Most of us know what’s not good for us, but that doesn’t mean we avoid it — and this applies to screen time, sugar consumption, and high-interest loans.
In the recent Finder: Consumer Sentiment Tracker report, more than 1,850 Canadians were asked about their financial habits and plans. Despite their bad reputation, payday loans were on the list with 18% admitting to using this short-term funding in the last three months of 2022. While the majority (47%) only had to rely on a payday loan once during this time, almost a third (31%) needed to use two payday loans to get through the holiday season, another third (31%) needed to use two payday loans to get through the holiday season, another 14% used three payday loans, while 8% relied on four or more payday loans in Q4 2022.
The No. 1 reason for getting this type of short-term loan was to buy groceries (13%), followed by paying utility bills.
While payday loans can provide quick access to cash, they come with significant risks, including higher interest rates, shorter repayment periods, along with hidden fees and charges. To reduce the cost of using a payday loan and minimize the cycle of debt, Canadians need to consider when to use a short-term loan and carefully compare their options.
To learn how to compare short term loans, and find the best options, check out Finder’s guide to the best payday loans in Canada.
To help you achieve your financial goals, you’ll need to stay on budget in 2023. Here are three strategies that can help:
(1) Track your finances and create a budget
It sounds boring, but tracking your finances and using a budget helps develop a clear picture of what you earn and how you spend. It can also help identify areas where you can save – putting that money to debt repayment or boosting your savings. If your goal is to pay off all debt, read the Finder guide on debt management or find out where to get free debt management help.
(2) Set up a dedicated savings account
Separating your savings into different accounts helps accomplish three goals: (1) Makes it harder to spend that money (most dedicated savings accounts charge a fee for withdrawals or don’t come with debit cards). (2) Clearly shows how much money you’ve set aside towards your goal – this helps motivate you to complete the goal. (3) Allows you to earn more on these savings. By choosing a high-interest savings account, you can earn two or three times more than money saved in a regular day-to-day account. To compare current offerings, check out the Finder guide on high-interest savings accounts.
(3) Pay yourself first
It’s easier to prioritize a long-term goal, like saving for retirement, if you make saving a habit. To help develop this habit, try setting up automatic deposits into a dedicated savings account. By making deposits into your savings account automatically, you remove the temptation to spend this money and solidify the habit of paying yourself first.
3 reasons why we switch banks
In the recent Finder: Consumer Sentiment Tracker report, more than 1,850 Canadians were asked about their financial decisions in 2023. Turns out a little more than 1 in 10 Canadians (11%) plan to switch banks this year. The top reason to find a new bank was to eliminate transaction fees (11.9%), while getting an account with a higher interest rate was a close second (10.5%), followed by cash back rewards (10.1%).
Trying to figure out what Netflix package to pay for now that the streaming service updated its prices? Here’s a breakdown…
Looking for a personal loan? Check out these tips on how to find and compare personal loans, along with a list of the best personal loan options.
In the market for a new bank account but don’t want to leave the comfort of your living room? Here’s how to open an account online.
We updated this article on March 15, 2023 with Finder’s March Money Newsletter.
Hi Finders!
The RRSP contribution deadline for 2022 is quickly approaching (March 1, 2023). While many of us will contribute just to get the tax break, some of us are concerned about the potential impact of a recession on our retirement savings.
The TSX was down almost 7% since its high in March 2022, but there are a few things to keep in mind as we count the clock to the RRSP contribution deadline:
RRSP contributions are about long-term growth. This means your registered investments will experience ups and downs — it’s not about avoiding these cycles but riding them out using safe strategies.
RRSP portfolios that include holdings from Canadian companies with good dividends and global revenue reach will fare best in downturns.
Include some exposure to U.S. and global exposure.
Layer in fixed-income holdings, which tend to do better during recessions. Good options include bond funds, as well as GICs. (To read more or GIC options for RRSPs, check out Finder’s RRSP GIC guide.)
The biggest tip, from most professional portfolio managers: “Stay the course rather than make major, tactical portfolio adjustments.”
To read more on how to maximize your RRSP contribution, check out the Finder RRSP tax guide.
Debt is a dating dealbreaker!
Would it surprise you to find out that debt is a dealbreaker for one-third of single Canadian daters? In a recent Finder survey, single Canadians identified the top three dating dealbreakers:
36% – Partner had a history of sexual infidelity
33% – Partner had a history of drug or alcohol addiction
30% – Partner had substantial debt
Given that the average Canadian owes $21,128 in non-mortgage debt, this makes debt management a critical factor in both the health of your relationships and the health of your finances.
Inflation. It’s the story that won’t stop and the problem that persists, but how does global inflation become a ‘my-backyard’ problem? You’re probably heard that food inflation spiked, in part, due to global supply chain issues and other factors, such as the war on Ukraine; however, other global situations are contributing to ongoing food inflation. To help illustrate, here are three global problems that are helping to negatively impact Canadian budgets:
Steel. Most of us remember the surge in lumber prices during COVID restrictions. But starting in 2021, steel prices started to rise. China, the world’s top steel supplier, started to cut exports (citing environmental reasons), which meant a nearly 60% increase in steel prices. Since steel is a critical component for building, shipping, manufacturing and repair, businesses felt these higher prices and passed these higher costs on to Canadians.
Soy. Canada has a great relationship with the US, which is the third largest global producer of soy, but great relations can’t overcome environmental conditions. Low water levels tripled the cost of shipping and as a result, the cost of soy is up more than a third (36%). This higher cost also contributed to higher vegetable oil and processed food costs — an impact felt by every Canadian in 2022.
Potash. Fertilizer is critical to food security, and a primary ingredient is potash (potassium-rich salt). However, the war in Ukraine prompted worldwide sanctions against Russia and Belarus — the top two global potash suppliers. The result was an astronomical increase in food production costs, significantly contributing to food inflation, with an average increase of 70% between 2000 and 2020.
$16.95 monthly fee (waived with minimum $4,000 account balance)
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Want to dollar cost average while investing in crypto? Here are five tips to maximize this investment strategy (in partnership with VirgoCX)
Looking for a new (or new-to-you) vehicle? Check out the 0% financing offered by some dealerships and sellers.
Here are five fast and easy loans to consider if you’re in a cash crunch + some tips on when to avoid these loans.
🔎 Earn 300% or more with simple savings switch | 3 tips to help with New Year’s Resolutions
Hi Finders!
Let’s get real for a moment.
We all make promises or set goals we don’t follow through on. According to Happy Habits, 46% of people who set a New Year’s resolution were still successful six months later, compared to the 4% of people with similar goals who didn’t set a resolution. On average, only 1 in 10 people who make a New Year resolution successfully complete the goal after 12 months.
The key to success is to:
Limit the number of resolutions
Opt for a realistic goal, and
Develop a way to monitor and track your progress.
For more than half of Canadians who will carry holiday-related expenses into the New Year, this is critical information. According to the recent Finder survey:
30% plan to pay off holiday debt by the end of January
18% plan to pay off holiday debt by the end of April
9% will carry holiday-related debt for six months, or longer.
If one of your New Year resolutions is to pay off debt, consider the following helpful tips:
Develop a budget. If you want to get out of debt, you need to know what and where you spend. Start by creating a budget. For tips, check out the Finder guide on budgeting for beginners.
Start an emergency fund. A rainy day fund prevents you from having to rely on expensive debt, such as credit cards or payday loans. Even on a tight budget, you should get in the habit of saving a small amount as part of your rainy day fund. Read more on setting up an emergency fund.
Pay off high-interest debt, first To get out of debt faster, concentrate on paying off high-interest debt, such as credit card balances or payday loans. To see how long it will take to repay a credit card balance on a high-interest vs low-interest card, check out the Finder credit card interest calculator. For tips, check out the Finder guide on how to get out of credit card debt or read about the two ways to get out of debt and map out a strategy that works for you.
Pay less on your debt If you can’t pay off your high-interest debt quickly (or if you carry more than one high-interest loan), explore debt consolidation. Getting one loan with a lower interest rate (or consolidating debt to a lower-interest credit card) not only saves you money and reduces the number of monthly payments due, but also saves you money by reducing your interest charges and can help you get debt-free faster. To find out how much you could save (and how much sooner you could be debt-free) check out the Finder debt consolidation calculator.
For more tips check out the Finder guide on debt management.
Best Place to Save Your Money!
Switching to a high-interest savings account can earn you more money, quickly!
To pick the right high-interest savings account look for the following:
#1. Higher interest rate
Look at promo rates, as well as regular interest rate earn rates. Use online calculators to determine how much interest you will earn based on these rates.
#2. No or low monthly account fees
To keep more of your savings, look for savings accounts with no or low account fees.
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Still interested in Boxing Day deals? Start your online shopping by finding the most current deals.
Considering a new car or used vehicle purchase in 2023? Start your search for the best car loan interest rates.
Looking for ways to cut costs in 2023? Shop around for a better car insurance policy. Check out car insurance rates based on models.
🔎 Spending less this holiday season | 4 ways to save $ | Boxing Day deals to put on your radar
Hi Finders!
Have you crossed off everything on your gift-giving list this year? More than half (57%) of Canadian shoppers shop holiday deals, according to the CPA Canada Holiday Spending study.
20% will shop in-person during Boxing Day/Week sales
Sadly, rising costs did have an impact. Almost half (43%) of Canadians plan to spend less this holiday season and a significant factor influencing this decision are higher food costs.
According to a Dalhousie University report, the typical grocery bill increased 70% between 2000 and 2020. Since the average Canadian tosses about $1,300 in food waste each year, it wouldn’t hurt to find smart, strategic ways to save. Here are three tips to help:
Look for coupons. Coupon culture isn’t massive in Canada, but it does exist. Both local grocers as well as online retailers offer coupons. For instance, a 12-bar box of Love Good Fats was $2 cheaper at the start of December, using an Amazon coupon. Look for half-price Cambell’s soups among other deals.
Leverage money-saving apps and websites. Cuts costs through cashback. Earning while you spend programs, like Rakuten, allow you to shop and earn at the same time. Don’t forget to comparison shop for products using various online retailers. To help, check out the Finder guide to online stores like Amazon.
According to research from Colliers International, a global investment management firm, deals are about the same on Black Friday and Boxing Day, though Boxing Day offers a slight edge on savings.
According to James Smerdon, a Colliers International retail trends consultant says, “there’s slightly better deals on Boxing Day.” Black Friday ends up being the bigger sale event because most people want to buy for the gift-giving season.
To help you snag those Boxing Day deals, consider the following:
Black Friday will offer more site-wide sales, but the discounts won’t be as large as those found on Boxing Day.
Shop hard for gamer gear and electronics on both days, but you’ll have more selection during Black Friday.
The deepest Boxing Day discounts will be on anything last season (fashion, vacuums, furnishings, etc.)
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