With Valentine’s Day on February 14th, we turn our heads to the usual gifts like flowers, chocolate, jewellry, and pricey restaurant dinners. But, have you thought about the gift of financial well-being and the freedom that comes with it? As a newcomer couple to Canada, wisely managing your finances together can be the greatest Valentine’s Day gift! Discover how these Valentine’s Day ideas can grow your money.

Knowing each other’s views about money and spending is vital to building a bright financial future.  As a newcomer couple, discussing your joint finances and views on money is important. An open discussion about saving and spending money will ensure you focus on joint financial goals and priorities. Investing in each other, beyond traditional Valentine’s Day gifts, can strengthen your bond.

Stick to a Valentine’s Day Budget

Celebrating your love on Valentine’s Day is a great reason to spend your cash, but stick to your budget. Avoid the pressure to overspend.

Before you start shopping, set your Valentine’s Day budget and add the cost of travel, gifts, decorations, and other expenses. Avoiding the trap of overspending on impulse purchases.

If your partner is open, dine at a restaurant a few days before or after Valentine’s Day. Some restaurants and florists boost prices to take advantage of Valentine’s Day demand. 

Use Cash-back Rewards for Valentine’s Day Gifts

You can stay within your Valentine’s Day budget using credit card rewards or cash-back offers. This can save you money if you redeem your points for travel, merchandise, gift cards, or other offers. But, avoid the lure of spending beyond your Valentine’s Day budget to earn rewards or points. 

Some cards offer higher earnings for groceries, dining, or travel. You may get valuable sign-up bonuses when you meet initial spending thresholds. 

Reward credit cards are a great way to earn points or cash back on everyday purchases. However, many cards charge annual fees that can be expensive. Without careful planning, even Valentine’s Day gifts could lead to higher annual percentage rates (APRs) making them less attractive if you carry a balance. 

When deciding which rewards card is for you, consider how much you spend, what rewards you prefer, and annual fees.  

Discuss Your Joint Finances

While discussing your joint finances may not sound romantic, it goes a long way in reducing conflict. Financial stress is a leading factor contributing to divorce and separation in Canada. However, you’ll build a strong foundation when you discuss money and how to merge it. Make money talk a regular part of your relationship.

Consider building a framework to discuss money monthly or quarterly to review your goals, saving strategies,  and progress. Or, explore budget planners to create a custom budget.

Save for Special Events

Discussing your short-term financial goals may include tackling credit card debt before setting aside savings. Valentine’s Day is one of the biggest commercial holidays in Canada. And, if your loved one’s favourite gift is more expensive this year, it’s easy to overspend using your credit card. But, focusing on your short-term savings goals may be smarter.   

You may want to open a joint savings account for special events like Valentine’s Day, anniversaries, birthdays, and trips. Small contributions add up over time.

Save for the Future

A solid savings plan can help you achieve your financial goals faster, whether saving for a wedding, your first home, or your child’s education. A thoughtful Valentine’s Day gift idea may be a special homecooked meal and movie night without racking up your credit card bill.

Build a Joint Emergency Fund

Saving money for an emergency fund to cover unexpected expenses or situations, like an urgent car repair or job loss is smart. An emergency fund to cover three to six months of household expenses can provide the safety net and peace of mind you need. 

As a couple, a joint emergency fund can give each one access to cash. Using a high-yield savings account offers higher interest rates than traditional savings accounts. Your joint fund should be easy to access, but it’s best to use it for real emergencies.  

Before you use your fund, assess if it’s an emergency. Perhaps the expense is something you can put aside and save for in the future. 

It can take months or years to reach your desired emergency fund goal. But, contributing a small amount regularly will make a big difference. Or, skip the expensive Valentine’s Day dinner and roses and deposit the money you save into your joint emergency fund!

Put Thought into Your Valentine’s Day Ideas

Make each day Valentine’s Day by saying “I love you”. No amount of heart-shaped boxes of chocolates or roses will match that! Or, if you have crafting skills, you can make a gift for your loved one! Do-it-yourself (DIY) Valentine’s Day gifts are a great idea!

You can make just about anything when it comes to DIY gifts. Be creative with your Valentine’s Day ideas. Think about what your loved one will appreciate. A DIY gift is more personal and romantic than a store-bought gift. What’s even better? DIY Valentine’s gifts are easier on your wallet. 

For the hopeless romantics, consider compiling a photo book from your favourite memories. You can write romantic captions or add quotes from poems or books.

However you celebrate the day, thinking of long-term financial goals and staying within your budget, can be the greatest Valentine’s Day gift idea!

For newcomers and international students arriving in Canada, the current rate of inflation affects how much you pay for housing, groceries, transportation, and other expenses. Staying informed about inflation changes can help you budget and manage your finances. Stay up-to-date with recent changes so you can manage the cost of living in Canada.

The most recent Statistics Canada data (June 2024) shows the annual inflation rate fell from 2.9 percent in May to 2.7 percent in June. This rate drop is welcome news for immigrants who have recently arrived or will soon arrive.

Lower gasoline prices were the driving force behind the rate drop.

What is contributing to the current rate of inflation?

Durable goods (cars, home appliances, consumer electronics, furniture, sports gear, toys, etc.) fell by 1.8 percent, which also helped lower the rate.

More good news for newcomers is that cell phone services were down 12.8 percent in June compared with 19.4 percent in May. Canada has some of the highest mobile phone rates in the world.

Clothing and footwear prices also edged lower in June. Service prices rose 4.8 percent annually in June, compared with a 4.6 increase in May.

Some costs and services that led to the June inflation drop:

Newcomers can monitor inflation in Canada to help budget for costs.

Housing inflation is a concern for immigrants

While rent growth has slowed in recent months in Canada’s largest cities, Toronto and Vancouver, some popular rental markets, such as Alberta, continue to have rental price growth. Rent prices in Canada rose 9 percent in June compared to June 2023.

So, will the drop be enough to convince the Bank of Canada (BOC) to cut its key overnight lending rate gain?

Will an interest rate cut follow the inflation report?

The BOC lowered interest rates from 5 percent to 4.75 percent in June 2024. That cut was the first in four years, and the first time the rate fell below five percent since July 2023.

The Bank will meet on July 24 to discuss whether current economic conditions warrant further cuts.

Derek Holt, Vice President and Head of Capital Markets Economics for Scotiabank believes that “the BOC is still likely to cut” in July, which would be good news for immigrants.

Canada’s inflation rate target remains 2%

The BOC has set a target of two percent inflation. Inflation hit a high of 8.1 percent in June 2022, just as the Canadian economy was recovering from the pandemic. The BOC hiked interest rates 10 times between March 2022 and the summer of 2023 to control inflation.

The BOC believes that making it more expensive for Canadians to borrow money forces consumers and businesses to spend less, thus lowering prices and slowing the economy.

The most recent employment report for June revealed that the Canadian economy lost 1,400 jobs. The unemployment rate increased to 6.4 percent, meaning 1.4 million people were unemployed in June, an increase of 42,000 from May.

According to the latest report from the IRCC, monthly immigration to Canada rose by 22 percent in April. It increased again by 9.3 percent in May, with 46,550 newcomers that month,

That puts the total number of new permanent residents arriving in the first five months of 2024 at 210,865.

The details of the report are consistent with the backdrop of consumers becoming increasingly cautious with discretionary spending.

Benjamin Reitzes, BMO economist

Inflation is a major concern for immigrants and international students who have arrived in Canada or are arriving soon. The cost of living in Canada affects many basic items and services essential to newcomers’ daily lives.

A June 2024 Abacus Data poll showed that the cost of living is the number one issue for Canadians.

Getting a credit card when you arrive in Canada is a great way to build a credit history, but you must avoid making common mistakes. From spending more than your credit limit, to only paying the minimum monthly payment, these mistakes can damage your credit score and make it difficult to achieve your financial goals. Learn how to avoid these financial mistakes and what you can do to stay in good standing.

1. Only making the minimum monthly payment on your credit card bill

Credit card issuers make it easy for you to repay your balance by allowing you to make minimum monthly payments. Sometimes you can only afford to make the minimum monthly payment, but avoid making this a habit.

When you only pay the minimum payment each month it increases the amount of time it takes to pay off your balance and you’ll pay much more interest. It also means that you will likely never pay off the full amount of your card. A better approach is to pay the full balance. If that’s not possible, pay more than the minimum monthly payment to accrue less credit card interest and pay your debt faster.

2. Missing credit card payments

Missing payments means you will have to pay a late payment fee and it can add up quickly. To avoid late payment fees, you can set up an automatic payment to your debit card. Remember, you should pay off the full balance each month. Falling behind in your payments can lead to higher credit card interest charges and your credit score will suffer. Meeting your monthly payments shows creditors that you manage your money well.

3. Not reading your monthly statement

If you don’t open your credit card billing statement, you risk missing your payment due date or paying less than you should be. Ignoring your statement could cause you to miss important announcements about changes to your credit card terms.

Review the monthly transactions to ensure that there are no purchases that you did not make or approve. If there are any errors, contact the credit card company immediately to discuss the transaction.

Missing payments will also lower your credit score. Missed payments can remain on your credit report for up to six years.

4. Not reporting a lost or stolen credit card

If you lose your card, the first thing that you should do is report it to your financial institution. The longer it takes you to report a lost or stolen card, the greater the chance of fraudulent activities. Reporting a lost credit card quickly shows the bank that you are responsible.

5. Maxing out your credit card limit

This credit card mistake is important to avoid. As a newcomer, you may have unexpected expenses you didn’t budget for. A credit card can be a short-term solution but you should never max out a card to its limit.

When you max out your credit limit, it indicates to creditors that you are living beyond your means.

It’s better to spend less than 30% of your credit limit. This is known as the credit utilization ratio which assesses how much credit you have versus how much you use. This ratio is also about 30% of your credit score calculation. Getting close to your credit limit puts you at risk for over-the-limit fees and penalty interest rates you’ll have to pay when you exceed your credit limit. Maintain a low balance on your card for a healthy credit score and manageable payment amount.

Avoiding these credit card mistakes will help you reduce financial stress, increase your credit score, and build credit history.

by Zain Usmani | Oct 15, 2024

Moving to a new country like Canada can be one of the most exciting experiences of your life. However, it can be challenging as well. Managing your finances as a newcomer is one of the most important aspects of starting your new life in Canada. One effective way to take control of your money and adjust to your new financial landscape is by taking on the “no-spend challenge.” This simple yet powerful approach can help you build better spending habits, save money, and achieve your financial goals. Discover practical no-spend challenge ideas and tips!

The no-spend challenge is a personal finance strategy where you commit to not spending money on non-essential items for a period ranging from a few days to a month or more. A “No Spend Month” is exactly what it sounds like, a month when you commit to spending money only on essential items. This approach isn’t about deprivation; it’s a mindful way to reset your spending habits, prioritize your needs, and build healthy financial practices.

Imagine embarking on a challenge where you don’t lock yourself away, but instead, you focus on spending only on what you truly need. That’s the essence of the no-spend challenge. Picture this: for a set period, typically around 30 days, you commit to only covering the essentials—things like food, utilities, shelter, and transportation. Fancy dinners out or attending concerts or events? Not this month.

But fear not, this isn’t a forever ban on the fun. It’s more like hitting pause on non-essential spending to give your savings a boost. Think of it as hitting the reset button on your budget, where the reward is worth the effort.

Before jumping into your no-spend challenge, you’ll need to establish clear rules and boundaries. Keep in mind that no one can set these rules for you. The no-spend challenge will help you gain financial footing, so it is up to you to set your own rules. This challenge is all about limiting your wants while fulfilling your needs.

Embarking on a no-spend challenge can provide a fresh perspective on your spending habits and financial priorities. Here’s how to get started:

• Create a Budget: It’s vital to manage your personal finances when you’re new to Canada, by assessing your monthly income and essential expenses such as rent, groceries, utilities, and transportation. Allocate a specific amount for each category, leaving no room for discretionary spending. Eliminate non-essential expenses, like dining out, entertainment shopping, subscription services, etc.

• Track Your Expenses: Record every penny you spend during the month. This will help you identify areas where you can cut back and make more mindful spending decisions in the future.

• Set Clear Goals: Whether you’re saving for a down payment on a house, paying off debt, or saving for an emergency fund, having a financial goal will keep you motivated throughout the challenge. Stick to the essentials and avoid any unnecessary purchases. Tracking your monthly expenses can help you stay accountable and see where to make further adjustments. 

Building a strong financial foundation is vital to your success. Join this webinar to start your banking journey in Canada on the right foot!

While cutting unnecessary expenses may seem daunting, there are plenty of ways to enjoy life without draining your bank account. Here are no-spend challenge ideas and tips to help you achieve your savings goals.

Plan your meals ahead of time and make a shopping list based on what you already have in your pantry. This helps you avoid unnecessary purchases and reduce food waste.

No spend challenge enables you to learn basic repair skills for things like clothing, furniture, or household appliances. There are plenty of online tutorials for fixing common items. This can save from hiring professionals or buying replacements. Instead of buying new items, challenge yourself to get creative and make things yourself.

Instead of buying books, movies, or magazines, utilize your local library. Libraries offer services for newcomers and a range of media for free borrowing, including ebooks and audiobooks.

 Another good no-spend challenge tip is to look for free events in your community, such as concerts, art exhibitions, or outdoor activities. You can also explore parks, beaches, or hiking trails for low-cost entertainment.

Take advantage of loyalty programs at stores you frequent. Many offer rewards or discounts for repeat customers, allowing you to save money on future purchases.

Unsubscribe from marketing emails and catalogues to reduce the temptation to make impulse purchases. Clearing out your inbox and mailbox can help declutter your mind and spending habits.

Before purchasing items you’ll only need temporarily, like tools or specialized equipment, check if you can borrow them from friends, family, or your local community center.

Take advantage of free online resources such as educational courses, podcasts, or tutorials. You can learn new skills or hobbies without spending a dime.

Use the no-spend challenge to reflect on your values and priorities. Instead of spending money on material possessions, invest in experiences and relationships that bring you joy and fulfillment. Set small milestones throughout the challenge and reward yourself with non-monetary treats such as a long bath, a nature walk, or a movie marathon. These rewards will motivate you without derailing your progress.

Why go it alone during a no-spend challenge when you can team up with friends and family? Post about your challenge on social media and let others help you stick to your goals. With support, you’ll avoid temptation and save money. Plus, your journey could inspire others to join in, spreading the money-saving message far and wide!

The no-spend challenge offers many rewards. Saving money is the main reward, especially as your savings grow. It’s a great way to save money fast, by avoiding unnecessary expenses.

Keeping track of your spending also helps you assess if you’re spending more just because you’re earning more. It also helps you identify if you’re buying things because of your emotions rather than your needs. 

The best reward of a no-spend challenge is that it puts you in the driver’s seat and gives you more control over your finances.

By following the no-spend challenge ideas and tips, you can gain valuable insights into your finances. You’ll better understand your spending habits, prioritize financial goals, and cultivate healthier money management skills. With careful planning, creativity, and determination, you can successfully navigate the journey toward financial freedom and security in Canada. So why not take the first step today and embark on your no-spend challenge? Your future self will thank you for it.

Read more about your financial first steps in Canada.

A lesson many newcomers learn when they arrive in Canada is that you need credit to pay for large expenses, buy a car, or purchase a home. However, it’s difficult to borrow without a credit history in Canada. 

Opening a bank account before you arrive in Canada offers many benefits including transferring funds before you travel to Canada. 

For newcomers and international students arriving in record numbers, it’s helpful to understand how the currect inflation rate in Canada can affect how much you pay for housing, groceries, transportation, and other expenses.

Protecting yourself and your family against unexpected danger and risk is what insurance in Canada is all about for newcomers to Canada and international students.

If you became a permanent resident and lived in Canada, even for a short period, filing your first income tax return with the Canada Revenue Agency (CRA) can provide financial benefits.

A lesson many newcomers learn when they arrive in Canada is that you need credit to pay for large expenses, buy a car, or purchase a home. However, it’s difficult to borrow without a credit history in Canada. Canadian lenders typically check each applicant’s credit files at one of the main credit reporting agencies (Equifax Canada and TransUnion). This file is like a financial report card that tracks how much you borrow and how quickly you pay it back, to calculate your credit rating and credit score.

Without a credit history, newcomers may need a loan co-signer with a Canadian credit rating, and considerable assets as collateral, or they must demonstrate a history of stable income in Canada to receive a loan. Fortunately, you can start to build your credit record and history shortly after you arrive in Canada.

Getting Started

The financial decisions you make when you arrive in Canada have a huge impact on your credit history and score. The concept of credit can sometimes lead to a debate about how it can help, or hurt you when you are building your credit rating. On one hand, credit can be a fantastic tool to help you:

• Get a loan or a mortgage

• Save on credit card and loan interest rates

• Get approval for lines of credit

• Obtain certain jobs (i.e. some finance-related roles will require a credit check as a condition of employment)

• Rent a home.

On the other hand, if poorly managed, credit can haunt you for many years, and make you miss out on financial opportunities. Creditors can run a credit check on you to assess if you are a low-risk or high-risk borrower. They will also decide to grant or deny you a loan or charge you a higher interest rate.

What is Credit History?

Your credit history shows lenders that you are responsible when repaying your financial obligations. Whether that is your monthly rent, utility bills, loans, etc. If you come from a country with credit bureaus, you know how important your credit history is. Maintaining a good credit history in Canada is also important. We’ll share tips to help you build and maintain a healthy credit report. With a strong credit history, you can save money and have more financial freedom.

So what is your credit score when you come to Canada? Nothing. Think of it as a blank slate. Your financial habits will dictate the direction of your credit rating up or down.

Your credit history or credit rating starts the first time you get a credit card or loan in your name from a Canadian bank. You can begin by applying for and using a credit card responsibly.

Even if you don’t have immediate plans to buy a house or vehicle, it’s good to establish a credit history, since banks may give special consideration to recent newcomers.

Newcomers may be eligible for a ‘secured’ credit card. A secured credit card is different than a regular credit card because it requires a security deposit equal to the amount of the credit limit. Think of it as a stepping stone to getting an unsecured credit card. Such special offers may be more difficult to obtain later, especially if your income does not grow as fast as you had hoped. A credit card is also useful for larger purchases and as a secondary piece of identification.

Why is Your Credit Score Important?

Your credit score is important for several reasons:

1. 1. Lenders will review your credit score when you want a mortgage to buy a home, or a loan to buy a car. They want to understand your payment history, and your ability to manage credit and pay off debt.

2. Landlords will conduct a credit check before renting their property to you.

3. Some employers will conduct a credit check before they make a job offer. This is common in some roles at banks and other financial institutions such as insurance companies.

What Credit Score is Good?

Your credit score can fall between the range of 300 – 900. Generally, and depending on the credit score model that your financial institute is using a good score is greater than 680. As a benchmark, to get a mortgage to buy a house in Canada, you need a credit score between 600 – 700. If your credit score is lower than 600, you will want to take steps to increase your credit score.

Once you receive a credit card, use it wisely to establish a credit score so that lenders will have confidence in your ability to repay loans.

Your credit score can fall between 300 – 900 points. You require a minimum of 650 points to qualify for a loan. It’s difficult to get a loan or receive new credit with a low score. However, if you have a low credit score, you can improve your score by carefully managing your credit use.

How Much Credit Limit Should I Use?

If possible, avoid using more than 30% of your credit limit (balance-to-limit ratio). For example, if you have a credit limit of $1,000, you should try not to spend more than $300 and pay the bill in full by the due date.

Your credit score may decline if your balance-to-limit ratio exceeds 30% because it indicates to creditors that you are a higher-risk borrower.

How Many Credit Cards Can I Have?

It’s best to start with only one until you are financially comfortable enough to afford more. Avoid opening many credit accounts. Many credit card accounts can signal financial distress to lenders, especially if they all carry a balance on them.

Why Credit History is Important to Rent a Home in Canada

Your credit history is one of the things landlords want to see before giving out their home to you. Your credit history will tell the landlord how reliably you pay debt. A good score and credit report in Canada will show the landlord you are reliable and will likely pay your rent on time. This is important to landlords as it guides their decision about who to rent their home or avoid.

While this arrangement is great for landlords, it can be problematic for newcomers looking to rent a home. If you are a newcomer to Canada, you likely will not have a credit history. It takes a minimum of six months to build a credit history. Because of this, it can often be hard to convince a landlord that you will be a reliable tenant. However, there are some tips that you can follow to rent a home without a credit history.

How Do I Rent a Home Without a Credit History?

The first thing you can do is show proof to your future landlord that you have a good amount of savings in your bank account. This will tell the landlord that you have enough money to pay the rent and will pay it on time.

If you don’t have large savings, your top priority is to secure a source of income. Once you have done that, you can show proof of income to your landlord. This will also satisfy landlords because it means that you have enough stable income to pay the rent each month.

In the meantime, pay any bills you have on time to show lenders that you are financially responsible. Over time, you will build a strong credit report in Canada that can open doors to your financial goals.

How Do I Maintain a Good Credit History? Five Tips to Follow

1. Take Advantage of Your Fresh Start in Canada to Build a Good Credit History

Get a credit card or two, and use them, but use them sensibly. Pay off your balance monthly and avoid exceeding your limit to show potential lenders you are reliable.

Paying in full each month will reduce the amount of interest you pay. And with the average credit card interest rate at approximately 20%, any balance on your credit card can be expensive. But, if you don’t pay the balance in full each month, pay attention to how much you pay in interest.

If you can’t pay the full balance on your credit card, at least pay the minimum balance and make regular payments, to pay debts as quickly as possible. But, avoid missing payments. Missing payments can damage your credit score and make it difficult to get a future loan such as a car loan, or mortgage.

Using your credit card for cash advances is even more expensive. Typically, the interest rate is higher and you pay interest from the date of the cash advance. There is no grace period like there is for a regular credit card purchase.

2. Read the Small Print on Cancellation Fees and Penalties

On top of paying your monthly bills and loan installments on time, be careful when you sign up for services such as cable, telephone, internet, gym memberships, and other monthly subscriptions. Check the cancellation fees and deadlines when you sign up for services. Otherwise, these fees can be high.

Ask questions about your contract if there is anything that you do not clearly understand.

3. Keep Track of Your Utility Changes

Remember to cancel or transfer your services and utilities when you move to a new address. Sometimes final bills end up in collections out of sheer neglect, and from collections, they land on your credit report for the next six years. This will negatively affect your credit report in Canada. Keep track of changes and record the date, the names of the agents you speak to, and your case number. Keep any receipts to prove that you cancelled the service.

4. Negotiate a Payment Schedule with Creditors if You Hit a Rough Patch

Don’t be complacent with your payments if you hit a rough patch such as a job loss. Call your creditors and negotiate monthly payments. They will likely be willing to help you because sending outstanding accounts to collections will cost them money. Cancel or suspend services you can do without, rather than have the bills rack up.

It’s wise to live within your financial means. As the saying goes, “It’s not how much you earn, it’s how much you spend.”

5. Use Services to Track Your Credit History and Maintain a Good Credit Report in Canada

Most banks including Scotiabank offer account holders this facility. Alternatively, use free services like Borrowell to monitor your credit. If you notice outstanding payments you have paid off on your report you should inform the reporting agency in writing so that this may be removed.  

What’s in Your Credit Report?

Credit reporting agencies such as Equifax and TransUnion record your credit history. Your credit report in Canada will contain information on your:

• Loans

• Credit accounts

• Bills (for example, outstanding cell phone bills can be listed on your credit report)

• Collections items (for example, if an outstanding debt is sent to a collections agency), and

• Legal items (for example, if a court order is issued against you for an outstanding debt).

Collections items stay on your credit report for six years, and legal items stay for ten years. So it’s essential to practice good financial habits that don’t jeopardize your credit rating. Your credit history speaks volumes to lenders about what kind of risks they take when they agree to lend you money. It takes a long time to build a credit history. Yet, it’s easy to sabotage and takes even longer to rebuild.

So, can you live without credit? Yes. But, should you try to do without it? No. Because without credit, it will be difficult to improve your living standards, at the very least, not as quickly as you would like. And, when it comes to making major purchases such as buying your first home, a strong credit report in Canada is essential. When you manage how you use credit, you’ll remain in good financial standing and be able to secure credit to achieve your important dreams.

What is Black Friday?

The Black Friday sale in Canada is a bargain shopper’s delight! It marks the official date for retailers to launch some of their best sales of the holiday season. If you’ve recently arrived in Canada, you may be curious about all the hype surrounding Black Friday. You can expect to find great deals with discounts that range from 20 – 60% off the original price. This shopping event is called Black Friday because it used to mark the day when retailers started to make a profit and move their books from red (losses) to black (profit). 

Black Friday also used to be a one-day sale event. But in recent years it has turned into a lengthier period that is book-ended by Cyber Monday. During the Cyber Monday shopping event, you can expect to get the best online sales and discounts.

The holiday season is the busiest time of the year for retailers in Canada. Black Friday sales are usually when people begin their holiday shopping.  

During the holiday season, it’s easy to get caught up in the excitement and emotion of the season. The sounds of holiday music, the pretty store windows, and the allure of flashy red sale signs can encourage all of us to overspend.  So, it’s important to follow money-saving tips to avoid cutting into your essential spending needs. And when you carefully manage your spending, you’ll avoid the blues that hit when your credit card bills arrive in January.

When are Black Friday Sales and Cyber Monday Sales in Canada?

In 2023, Black Friday sales occur on Friday, November 24. However, many retailers start launching early sales. So, you may want to watch out for these sales to avoid stock issues.

Cyber Monday takes place on Monday, November 27, 2023. For this event, online retailers promote one-day deals to get people excited. However, as you can see Black Friday sales start before the event, Cyber Monday sales can extend for the rest of the week.  

7 Tips to Stay on Budget When Shopping Black Friday Sales in Canada

To get the best of the Black Friday sales in Canada, you have to be wise about your shopping approach. These tips can help you get the best deals and manage your spending. And, with inflationary pressures facing many Canadians, it’s important to avoid overspending.

Tip 1: Create a Budget and Track Your Spending

It’s a great feeling to show your family and friends that you love them with thoughtful gifts. But, creating a holiday budget and tracking your spending is important to help you save money. When you budget, it’s easier to keep your spending under control. While giving gifts during the holiday season feels good, it’s important to remember how much you need to spend on other essentials such as rent and utility bills.

To avoid overspending and impulse buying, decide how much you can reasonably spend without racking up your credit. When you set an upper limit on how much you can spend, it will be easier to avoid caving in and impulse buying. You’ll appreciate this discipline in January when your credit card bill arrives! 

Tip 2: Understand What’s Behind “Doorbuster” Promotions

Retailers often attract shoppers with loss leaders. This is a pricing strategy where retailers sell popular items at a loss to attract customers. While shopping, customers are likely to buy other items and increase sales of other items that are more profitable for the retailer. So, be prepared to show spending discipline. That discounted TV is only a great deal if you avoid spending hundreds of dollars on extra purchases that you may not need. 

When buying big-ticket items, retailers may pressure you to buy an extended warranty. Find out what the warranty period is on the product, and whether or not your credit card company provides purchase protection. Extended warranties will increase your costs.

Don’t forget to track your spending. Without tracking, you’ll quickly overspend your budget. To track your spending, consider using online budgeting tools, or create a simple spreadsheet. Your shopping budget will help you avoid overspending on Black Friday or Cyber Monday sales events.

Tip 3: Be Wary of Store Credit Cards Promotions

While you’re shopping at your favourite store you may be enticed to sign up for a retail credit card. Because in many cases, the retailer will offer you an additional discount just for signing up. However, retail credit cards usually come with higher interest rates. For example, a typical credit card can have an interest rate of 19.99%. However, a retail credit card interest rate can be as high as 30%. And with inflation remaining at an all-time high in Canada, credit card purchases can get very costly.

So unless you pay off your store credit card in full each month, you will pay more in credit card interest than your savings on those Black Friday sale purchases.

If you’re a newcomer, it’s important to build a good credit history, especially if you want to make a major purchase such as buying a home or a car in the future. However, according to CreditCardsCanada.ca, store credit cards carry less weight than standard credit cards on your credit score. 

Tip 4: Shop Around to Find the Lowest Price

Do some comparison shopping before you hit the stores and pull out your wallet. Ask yourself if you can buy the same product at a lower price elsewhere. Not only will buying at a lower price save you money, but many retailers also offer the lowest price match.

Most Canadian retailers have price-matching policies. For example, if you find a lower price for the same product, retailers may:

• Match the competitor’s price

• Match the lower price and beat it by 10 – 15%

• Honour a price match for anywhere between 30 days and up to one year after your purchase.

Make sure to keep your receipts to take advantage of price-matching offers after your purchase. It’s worth the effort to shop around for the lowest price. However, retailers often have rules attached to their price match policy. For example, the product: 

• Must be the same model and be in stock 

• May be excluded from price matching offers for Black Friday or Cyber Monday sales.

Also, a price match may not apply to limited-time or quantity promotions. So be sure to ask the store about their price-match policy, or read the fine print on their store receipt.

Tip 5: Use Websites and Apps to Track Black Friday Sales

Another way to stretch your budget and save money is to use websites and apps to track prices leading up to Black Friday sales in Canada. That way you can see if the sale price is as great as it seems. Websites such as Google Shopping, PriceBat.ca (electronics), and Shopbot.ca allow you to compare retail prices all in one place.

Many retailers also have their shopping apps that allow you to shop online for deals.

Tip 6: Use Your Loyalty Programs for Additional Black Friday Savings in Canada

Credit card reward and store loyalty programs are very popular in Canada. So, if you have rewards from your credit card provider or favourite store, the holidays may be a great time to use them. And if you’re a member of a store loyalty program you may even get Black Friday shopping alerts with access to coupons or other promotions such as free shipping.  Some loyalty programs may offer extra deals on Black Friday.

Tip 7: Know You Will Find the Best Deals on Black Friday in Canada

While you can find Black Friday sales in Canada before November 24th, retailers announce their biggest deals usually around 12:01 am on Black Friday morning. Many brick-and-mortar stores will seal boxes and keep inventory in back rooms until November 24th to avoid disappointing shoppers if they are low on stock. This same approach applies to announcements for online deals on November 24th.

When you follow these Black Friday sales tips, you’ll stay on budget, and most importantly, reduce the stress that comes with holiday spending.nage your finances in Canada!

If you’re a newcomer thinking about buying a new car in Canada, the auto market offers a wide range of vehicles to meet different financial situations, lifestyles, and driving habits. If you’re in Canada from a country with a smaller auto market and fewer choices, this can be daunting as you begin your search. Buying a new car is often the second most expensive purchase after buying a home. So it’s worth it to do some research to determine what kind of vehicle will suit your needs.

But before you buy a new car, it’s a good idea to consider if you even need a new car. Most large cities like Vancouver, Toronto, Calgary, and Edmonton have extensive public transit systems. Public transit allows you to move about cost-effectively and conveniently. Or you can even consider buying a used car. However, if you still want to buy a new car here are some important things to do and think about.

Do Your Research Before Buying a Car

Talk to people who own the make and model of the car that you are interested in buying. That way you can get first-hand knowledge about their experience. Their insights about reliability, repair costs, and gas mileage can be helpful information that can save you money. Also, don’t be invested in brand loyalty too heavily as the quality gap between domestic and import brands has narrowed in recent years.

You can also research Canadian automotive websites that are full of reviews and road tests for all types of vehicles. Specific factors to research include:

• Cost

• Performance

• Features

• Fuel economy

• Warranty

• Reliability

• Running costs

• Depreciation and eventual resale value.

Be sure to evaluate how the car you want to buy compares to the competition’s price.

Know How the Pricing System Works

Before buying a new car it’s worth knowing how you can get the best price for your new vehicle. Here it’s important to the difference between the suggested retail price (SRP) and the dealer invoice price.

Manufacturer’s Suggested Retail Price (MRSP):

The MRSP is also commonly known as the list price or “window sticker” price. This is the price point that new car dealers work from. In many cases, you can negotiate a lower cost. However, if the car is in high demand, it may sell for more.

Dealer Invoice Price:

This is the actual price the dealer pays the manufacturer for the vehicle. And there is usually some variance. The price margin is important as it tells the new car buyer how much profit the car dealer can make on the sale of the car and help you negotiate a lower price.

Rebates, Incentives, and Special Offers:

Car dealers commonly offer special promotions, factory/dealer rebates, and other incentives to increase car sales. Find out when manufacturers and dealers offer these programs before buying a car as you could make big savings.

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The Best Time to Buy a Car

There are different Canadian automotive websites that show what manufacturers and dealers are offering incentives and for what models. Also, some good times to look for and buy a new car include:

• Slow sale periods in the winter

• End-of-year inventory clearances, and

• End of the month when a car dealer is making way for new models.

Car dealers will offer other incentives to new car buyers such as no interest payments, low financing rates, attractive leasing rates, and cash rebates.

Take a Test Drive Before You Buy a Car

Before you buy a car, it’s important to take a test drive. The car dealership will allow you to take a half-hour test ride on urban and highway roads so you can get an idea of how the vehicle drives and feels. If a spouse will drive the car, ensure they come along for the ride to use the controls, explore the features and evaluate the vehicle. . You can also bring the family to test out the back seat room!

Another helpful way to take a test drive is to rent the make and model you’re considering buying. That way, you can drive the car for a longer period of time to experience the car and its benefits. Or, you may discover that the vehicle doesn’t meet your needs. Either way, a test drive is an important first step to take before buying a car.

To Lease or Buy a Car

When buying a car, you have two types of financial agreements to consider: buy or lease a vehicle.

Whether you choose to lease or buy a car, you’ll have a monthly, weekly, or bi-weekly car payment for a few years, unless you pay cash. Typically, most car-buyers put down a deposit on a car and get a loan from a bank to buy it. In which case, you’ll also have to pay interest on the loan.
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The other option is to lease a car. When you lease, you don’t own the car. You are essentially renting it for a specific period. At the end of the lease term, you will have the option to return the vehicle, trade it in for a newer model, or buy it out. 

With a lease, instead of borrowing the full purchase price of the car, you are only borrowing the amount the car will depreciate over the term of the lease. For example with a three-year lease, and taking into account regular wear and tear (known as the “residual value”), then you only have to finance the difference between the purchase price and the residual value.  This is the basic reason lease payments are lower than loan payments.

Pros and Cons of Leasing vs. Buying a Car

Both leasing or buying a car has pros and cons. When you buy a car, you own the car at the end of the payment period – you own the car fully and it has some residual value and equity. The cons are that payments are more expensive than leasing and once the vehicle is out of its warranty period you are responsible for maintenance and repair costs.

When you lease a car, you have lower car payments and better cash flow. And since car leases are generally between two and three years, the vehicle you buy is almost always going to be covered by warranties.  Once the lease is up, you can either walk away or upgrade to a newer model. However, unless you negotiate to buy the car at the end of its lease you will never really own the vehicle and will not build equity.

When Does Leasing Make Sense?

Deciding to lease or buy a car in Canada can be a difficult decision. Basically, you have to decide what option makes sense given your financial situation, individual, or family lifestyle. Here are some things to know about leasing:

• Lease periods are usually two to three years, so leasing makes sense if you like to change new vehicles often.

• Regular maintencance may be included in your leasing contract. Be sure to confirm this.

• A lease usually limits the number of kilometres you can drive. After you drive more than the limit, you will have to pay mileage. So if you expect to drive long distances over the course of your lease this will drive up your cost at the end of the lease.

• Monthly lease payments may be lower than financing options.

Carefully evaluating your driving habits and your car needs will help you to make the decision the lease or buy a car.

Making the Deal to Buy a Car

If the test drive goes well and you’re ready to buy a car, ensure you use all the information you researched to work out a fair price. The price should take into account any factory and dealer rebates, discounts, and incentives. It is a good idea to have this information in a report to use as a negotiating tool when dealing with a salesperson. This can be the most difficult stage of buying a car since car dealers want to get the suggested retail price. So, at a minimum, you should know what price the dealer paid the factory for the car and what rebates are available to them.

Your solid research can help you to negotiate the best price and save you hundreds or thousands of dollars on the new car price. The art of the deal is to allow the dealer to make some profit, but not all at your expense.

During the buying stage, the cost of the car can go much higher when the salesperson tries to sell dealer-installed extras such as:

• Roof racks

• Fabric protection

• Paint protection

• Rustproofing

• Entertainment systems, and

• Undercoating.

In most cases, these are high-margin profit items for the dealer that reduce any cost-savings you negotiate. These are added profits that only come out of your wallet. And most of these extras aren’t necessary. If there are options that you want to purchase, it will drive up the price of your car. So, try to negotiate the price on the options as well. Or, you can also add options at a later date from other places outside of the dealership at a reduced price.

Negotiation Tips When Buying a Car

Remember as the buyer with money to spend you have the upper hand. Dealerships don’t want to lose a sale and will try their best to win and keep your future business. So keep these tips in mind when negotiating price:

• Be firm and confident

• Research as much as possible in advance of buying a car

• Make a counter-offer if the deal is not in your favour

• Know the price that other dealers are offering for the same vehicle

• Be prepared to walk away if the dealer does not accept your counter-offer.

Other Factors to Consider Before You Buy a Car in Canada

There are certain steps you will need to take and documents you will need before you can drive off the lot with your new car. Don’t expect to arrive and buy a car on the first day you are in the country. It will take a little bit of time to get things in order first. If you have recently arrived in Canada, here’s some additional information to know and things you need before buying a car.

These tips and information are important things to consider if you are thinking of buying a car in Canada. A new car is a large investment and these tips can help you to make a wise financial decision.

For more information about your financial first steps in Canada, visit our banking in Canada resource page. Get the essential information you need to manage your finances in Canada!

Financial stability is vital for anyone who has recently arrived in Canada. Even if you have a strong financial standing in your home country, you must establish it in Canada. Applying for a credit card is one of the first and most effective steps to build your credit and give yourself a buffer. 

Credit cards are a convenient payment option and they help establish your credit history. Paying off your credit card balance each month will help you build your credit score and qualify for larger loans and financial products in the future. This is important especially if you want to get a car loan or qualify for a mortgage. 

Applying for a credit card can seem overwhelming, especially if you are a newcomer. You may not know how to apply, what information you need, or if you qualify. Here we will provide you with the information you need to apply for your first credit card in Canada. 

Information you need to apply for a credit card in Canada

You will need the following information to apply for a credit card:

• Full legal name
• Date of birth
• Home address (in Canada)
• Phone number
• Email
• Employment status
• Annual income.

Assess your financial situation before you apply for a card

Applying for multiple credit cards can affect your credit score. So, avoid applying for several cards to see which one accepts your application. You must assess your financial situation to know what type of card will best meet your needs. 

Ask yourself:

• What do you need the credit card for? (i.e. to pay bills, establish credit, use as an emergency fund)
• How do you plan to use it?
• Do you want to add a partner or family member to the card?

What type of credit card makes sense for you?

Many types of credit cards offer unique benefits. Depending on your situation and financial needs, these card features may make sense for you:

• Credit builders: Lenders consider you a credit builder if you have recently immigrated to Canada. You can apply for cards specifically designed to help you build credit. If you have no credit or low credit you can apply for a secured credit card to start building up your finances. 
• Cash back: Get cash back on the purchases you make to help lower your monthly bill. Cash back percentages vary based on the card and lender. 
• Low interest: If you expect to carry a balance on your card from time to time, a low interest rate is a great option to minimize borrowing costs.
• Travel rewards: If you plan to travel back to your home country regularly, you can accumulate travel points that can help you save on travel costs. 
• Points cards: Earn points you can use to cash in at participating retailers. For example, AIR MILES and PC points.

Other things to know

• Annual fees: Cards can start at $0 fees to more than $100 per year or more. Many offer you the first year free.
• Late payment fees: Some cards charge a fee if you miss a payment or pay after the due date.  Late payments can also increase your interest rate. So pay your bill on or before the due date.
• Foreign transaction fees: If you plan to use your credit card when you travel, be aware of the associated fees. 
• Income requirements: Your annual income will affect the cards you qualify for and your credit limit.
• Additional benefits: Many cards offer additional perks such as payment protection, travel insurance, roadside assistance, and an extended warranty. Look into all the benefits that you can use. 
• Ease of use: Getting a credit card from your current banking institution will make it easy to access your card online and connect it to your bank account. 

Apply for the credit card

Once you have completed your research, you can complete your credit card application. The most effective way to do this is online through the lender’s website. You can also apply over the phone and through the mail. 

If you apply online or over the phone, your application can be processed and approved in just a few minutes. Sometimes you will need to provide additional information to get approved. Once approved, you can expect your credit card in the mail in about five business days. 

You have more options to consider than you think. Applying for the right credit card that matches your needs can help build a solid financial foundation.