This blog was written by Kim Lowrie, Financial Advisor (World Financial Group).
As a newcomer to Canada, it’s not easy to learn about how things work, especially in the finance area!
Here are 6 things to consider as part of your family’s financial plan in Canada:
Monitor how much you are spending each month. Sometimes it’s hard to remember where the money goes if you don’t track it.
Having a notebook or budget sheet can help you record your expenses. It may also be helpful to make a list of items you need before shopping.
It’s a great idea to build your credit history in Canada, however, you should aim to pay off your balances as quickly as possible.
As an example, let’s say you owe $10,000 on your credit card today, and only pay the minimums. If your credit card is at 20% interest, in 4 years you will owe approximately $20,000 (double the amount).
Unfortunately, many families in Canada struggle with debt, so it’s necessary to plan ahead and not fall into the trap of spending more than you can afford.
You should have some money set aside in case you need to pay for something unexpected, like car repairs or a new phone. You may also need money to pay for a trip back home.
This is often overlooked, but as a newcomer to Canada, your ability to earn income is very important to you and your family.
If you were to get disabled or pass away, how would your family survive?
Protection of your family’s lifestyle, in the form of life insurance and disability insurance, can allow your family to have peace of mind.
In Canada, you have to take into account the effect of taxes on your investments.
There are a few different ways you can save and grow your money in a tax-sheltered environment. These are:
- Tax-Free Savings Account (TFSA)
- Registered Retirement Savings Plan (RRSP)
- Registered Education Savings Plan (RESP)
- Registered Disability Savings Plan (RDSP)
- Universal Life Insurance
Keeping your assets within your family takes a bit of planning, but is worthwhile, since you can potentially lose a large portion when you pass away, due to taxes.
It’s a good idea to create a will and have a discussion with an estate lawyer, accountant and financial advisor to figure out your estate plan.
Kim Lowrie is an insurance agent and mutual fund representative with World Financial Group.
She has made it her lifelong mission to help Canadians succeed financially, through individual coaching, educational seminars and workshops.
To find a solution that best fits your needs and goals, or to enquire about seminars and workshops, connect with Kim: