‘Tis the season of resolutions when everyone will toast the New
Year at midnight and make a list of goals for the coming year. With visions of
the recent recession still dancing in people’s heads, financial resolutions
will likely top many lists. It pays to be frugal, even in good times, and
maintain the smart money habits you’ve learned over the past year. With these savings
strategies you can shop for the items you want most while keeping more cash in
your pocket—now that’s worth celebrating!
- Review your spending habits. The start of a new year is the perfect
time to review how you’ve spent your money over the past 12 months and
make a plan for 2010. Take some time to consider your goals, look for
places to save and update your budget.
- Set specific shopping goals. When setting goals, be as detailed as
possible. For example, “save money on groceries” is too general. “Cut the
weekly grocery bill by $25” is a concrete goal you can track and achieve. You can find all the grocery flyers
updated each Friday on www.flyerland.ca.
- Use coupons. When you view the flyers on Flyerland.ca, check out the coupons
available and be sure to pick up the flyer when in store. You can also
visit www.flyerland.ca to get access
to free grocery coupons to be delivered in three business days. Try
it—you’ll be surprised by how much you can save!
- Shop the sales – but only for items you need. Finding a great deal on
something you don’t need and will never use is not a deal at all! Make a list
of necessities for your home and family and visit Flyerland.ca each Friday
to view the flyers for your preferred stores. When you find an item on
sale, pick it up and check it off your list.
- Try other stores. If you always shop at the same stores, you may not realize you are
over spending. Flyerland.ca lets you view flyers from numerous stores so
you can conveniently compare prices before you shop.
- Use points cards. Be sure to sign-up for the points cards at your regular stores—Loblaws,
Sobey’s, Metro and Shopper’s Drug Mart all have programs. When shopping
for everyday items, you could be saving money on future purchases, receive
free groceries or accumulate points for travel and more.
- Invest your savings. When you find a bargain on a must-have item, take the amount you
saved and tuck it away in a savings account. This is the ideal time of
year to open a new Tax Free Savings Account (TFSA) where you can save up
to $5,000 each year tax-free.
By Debbie
Frye, General Manager, Flyerland.ca
If you're looking to purchase or build a home in the New Year, your Registered Retirement Savings Plan (RRSP) may hold the key to affording that dream roof over your head.
Under the Home Buyers' Plan (HBP), would-be home buyers can borrow up to $25,000 tax free from their RRSPs to buy or build a home. If you are purchasing the home with a spouse, you can both withdraw up to $25,000 from each of your RRSP accounts.
Want to see if making a bigger down payment using the HBP buys you a home sooner?
How to qualify for the HBP
You are eligible for the HBP if you and your spouse are both first time home buyers, or have not owned your principal residence at any time during the year of your RRSP withdrawal and the four preceding years. If you've already purchased a home, then you have up to one month after the sale to still apply to the plan. Lastly, you must be a Canadian resident to qualify.
RRSP repayment rules
You need to start repaying the money to your RRSP the second year following the year in which you made your withdrawals. You have up to 15 years to repay the full amount where each year 1/15th of the total amount is due. The Canada Revenue Agency (CRA) will send you statements outlining your payment schedule.
HBP Advantages
The HBP gives you a tax free and interest free way to access the money in your RRSP, allowing you to buy a home sooner. If you can use your RRSP under the HBP plan to make a 20% down payment, then you may qualify for a lower interest rate on your mortgage and may avoid paying Mortgage Loan Insurance -- which could save you thousands of dollars!
HBP Disadvantages
While the HBP gives you a way to get into the real estate market sooner, you should be aware of the possible downsides of missing a repayment and touching your RRSP savings before retirement.
- Missing Repayments: If you don't make a full payment in a year, the unpaid amount is fully taxed as income in your hands.
- Loss of Tax Free Growth: Borrowing money from your RRSP means you're losing out on up to 15 years of tax free growth, which may not be made up by the increase in home equity over time.
- Contribution Rules: You cannot make an RRSP contribution and then immediately withdraw that contribution under the HBP -- you must wait at least 90 days.
- Declaring Bankruptcy: If you declare bankruptcy, you still need to make the payments back to your RRSP, or the money will be taxed as income in the years where you don't make a payment.
Check out the Home Buyers' Plan details at the Canada Revenue Agency for forms and more information.
Your Turn: Have you used the Home Buyers' Plan to help you purchase a home? Got any tips to share?
If Santa
Claus doesn’t bring you exactly what you want this year, there’s no need to cry
or pout—you’re sure to find it on sale during Boxing Week! This is the week
extreme shoppers look forward to all year. But to make the most of the many
sales and to find the best deals you need to plan ahead. Follow these tips to keep
more of your holiday money in your pocket and enjoy stress-free Boxing Week
shopping.
- Check out the deals first. Boxing Week flyers go online at
Flyerland.ca at 6 p.m on Christmas Eve so you can be among the first to
check out the amazing savings!
- Be sure a deal is really a deal. Just because a flyer is advertising an
item doesn’t mean it is the best price out there. At Flyerland.ca you can
view all the popular store flyers online and compare prices before you
shop.
- Make a list. Jot down the items you want most and prioritize your list. Visit
Flyerland.ca to find which store has the best bargains, then plan your
shopping trip by going there first and working your way down the list.
That way if you can’t make it to all the stores, at least you can pick up your
favourite things.
- Buy only items you need. Before you buy an item, ask yourself if
you really need it. Remember, a deal is only a deal if it is something you
will use. Don’t be tempted by great deals on stuff that will end up in
your basement, still in the box.
- Stock up on gifts for other occasions. With such awesome savings during Boxing
Week, you may want to buy a bunch of birthday gifts, especially if your
kids have lots of parties to attend. You can also save on presents for
anniversaries, weddings, baby showers and other special celebrations.
- Plan the day. Dress comfortably and be sure to wear comfy shoes. You may want to
leave your heavy winter coat in the car so you don’t get overheated or
have to carry it, making it easier to carry your best buys. Bring snacks
and water and plan to take breaks—Boxing Week shopping is a marathon, not
a sprint!
- Relax!
You know it’s going to be crazy busy, so accept the fact the stores will
packed with people and you’ll be waiting in long line-ups…and just be
patient. Happy shopping!
By Debbie
Frye, General Manager, Flyerland.ca
There are only a few shopping days left to find the perfect gift for that special someone on your list. If your pocketbook is feeling pinched then give these frugal gift ideas a go. There’s no better gift to give than something creative, homemade, and very thoughtful.
1. Homemade Gifts in a Jar
Homemade gifts in a jar are a fun and easy holiday gift to share. All you need is a mason jar, a recipe, some delicious ingredients, and a gift tag!
2. Cookies from Kris Kringle
If you have the culinary skills then why not bake a batch of delicious cookies for the loved ones on your list. Homemade bars, tarts, and mini cakes go down great over the holidays too. So wrap up some baked goodies in a decorative tin, sign a homemade card, and you've got something yummy for under the tree. Try these Five Festive Christmas Cookies to Share with Family and Friends.
3. Create a Photo Book
Putting together a photo book is a fun and personal gift idea. Find your best photos of friends and family and then fill an album. Photos of a special event, fun vacation, or even a series of candids show that special someone how much you care. Many photo labs also offer other photo gifts like mugs, canvas art, and posters.
4. Make a Music CD
Giving the gift of song is the perfect present for music lovers. Add a unique twist by choosing songs with a theme from a variety of artists. Spin your creative skills by decorating a custom cover and label.
5. Decorative Painted China
Got a coffee fan on your list? Then try customizing a china cup or dish with initials just for them. It's easy to find plain and inexpensive ceramic pieces at a home goods store, and a craft store will have the perfect paint. Fill the mug with a bag of candy and top it with a ribbon.
6. Cookbooks with Homemade Gift Baskets
Grab your favourite cookbook, place it in a gift basket, and add those special ingredients from a delicious recipe. The cook on your list will have everything needed to make something tasty, and the presentation is gorgeous.
7. Custom Coupon Book
Give the priceless gift of time by offering to baby sit, prepare a delicious meal, wash the car, or clean a home by creating a series of custom coupons and pasting them into a book.
8. Give to Charity
Talk to your friends and family this year and consider starting a new holiday tradition by donating a portion of your gift budget to charity. There are a number of organizations that will benefit from your kindness. Giving to others represents a thought provoking gift that goes far beyond the space under your tree.
9. Contribute to an RESP
When there are kids or teens in your gift-giving circle, consider foregoing gifts altogether by contributing to a child's post-secondary education in a Registered Education Savings Plan (RESP). Education is not cheap, and even a small contribution today can grow into a sizable amount in the future. Check out this 5 Minute Guide to RESPs for more details.
10. Wrap it Without Wrapping Paper
Skip paying for expensive wrapping paper by getting creative with your gift presentation. Try rolling your gift in a reusable shopping bag, swaddling it in a baby blanket for new moms, or draping it in fabrics leftover from sewing notions. If you've got the comics kicking around then those work as wrapping too!
Your Turn: Got a frugal last minute holiday gift idea? What's on your holiday gift list?
The house is
decorated, the holiday greetings have been sent and all the presents are
wrapped…or are they? Whether you’ve postponed your shopping to take advantage
of the super sales this year or are completely finished but need a few gifts
for unexpected exchanges, the good news is there is still time to get it done.
With these tips you can easily wrap up your last minute holiday shopping and
still have time to relax and enjoy this special season with family and friends.
Take a vacation day! If you need to do lots of shopping,
do yourself a favour and take a day off. You can arrive at the mall early before
it gets crowded and you’ll spend less time driving around looking for parking.
Be sure to make a list, know your budget and you can finish your shopping
within a few hours.
Prepare for surprises by purchasing extra gifts. Check the flyers for Home
Outfitters or Bouclair on Flyerland.ca for deals on candles, vases or other
home and décor items and pick up a few. If you receive an unexpected present or
are invited to a holiday gathering, you have a lovely gift to give without
having to run out and buy one, which can often mean overspending.
Shop now—don’t wait for Boxing Day. Retailers like Future Shop and Best
Buy are offering awesome sales now to encourage people to shop before Christmas—be
sure to visit Flyerland.ca often to find out who has the best last minute deals.
If you wait until after the big day, you may miss out on the best selection.
Buying now also means you can avoid the Boxing Day rush.
Stock up on stocking stuffers. Stuffing the stockings is always
lots of fun…but it’s even better when you can find cool items at hot prices.
Stores such as Zellers and Wal-mart have lots of unique ideas to suit every
budget.
Buy for other occasions. If you find a really great item on
sale, consider purchasing several to give as gifts for birthdays, anniversaries
and other special occasions during the coming year. You can save time and get
your shopping done early.
By Debbie
Frye, General Manager, Flyerland.ca
The cost of educating your child is not cheap. A recent TD Economics Report says the total cost of a 4-year undergraduate degree in 18 years will be "$92,369 for students living away from home and $68,373 for students living at home" in 2009 dollars. These numbers are enough to set any parent's pocketbook on fire.
The report also highlights that the earning potential of individuals with a bachelor's degree is $18,645 higher per year than that of individuals with only a high school diploma. The price for post-secondary education may be steep, but as a parent there are ways you can help your child succeed in the future without them taking on massive amounts of student debt.
A great start is to open a Registered Education Savings Plan (RESP) for your child.
What is an RESP?
An RESP is a special savings plan, registered with the Government of Canada, that helps you save for your child's education after high school. Contributions made to an RESP are not tax deductible, but the investment earnings grow tax-free as long as they are in the plan.
When the RESP is used to pay for the beneficiary’s education, the payments are taxed in their hands. Since students make little income during their years of study, there is often minimal or no tax to pay.
Who can open and contribute to an RESP?
Anyone can open and contribute to an individual RESP. This includes parents, guardians, grandparents, aunts, uncles, and other relatives or friends.
How much can I contribute?
There is no annual limit on contributions made to an RESP but the lifetime limit is $50,000 for each beneficiary. The Four Pillars Blog offers an RESP series and a personal perspective on Contributing to an RESP.
Get the grants!
Want another incentive for starting an RESP? How about some free cash! The Government of Canada offers a Canada Education Savings Grant (CESG) to match RESP contributions each year at a minimum of 20% up to $500. This means for every dollar you put into an RESP, the federal government contributes 20 cents up to $500 per child each year with a lifetime maximum of $7,200. The CESG is only offered up until the end of the calendar year in which the beneficiary turns 17 years old.
If you're behind in RESP contributions, you may still qualify for the lifetime CESG maximum of $7,200 as there are catch-up opportunities available each year. You can find the unused grant room in your child's RESP by contacting Service Canada. Be sure to have your child's Social Insurance Number (SIN) handy!
For lower income families who qualify, there is also the Canada Learning Bond (CLB) where the government offers $500 for just opening an RESP. The CLB will then pay an additional $100 annually for up to 15 years as long as the child qualifies. No RESP contributions are required and the lifetime maximum offered through the CLB is $2,000 for each beneficiary.
How to open an RESP
Opening an RESP is simple. The first step is to apply for a Social Insurance Number (SIN) for the child to be named in the plan. Secondly, you will need to choose an RESP provider.
But before signing on the dotted line, do yourself a financial favour and become familiar with the fees many providers charge. Check out this helpful Consumer Information Guide plus these tips on Choosing the Right RESP from the Government of Canada.
RESP Deadline
The deadline for contributing to an RESP is December 31 of each calendar year.
For more information on saving for you child's education, see the Government of Canada's CanLearn.ca website.
Your Turn: Do you have an RESP set up for your child? Have any tips to share?
The holidays are a time for family…but with the hustle and bustle of preparing for the season you may find you’re spending less quality time with your spouse and kids. That’s why it’s so important to plan fun activities the whole gang can enjoy. These affordable ideas can take some of the stress out of this busy time of year, without blowing the budget.
- Organize a Christmas movie night. Get into the spirit of the season by watching a holiday classic on TV or check out Flyerland.ca for Blockbuster’s Holiday Gift Guide and rent classics or new movies that are perfect for the whole family—just add a big bowl of popcorn.
- Family game night. Organize a family game night; each family member can choose their favourite board game, spend a fun filled night together during the holidays.
You can check out great deals on board games from Wal-Mart and Toys ‘R Us on Flyerland.ca- and remember that laughter is the best medicine and a great stress reliever.
- Get active. Ice skating at your local rink, tobogganing and a game of pick-up hockey are all fun winter activities that everyone can do, and a bit of exercise can help reduce stress.
- Bakathon- Get the family together and have a day filled with baking and ginger bread house making! Share the cost of ingredients. No Frills has a all your baking components and necessities for a low cost- see them on Flyerland.ca
- See the lights. Pack the gang in the car, load up the iPod with holiday tunes or pop in a Christmas music CD, and take a drive to see the holiday sparkle. More and more people are decorating their homes with spectacular displays and it’s a festive family outing.
- Plan a craft day. Get the kids together to create crafts to give as gifts. Michaels offers coupons and special deals on many items they can make for extra-special presents with a personal touch. Flyerland.ca also offers a range of coupons for children—print them out, decorate them for unique gifts they’ll love.
- Design and send holiday cards. Instead of buying boxed cards this year, spend an afternoon with the family creating special handmade holiday greetings. You may even want to deliver them personally and save on postage. For cards you need to mail, Shopper’s Drug Mart offers 10% off postage every day.
By Debbie Frye, General Manager, Flyerland.ca
When you're young and single, getting the right insurance doesn't often come to mind. Life is busy enough with finishing school, paying off student loans, or trying to land a job. But you would be financially wise to take inventory of what you own and the health you have by protecting yourself with the right insurance. There are also types of insurance you probably won't need until you're married or have kids.
Insurance You Probably Need
Renter's Insurance: Don't scrimp on insuring your valuables when you rent. Spending as little as $20 per month could protect you from financial catastrophe if you are robbed or lose everything in a fire.
- Download this free 15-page Home Inventory Planner to tally your belongings and help calculate your insurance needs.
So think twice before living dangerously without protecting your property while renting the roof over your head.
Automobile Insurance: If you're cruising around town in your new or used set of wheels you must have some liability, comprehensive, or collision automobile insurance to stay safe. Rates and rules differ across Canada. Whether you live in a province with private or public insurance, be sure to match your auto insurance to your needs. For example, pass on paying for extensive collision or comprehensive coverage if you drive an older automobile where the vehicle replacement value is close to the cost of the deductible. And extending your liability insurance to more than the basic required levels further protects you without adding much to the cost of your premiums.
Disability: Consider getting disability insurance to protect your income, especially if you have little to no coverage at work. Calling and getting a quote from a major insurance company is free, and paying the monthly premium while you're young is less expensive than getting into financial trouble due to accident or injury.
If your employer offers disability insurance, be sure to sign up for both short-term disability (STD) and long-term disability (LTD) if you can.
The Government of Canada offers Employment Insurance (EI) in times of sickness, but has specific requirements you must meet before you can qualify.
Insurance You Probably Don't Need
Life Insurance: You generally only need life insurance when others depend on your income. So if you have a spouse or children dependent on your income, then you should get life insurance. Those who are young, single, and without kids generally don't need life insurance coverage.
Insurance agents and brokers love to sell you life insurance policies when you're young citing how the premiums increase as you age -- but the simple fact is if you don't have dependants then you probably don't need life insurance.
Credit Card Insurance: Do credit card companies ever call or send you advertisements trying to sell you credit card insurance? This type of insurance is varied, but many credit companies, at some point, will try to offer you insurance to cover your minimum payments if you lose your job or fall ill. But this insurance is very expensive and the rules for collecting can be tricky. Instead, save your money and skip this unnecessary insurance by starting an emergency fund and paying off your credit cards every month.
Your Turn: What types of insurance can you live without? What insurance do you love living with?
As you’re
decorating the house and preparing for the festive season, you may be
considering another holiday tradition—baking! Homemade sugar cookies, gingerbread,
fruitcake and other goodies make the holidays a little sweeter. But with so
much to do during this busy season, you may think it takes too much time and
effort, not to mention the cost. These tips make it easy and affordable to bake
up delicious treats for the holidays.
- Host a cookie party. Invite friends over for an afternoon of baking. Ask everyone to bring
their own recipes and ingredients. Soon the kitchen will be filled with
laughter, delicious aromas and lots of treats to share. You can also have
everyone bring their freshly baked goodies and make it a decorating party.
- Swap specialities with friends. Many people have a secret recipe that
everyone loves. Make a plan with family and friends to bake up a bunch of
your best bites then swap with others, giving the group a full variety of yummy
sweets to serve up over the holidays.
- Buy in bulk. Check your favourite store flyers at Flyerland.ca for super
specials on holiday baking items and stock up. If the bulk quantities are a
bit too much, you can still save by splitting the cost and sharing the
deals with a friend or two.
- Choose generic spices. Buying spices can be expensive, especially when you need just a
pinch of this or a dash of that. Try the brands at No Frills or Price
Chopper, or the bulk sections of stores to buy only as much as you need.
Using generic products for other ingredients can help you save even more.
- Try a new recipe. Everyone has their holiday favourites, but this year, why not try
out a new recipe or two. Baking ingredients often include special recipes
or you may find ideas in store at Loblaws or Sobey’s. Who knows…you could
start a new holiday tradition.
- Give sweet holiday treats as gifts. Buy festive tins or decorative bags to
package baked goods—they make great hostess gifts or presents for teachers,
coaches and neighbours. Stores like Michael’s offer lots of affordable
items and you can view the deals at Flyerland.ca. As an added touch, print
the recipe on pretty cards to include in the package.
- Remember to bake for home. When you’re busy baking for the office
party or entertaining friends, be sure to bake enough treats for the family
too. Enjoy!
By Debbie Frye, General Manager, Flyerland.ca
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November 2009
