Author Archive for: Veronica

Housing Crisis in Canada

One of the most highly discussed topics in Canadian personal finance right now is the housing market. And for good reason – there’s a lot of volatility and rapid changes occurring within the market. But the question remains, is there a housing crisis in Canada? And if there is, what’s causing it and how can Canadians navigate the problem? In this article, we’ll explore the nuances of the housing market and put it into terms that can be easily understood. Continue reading to learn more. Is Canada having a housing crisis? Technically speaking, Canadian officials have not declared a housing crisis in Canada. However, the biggest mistake in any crisis is failing to recognize that there is a crisis. In addition, most economic crises are discovered in hindsight, not while they’re happening. Or sometimes they’re discovered when chaos ensues, like we saw with the 2008 Financial Crisis. As with any widespread problem, there usually isn’t one single cause, but rather,

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Vacant Home Tax

In the last few years, something called the vacant home tax has arrived in Canada. As the name implies, this tax is incurred when someone owns Canadian real estate, but it is unoccupied for the bulk of the year. This is another cost property owners have to consider. Fortunately, it’ll only apply if your property is vacant for most of the year. If you live in your home, or rent it out to someone else, then this tax won’t apply to you. Ready to learn more? Everything you need to know about vacant home tax in Canada can be found below. What is vacant home tax? As the name suggests, it’s a tax that arises on homes which are unoccupied for extended periods of time. It’s also being referred to as the empty home tax or underused housing tax. At the time of writing, the vacant home tax is only in effect at the federal and municipal levels in Canada,

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Maintaining Tax Efficiency At Every Age

At a high level, tax efficiency is the process of paying the least amount of tax possible without breaking any laws. Obviously, we are not advising you to commit tax evasion! Much of this boils down to understanding how taxation works, then acting in a way that minimizes your tax burden. Given that taxes are quite high in Canada, it’s likely that most individuals and families are interested in improving their tax efficiency. Continue reading to learn more about tax efficiency in Canada and how you can apply it to your own personal finances.Furthermore, you can enhance your tax efficiency at any age, which we’ll explore below as well. What is Tax Efficiency? Tax efficiency is the culmination of processes and behaviours executed to pay the least amount of tax while still maintaining compliance with the law. A decision is tax efficient if the tax obligation arising from it is less than an alternative decision. Naturally, we all want to

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Combined Federal and Provincial Tax Rates

Tax season is just around the corner! As you gather your documents and prepare your tax software, you are likely thinking about how much you’re going to owe. Or maybe you’ll be one of the lucky Canadians who receives a refund! While preparing for tax season, you might be curious about the combined federal and provincial tax rates. Normally, these are expressed separately which makes it a challenge to estimate and visualize how much tax you owe. In this article, we’ll explain the basics of personal tax brackets and rates in Canada, all combined tax rates, and how you can use this information to enhance your personal finances. An Overview of the Canadian Tax System Canada’s tax system is progressive, sometimes called graduated. This is a fancy way of saying the more money you make, the more tax you will pay. In many ways, having a progressive system is advantageous because it equalizes the wealth of a nation. Although, the

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What is a Recession in Canada?

It’s something that is on everyone’s mind right now: what is a recession in Canada? There has been tons of talk about inflation, soaring housing prices, lay offs, and much more about the health (or lack thereof) of our economy. As Canadians, we all want to make sure we are making the wisest investments and consumer decisions in our current economic environment. Unfortunately, there are times when an economic downturn can occur – often referred to as a recession. After all, what goes up, must come down! Let’s take a closer look at just what defines a recession in Canada, how it affects individuals and investors alike, plus ways you can prepare yourself for such an eventuality. Continue reading to learn more! What is the definition of a recession? A recession is defined as a temporary period of economic decline. Trade and other gainful activity slows during a recession. In other words, people lose their jobs, experience a decline or

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What is Personal Finance and Why is it Important?

In modern day society, money is a valuable tool that allows us to achieve life’s greatest objectives. Avoiding personal finance may limit you from being able to buy a home, retire, start a family or go to school. For this reason, personal finance should be considered, including income, spending, saving, investing and debt. In this article, we’ll explore what is personal finance and why is it important. In addition, we’ll cover the basics of personal finance and some tips and tricks to get you started on your journey. What is personal finance? Personal finance is a broad term that encompasses the process of managing your own money at the individual or family level. This includes activities like budgeting, earning income, paying for living expenses and debt, building an emergency fund, investing, obtaining insurance coverage, retirement planning and much more. Personal finance can also be defined by the knowledge, tools and tactics utilized to manage your money. What is a personal

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10 Best Finance TV Shows and Films

Do you want to watch film and TV show content that follows real financial events or stories inspired by the world of finance? Look no further! We’ve compiled a list of the 10 best finance TV shows and films based on authenticity and unique stories within the financial world. Ready to enjoy a blockbuster with some popcorn tonight? Continue reading to find a film or TV show that suits your taste. What makes a good finance TV show or film? Given that TV shows and films are artistic creations, the answer to this question can vary depending on who you ask. However, we’ve based our list on authenticity and unique stories within the financial industry. In our opinion, a good TV show or film gives insight into what it’s like to be a part of the finance industry for someone who’s an outsider whether it’s real or fiction. Related Reading: How to Invest in Mutual Funds in Canada 10 Best

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Types of Tax Returns in Canada

With tax season just around the corner, it’s important to understand the different types of tax returns in Canada. Each tax return has a different purpose as well as varying inputs to calculate your tax liability. To understand more about which tax returns you need to file and when, continue reading below. What are tax returns in Canada? Tax returns are annual, quarterly or monthly forms used for tax compliance and payment. Inputs, such as income and expenses, determine your tax liability or refund. Most Canadians only file taxes on an annual basis, but it depends on your unique circumstances. Taxation is typically the largest source of income for the government, including in Canada. Financial data and taxes are collected by the government using tax returns. How taxes in Canada work In Canada, taxes apply at the federal and provincial/territorial levels. Before calculating tax, you must determine your taxable income which is the sum of your income less any deductions

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7 Best High Yield ETFs in Canada

Investing in exchange traded funds (ETFs) can be a great way to diversify your portfolio and capitalize on strong yields without taking on excessive amounts of risk. If you’re considering investing in ETFs in Canada, you’ll want to ensure the funds offer good capital appreciation potential and a stream of income. Fortunately, there are high yield ETFs in Canada which can help you achieve these goals! To help narrow down your choices, we’ve put together a list of 7 high yield ETFs for Canadian investors. By using this list, you’ll have one less thing to research so you can begin growing your wealth with confidence. Read on for our detailed assessment of each fund’s key characteristics, upsides and challenges, as well as some pro tips from top financial advisors. What is a high yield ETF? A high yield ETF, also known as a “junk bond ETF” in slang, is a type of exchange-traded fund (ETF) that holds a portfolio of

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The Link Between Finances and Mental Health in Canada

Ever avoided looking at a credit card statement after the holidays? Or ignored your skipped TFSA contribution, again? You’re not the only one. Finances and mental health in Canada go hand in hand. Plus, financial stress translates into a host of mental health issues and daily struggles — and money avoidance is only one of them. Doctors have found links to anxiety, depression, and even psychosis when people experience immense financial turmoil. Tack on inflation, rising mortgage interest rates, and skyrocketed grocery bills? Even the middle-class 9-5er is going to feel some strain. Unfortunately, financial stress only worsens if you don’t deal with it. But if you want to avoid the mental health issues that come as a result, building awareness is a great place to start.In this article, we’ll explore the relationship between money and mental health in Canada, as well as how you can take action when you have the money blues. Stats at a glance: How finances

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Financial Health Checks: Why You Should Do Them Regularly

Life’s busy, but we make time for the odd doctor’s appointment — a health check just to make sure we’re alright.But what is a financial health check? A financial health check is similarly essential, yet easy to forget about. Think of it like a check-up on your financial life, from debt and income to spending and budgeting. Here’s a small example: You have a solid roster of streaming and food delivery services to pick from, but you might pay for subscriptions you don’t use as much anymore. Today’s average consumer underestimates their subscription spending by $133! A financial health check would help you catch that before you go years without realizing it. Today, we’ll cover the ins and outs of a financial health check, what to look out for, and how to improve your financial health. What is included in financial health? Financial health encompasses the state of every aspect of your finances. This includes debt, income, credit score, investments,

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10 Best Stocks for Beginners in Canada

Beginning to invest can be daunting. There are many types of assets you can invest in, with one being stocks. Making the decision to invest in stocks is the first step, but then you also have to decide which companies to actually put money into. There’s so many metrics, ratios and numbers to consider — it can make anyone’s head spin! In this guide, we’ll explore 10 of the best stocks for beginners in Canada. These stocks have reliable returns and have a healthy history making them ideal investments for newbies. Continue reading to learn about investing basics and take a peak at the list! Investing 101 Before diving into the world of stocks and the best stocks for beginners in Canada, it’s helpful to consider some investing basics. It’s always wise to know a thing or two about potential investments before putting up the cash. Let’s take a closer look below. What are stocks and how do they work?

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How to Calculate OAS in Canada

If you’re approaching retirement, estimating and forecasting monthly retirement income is important. The amount of income you expect to receive impacts your lifestyle in retirement. Many Canadians will receive the Old Age Security, or OAS for short, benefit. Normally this benefit comes into effect when Canadian citizens reach age 65. But how do you determine the amount you’ll receive? In this blog post, we’ll explore what exactly OAS is, the eligibility requirements when it comes to receiving OAS benefits, and how to calculate OAS in Canada. Continue reading to learn more! What is OAS? Old Age Security (OAS) is a pension program run by the Canadian government that provides monthly income to seniors over the age of 65 who meet the requirements. To qualify for Old Age Security, applicants must: To receive full OAS pension payments, applicants must have lived in Canada for at least 40 years after turning 18. Otherwise, applicants will likely receive a partial benefit. The Old

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Best Pension Plans in Canada

If you’re like most people, you probably don’t want to work forever. If you’re considering ways to invest in your future and retirement, a pension plan is the best option to consider. Pension plans are a long-term investment strategy worth exploring. While they may seem complicated at first, a well-planned pension can provide the financial security required for retirees in Canada to enjoy their golden years without financial stress. In this blog post, we’ll take a look at some of the best pension plans in Canada. By the end, you’ll have a better idea of what pension plan is best for you! What is a pension plan? A pension plan, or fund, is any program or system that provides retirement income. Unfortunately, retirement is expensive and it takes a lot of resources to finance it. This is from both the individual and institutional level. However, it is important that we consider our elder generations and ensure they can live comfortably

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Personal Financial Planning for Every Generation

Every life event requires time, money, and financial planning to tie everything together.A life event could be anything from buying a home to getting married and starting a family to partaking in a dream vacation. But here’s the thing: your Excel budget sheet isn’t enough to adequately cover financial planning. Plus, personal financial planning looks different depending on your generational status. Don’t know where to start? Keep reading — we’ll cover personal financial planning for baby boomers, millennials, Gen Z, and Gen X. The goal is financial freedom, and personal financial planning helps you get there.Learn more below! What is personal financial planning? Personal financial planning is creating strategies and plans to align your financial scenario with your life goals. It covers everything from day-to-day budgeting, savings targets, investments, real estate, debt management, and long-term desires. Why is learning about personal financial planning important? Learning about personal financial planning promotes overall well-being. For instance, Forbes tells us that financial health

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What is the average annual income in Canada?

Income varies greatly from person to person in Canada. According to a 2020 study by Statista, the median household income in Canada was $96,220. However, this number can be deceiving as it does not account for the vast wealth and poverty that exists across the country. Some earn well below this amount while others earn well above it which can skew the data. So what is the average annual income in Canada? In order to get a better understanding of how average Canadians fare financially, we need to take a closer look at the data. Read on to learn the ins and outs of average annual incomes in Canada! What is the average annual income in Canada? The average hourly wage for a Canadian household was $36.28 in 2020 for a full-time employee. When you multiply that by 8 hours, the average daily wage comes to $290.20, or weekly it’s around $1,451. Therefore, the average bi-weekly salary is about $2,902

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What is the clawback for OAS?

Financial security is important at any stage of life, especially retirement. One of the financial benefits Canadian retirees rely on is Old Age Security (OAS). However, there is a clawback to consider which may reduce the amount of OAS money you receive. So, what is the clawback for OAS? In simple terms, the OAS clawback is a tax that applies when recipients of the benefit surpass a certain annual income threshold. Read on to learn more about the OAS clawback, how it might affect you and what amount of tax you can expect to pay. What is Old Age Security (OAS)? The Old Age Security (OAS) pension is a government-provided monthly income for seniors. To be eligible for the OAS pension, individuals must be 65 years of age or older and legal residents of Canada. The OAS pension is not means-tested, which means that it is not based on the applicant’s income or assets. Rather, your age and residency are

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Is Bitcoin Legal in Canada?

Bitcoin was once exclusively associated with shady dealings, until it had an unexpected boom in 2010. Since then, cryptocurrencies have entered the public eye and it is a heavily debated topic in the finance and tech world. Today, you can use it to pay for various things, even your Starbucks latte. Are you still not convinced? It’s easy to be skeptical. First, crypto’s volatility is enough to make traditional investors and regular spenders squirm. Then, you have new crypto scams popping up everywhere.In this article, we’ll explore the legitimateness of Bitcoin and other cryptocurrencies in an attempt to answer the question: Is Bitcoin legal in Canada? Just because Starbucks allows crypto payments, does that mean you can use it anywhere? Well, legal and legal tender are two different things. We’ll cover Bitcoin’s legality, tax status, and more about crypto with this guide. What is Bitcoin? Bitcoin is a digital currency (better known as cryptocurrency) created with computer algorithms through a

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Mortgage Refinancing Canada

Mortgages are big business in Canada. In fact, according to the Canada Mortgage and Housing Corporation (CMHC), as of the third quarter of 2021, the mortgage market in Canada was worth $1.77 trillion. For this reason, Canadian homeowners are particularly concerned with anything and everything surrounding mortgages. But what about mortgage refinancing in Canada? If you’re a Canadian homeowner who’s looking to refinance your mortgage, it’s important to understand how the process works. In addition, it can help to understand the benefits and drawbacks of mortgage refinancing before you make the plunge. In this blog post, we’ll explore how refinancing works in Canada and what you need to know before refinancing your mortgage. Keep reading to learn more! What is refinancing a mortgage in Canada? Before diving into refinancing definitions, let’s chat about what a mortgage is. A mortgage is a type of loan that is used to purchase real property, typically a house, apartment, building or similar. The loan

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Common Law vs Marriage Canada: What are the financial implications?

A life partner adds a lot of value to our lives. Many Canadians are looking for that perfect someone and when they find them, you may want to celebrate your love by moving in together or getting married. However, marriage isn’t just about celebrating your love, it’s also a legal contract that involves the Canadian government and your finances (we know — this part isn’t very romantic!) This isn’t to say you shouldn’t get married, but you should have financial conversations with your partner before tying the knot to ensure you’re aligned. In some cases, you may find that common law is actually a better fit for you and your partner due to the differing financial and legal implications. To learn more about common law vs marriage in Canada, continue reading this guide. Common Law vs Marriage Canada Does a piece of paper really signify a loving relationship between two people? For many couples in Canada, the answer is no.

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