Should you help your children graduate with less debt?

Your children and their education

We want our children to move forward in life. A good education can help determine the future of any young adult. But, what happens when your child’s post-secondary education costs an exorbitant price?

It is estimated that about 83% of parents expect to pay for their child’s post-secondary education. Many Canadian university studies, depending on your child’s chosen program of study and the province in which he or she studies, can cost tens of thousands of dollars. All this to say that if you decide to pay for your children’s schooling, you could end up in retirement a few years later than planned.

What your child’s education can cost

The truth? Tuition fees at Canadian universities have been rising in recent years, provoking many student demonstrations across the country. This is a disadvantage, but it is absolutely unavoidable for post-secondary education. According to the Canadian government, average tuition fees have increased from $ 5,767 for the 2013/2014 semesters to $ 5,959 in 2014/2015. Double that and more if your child wants to study something like medicine or dentistry. Not to mention that most bachelor’s degrees take at least three years to complete. Then there are specialized and master’s degree programs. These are just the first calculations you just made.

There are also books to buy. Those of science and medicine can be extremely expensive. What if your child has to take public transit or drive to school? Is he in photography or similar art program where he has to provide his own course materials like movies, tools or painting? Make sure your children get their hands on the most used books and equipment. Most universities have second-hand bookstores and, hopefully, perhaps you have older children who have already graduated and who can give their equipment to the youngest members of the family.

If your child is lucky enough to always live at home, you can save a little on living costs. What if he goes to school outside of the province? Student housing can be a huge expense that should definitely be taken into account. If your child’s school provides student residences, make sure you have an idea of ​​what it will cost to live, as well as meal options that may be available.

Advantages and disadvantages of paying for their education

Say you do not expect your child to pay for school fees. This is often the case as it is difficult for most young adults to juggle part-time work with full-time studies. It is often a better idea for many students to focus on their education as much as possible and to work a little side to have money to spend. If they decide to go through a four-year program and tuition increases each year, their bachelor’s degree can be expected to be over $ 60,000.

One of the most common mistakes parents make is that they do not consider these costs. If they plan to pay the full amount of their child’s education, not saving money from birth can be a problem. In other words, waiting too long before starting to set aside for tuition could cost you a lot in the future. Depending on your annual income, the number of children you have and how much you put into your RRSPs each year, you may not be able to retire before age 65.

Advantages? Your children will finish their post-secondary education without debt and will be able to face the world. Do not worry, it will not be the only benefit. If you decide to open an RESP for your child, and deposit money regularly, you will eventually be eligible to receive tax benefits and government grants.

Opening a RESP

A Registered Education Savings Plan (RESP) is a government account designed to help you set aside funds for your children’s education. Anyone can open this type of account, including parents, grandparents, caretakers, or other family members. If you and your child both have social insurance numbers, you can start adding money from birth. You can deposit money for all your children, with a maximum limit of $ 50,000 per child. As with a tax-free savings account, the funds you deposit into your RESP will increase without taxes. That’s not all. You will also be eligible for the Canada Education Savings Grant (CESG), which will add money to the account. With one of these grants, the Canadian government will award 20% of any amount you deposit, up to a maximum of $ 500 per child per year. So if you contribute $ 2,500 a year, you will receive the $ 500. The maximum amount you can receive in total per child is $ 7,200.

Student loans

If you do not pay for your children’s post-secondary education and do not receive scholarships or earn enough income, they can apply for a student loan. This is another financial assistance program put in place by the Government of Canada and varies according to your level of financial need. Prospective students must first apply and their file will be reviewed by student financial aid estimators.

One of the disadvantages of a student loan is that it could leave your child in debt. Six months after either going full-time, leaving school for good or graduating or leaving school for more than six months, they will have to start making regular payments on the loan. Depending on the program in which they decided to study, they will likely have accumulated a high fee. It’s up to you and them to find a loan provider that fits the needs and to set up a payment method that’s right for you.

Will you be able to retire?

If you decide to pay your children’s total education, based on your annual income, and the number of children you have who have gone on to post-secondary education, you may be able to retire before the age of 65 years. Maybe it’s worth it to see your child succeed. That’s why finding an RESP and student loans as early as possible could be extremely beneficial for you and your children in the near future. Thanks to you, with a lot of effort and luck, after graduation they will be able to earn their own income and be financially stable for the rest of their lives.

Should you help your children graduate with less debt?

Your children and their education

We want our children to move forward in life. A good education can help determine the future of any young adult. But, what happens when your child’s post-secondary education costs an exorbitant price?

It is estimated that about 83% of parents expect to pay for their child’s post-secondary education. Many Canadian university studies, depending on your child’s chosen program of study and the province in which he or she studies, can cost tens of thousands of dollars. All this to say that if you decide to pay for your children’s schooling, you could end up in retirement a few years later than planned.

What your child’s education can cost

The truth? Tuition fees at Canadian universities have been rising in recent years, provoking many student demonstrations across the country. This is a disadvantage, but it is absolutely unavoidable for post-secondary education. According to the Canadian government, average tuition fees have increased from $ 5,767 for the 2013/2014 semesters to $ 5,959 in 2014/2015. Double that and more if your child wants to study something like medicine or dentistry. Not to mention that most bachelor’s degrees take at least three years to complete. Then there are specialized and master’s degree programs. These are just the first calculations you just made.

There are also books to buy. Those of science and medicine can be extremely expensive. What if your child has to take public transit or drive to school? Is he in photography or similar art program where he has to provide his own course materials like movies, tools or painting? Make sure your children get their hands on the most used books and equipment. Most universities have second-hand bookstores and, hopefully, perhaps you have older children who have already graduated and who can give their equipment to the youngest members of the family.

If your child is lucky enough to always live at home, you can save a little on living costs. What if he goes to school outside of the province? Student housing can be a huge expense that should definitely be taken into account. If your child’s school provides student residences, make sure you have an idea of ​​what it will cost to live, as well as meal options that may be available.

Advantages and disadvantages of paying for their education

Say you do not expect your child to pay for school fees. This is often the case as it is difficult for most young adults to juggle part-time work with full-time studies. It is often a better idea for many students to focus on their education as much as possible and to work a little side to have money to spend. If they decide to go through a four-year program and tuition increases each year, their bachelor’s degree can be expected to be over $ 60,000.

One of the most common mistakes parents make is that they do not consider these costs. If they plan to pay the full amount of their child’s education, not saving money from birth can be a problem. In other words, waiting too long before starting to set aside for tuition could cost you a lot in the future. Depending on your annual income, the number of children you have and how much you put into your RRSPs each year, you may not be able to retire before age 65.

Advantages? Your children will finish their post-secondary education without debt and will be able to face the world. Do not worry, it will not be the only benefit. If you decide to open an RESP for your child, and deposit money regularly, you will eventually be eligible to receive tax benefits and government grants.

Opening a RESP

A Registered Education Savings Plan (RESP) is a government account designed to help you set aside funds for your children’s education. Anyone can open this type of account, including parents, grandparents, caretakers, or other family members. If you and your child both have social insurance numbers, you can start adding money from birth. You can deposit money for all your children, with a maximum limit of $ 50,000 per child. As with a tax-free savings account, the funds you deposit into your RESP will increase without taxes. That’s not all. You will also be eligible for the Canada Education Savings Grant (CESG), which will add money to the account. With one of these grants, the Canadian government will award 20% of any amount you deposit, up to a maximum of $ 500 per child per year. So if you contribute $ 2,500 a year, you will receive the $ 500. The maximum amount you can receive in total per child is $ 7,200.

Student loans

If you do not pay for your children’s post-secondary education and do not receive scholarships or earn enough income, they can apply for a student loan. This is another financial assistance program put in place by the Government of Canada and varies according to your level of financial need. Prospective students must first apply and their file will be reviewed by student financial aid estimators.

One of the disadvantages of a student loan is that it could leave your child in debt. Six months after either going full-time, leaving school for good or graduating or leaving school for more than six months, they will have to start making regular payments on the loan. Depending on the program in which they decided to study, they will likely have accumulated a high fee. It’s up to you and them to find a loan provider that fits the needs and to set up a payment method that’s right for you.

Will you be able to retire?

If you decide to pay your children’s total education, based on your annual income, and the number of children you have who have gone on to post-secondary education, you may be able to retire before the age of 65 years. Maybe it’s worth it to see your child succeed. That’s why finding an RESP and student loans as early as possible could be extremely beneficial for you and your children in the near future. Thanks to you, with a lot of effort and luck, after graduation they will be able to earn their own income and be financially stable for the rest of their lives.

10 sacrifices to save now

Savings are often perceived as a disadvantage and, therefore, are delayed or even ignored. Although savings are one of the biggest personal challenges, everyone must do it, regardless of their financial situation. One of the best ways to start saving is to cut expenses by making a few small sacrifices. Here are 10 small sacrifices that you can start doing now to save right away.

• Beverages

We all love having coffee in the morning, it’s part of our morning routine. On the other hand, buying your coffee every morning or sometimes a week at the local coffee shop can be an important reason for your inability to save. Force yourself to prepare your coffee at home seven days a week and you will see a difference very quickly. Coffee is not the only beverage whose frequent purchase affects your finances. Also cut down on buying bottles of sweet beverages such as sodas and your savings take on a new life.

• The restaurants

Just as frequent coffee buying is expensive, constantly eating or ordering food is also expensive. Of course, no one doubts the usefulness of buying lunch next to your work, but no one also doubts the cost of these lunches. Making lunch at home and creating a weekly lunch schedule are two financially responsible solutions. If you like going out with your friends on the weekends, invite them to your place and ask everyone to bring a dish. So, every guest spares and, who knows, maybe you are leaving a new tradition.

• The meat

Buying meat can be expensive if you’re not careful. If you do not want to deprive yourself of meat, try to decrease the quantities at least. For example, try the meatless Mondays and try to convince your friends and family to ship too.

• Cheese

Meat may seem expensive, but it’s nothing compared to the price of cheese. Cheese is definitely a product that nobody wants to deprive, but if you succeed, you’ll quickly notice the amount of money saved.

• Marks

Branded products are undoubtedly more attractive than their generic ones, but with the marketing surrounding these branded products also comes an additional cost. Almost any store has its own line of clothes that are much cheaper. Still not convinced? Look at the fabrics used. They are often identical.

• Journals

With the rise of the Internet, magazines are losing their popularity. In addition, you never need the magazine in full, from the first to the last page. Try not to buy a magazine that you may never read every time you wait in the queue.

• Chewing gum

If you constantly buy chewing gum packs and lose them afterwards, then you should think about stopping this bad habit. A package does not cost so much, but if you buy several a week, the expenses start to add up.

• Heating and air conditioning

Heating and air conditioning are necessary depending on where you live. On the other hand, what is not necessary is the constant use of these services when you are not at home. Regulate your heating or air conditioning to stop working when you leave your house in the morning. This will surely help you save.

• Birthday cards

Offering birthday cards to family or friends is a great way to show them your affection, but these cards can sometimes cost astronomical amounts. Spending $ 5 on a card is a nice way to throw your money out the window, which you can save. Instead, buy cheaper, no-message cards, then personalize them with your own message.

• Cleaning products

Cleaning products are of course necessary, but why not do a little research and see if you can find a universal product for the floors, bathroom and other parts of your home. You will be able to save a $ 10 each time.

If you think about it seriously and start making small changes in your life, in your spending habits, savings will not be a big drawback. Small sacrifices here and there are the best way to wait for the savings and budget goals you have set for yourself. Make the sacrifices that works best for you and your financial situation.

10 sacrifices to save now

Savings are often perceived as a disadvantage and, therefore, are delayed or even ignored. Although savings are one of the biggest personal challenges, everyone must do it, regardless of their financial situation. One of the best ways to start saving is to cut expenses by making a few small sacrifices. Here are 10 small sacrifices that you can start doing now to save right away.

• Beverages

We all love having coffee in the morning, it’s part of our morning routine. On the other hand, buying your coffee every morning or sometimes a week at the local coffee shop can be an important reason for your inability to save. Force yourself to prepare your coffee at home seven days a week and you will see a difference very quickly. Coffee is not the only beverage whose frequent purchase affects your finances. Also cut down on buying bottles of sweet beverages such as sodas and your savings take on a new life.

• The restaurants

Just as frequent coffee buying is expensive, constantly eating or ordering food is also expensive. Of course, no one doubts the usefulness of buying lunch next to your work, but no one also doubts the cost of these lunches. Making lunch at home and creating a weekly lunch schedule are two financially responsible solutions. If you like going out with your friends on the weekends, invite them to your place and ask everyone to bring a dish. So, every guest spares and, who knows, maybe you are leaving a new tradition.

• The meat

Buying meat can be expensive if you’re not careful. If you do not want to deprive yourself of meat, try to decrease the quantities at least. For example, try the meatless Mondays and try to convince your friends and family to ship too.

• Cheese

Meat may seem expensive, but it’s nothing compared to the price of cheese. Cheese is definitely a product that nobody wants to deprive, but if you succeed, you’ll quickly notice the amount of money saved.

• Marks

Branded products are undoubtedly more attractive than their generic ones, but with the marketing surrounding these branded products also comes an additional cost. Almost any store has its own line of clothes that are much cheaper. Still not convinced? Look at the fabrics used. They are often identical.

• Journals

With the rise of the Internet, magazines are losing their popularity. In addition, you never need the magazine in full, from the first to the last page. Try not to buy a magazine that you may never read every time you wait in the queue.

• Chewing gum

If you constantly buy chewing gum packs and lose them afterwards, then you should think about stopping this bad habit. A package does not cost so much, but if you buy several a week, the expenses start to add up.

• Heating and air conditioning

Heating and air conditioning are necessary depending on where you live. On the other hand, what is not necessary is the constant use of these services when you are not at home. Regulate your heating or air conditioning to stop working when you leave your house in the morning. This will surely help you save.

• Birthday cards

Offering birthday cards to family or friends is a great way to show them your affection, but these cards can sometimes cost astronomical amounts. Spending $ 5 on a card is a nice way to throw your money out the window, which you can save. Instead, buy cheaper, no-message cards, then personalize them with your own message.

• Cleaning products

Cleaning products are of course necessary, but why not do a little research and see if you can find a universal product for the floors, bathroom and other parts of your home. You will be able to save a $ 10 each time.

If you think about it seriously and start making small changes in your life, in your spending habits, savings will not be a big drawback. Small sacrifices here and there are the best way to wait for the savings and budget goals you have set for yourself. Make the sacrifices that works best for you and your financial situation.

3 strategies to create a great financial future in your life

Many of us do not imagine ourselves in 20 or 30 years. We think it is a very distant time and we live daily, or rather from fortnight to fortnight. However, the course of things may change and new opportunities or emergencies may arise, and it is best to be ready when it happens.

Do you think that turning 40 will be when you have to start worrying about tomorrow? For your retirement? For your health? Why save? We regret to tell you that by then it will be too late.

If you are in your twenties or thirties, the decision you knew you can make is to secure and plan your future from now on. It does not mean that you have to have everything clear, but that you be cautious and aware of tomorrow. In Finerio we give you 3 strategies that you can start applying today. Yes, from today! Do not procrastinate.

1. Start saving today

Many times we postpone what we want because it makes us lazy or because we think tomorrow will be a better day. If you postpone the habit of saving, you will wake up on your 30th birthday without a single peso in your pocket. Or, did it happen to you?

Beginning the habit of saving is not complicated. You have to start by creating a budget and sticking to it. Record your income and expenses. How much do you spend per month on rent? How much in food? How much in entertainment? Once you have an idea, set a budget limit for each of those categories and do not exceed that limit.

Remember that you must always allocate an amount of your income to savings. So, if you now spend a lot of money on parties and entertainment, you can start to limit that aspect to start getting savings.

How much should you save? Everything depends on your personal goals. However, not only that: many people, especially young people, set short-term goals such as buying a car, traveling, clothes, etc., without thinking about other, much more important aspects. The emergency fund and the savings fund for retirement are of vital importance.

A savings fund for emergencies should be the equivalent of 3 to 6 months of your expenses. That is, if your monthly expenses are $ 9,000, you need a minimum savings fund of $ 27,000. On the retirement savings fund and how to do it, know more here. Do not wait until you turn 50 to start thinking about your retirement. Currently there are young people who have the goal of retiring before turning 40 years old.

2. Think about your personal goals

Although you do not have to have exactly what you want to do in the future, surely you have a sketch of some goals in your mind. Begin to visualize feelings of happiness, freedom, wealth and well-being will help you get down to work. Would you like to leave your parents’ house? Move to another country? Put your own business? Buy a house on the beach? Traveling for a long time?

Whatever your goal, put a reminder that you get to it. A photo in your room, on your cell phone, an inspiring phrase, etc. With this exercise you will be motivated to do what you have to do every day to reach that goal, including saving.

3. Become an investor

When people start saving they think it will take them years to get together the money they need to achieve their goal, so they get frustrated and disappointed, staying halfway. But, it does not have to be so painful and slow to save. There is something called investing and it is not just for scholars or millionaires.

With an investment you can grow your money without working. You can start by allocating a part of your savings to an investment. When you start investing, allocate something that is not very compromising for your economy so that you can see how it works little by little.

Where to invest? Currently there are already investments that you can make from the comfort of your computer or cell phone. Digital investment platforms are growing day by day, and are more accessible than several years ago, because even with $ 100 you can start.

Types of debt that you can consolidate with a debt management program

When your debts become too large, it is in your interest to ask for help. Deciding what kind of help you need can be complicated, especially if you take a look at all the options that exist. Depending on the types of debt you have and your current financial situation, a debt management program might be exactly what you need to deal with your debts and move in the right direction. Let’s see in more detail what a program like this is.

What to expect

Unlike more drastic forms of debt relief, such as a consumer proposal or bankruptcy, a debt management program is not a legal action. Instead of working with a licensed insolvency lawyer or trustee, you will be dealing with a certified credit counselor who will assist you throughout the process. Your main goal when meeting your advisor is to provide as much information as possible about your finances. The more information he has, the more he can help you. Your credit advisor:

• Determine exactly how much money you owe and to whom
• You will create a personalized budget to help you in your process
• Negotiate with your creditors in the hope of finding common ground in repaying your debts

The bus of a debt management program is to consolidate your eligible debts into a single, more manageable monthly payment. The credit counselor with whom you will be dealing will negotiate, on your behalf, with your creditors and lenders to reduce your interest rates and eliminate penalties that you may have accumulated. In this way, you can continue to pay for your necessities while paying off your debts. In most cases, people can get out of debt fast enough and save on interest charges while making easy-to-manage monthly payments.

What types of debt can be consolidated with a debt management program?

A debt management program is a great option for many consumers who have trouble keeping their debts in order. That being said, not all types of debt can be included in such a program.

Seeking the help of a professional and making the decision to join a debt management program is not a decision that should be taken lightly. That’s why we think it’s important for you to know before making your final decisions. For information and to help you make the right choices, here is a complete list of debts that can be consolidated with a debt management program.

Credit card debt

A credit card debt is not a secured debt, which means it can be included in a debt management program. In fact, credit card debt is one of the most common reasons why consumers choose this form of debt relief.

Retail Store Credit Card Debt

As with other credit cards, retail credit cards are also eligible for a debt management program.

Unsecured personal loan debt

Personal loans that are not guaranteed, ie when you originally applied for the loan, you did not have to put any form of collateral, such as a vehicle, can also be included in a management program debts.

Unsecured Credit Union Loans and Credit Card Debts

If you have received an unsecured loan from a Caisse Populaire or you have accumulated too much credit card debt on a credit card, it is possible that these two debts may be included in your debt management program.

Automobile restitution debt

If your vehicle was repossessed because you could no longer make your payments, you could include that debt in a debt management program.

Gas Cards

A debt that has been created by a gas card is also eligible to be included in a debt management program.

Non-government student loan debt

If you have private or non-government insured student loan debts that are causing you financial stress, a debt management program might be a good option for you.

Previous cellular bills

If you have unpaid cellular bills and no longer use the same service, you may be able to include this debt in a debt management program.

Previous service accounts

Like a past cell phone bill, a utility bill that you no longer use can also be included in a debt management program.

Medical bills

All medical bills are not eligible in a debt consolidation program but some are. If this is the main reason you are considering a debt management program, we recommend that you first seek the advice of a credit counselor.

Make the right choice for you

You should know that creditors and lenders are not required by law to cooperate with your credit counselor. Therefore, the above list should be used only as a reference tool. It is possible that all your unsecured debts may be included in your debt management program. That being said, such a program is the best option for many Canadians who are facing a lot of debt that they can not pay back. If you are currently looking for a solution to relieve yourself of the burden of your debts, we can help you by putting you in touch with a credit counselor in your area.

Custody transfer: This is how you easily transfer your securities

Custody transfer: How to transfer your securities

A custody transfer can take place for many reasons: High fees are associated with the old custody account and you want to save costs in the future. You want a better overview by having all the securities in one deposit together. You are dissatisfied with the current customer service or the performance of your bank. Whatever the reason, a custody transfer is a straightforward affair.
How do you transfer your deposit?

If you want to change your deposit, you first open a new deposit at the bank of your choice. Make an advance deposit fee comparison to find the best conditions for yourself. With the deposit change service you can carry out the deposit transfer online. The securities account can then transfer both your old and your new bank. The rest is actually done automatically: The commissioned bank is now taking care that your securities are transferred electronically to the new depot. Depending on what you arrange, you can switch to a different bank or transfer only individual securities with your entire securities account. Basically, it’s no different than transferring money from one account to another, except that you transfer securities in this case.

What happens to the old depot? You can also initiate the closure of the old depot with the depot exchange service.

Good to know: At which bank you run your portfolio, you decide yourself. From time to time, make a deposit fee comparison to find out if there is a bank that can offer you better conditions if necessary. If you decide to change your custody account, you do so. You do not have to have the custody transfer approved by your current credit institution.

What does the custody transfer cost?

According to a BGH judgment, a bank may not charge for the custody transfer.
The only exception: your securities are stored abroad. In this case, the bank may charge fees when you change your account.

How long does the custody transfer take?

How long the custody account changes exactly varies from bank to bank. Mostly the transfer takes place within a few days. Normally, you will have to wait no more than four weeks for all of the securities to be in your new repository. For special funds, the custody transfer may take longer (approximately up to six weeks). If necessary, ask your bank adviser if you believe that the transfer has already been completed, but the securities are not yet in your new custody account.
Can you trade in securities during the transfer?
While the securities are being transferred, trading is not possible. This will only happen again when the change is completed and the papers are in the new depot.

Can you trade in securities during the transfer?

While the securities are being transferred, trading is not possible. This will only happen again when the change is completed and the papers are in the new depot.

What is the difference between a tax credit and a tax deduction in Canada?

Every year, during the tax season in Canada, you will see many people scrambling to pay their taxes at the last minute, or pay someone else to do them, like an accountant. Because of the stress this period may generate, there are some tax credits and deductions that many taxpayers might overlook or fail to realize they can benefit from. As a result, they will not make the most of their tax returns.

The fact is, people do not even know the subtle differences between tax credits and tax deductions, and they are often seen as the same thing. On the other hand, there are indeed some key differences between the two. In the article below you will find information that you can use when doing your taxes efficiently when the time comes.

What are the tax brackets?

Although this article is not a lesson on how to do your taxes, you should understand some aspects of the tax system generally, if and when you have trouble figuring out the differences between tax credits and tax deductions . Your tax bracket is based on the income you earn in a taxation year and the portion of that income that will be taxed by the federal and provincial governments. The higher the tax bracket, the more you pay taxes. If, for example, you earned $ 60,000 during the year, you will be taxed at a rate of 15% on the first $ 45,916, but at a rate of 20.5% (current rate of $ 45,916 $ 91,831) out of the remaining $ 14,084.

It is important to note here that most provincial tax rules are specific to each province. For example, the federal tax rates are the same in all provinces and, for 2017, start at 15% for the first $ 45,916 or less of taxable income. However, the provincial / territorial tax rate, say, in Ontario, is 5.05% on first income of $ 41,201 or less. To simplify matters, in this article, we will simply discuss tax credits and deductions for a better understanding.

One of the first differences between tax credits and tax deductions is related to your tax bracket. When a particular tax credit is approved, the taxpayer who has applied for a reduction will receive the same tax reduction, regardless of the tax bracket in which it is located. On the other hand, tax deductions depend on your tax bracket because the amount deducted is based on the net income of a taxpayer.

Other notable differences

In fact, there are some additional differences between tax credits and tax deductions that can be confusing to many taxpayers, especially when they try to file their taxes themselves rather than seeking the help of taxpayers. ‘a professional. Below you will find the main differences.

Refundable and non-refundable tax credits

A tax credit is one type of benefit you can claim, which will reduce the amount of income tax you owe the federal government for the year. The amount of tax reduced by this tax credit, whether this amount is equal to $ 100 or $ 1,000, is calculated based on the lowest tax bracket, or 15%, regardless of the tax bracket. taxation in which you find yourself. For example, you are entitled to a tax credit of $ 5,000. 15% of this amount of $ 5,000 equals $ 750. So you will need $ 750 less federal income tax this year.

You can also benefit from two types of tax credits:

• Non-Refundable Tax Credits – help reduce the amount of tax you owe. However, if your non-taxable tax credit is more than the taxes you owe. You will not receive the difference on your tax return. Some types of non-refundable tax credits include the spouse or common-law partner credit, medical expenses, public transit passes, charitable donations, and so on.
• Refundable Tax Credits – also reduce the amount you owe in taxes. However, if you claim them on your tax return, any refundable tax credit will give you the money you do not already owe in taxes. Certain types of refundable tax credits include GST / HST credits (Goods and Services Tax / Harmonized Sales Tax), Work Income Tax Benefit, Children’s Fitness Tax Credit etc.

Tax deductions

A tax deduction reduces the amount of taxable income you must pay. For example, the RRSP. The more you contribute to your RRSP, the more you deduct the amount of your taxable income.

Let’s say that during the 2017 tax year, you earned up to the 15% tax bracket limit of $ 45,916. This means that the amount you owe for federal income tax this year will be $ 6,887.40. However, you managed to contribute $ 5,000 to your RRSP in the same year. This contribution will reduce your taxable income to $ 40,916. 15% of this amount equals $ 6,137.40. You will have saved $ 750 in federal taxes.

Deductions or credits?

In Canada, there are many types of deductions and federal, provincial and territorial tax credits and deductions that you can claim while doing your taxes. One of these deductions or credits may entitle you to a tax refund. However, you will withdraw more or less depending on your income generated on an annual basis. Whatever your income, it will certainly be beneficial for you to consider applying for this tax credit and deduction as soon as possible. In any case, you can contribute regularly to your RRSP to get a basic tax deduction. Once you have obtained a little more information, you can start claiming all the tax credits and deductions and make the most of your tax return.

Learn to focus on the important and not the urgent, also in your finances

In a high life rate like the current one, we tend to focus on urgent decisions but not always on what is important. Changing the focus can be a good idea both for our finances and for the whole of our lives.

 

It is normal to want urgent tasks to be the first to be removed from our list of mental objectives, especially in the short term. However, these urgent tasks are not always the most important in our lives and make us, precisely, forget important issues such as:

• The improvement of the family environment and the attention to the family
• The improvement of our skills and knowledge
• Long-term professional success
• Health Care

Generally, these issues that really are a priority, escape us while we invest a lot of time in tasks of low importance, although they may seem relevant to us.

This is perfectly applicable to taking care of your personal finances . When you spend a lot of time on small decisions, or urgent but banal details, you lose the real perspective of what you want or need for your money, for example, how to save every month . These are some ideas to improve this scenario, and being able to focus better is what is important.

Program your goals and decide to control your finances the way forward

Controlling and dominating your personal finances in the long term is a complex task. To be able to do it, you need to start from a good base, and this base is an initial planning of what you are looking for with your money that can share objectives, for example, saving to buy a house and saving for retirement .

Each person is different in these objectives. There will be those who, correctly, prefer from the beginning to guide the objective to form a good portfolio of savings . There will be those who prefer to balance spending and, at certain times of life, allocate more of the income to consumption than to saving, investing positions in a given time. It’s the same, deep down the important thing is that you set goals and a way to go with your money.

Choose the savings products well; retirement plans , savings insurance, paid accounts, all those tools that will help you shape your savings portfolio over time. At the same time, choose well the model of relationship between what you enter and what you spend, create a good budget and follow the path you decide to mark yourself.

Distinguish the important from the shocking

 

In the same way that happens in other aspects of life, sometimes we do not distinguish the important from the shocking . The important thing is what happens and that, immediately, surprises us for good or for bad, but that, however, in the long term does not have to be relevant.

This is especially important for those who spend part of their money investing . Sometimes, the movements of the markets offer shocking moments that, however, in the long run, do not have a determining importance in our pocket.

Control anxiety for your money

The fear of losing money is logical, reasonable, and also, in its proper measure, healthy. This fear will make us be alert to the evolution of the products or investments that we have chosen.

However, from the fear of panic there is only one step, and that step can place you in the depth of the investor; Panicking is probably one of the worst things that can happen to any investor and lead to the ruin and bankruptcy of personal finances .

This is a clear example of focusing on what is important and not on what is urgent. Imagine that you participate in an investment in which, suddenly, the assets begin to lose value. To panic is to respond to the urgent, that is; Today you have lost money and you respond immediately leaving the investment. However, the variable income works by cycles and although, effectively, you can lose money, the panic is never a good adviser since it will make you to make decisions by anxiety and not reasoned.

If you had your programmed goals, you would know where the acceptable limit of losses is for you, and, you would keep quiet waiting for the evolution of the assets, knowing at all times when to leave if you have to do so.

But, eye. In the same way that panic is a bad friend of your finances, overconfidence, euphoria or foreboding, are also immediate decisions, usually not very thought out and based on anxiety and not on reasoning.

Quick ways to borrow money right now | Loans Quebec

At one time or another, we all have to borrow money. Whether it is to buy our first home, or acquire the vehicle we need, to cover the cost of an emergency, to pay off a student debt, and the list goes on.

Not only is borrowing money (responsibly) an integral part of maintaining a healthy financial life, but it also allows us to buy or experience things you could not afford otherwise. That being said, there are countless ways to borrow money, some good and some bad. So, how do you choose the best way to borrow the money you need?

The best ways to borrow money

 No matter why you need a loan or how you use it, you will face both good and bad options. Since the financial situation is unique to everyone, a certain loan can therefore be a great option for someone and not be such a good option for someone else. In general, the following options are the best ways to borrow money responsibly.

Unsecured personal loans

If you need to cover an unexpected expense, looking to make a major purchase or want to have an economic repayment plan, an unsecured loan might be what you need.

What is a personal loan?

An unsecured personal loan is a cash loan that can be used to buy anything the borrower needs, unlike a mortgage or car loan used to pay for a specific item. There are many different types of lenders that offer personal loans, including banks, private lenders and online lenders. If you decide to apply for a personal loan from a bank, you will likely have to go through a credit check and have a medium to high credit rating. On the other hand, if you decide to do business with a private lender or online lender, you will have more options.

What does the unsecured mean?

An unsecured loan is a loan that is not backed by collateral (a mortgage is an example of a secured loan since the home is collateral). In general, an unsecured loan is provided based on your ability to repay. A lender takes more risks when approving someone for an unsecured loan because there is no collateral to cover the cost of the loan if the borrower ends up in default. This explains why the unsecured personal loan is usually lower than if you are seeking a larger unsecured loan, where you may need to consent to a credit check.

What will my payments be?

All unsecured personal loans are different, but in general, they are tailored to the unique needs of the borrower and his financial situation. This means that it is difficult to give an exact estimate of your payments. However, we can give you an idea of ​​how often you can make your payments. Here are examples of repayment options. Your lender may have other repayment frequency options.

• Weekly payments. You will make one payment per week for the duration of your loan.
• Bi-weekly payments. With this option, you will make a payment every two weeks.
• Payments twice a month. You will make two payments per month with this option.
• Monthly. A monthly payment easy to manage.

Difference between bi-weekly payments and payments twice a month.

It is important to understand biweekly and twice a month do not mean the same thing. With payments twice a month, you will make 24 payments a year (12 months per year X 2 payments per year = 24). With bi-weekly payments, you will make 26 payments in one year because there are 26 periods of two weeks per year (52 weeks per year / 2 = 26).

The reason you might prefer to make bi-weekly payments instead of twice a month is because you will pay off your loan faster and save money on interest charges.

Credit card

Credit cards are one of the most common and easy ways to borrow money quickly. Most adults have at least one credit card and can be approved quickly for more. This is both a good thing and a bad thing for the majority of consumers. Easy access to credit cards means it’s convenient to borrow money whenever you need it. Credit cards are also a great way to build and develop a credit, if it is something that interests you. On the other hand, the convenience of a credit card also makes it extremely easy to spend money you do not have. You create a debt that you can not repay.

The trap of minimum payments

When you use a credit card to make a purchase, you borrow money that must be repaid within a certain time. This is exactly the way a credit card should be used to minimize the creation of debt. However, since credit card companies are interested in making money (just like all of us), we offer you an alternative option, the minimum payment option. This means that you only have to repay a certain percentage of your total balance before the end of your payment period and not the total balance. Is not that a good thing? This may seem like a good option in some situations (emergencies or if you have to pay something important immediately and not have the money to cover the expense). However, keep in mind that you will have to pay interest on the remaining balance that will increase on your next bill.

A line of credit

Like a credit card, a line of credit can be used and repaid several times. A line of credit generally has a lower interest rate than a credit card (one of the biggest benefits of a line of credit) and is often used to pay off other, higher interest debts. This is an option as convenient as a credit card and can be used to pay for anything. One can also only make a minimum payment as for a credit card. However, in general, it is better to make larger payments than the minimum payment required to avoid creating too much debt.

Best way to use a line of credit

A line of credit can be used in the same way as a credit card to cover anything. However, it is always better to use a line of credit to pay for something that will benefit you in the long run, instead of using it for anything you want. Here are some of the best ways to use a line of credit to your advantage:

• To cover an unexpected expense
• To pay for repairs to your car so you can continue to work every day
• To pay for a medical procedure or an emergency
• To pay other debts of higher interest

Since a line of credit generally has a lower interest rate than a credit card, it may be a good idea to have one available, even if you will not use it immediately. An emergency fund is still the best way to protect your finances, but a line of credit is also a great B plan.

A mortgage

A mortgage is a very specific way to borrow money, in the sense that it is used to buy real estate. It could be a house, a farm, a lot, or any other building.

If you live in Canada and want to own your own home, it is likely that you will have to apply for a mortgage to get there. Generally, a mortgage is one of the hardest loans to obtain because there are many regulations associated with this type of loan.

Save for a down payment

One of the most important steps in the process of buying a home and on which you can start saving right away, is probably having enough money for a down payment. In Canada, you must deposit at least 5% of the purchase price of the house you wish to buy, but 20% is recommended. Saving as much as possible for a down payment is the best way to maximize the affordability of owning a home.

Loan on the equity of the property

If you are a homeowner, a home equity loan is another great way to borrow money. When a homeowner takes a home equity loan, the equity of the property is used as well as the portion that has been paid and possessed to obtain a loan. The amount you will be eligible for depends on the value of your home and the amount you have repaid. Equity loans have lower interest rates and can be very useful on some occasions. Among others:

• To cover the cost of home renovations that will increase the value of your home
• To repair damage to your home
• To pay high interest debt and save more money quickly

Keep in mind that when you put your home as collateral, you also put it at risk if you fail to repay your loan. You must be aware of this if you are considering applying for a mortgage loan for the sole purpose of paying off a credit card debt.

A car loan

A car loan is a type of loan used to buy any type of vehicle, recreational or practical.

Auto loans are relatively easy to obtain and can be provided by a number of different types of lenders, including:

• Internal financing of a dealer
• banks
• Online lenders

Auto loans are a form of secured loan (like a mortgage), the vehicle you are considering buying is a guarantee for the loan. This means that if you are no longer able to make your loan payments, you may need to return your vehicle to cover the outstanding balance of your loan.

Personal car loan

You are probably wondering what is the difference between a personal auto loan and a regular car loan. A personal car loan is not used to buy a car. This is a loan that is secured against a vehicle you already own. This is a great way to get a larger personal loan than you could get without collateral and is a good option for Canadians facing solvency problems who have trouble getting approved for a loan. because of their low credit.

Friends and family

One of the easiest and potentially fastest ways to borrow money is to ask a friend or family member. Depending on who you ask, this option is a good idea or a failure. It depends a lot on you and who you ask for money.

Worst ways to borrow money

Although you should always make financial decisions based on your experiences and needs, all loans are different and, therefore, there are some ways to borrow money that should be avoided.

Payday loans

Payday loans are fast, short-term loans that must be repaid on your next payday. This is an extremely convenient way to borrow money immediately. In general, payday loans are easy to obtain, making them very attractive to consumers who find themselves in desperate situations or who are facing financial problems. To obtain a payday loan, you must provide the lender with the following information:

• Proof of address
• Proof that you have a stable income in the last 3 months
• Access to your chequing account so that money can be deposited and payments can be automatically withdrawn.

Payday loans are the most expensive way for a consumer to borrow money. They often have an APR (annual percentage rate) of over 500% and have terms so short that it is often almost impossible for a borrower to find the money needed to repay the loan. Payday loans are a type of predatory lending; the financial stability of the borrower is not considered, which can often cause them to stay stuck in the vicious circle of payday loan.

The vicious cycle of payday loans

When a consumer takes a payday loan, he signs a contract stating that he will repay the loan in full plus interest on his next payday. What will happen often is that the consumer will not be able to repay his first loan and will have to borrow a second loan to cover the first one. This can sometimes lead to a vicious circle that can last for months or even years.

Advances of money with the credit card

Making a cash advance on your credit card is not necessarily a bad thing. However, when you do, you will automatically be charged interest charges. In addition, interest charges are higher in cash advance than when purchased. This means that if your interest rate is 21%, it is equivalent to borrowing at an interest rate of 21%.

Ultimately, if you can not repay your cash advance right away, this is an extremely expensive way to borrow money.

Borrow from a questionable lender

Doing business with any type of lender you do not trust is not a good idea, whether it’s a more traditional lending institution or a small online lender. If you think that the lender does not have your best interests in mind or if an agreement seems to be too good to be true, it is entirely within your rights to refuse to sign a contract and choose a different lender.

How to spot a loan scam

Most lenders work with people to provide the money they need, but that’s not always the case, and other lenders are criminals who only want to defraud hard-working consumers. It is very important that you know how to spot a scam before becoming the victim of one of them.

Here are the best ways to find out if a lender is a fraudster:

If it seems to be too good to be true. As mentioned above, if a lender offers you a good deal, he may try to rip you off.

• Guaranteed approval. No lender of any type can guarantee you approval.
• Initial costs. It is illegal for a lender to charge you for any type of upfront fees, whether it’s an “insurance” or to cover the cost of the loan. Never agree to give money to the lender before receiving your loan.

Borrow money with bad credit

Limited credit, bad credit or risk. No matter what name you want to give it to us, we can agree on one thing: being turned down for a loan you need because of bad credit is boring. Borrowing money when you have bad credit can seem like an impossible task and it can be very difficult to find someone willing to give you a second chance.

The good news is that the number of alternative lenders willing to help strained Canadians is constantly rising.

How to speed up the borrowing process

Borrowing money is a serious process that is time consuming and should not be rushed. Steps must be taken to ensure that the lender and the borrower are protected, and it may take another day to do all the necessary checks. You, the borrower, must understand perfectly the contract you are going to sign. It is equally important for the lender to take the necessary steps to ensure that all potential borrowers can afford to repay the loan they have requested.

It is important that you understand your financial situation if you are unsure of what is happening with your own finances. It can be difficult for a lender to take you seriously. Before deciding to apply for a loan, prepare for the loan application process by asking yourself the following questions.

• How much debt do you have?
• Do you have unpaid amounts on your credit cards?
• Do you have all the necessary documentation in order?
• Are you ready to compromise on the loan amount, duration and other terms?

Prepare to borrow money

All lenders are have different ways to check the financial health and solvency of a person, especially alternative lenders. That means it’s hard to say what you need to borrow. There are, however, a few things that potential borrowers need to know:

• Have a checking account
• Have a stable form of income (it does not need to be a 9-5 office job)
• Have access to a computer and the internet if you want to apply to an online lender
• A financial plan established to repay your loan

It is also very important that you are open and honest with your lender; lying or voluntarily withholding information could cause you long-term financial problems. Such a situation may take years to correct. It is also important that you cooperate with your lender. This means completing the request correctly, responding to your e-mails as soon as possible, returning all missed calls and providing all necessary documents. If your lender needs something from you, but you do not respond to your emails or phone calls, you will not be able to be approved.

Choosing the right way to borrow money

As mentioned, you should always make financial decisions based on your needs, your income and your level of debt, especially when it comes to borrowing money. If you consider all of this, you should not have any problems borrowing responsibly. We can help you if you are interested in getting more help or need to explore your options.