocket each year. Use available contribution room strategically — especially in high-earning years — to maximize the tax benefit.

Invest for long-term growth

Keep your RRSP invested. The tax-deferred structure allows your investments to compound faster than they would in a taxable account. Whether you prefer low-cost index funds, balanced portfolios or more active strategies, consistency is key.

Plan your withdrawals wisely

When you convert your RRSP to a RRIF, you control how and when to draw income. Coordinating RRIF withdrawals with CPP, OAS and other savings can help you reduce taxes and stretch your income through retirement.

Ignore myths that discourage smart planning

RRSPs aren’t just for high-income earners. They aren’t outdated. And they aren’t inferior to TFSAs — they simply serve a different purpose. When used properly, the RRSP remains one of the strongest tools Canadians have for funding retirement.

Using these steps, you can build a retirement plan that doesn’t rely solely on government benefits — and offers the financial security and lifestyle you’re aiming for.

Bottom line

CPP and OAS alone won’t fund the retirement most Canadians expect — but an RRSP can. By calculating what you’ll truly need, contributing consistently, investing for growth and planning withdrawals strategically, you can turn your RRSP into a reliable source of income that fills the gap and protects your standard of living for decades to come.

If your money is sitting still, it may already be losing ground.

Learning how to invest isn’t about chasing hot stocks or becoming a day trader. It’s about protecting your future — and giving your money a fighting chance to keep up with the cost of living.

The good news? You don’t need a finance degree, a six-figure portfolio or perfect timing to become a smart investor.

Why investing matters more than ever

Keeping money in cash can feel comforting. High-interest savings accounts are guaranteed, predictable and easy to understand. But they come with a hidden cost: inflation. Canada’s inflation rate averaged 3.9% in 2023 and remained above the Bank of Canada’s 2% target for much of 2024, eroding purchasing power for households across the country (1).

By contrast, Canadian equities have historically delivered long-term returns that outpace inflation. The S&P/TSX Composite Index has returned roughly 9% annually over the past 30 years, including dividends (2).

That gap matters. Money that grows faster than inflation builds real wealth. Money that doesn’t — shrinks. As investing author Andrew Hallam has long argued, the biggest risk for most Canadians isn’t market volatility. It’s doing nothing.

When should you start investing?

The best time to invest was years ago. The second-best time is today. Why? Compounding.

Compounding is what happens when your returns start earning returns of their own. Even modest contributions can snowball over time. According to Vanguard Canada, an investor who puts away $500 a month earning 6% annually could accumulate more than $500,000 in 30 years — without increasing contributions (3).

Time does more of the heavy lifting than talent, timing or luck.

What should Canadians invest in?

There are many investment options, but most smart, long-term investors stick to a few core building blocks:

• Stocks — ownership in companies, offering growth and dividends but higher short-term volatility
• Bond — loans to governments or corporations that provide income and stability
• Funds — baskets of stocks and/or bonds that reduce risk through diversification

For most Canadians, the simplest and most effective option is low-cost index investing, typically through exchange-traded funds (ETFs). ETFs track entire markets instead of trying to beat them — and they do it cheaply.

Active vs. passive investing: The fee problem

Canada has some of the highest investment fees in the world. The average actively managed mutual fund in Canada still charges around 1.8% to 2.2% annually, according to Morningstar (4).

That may not sound like much — until you realize fees compound in reverse. Morningstar estimates that a 2% annual fee can eat up nearly 40% of an investor’s lifetime returns. Low-cost ETFs, by contrast, often charge 0.05% to 0.25%, leaving more of your money working for you.

The couch potato approach

The couch potato strategy is one of the most proven — and least stressful — ways for Canadians to invest over the long term. It’s built on a simple idea: you don’t need to beat the market to succeed; you just need to capture market returns at the lowest possible cost. And more than likely it's converted more investors to the passive investing approach to building wealth than most other strategies.

The aim of the Couch Potato approach (and any passive investing strategy) it not to predict which stocks will soar or when markets will fall; instead, the couch potato investor owns a little bit of everything and stays invested through good times and bad.

The couch potato approach aims to:

• Beat inflation over time
• Reduce risk through diversification
• Minimize fees
• Remove emotion from investing decisions

It accepts a key truth backed by decades of research: most investors — including professionals — fail to consistently outperform the market after fees.

The classic “couch potato” strategy still works — but it’s even simpler now. Instead of juggling multiple funds, many Canadians now use all-in-one asset allocation ETFs, such as:

• VEQT / XEQT — 100% equities
• VGRO / XGRO — growth-oriented (80% stocks, 20% bonds)
• VBAL / XBAL — balanced (60% stocks, 40% bonds)

These funds automatically diversify across Canada, the U.S. and global markets — and rebalance themselves (5). For hands-off investors, this is about as simple as investing gets.

How much money do you need to start?

Less than you think. Much less. Many online brokerages let you open an account with as little as $100 — and some, like Wealthsimple, only require $1 to fund and activate a trading account. According to Wealthsimple, nearly half of its Canadian users started investing with less than $1,000 (6).

Consistency matters far more than starting size.

Robo-advisors vs. DIY investing

For investors interested in getting started but uncomfortable with the idea of consistent, principles-based investing, consider starting using a robo-advisor account. Robo-advisor portfolios are constructed using an investment methodology, with trades executed automatically using that philosophy.

Robo-advisors remain a strong option for Canadians who want structure and discipline, since they do the following:

• Build diversified ETF portfolios
• Automatically rebalance
• Encourage steady contributions
• Remove emotional decision-making

Robo-advisors helps reduce or eliminate behavioural mistakes — panic selling, market timing and abandoning plans. Given that these reasons remain the biggest reason DIY investors underperform (7), this makes robo-advisors a strong tool in the toolkit of a smart investor. It also means that for many Canadians, paying a small management fee is worth it in order to avoid costly investing mistakes.

The good news is many robo-advisors have no minimum investment, and most discount brokerages allow ETF purchases with just the price of one unit — often under $50.

How to get started investing — without overthinking it

If you want maximum simplicity:

• Open a robo-advisor account
• Set up automatic contributions
• Choose a risk level you can stick with

If you want more control:

• Open a discount brokerage account
• Buy one diversified ETF
• Invest regularly and rebalance occasionally

Either path beats sitting on the sidelines.

Bottom line

You don’t need perfect timing, insider knowledge or a large balance to become a smart investor. You need:

• Time
• Low costs
• Discipline
• A plan you can live with

Inflation isn’t waiting — and neither should you.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Statistics Canada (1); TMX / RBC Capital Markets (2); Vanguard Canada (3); Morningstar Canada (4); Vanguard Canada (5); Wealthsimple (6); Dalbar Quantitative Analysis of Investor Behavior (7)

Imagine Joan, a 73-year-old widow who lives in a $1.5-million house and has roughly $1 million saved. Joan recently started working on her will, and wants to leave her entire estate to her son, Roger. But there’s a catch: Joan wants to exclude her daughter-in-law’s entitlement to anything she leaves to Roger.

In fact, Joan would like to ensure that Roger’s wife never gets her hands on this money — even if she ends up outliving Roger. Joan never got along with her daughter-in-law and would feel a lot better if she knew Roger’s wife would never get a cut of the cash.

According to a 2022 study, situations like Joan’s are fairly common: As many as 15% of men and 60% of women reported having more conflict with their mothers-in-law than with their own mothers (1). These uncomfortable situations can make estate planning much more difficult — but that doesn’t mean Joan can’t have her final wishes met.

The drawbacks of a will

For most people, having a will is the best way to determine how their money and property will be distributed among their heirs. But research shows that many people over the age of 55 still don't have a will. A 2024 survey from Narrative Research found that only 43% of Canadians have a last will and testament (2).

Having a will is a solid way to leave money and property to your children, but in Canada, it's not the only way to protect who inherits your assets. For example, if Roger inherits his mother’s estate and holds the assets solely in his name — separate from marital property — those assets are generally protected under provincial family-property laws, even if Roger and his wife divorce (3). However, if Roger were to mix his inheritance with his marital assets — depositing funds into a joint bank account he shares with his wife, or using inherited money to make improvements to a shared home — those funds may be considered marital property and be subject to division between Roger and his wife if they were to split up (4).

Additionally, Roger has the freedom to leave any assets he inherits from his mother, Joan, to whomever he chooses — including his wife. So, if he were to die first, his wife could potentially inherit everything, depending on how Roger structures his own estate plan.

While Joan likely won’t be pleased with these potential outcomes, there’s an option available to her or anyone else looking to leave a sizable estate behind after death: Allocate the estate assets in a trust.

Why it’s beneficial to put your estate in a trust

One of the most effective ways to protect your legacy is to leave your estate in a trust. A trust can legally protect your money and property while ensuring assets are distributed according to your wishes. With a trust, you appoint a trustee — someone who manages the assets on behalf of the beneficiaries.

Here are several types of trusts that can help you protect your estate:

• Living trust (inter vivos trust): A living trust (inter vivos trust) takes effect while you’re alive. In Canada, many living trusts are revocable, meaning they can be amended or cancelled, but this flexibility generally limits any asset-protection benefits. Living trusts involve ongoing administrative responsibilities, including annual trust tax filings. Depending on how the trust is structured, income earned in the trust may be taxed at the trust level or attributed back to you under Canada Revenue Agency (CRA) rules, which can increase complexity and costs (5).
• Irrevocable trust (irrevocable inter vivos trust): This type of trust may be used in Canada for long-term estate or asset-planning purposes, including probate planning and, in some cases, asset protection. Because the assets are no longer legally owned by you once transferred to the trust, they may be insulated from certain creditor or family-law claims if the trust is properly structured and established well in advance of any dispute. However, irrevocable inter vivos trusts are subject to complex tax and reporting rules, are generally taxed at the highest marginal rate on retained income, and can involve significant setup and ongoing administration costs (6).
• Henson Trust: A Henson Trust is a type of discretionary trust commonly used in Canada when a beneficiary has a disability. It is designed to provide financial support after your death while preserving the beneficiary’s eligibility for means-tested government benefits, such as the Ontario Disability Support Program (ODSP) (7). With a Henson Trust, the trustee has absolute discretion over whether, when and how much income or capital is distributed to the beneficiary, which is key to maintaining benefit eligibility (8).
• Discretionary trust: This option is commonly used in Canada when leaving an inheritance to a beneficiary who may have difficulty managing money. The trustee has discretion over whether, when and how much income or capital is distributed to the beneficiary, in accordance with the terms of the trust. A discretionary trust may be appropriate for beneficiaries with substance-use issues, gambling problems or compulsive spending habits, as it allows assets to be protected while still providing financial support (9).
• Testamentary trust: A testamentary trust is created through your will and takes effect only after your death. You maintain control over your assets during your lifetime and can change the will terms at any time before you die (it is generally created within a will). This type of trust allows you to define detailed rules for how your estate should be used — whether you want to provide an allowance, set age-based distributions or specify approved uses such as education or buying a home (10).

If your situation is similar to Joan’s, a trust can give you precise control over when and how your estate is used. Because beneficiaries don’t have a guaranteed right to the assets, the trust also helps protect the inheritance from misuse, creditors or other risks.

Bottom line

If you’re like Joan, and want your estate to stay with your children and not their spouses, a simple will might not give you the control you seek. Using the right kind of trust lets you set clear rules over how the money can be used — and helps protect the inheritance from relationship breakdown, poor money management or unexpected life events. To ensure your wishes are legally enforceable, it’s worth working with an estate lawyer to draw up a trust that best protects your legacy.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

BBC (1); Narrative Research (2); Alves Law (3); Onyx Law Group (4); RBC Wealth Management (5); Strategic Wealth Protection (6); Planning Network (7); Cox & Palmer (8); Cidel (9); National Bank (10)

Amid this crisis the adult children stepped in to take care of their parents’ money. They thought they took the right steps. They contacted their dad’s bank to cancel his credit card and issue a new one with a completely new number. They assumed this would be enough to stop any recurring payments like subscriptions linked to the old card.

But when the first statement for the new card arrived, they discovered charges from Amazon (and other subscription services) were still somehow showing up. The recurring payments were appearing as fresh charges even though the original card had been cancelled and replaced.

The anecdote above is a fictionalized account, but it represents an increasingly relevant issue as more and more Canadians become caregivers for their aging parents.

Why cancelling a card doesn’t always stop recurring charges

According to the Financial Consumer Agency of Canada (1), cutting a card or letting it expire doesn’t actually cancel the underlying account. You have to contact the credit card company directly and request that the account be closed. Make sure you ask for confirmation in writing that the company has closed your account. Once you receive this confirmation, destroy the card and keep the confirmation for your records. Even after you do all that, some transactions might keep appearing, especially recurring payments you approved before closing the account.

The reason subscriptions continue after a card is cancelled is related to something called “card updater” services. These are programs offered by credit card companies such as Visa and Mastercard that automatically update merchants with your new card number when a replacement is issued. This is a feature rather than a bug. It ensures subscriptions continue uninterrupted in the event that a card expires.

What this means for those caring for aging relatives

Canadians are bombarded with automatic repayment schemes. It’s very easy to lose track of what payments you make on a regular basis and how to cancel unwanted subscriptions. It’s even more daunting for aging Canadians whose mental faculties may be declining or who are less tech savvy than the rest of the population. This issue can cause real financial harm.

As an increasing number of Canadians care for aging relatives, they are also squeezed for time. Often they are still caring for their own children. They may assume that cancelling a card is a quick fix and that it will stop all unwanted charges. The reality is otherwise.

What you should do if caring for a relative’s money (and what you’re responsible for)

Step 1: First make a list of all recurring payments

You should start by reviewing past statements and identifying all recurring charges. That includes all streaming services, shopping memberships and digital subscriptions. Then make a list of which subscriptions are connected to which card.

Step 2: Cancel each recurring payment manually

It’s best to contact each merchant directly to cancel the subscription. For example, if you subscribe to Netflix or The Globe and Mail, then reach out to those companies directly to cancel.

Step 3: Keep the proof that you cancelled the subscription

Whenever you contact a merchant, make sure you ask for proof of the cancellation for your records. This could be an email, a screenshot or a letter.

Step 4: Watch statements like a hawk

Even after you cancel a card or get a new one, keep a close eye on your statements. Charges can slip through. If you notice something suspicious, contact the card company straight away and dispute the charge. And finally, keep a spreadsheet of all the subscriptions you actually want to keep. List the renewal dates and annual costs, too.

For families juggling caregiving, household finances and countless other priorities competing for their attention, surprise charges like these are just one more stressor in an already harried modern life. But this isn’t an inevitable outcome of managing someone else’s finances. With a willingness to dig into the details, you can regain control and ensure your loved ones’ finances are in the best shape possible.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Governent of Canada (1)

The best part? This isn't some far-fetched fantasy. Retiring in South America is more accessible than you might think, with several countries actively welcoming retirees with special visas and incentives.

Whether you're drawn to the colonial charm of Ecuador, the cosmopolitan buzz of Buenos Aires or some beachfront town in Uruguay that feels like it's straight out of a postcard, there's a South American retirement spot waiting for you.

So if you're ready to trade snowstorms for salsa dancing and stretch your retirement savings further than you ever imagined, this guide's for you.

Methodology

You may be wondering how we narrowed down an entire continent to this list. We looked at cost of living, residency visa options, healthcare quality, language barriers and overall lifestyle factors like climate, safety and expat community support.

Basically, the stuff that actually matters when you're planning to spend your retirement years somewhere.

1. Ecuador

Why it's great for retirees

Ecuador has consistently ranked as one of the most popular retirement destinations in South America, and honestly, it's not hard to see why. The cost of living is incredibly affordable, the weather in cities like Cuenca and Quito is spring-like year-round and the country has built an entire infrastructure around welcoming foreign retirees.

Cuenca, in particular, has become a magnet for North American retirees. This colonial city sits high in the Andes with a perfect climate that hovers around 15 to 20°C year-round. You'll find cobblestone streets, stunning architecture and a thriving expat community that makes settling in much easier. Cuenca even has an international airport with direct flights to major U.S. cities.

The coastal city of Salinas offers a completely different vibe if you prefer beach living. Warm weather, ocean views and a relaxed pace of life make it popular with retirees who want that tropical retirement dream without breaking the bank.

Cost of living: Ecuador is about 40 to 50% cheaper than major Canadian cities. A couple can live comfortably on $1,500 to $2,000 per month, including rent.

Language tip: Spanish is the primary language, but many locals in expat-heavy areas speak at least some English. Learning basic Spanish will definitely enhance your experience.

Visa options: Ecuador's pensioner visa is one of the easiest in South America. You need to show a minimum monthly income of just US$1,350 — or about C$1,850 — from a pension or retirement account.

2. Colombia

Why it's great for retirees

Colombia has completely transformed over the past two decades and is now one of South America's most welcoming countries for retirees. Cities like Medellín have earned the nickname "City of Eternal Spring" thanks to perfect weather that hovers around 22 to 28°C year-round.

In fact, Medellín has become incredibly popular with expats and retirees. The city has modern infrastructure, excellent healthcare (some of the best in Latin America actually), a vibrant cultural scene and costs that are still very reasonable. The Metro system is clean and efficient, and neighbourhoods like El Poblado offer that cosmopolitan feel with great restaurants, cafés and shopping.

If you prefer coastal living, Cartagena offers that stunning Caribbean beach ambience with colonial architecture that'll take your breath away. However, it gets hot and humid there, which may not be everyone's cup of tea.

Cost of living: Rent and daily expenses are roughly 50 to 60% lower than in Canada. A comfortable retirement lifestyle runs about C$1,500 to C$2,500 per month for a couple.

Healthcare: Colombia's healthcare system ranks highly in Latin America, with excellent private hospitals and English-speaking doctors in major cities. Private health insurance is affordable and comprehensive.

Visa options: Colombia offers a pensioner visa that requires proof of a monthly pension or retirement income of at least US$2,500, about C$3,400. There's also a retirement visa option with lower income requirements.

3. Uruguay

Why it's great for retirees

Uruguay is South America's hidden gem for retirees who want European sophistication at South American prices. Often called the "Switzerland of South America," Uruguay boasts political stability, low crime rates, excellent healthcare and a progressive, welcoming attitude toward foreigners.

Montevideo, the nation's capital, offers a big-city feel with a stunning waterfront, great restaurants and cultural amenities. But many retirees gravitate toward smaller coastal towns like Punta del Este, Colonia del Sacramento or Atlántida where life moves at a slower, more relaxed pace.

Uruguay has the highest standard of living in South America, with clean streets, reliable infrastructure and a strong middle class. The beaches along the Atlantic coast are stunning, and the climate is temperate with four distinct seasons, though winters are mild compared to Canada.

Cost of living: Uruguay is more expensive than Ecuador or Colombia, but still 30 to 40% cheaper than major Canadian cities. Budget C$2,500 to C$3,500 per month for a comfortable retirement.

Bonus: Uruguay has excellent public healthcare that's free or low-cost for residents, plus affordable private healthcare options.

Language: Spanish is the primary language, though English is more common in tourist areas and among younger generations. Learning Spanish will definitely help with integration.

Visa options: Uruguay offers a straightforward retirement visa with proof of pension income of about US$1,500 per month, or around around C$2,000. The process is relatively simple compared to other countries.

4. Argentina

Why it's great for retirees

Argentina offers that intoxicating mix of European elegance and Latin passion that you won't find anywhere else on the continent. Buenos Aires feels like Paris or Madrid but at a fraction of the cost, with world-class restaurants, tango dancing, incredible wine country and some of the best steaks you'll ever taste.

The cost of living in Argentina has historically been affordable for foreigners thanks to currency fluctuations. While economic volatility can be a concern, it also means your Canadian dollars stretch remarkably far. Many retirees find they can live quite comfortably on a modest pension.

Beyond Buenos Aires, regions like Mendoza, wine country, Córdoba with its mountains and lakes, and Patagonia with its stunning natural beauty offer completely different retirement experiences. The climate varies dramatically depending on where you settle, so you can choose everything from subtropical in the north to temperate in the south.

Cost of living: Thanks to currency issues, Argentina can be incredibly affordable. Many retirees live comfortably on C$1,500 to C$2,500 per month, especially outside Buenos Aires.

Healthcare: Argentina has good public healthcare for residents, and private healthcare is excellent and affordable, particularly in Buenos Aires.

Language: Spanish is essential. English is spoken in tourist areas but not widely outside major cities.

Visa options: Argentina's pensioner visa requires proof of a monthly income of around US$2,000, approximately C$2,700, from a pension. The bureaucracy can be challenging, so many retirees hire a lawyer to help navigate the process.

5. Chile

Why it's great for retirees

Chile is often considered the most developed and stable country in South America, with a strong economy, modern infrastructure and spectacular natural diversity. From the Atacama Desert in the north to the glaciers of Patagonia in the south, Chile offers nearly every climate and landscape imaginable.

Santiago, the capital, is a modern, cosmopolitan city with excellent healthcare, shopping, restaurants and cultural amenities. The city sits in a valley surrounded by the Andes, offering stunning views and easy access to world-class ski resorts and wine regions.

For coastal living, Viña del Mar and Valparaíso offer ocean views, cooler temperatures and a more relaxed pace. The climate is Mediterranean-style, similar to California, with warm, dry summers and mild, wet winters.

Cost of living: Chile is more expensive than most South American countries but still 20 to 30% cheaper than Canada. Budget C$2,000 to C$3,500 per month for a comfortable lifestyle in Santiago.

Healthcare: Chile has excellent private healthcare with modern facilities and well-trained, often bilingual doctors. Public healthcare is available but private insurance is recommended.

Language: Spanish is the primary language. English is more common in Santiago's business districts but is still not widely spoken.

Visa options: Chile offers a temporary residency visa for retirees who can show proof of income of about US$1,500 per month, or around C$2,000. After holding temporary residency for one year, you can apply for permanent residency.

6. Peru

Why it's great for retirees

Peru combines ancient history, stunning natural beauty and incredibly affordable living costs. While Lima is the bustling capital with modern amenities, many retirees are drawn to cities like Cusco, Arequipa or the beach towns along the northern coast.

The cost of living in Peru is among the lowest in South America, making it ideal for retirees on a tight budget who still want adventure and culture. You're living in the land of Machu Picchu, the Amazon rainforest and some of the world's best cuisine. Peruvian food is seriously underrated, by the way.

The climate varies dramatically by region. Coastal areas are mild and dry, mountain cities like Cusco have cool temperatures year-round, and the Amazon region is hot and humid. You can literally choose your climate.

Cost of living: Peru is incredibly affordable. Many retirees live comfortably on C$1,000 to C$1,800 per month, including rent.

Healthcare: Lima has good private hospitals with English-speaking doctors. Healthcare in smaller cities is more basic but still adequate for routine care. Private health insurance is very affordable.

Language: Spanish is essential for daily life. English is spoken in tourist areas but rarely elsewhere.

Visa options: Peru's retirement visa requires proof of a monthly income of at least US$1,000, about C$1,350, from a pension or retirement account, making it one of the most accessible in South America.

7. Brazil

Why it's great for retirees

Brazil is South America's largest country and offers incredible diversity in climate, culture and lifestyle. From the beaches of Rio de Janeiro to the European-influenced cities of the south like Florianópolis and Curitiba, Brazil has something for every type of retiree.

The cost of living varies dramatically by region, with the southern cities generally being more expensive but also more developed and safe. The northeast coast offers stunning beaches and lower costs but less infrastructure. Rio and São Paulo are expensive by Brazilian standards but still cheaper than major Canadian cities.

Brazilian culture is vibrant, welcoming and focused on enjoying life. The food is delicious, the music is infectious and Brazilians are known for their warmth and friendliness toward foreigners.

Cost of living: Varies widely by location. In mid-sized cities, you can live comfortably on C$1,500 to C$2,500 per month. Rio and São Paulo require C$2,500 to C$4,000 per month for a comparable lifestyle.

Healthcare: Brazil has good public healthcare that's free for residents, though quality varies. Private healthcare is excellent in major cities and very affordable compared to North American standards.

Language: Portuguese, not Spanish, is the official language. English is not widely spoken outside tourist areas, making language skills more important compared to other South American countries.

Visa options: Brazil's retirement visa requires proof of a monthly pension of at least US$2,000, about C$2,700. The bureaucracy can be challenging, so hiring a local attorney to help with the process is recommended.

8. Paraguay

Why it's great for retirees

Paraguay is South America's most under-the-radar retirement destination, and that's exactly why some retirees love it. This landlocked country offers an incredibly low cost of living, friendly locals, simple residency requirements and a slower pace of life that appeals to those who want to truly disconnect.

Asunción, the capital, is a modern city with shopping malls, restaurants and basic amenities. But the real appeal of Paraguay is the small-town living in places like Encarnación or the German Mennonite colonies that offer a completely different cultural experience.

The climate is subtropical with hot, humid summers and mild winters. It's not for everyone, but if you're looking for adventure off the beaten path, Paraguay delivers.

Cost of living: Paraguay has one of the lowest costs of living in South America. Many retirees live comfortably on C$1,000 to C$1,500 per month, including rent.

Healthcare: Basic but improving. Asunción has private hospitals with decent care, but serious medical issues may require travel to Argentina or Brazil.

Language: Spanish and Guaraní are both official languages. English is rarely spoken outside expat circles.

Visa options: Paraguay has one of the easiest residency programs in South America. A simple temporary residency can be obtained with about US$5,000, or about C$6,800, deposited in a local bank, making it accessible for most retirees.

FAQs

What is the cheapest country to retire in South America?

Peru, Ecuador and Paraguay offer the lowest costs, with couples living comfortably on $1,000 to $2,000 per month including rent, food and healthcare. Ecuador edges ahead slightly with better infrastructure and more established expat communities, making daily life easier for newcomers.

What is the easiest country to move to in South America?

Ecuador and Peru have the most straightforward retirement visa programs for Canadians. Both require modest pension income proof, around C$1,000 to C$1,850 monthly, and offer relatively simple application processes compared to other countries.

Where is the best South American country to live?

This depends entirely on your priorities. Uruguay offers the highest overall quality of life and safety but costs more. Ecuador provides the best balance of affordability, healthcare quality and ease of integration. Colombia, particularly Medellín, is rapidly becoming a favourite for retirees seeking modern amenities, perfect weather and excellent healthcare.

Lenders, landlords and even some employers use credit information to gauge reliability. Errors happen, identity theft is on the rise and a small issue left unchecked can snowball into higher interest rates or a rejected application. That is why staying on top of your credit report and score is no longer a nice-to-have but a basic financial safeguard.

The good news is that Canadians have more free options than ever to monitor their credit. According to the Financial Consumer Agency of Canada every Canadian has the legal right to access their credit report at for free through Equifax Canada or TransUnion Canada. Both Equifax and Transunion provide updated monthly credit reports, but to access your credit score you'll probably end up having to pay out of pocket (unless you live in Quebec).

But this doesn't mean you can't access your credit report and your credit score for free. Your credit history and score are widely available through banks and fintech apps. But why should you care? Because checking your credit score is one of the simplest ways to protect your finances and avoid surprises.

Why you should check your credit score, regularly

Lenders use it to decide your interest rate

Your credit score influences whether you get approved for a mortgage, car loan or credit card and what you will pay in interest. A strong score can save you thousands over time. A weak one can shut doors.

It helps you catch mistakes early

Credit reports are not perfect. Accounts can be misreported, payments can be marked late by error and balances can show up wrong. Checking regularly lets you correct issues before they damage your score.

It protects you from identity theft

If someone opens an account in your name, your credit file is often the first place it shows up. Monitoring gives you an early warning and helps you act fast.

It shows how lenders see you

Your score is a snapshot of your financial habits. Seeing it helps you understand whether you look like a low-risk or high-risk borrower and what you need to improve.

It gives you leverage when shopping for credit

Knowing your score before applying for a loan or negotiating terms gives you confidence and prevents high-pressure surprises at the bank or dealership.

It helps you track progress toward financial goals

If you are working to rebuild credit, reduce debt or prepare for a major purchase, watching your score move month to month shows whether your efforts are paying off.

Since your credit score affects major parts of your financial life then checking it regularly is critical — and not paying for it is key. To help, here's a list of major banks and fintech firms that offer free credit tools.

RBC

Several big banks now provide credit-score dashboards at no extra charge. For instance, RBC clients with online banking can use TransUnion’s CreditView Dashboard for free. RBC uses a soft inquiry, so your score is not affected. The service includes a simulator that shows how different actions may change your score.

Scotiabank

Scotiabank customers can view their TransUnion score, their monthly score history and a credit-summary report after enrolling through online or mobile banking. Access is tied to having a Scotiabank account.

CIBC

CIBC offers CreditView through its online and mobile banking. Customers get a monthly credit report, monitoring alerts, a simulator and general credit guidance.

BMO

BMO’s Credit Coach, powered by TransUnion, gives customers free score access, alerts and a simulator. Checks are soft inquiries. You must be a BMO personal banking client.

Capital One

Capital One’s Credit Keeper is open to most Canadians, even if they are not cardholders. It provides a free TransUnion score and monitoring.

Fintech options for accessing credit tools

Fintechs give Canadians a way to check their credit without being tied to a bank.

Borrowell

Borrowell provides free Equifax scores, weekly updates, monitoring alerts and full report downloads. The service is funded through partner offers, not fees.

Credit Karma

Credit Karma gives users free scores and reports from TransUnion and Equifax, plus monitoring tools. It relies on soft inquiries so your score is not affected.

What Canadians should keep in mind

Most bank tools require you to be a customer. Many dashboards show only a score and a summary, not the full report. If you want the complete file, you can always request it directly from Equifax or TransUnion for free.

The score you see may differ from the version lenders use. Fintechs also rely on personal-data sharing and include financial product recommendations as part of their model.

Why checking your credit history regularly matters

Your credit profile influences the interest rates you pay, the credit you are approved for and how quickly you can move on major financial decisions. Regular monitoring helps you spot fraud, catch reporting mistakes and understand how your choices affect your score. With free options now widespread, it is easier than ever for Canadians to track changes and stay in control of their financial path.

As U.S. President Donald Trump’s ‘reciprocal’ tariffs take effect, companies are increasingly employing ‘tariff engineering,’ in which they redesign or reclassify commodities so they fall into lower-duty categories.

It’s part of a broader range of tactics, such as stripping features from products, swapping out materials that are heavily tariffed or selling formerly included components separately. Some companies are also shrinking the size of products without decreasing the price — a strategy referred to as shrinkflation.

Tactics used by companies to avoid these steep fees could, in some cases, quietly transfer hidden costs to Canadian households — like a tool sold without its battery, furniture arriving with more assembly required or household goods built with cheaper substitutes that raise long-term ownership costs. Here’s what consumers should know.

What is tariff engineering?

Tariff engineering involves “changing an item’s materials, altering its dimensions or compositions so that the finished products can be justified to fit in a different ‘harmonized system code,’” according to experts interviewed by CNBC (1).

In other words, by making certain design or manufacturing tweaks, a company’s product could qualify for a lower import duty classification. That might mean switching from aluminum to fiberglass (to avoid tariffs on aluminum) or assembling electronics in free trade zones.

Tariff engineering isn’t new — it long precedes Trump’s tariffs — but the practice has ramped up since Trump unveiled sweeping reciprocal tariffs in April. And it’s entirely legal.

There is “nothing inherently illegal or even untoward about leveraging strategic design choices that result in creating different products that are subject to different tariff classification and duty rates,” John Foote, a customs lawyer at Kelley Drye & Warren in Washington D.C., told CNBC. “Tariff engineering is one of the few things you can do to try to get it right and reduce your duty liability.”

For example, to lower its duty rate, Converse added felt to the bottom of its sneakers so they’re classified as slippers instead of shoes. And Columbia Sportswear added small zippered "nurse’s pockets" to some of its shirts, saving money on duties.

Some companies are open about it. Columbia Sportswear has a whole "team of people that work together with designers and developers and merchandisers and with customs” to ensure they’re considering the impact of tariffs during the design process, Jeff Tooze, the company’s VP of global customs and trade, told Marketplace during Trump’s first term (2).

But in many other cases, this is happening quietly — no labels, no warnings, no disclosure. While not every material swap is harmful, consumers may want to increase their vigilance around purchases and perhaps even alter their buying behaviour.

How to protect your wallet

Tariff engineering won’t affect all purchases (like how Marvel reclassified its action figures as toys instead of dolls to lower its tax rate back in 2003) (3).

But if companies swap out certain materials — like wood, leather or steel — for substitutes that aren’t as heavily tariffed, it could mean you’re not getting the quality or durability you were expecting from that product.

While shrinkflation isn’t the same thing as tariff engineering, the end game is similar: to help companies cope with increased costs caused by tariffs. With shrinkflation, the company keeps the price the same but reduces the product’s quantity or size.

Even in 2024 — before Trump’s tariffs took hold — LendingTree researchers found that about a third of 98 products they analyzed in the U.S. had shrunk in size or quantity, with paper products (such as toilet paper and paper towels) seeing the highest rate of change. Some products had not only shrunk in size, but also increased in price. Along with paper products, cereal, snacks and candy were some of the highest offenders (4).

So what can you do about it? Check labels for changes in net weight or quantity. In some cases, it may be obvious: a box of what used to be eight granola bars is now six. Or the paper towel brand you usually buy now has fewer sheets per roll. In other cases, there may be more subtle changes, like a slightly smaller package design.

While many consumers are loyal to certain brands, it may be time to comparison shop and switch brands if you’re getting a better deal elsewhere. Buying in bulk is also an option — another LendingTree study found that shoppers could save up to 27% on average when buying in bulk (5).

For items such as electronics, small appliances or furniture, look closely at what’s included. Does the product include batteries, power adapters or tools required for assembly? Or are those now "sold separately"?

Look at materials: Has the manufacturer swapped out heavily tariffed materials for substitutes that aren’t subject to the same high duties? If so, how could those substitutes impact the product’s quality or durability?

You might also want to check reviews or Reddit boards to see if other customers have noticed a drop in quality or other changes to a specific product.

While it won’t solve shrinkflation or tariff engineering, a rewards credit card could help you get some of that cash back and earn other rewards. You can also wait until items go on sale or stick with brands known for their transparency and consistency. Another option is to buy products made in Canada with Canadian raw materials.

Ultimately, the burden of vigilance now falls heavily on consumers, who may otherwise pay more for goods that deliver less.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

CNBC (1); Marketplace (2); Apex (3); LendingTree (4, 5)

Sarah called into The Ramsey Show to vent about her struggles with her friend’s financial decisions.

Sarah is a single mother working hard as a housecleaner to pay off US$3,000 in debt and build an emergency fund, following Dave Ramsey’s Baby Steps.

In contrast, she says her friend only works occasionally running a boutique. Since the beginning of the year, Sarah’s friend and her husband have bought and traded four vehicles, including a US$120,000 Escalade.

“They claim they make money off of these vehicles,” Sarah told co-hosts Jade Warshaw and Rachel Cruze.

Sarah feels the couple could have paid off half their mortgage with the money they used to buy the Escalade. However, her friend says she doesn’t want to pay off her mortgage because she gets “too many tax deductions from having a house.”

Though it has no bearing on Sarah’s life, “it kind of drives me crazy,” she said.

Warshaw’s advice to Sarah: “Mind your own business and pay off your debt.” However, doing so can be easier said than done.

Social comparison theory — and the cost of comparison

Sarah’s angst is common — FP Canada’s 2025 Financial Stress Index indicates 42% of Canadians say money is their top source of psychological strain (1). And this can often be compounded by social dynamics within friend circles.

Many Canadians admit to financially comparing themselves to their peers or overspending to help them feel like they measure up.

As many as 1 in 5 Canadians reported taking on debt so they could spend time with friends, according to a 2025 Grant Thornton Debt Solutions (2). And the desire to match peers hasn’t changed over time: A 2018 Edward Jones survey found a majority of young adults (61%) question how their friends can afford their lifestyles (3).

Ultimately, these statistics show that money worries and social pressures to maintain a specific image can strain relationships, as financial conversations — or lack thereof — make up a critical element of personal well-being.

There’s a term used to describe this dynamic: social comparison theory. As described in Psychology Today, social comparison theory suggests that we measure our own social and personal worth by comparing ourselves to others (4).

While comparing yourself to your peers can encourage self-improvement, constantly doing so can “promote judgmental, biased and overly competitive or superior attitudes.”

As Warshaw pointed out, Sarah works hard for her money, and is diligently paying off her debt. Sarah may feel jealous or resentful toward her friend who demonstrates a more casual attitude toward her finances, making it appear she has it much easier than Sarah.

Instead, Cruze said Sarah would be better off focusing on her own choices around money instead of her friend’s lifestyle.

“The rent-free space that she has in your brain right now, it’s not worth it,” Cruze said.

She also added that there may be something else happening as Sarah does the work to get her finances in order. When someone makes a major and positive shift in their life, they may start “to gravitate towards people that are like-minded." And they may start drifting away from people who aren’t congruent with that.

Set financial boundaries

When you measure your financial health against others, it can breed jealousy, resentment, feelings of inadequacy or guilt. But obsessing about it could derail your own goals.

For example, fear of missing out (FOMO) can lead to impulsive decision-making. Maybe that means overspending to “keep up with the Joneses” or forgoing long-term goals like paying down debt or saving for retirement in favour of short-term gratification.

And FOMO has motivated Canadians to make purchases beyond their means. A study by Citizen Relations shows nearly two-thirds (64%) of Canadians – especially younger adults — experience FOMO when they see social media posts about their friends’ lifestyles (5).

Everyone’s financial path is different and we never know what’s really happening in other people’s lives, despite what they might say, or show. Focusing on your own journey could mean:

• Building an emergency fund — ideally enough money to cover three to six months of living expenses so unexpected costs don’t derail your progress
• Maintaining a low debt-to-income ratio — keeping debt manageable gives you more breathing room and reduces stress that often fuels comparison in the first place
• Growing your net worth — by steadily increasing your assets and reducing your liabilities, you’ll create real financial stability instead of chasing what others appear to have

And in some cases, it may mean setting boundaries for the sake of the relationship.

If a friend asks for a loan and you suspect you’ll never see that money again, then it may be better not to loan the money in the first place — especially in an economic climate where many Canadians are feeling financially pressured. This is a situation where you may need to set hard boundaries — or have an honest conversation with your friend to reset expectations moving forward.

“It’s OK to have boundaries, Sarah,” Cruze said. “If you need to set up relational boundaries, that’s okay too.”

In Sarah’s case, she could also choose to lift her friend up rather than put her down and judge her.

It may be hard, “but we can be kind; we can be curious and not judgmental,” said Cruze. “But have a level of grace for her and yourself.”

Bottom line

Sarah’s story shows how easy it can be to get caught up in judging your peers’ spending — and how quickly comparing yourself to them can derail your own financial progress. Social pressures, FOMO and money-related stress are common, but they don’t have to dictate your how you manage your money.

Focusing on your own goals, building healthy financial habits and setting clear boundaries when needed can protect both your friendships — and your wallet. In the end, staying grounded in your values will matter far more than keeping up with anyone else.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

FP Canada (1); Grant Thornton (2); Cision (3); Psychology Today (4); PR Newswire (5)

Sethi, the New York Times bestselling author of Money for Couples, says building just two foundational skills can bring partners significantly closer to living what he calls a “rich life.”

“If we do these two things: know our numbers and master our money psychology, then we have a very good shot at living a rich life,” Sethi says (1).

Simple as they sound, these habits are surprisingly easy to overlook — especially if it’s difficult for couples to have conversations about money and financial goals in the first place.

A 2025 TD survey found that most Canadians (around 70%) agreed that financial transparency is crucial (2). That being said, a BMO survey found that spending is a source of relationship tension for one third of couples, and 11% of Canadians said they have not been truthful to their partner about their finances (3).

Here’s why Sethi believes that knowing your numbers and your money mindset can strengthen not only your finances, but your relationship, too.

Counting what really matters

The first step for any couple to successfully co-manage their finances is straightforward: Know your numbers. That means getting clear on the basics, such as total household debt, credit card balances, monthly cashflow amounts and even the simple milestones you’re working towards together.

“If we have debt, what is the exact month and year that our debt will be paid off? When will we be a millionaire?” he said.

It sounds obvious, but Sethi says many couples can’t answer the most basic question: How much money is in our bank account right now? And that lack of clarity often shows up elsewhere.

A 2024 BMO-commissioned poll found that many couples delay discussing money matters. While over 50% of respondents say finances should be discussed “early” in a relationship, exact timing remains subjective — 10% think “early” means after the first few dates, 41% say when the relationship becomes official and 31% say when they begin living together (4).

If you suspect you see money differently from your significant other — or you simply want to get on the same page about big goals like buying a home or planning for retirement — carving out time for an open and honest conversation can go a long way.

Sethi recommends short, regular check-ins to keep things transparent and make a sensitive topic feel a little less intimidating.

Strengthen your money mindset

While numbers matter, attitude and mindset still drive behaviour. For many Canadians in committed relationships, how they think about money can make or break things. A 2024 BMO poll found that 35% of coupled Canadians believe their partner spends too much money (5).

“The way we talk about money affects the way we behave with money. And the way that we behave with money affects the way we feel about money,” Sethi said.

Sethi suggests identifying your “money type” to give you insight on your financial mindset. Your “type” can reveal how you respond to and interact with your finances:

The Avoider. This type dodges financial tasks. This behaviour includes ignoring bills, skipping budget planning or avoiding checking account balances.

The Optimizer. Optimizers love rules, systems and efficiency. They track everything, try to “beat” the financial game and thrive on structure.

The Worrier. Worry can be rooted in real financial instability. But as Sethi says, it’s more about behaviour learned from childhood. A parent losing a job, for example, can imprint money-related fear that lingers long after someone’s financial situation improves.

The Dreamer. Dreamers rely on magical thinking, convincing themselves that an easy fix is always around the corner, like winning the lottery. They’re more vulnerable to get-rich-quick pitches. Once you understand the psychology you’re each bringing to the table, it becomes a lot easier to make choices that strengthen both your finances and your partnership.

Bottom line

Building a strong financial partnership isn’t about making everything perfect. It starts with two simple skills: knowing your numbers and understanding your money mindset. And according to Sethi, a red flag — and outright relationship dealbreaker — is a partner who refuses to discuss money matters within the relationship.

But when a couple shares clarity on cash flow, financial goals and the beliefs that drive their habits, money conversations become easier and more collaborative. If you want to strengthen both your finances and your relationship, start with short, honest check-ins. Taking the time to commit to these conversations will help get you both on the same financial page.

—With files from Melanie Huddart

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Moneywise on YouTube (1); TD (2); BMO (3, 4, 5)

The survey found that highly confident savers contribute significantly more of their income compared with peers who are the opposite, even when financial literacy levels are similar.

According to the findings, confidence alone correlated with saving 64% more, while higher literacy on its own made a far smaller difference.

Sun Life says the two traits together — confidence and knowledge — form a powerful combination that sharply increases retirement readiness. “An 86 per cent difference in savings is staggering,” Dave Jones, senior vice-president, Group Retirement Services at Sun Life, said in a statement. “This isn’t just a stat — this confidence paradox is a wake-up call.”

Confidence plays an outsized role in savings behaviour

The full Member Mindsets, Motivations and Metrics report, based on a survey of more than 1,900 workplace plan members, highlights confidence as the strongest behavioural driver of retirement contributions.

Only 30% of surveyed members demonstrated both high confidence and strong financial literacy — yet this group saved almost four times their income. Those with low confidence and literacy saved just 2.1 times their income.

Sun Life notes that confidence influences everything from whether members seek professional advice to how often they engage with their accounts. Highly confident, knowledgeable savers are more likely to work with advisors, while cautious investors tend to lean on friends or family, increasing the risk of hesitation or under-saving.

These behavioural gaps matter, especially since 52% of respondents say workplace plans will be their main source of retirement income.

Gender gaps persist in confidence and contributions

The report also highlights a persistent gender divide. Women were found to contribute 21% less than men to their workplace retirement plans, and are less likely to describe themselves as confident investors, according to the report.

Nearly four in 10 women (36%) avoid seeking financial advice because they feel they don’t have enough saved — a pattern Sun Life warns can compound shortfalls over time, especially given longer retirements and higher lifetime health costs.

Sun Life says employers can help narrow these gaps by making guidance easier to access. Seventy per cent of surveyed members want financial advisor access through their workplace plan, and nearly 80% express interest in features like auto-enrolment or auto-escalation, tools shown to meaningfully boost contributions.

Why workplace plans matter more than ever

With more Canadians relying on workplace retirement plans as their primary source of future income, Sun Life argues that plan design can meaningfully influence long-term outcomes.

Ninety per cent of surveyed members contribute enough to receive their full employer match, underscoring the power of clear incentives.

Jones says employers and plan providers have a growing opportunity to improve retirement readiness through confidence-building, simplified plan design and targeted communication.

“Workplace savings plans are filling a crucial gap for Canadians’ long-term financial security,” he said. “Simplified plan design, targeted communication strategies and accessible financial guidance make a measurable difference.”

“We believe this is the right moment to share the significant growth opportunities that are in front of us in both Canada and globally,” McKay said (1). “The world wants what Canada can provide in great abundance. Canada can feed and fuel the growing world, be a leader in sectors like energy, agriculture, critical minerals, advanced manufacturing, and technology”.

A world hungry for what Canada offers

Global demand for energy, food and minerals is soaring as economies transition to cleaner technologies and growing populations strain supply chains. Canada — with its vast natural resources, stable governance and commitment to sustainability — stands at the intersection of these global shifts.

“Deglobalization, infrastructure requirements, and energy transition all support meaningful capital investment,” explained McKay during his presentation, pointing to a long-term cycle of industrial and commodity reinvestment. And McKay was clear on what the priority should be: This moment demands more than optimism — it demands execution.

“Canada must build a more resilient economy that leverages its strengths,” he said (2). “That means eliminating barriers to growth and productivity, getting energy and infrastructure projects approved faster, supporting homegrown talent, and unlocking more capital to scale our best engines of economic growth.”

Energy and critical minerals: Powering the transition

RBC’s Capital Markets team sees clear momentum in the global energy transition — and in the financing opportunities that come with it.

The bank highlighted strong positioning in “energy, mining, power and utilities, and infrastructure,” with a focus on capturing growth across asset classes. This includes supporting companies at the heart of clean energy and critical minerals — the raw materials essential for electric vehicles, solar panels, and battery storage.

For investors, this means opportunity. TSX-listed giants like Canadian Natural Resources (TSX:CNQ.TO), Teck Resources (TSX:TEK-B.TO), and Nutrien (TSX:NTR.TO) already dominate their fields, while ETFs such as the iShares S&P/TSX Capped Energy Index ETF (TSX:XEG) or Horizons Global Lithium Producers ETF (TSX:HLIT) provide diversified exposure to Canada’s next growth engines.

“The world wants what Canada can provide,” McKay repeated — energy that fuels the world, and minerals that make clean technology possible.

Feeding the world: Agriculture’s quiet strength

While energy and mining attract headlines, agriculture may be Canada’s most underrated growth story. As global populations rise and food security concerns deepen, Canada’s reputation for sustainable, high-quality production is creating investor demand — from farmland REITs to agri-tech innovation funds.

The RBC team underscored this global advantage, emphasizing that “Canada can feed and fuel the growing world.” The country’s robust export infrastructure and proximity to key trade partners make it a reliable supplier of grain, meat and fertilizer — sectors that underpin both domestic stability and global trade.

Investors looking to participate can explore ETFs such as BMO Global Agriculture ETF (TSX:ZEAT) or direct exposure through agri-focused companies like Nutrien Ltd. (TSX:NTR.TO) or Maple Leaf Foods (TSX:MFI).

The execution gap: Turning potential into prosperity

The opportunity is clear — but Canada’s challenge is translating it into results. Regulatory delays, infrastructure bottlenecks and investment uncertainty continue to limit the pace at which large-scale energy and resource projects move forward.

As McKay warned, unlocking this potential will require national coordination: “I believe this is the moment to unite the country behind a long-term economic agenda that boosts competition and drives prosperity for all.”

For investors, that means timing and diversification matter. Allocating capital to Canada’s strongest global sectors offers exposure to the next wave of economic growth — but execution, both corporate and policy, will determine how much of that potential is realized at home.

Bottom Line

From the world’s growing appetite for clean energy to the rising demand for food and critical minerals, Canada is well positioned to lead — if it acts with focus and urgency.

For investors, that leadership translates into tangible opportunities on the TSX, in ETFs, and through the growing private capital ecosystem that fuels innovation across these sectors.

As Dave McKay put it: “In a rapidly changing world, let’s take advantage of this moment in time."

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Royal Bank of Canada 2025 Investor Day Transcript (1, 2)

It wasn’t a glitch. Someone had taken control of her account and stole the money.

How the scam unfolded

A week earlier, Melissa had received a call from someone claiming to be from her bank’s security team. He knew her address, the last four digits of her bank card and even the approximate balance on her home equity line of credit. He said her account was flagged for unusual activity and that he needed to “verify her identity.” He guided her through a process to secure her account, which in reality gave the scammers access to her online banking.

Melissa didn’t give them her password. But by directing her to click a link to a fake login page, the scammers captured her credentials and used them to access her laptop. Soon after, they had full access to her bank accounts.

The moment she discovered the theft — and what the bank said

Melissa rushed to her bank branch. The teller froze when she loaded the account. “This doesn’t look good,” she said quietly. “This appears to be authenticated activity. You may be responsible.”

A fraud investigator from the bank confirmed what she feared: The bank considered the transfers “client-authorized,” because the scammers had logged in using Melissa’s credentials. The burden of proof was on Melissa to show that her money had been stolen.

Why it matters

The above story is a fictional scenario meant to illustrate an alarming increase in the number of Canadians falling victim to financial fraud. Victims of fraud and cybercrime in Canada lost more than $638 million in 2024, an increase from the previous year's loss of $578 million (1), according to the Canadian Anti-fraud Centre (CAFC).

The Ombudsman for Banking Services and Investments (OBSI) investigates complaints from Canadians who’ve been victimized by financial scammers. In 2022, it opened 213 cases related to bank fraud. In 2023, it opened 946 fraud-related cases, a 350% rise over the previous year. In 2024, it says 68% of the fraud cases it looked into were related to e-transfers.

Are you responsible for transfers you don’t authorize?

Financial service firms don’t automatically reimburse fraud victims. Generally speaking, it depends on how the fraud occurred. Your bank or credit card company will investigate the role you played in what happened, whether you acted reasonably and whether you complied with the terms of your account agreement.

The rules that protect Canadians against bank fraud tend to focus on credit- and debit-card transactions. For example, the consumer-protection rules set by the Financial Consumer Agency of Canada (FCAC) limit the liability for victims of unauthorized debit or credit card transactions to $50 (2).

But when it comes to e-transfers or withdrawals on lines-of-credit, the safeguards are less clear. The rules vary depending on the bank’s own policies. For example, some banks might say that the password used as part of a fraudulent e-transfer wasn’t strong enough and deny the victim compensation.

What recourse do you have if you are the victim?

If you can prove that you acted reasonably — you didn’t share your password or knowingly send someone money — the OBSI can recommend compensation. But OBSI’s powers to compel banks to reimburse people are limited, as even the organization itself admits it has “no legal or regulatory basis” to do so.

What to do if this happens to you and how to prevent it

• If you suspect someone has transferred money out of your account, or withdrawn funds from your line of credit, report it to your bank immediately.
• If your bank decides you were responsible for the transaction (as in, you or someone pretending to be you “authorized it”) and denies you compensation, you can file a complaint with OBSI.
• Report the theft to your local police. Even if they tell you that it’s unlikely they can help recover the money, having official documentation may be useful. You could also try filing a complaint with the FCAC.
• Beware of random phone calls about fraud prevention from people claiming to represent your bank. Your bank would never call you and ask for one-time passcodes, personal information, or access to your computer. Nor would it ask you to visit a website and click a link. Hang up and call the number on the back of your card.

The takeaway

Financial fraudsters are growing increasingly sophisticated. What’s more, the rules in place to protect Canadians from falling victim to their scams have gaps when it comes to things like e-transfers. While you do have options in the event someone steals your money, in many cases it remains your responsibility to take the necessary precautions.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

RCMP (1); Government of Canada (2)