Dad taking selfie with son and daughter

Costs of raising a child

Having a baby is a very exciting experience, but what some may not realize is how much money is needed to raise a child each year. To show how the costs of raising a child add up, we’ve broken down a few child-related expenses to consider.


On average, a Canadian spends approx. $10,000-$15,000 each year raising a child. From diapers to clothing, activities, braces and post-secondary education, the costs start to add up year after year. And that’s just for one child. If you have twins or multiple kids, that amount may double, triple or more!

When planning on having a child, money should be a factor you consider. Understanding your finances and how much you’ll need to raise a child can help you determine if the time is right now, or maybe not for a few more years.

To show how the costs of raising a child can add up, we’ve broken down a few child-related expenses to consider.

One-time costs in the first year:

A car seat, stroller, crib, change table and baby monitor are just a few of the items you’ll need to purchase when having a baby.  All big-ticket items with larger price tags. It’s recommended you start putting money aside during your planning stage to cover these expenses when it comes time to purchase. Also, consider adding these items to your baby shower registry and asking family and friends to contribute to the larger items to offset costs. Purchasing second hand is also a great option for reducing costs; however, if you do this remember to look at expiration dates.

Food, diapers & clothing:

Baby necessities such as diapers, food and clothing can have a large impact on your monthly budget. On average, a baby uses more than 2,700 diapers in its first year. With diapers costing an average of $0.20-0.25 each you’re looking at roughly $550 a year in just diapers – that’s not including baby wipes, diaper rash cream, etc.

Additional costs can also include formula and baby food depending on your approach to feeding your baby. Whether choosing to breastfeed or not, formula feeding should be considered when factoring money as sometimes, even if planning on breastfeeding, unexpected factors may not allow for you to do so.  As well, as your child grows, they’ll begin eating the same foods as you and though you may not be buying baby food anymore your weekly grocery budget will increase.

Childcare:

Depending on your child’s age, you may pay anywhere from $250-$1,200 a month for childcare. Typically, the younger the child is means the more you’ll pay for childcare. Something to be aware of is that many childcare providers only take a few infants and young children at a time and it’s recommended you begin looking and putting your name on a waiting list as soon as you can to secure a spot for when you return to work.

Post-secondary education:

Though university may be 18 years away, it’s never too early to start saving for your child’s post-secondary education. Registered Education Savings Plans (RESPs) are taxed-deferred savings accounts and allow you to contribute as much money as you like up to a lifetime maximum of $50,000. To help your money grown faster, the federal government also contributes a percentage of money to the RESP each year based on your contributions. Check out the ‘What to know when it comes to RESPs’ blog to learn more.

Costs related to raising a child may vary per family due to each unique family situation. To understand how much raising a child may cost you, we recommend completing Money Sense’s Costs of Raising a Child Calculator.

Whether you’re thinking about having a child now or in the future, it’s important you understand the costs related to raising a child and create a financial plan.  Talk to a financial advisor today to get your plan started.

Parents – what financial advice do you have for other parents, based on your experiences? Share in the comments below!

girl taking picture of food

Do you have the fear of missing out?

In a society of technology, we continually face the pressure of spending money – seeing what our friends are doing and purchasing and feeling like we have to keep up. This fear of missing out (FOMO) can have a big impact on our finances.


The fear of missing out (FOMO) is real. In a time where social media impacts spending habits, people are often urged to “keep up” and are constantly looking for the next big purchase, rather than save – because you can’t Instagram your savings account balance, but you can Facebook that vacation and Tweet that new pair of shoes. So, is the fear of missing out putting you into debt?

FOMO & debt

According to a recent study by public relations firm Citizen Relations, 56% of Canadian millennials (those aged 18 to 30) feel driven to live beyond their means because of social media. It’s the “fear of missing out” on trips, events, meals, shopping, sales – the list goes on.

Keeping up with your friends’ spending can be linked to social media as often when you make a big purchase you share it. If you miss that trip with your friends you are constantly reminded through social that you’re not there from their posts. Another study from Credit Karma found that nearly 40% of millennials have gone into debt to keep up with their peers. In an age of destination bachelor and bachelorette parties and destination weddings – how do you limit yourself to only spend what you have while still being able to afford the important life moments.

Say no to FOMO

  • Ask yourself “why”
    Before making a purchase ask yourself, “Am I making this purchase because I can afford it and it will make me happy?” or are you purchasing because your friends have it? Being able to identify a want vs. a need is an important question to ask yourself before you spend.
  • Limit yourself
    Figure out what works within your budget and set that as your limit. If you can afford to go out once a week for dinner and drinks with friends then stick to that. Find other solutions to going out, like inviting friends over and everyone brings a bottle of wine and appetizer.
  • Social media detox
    Limit your time on social media. Constantly keeping up with social media can directly relate to the feeling of keeping up.
  • Evaluate who you’re following
    Clean up the accounts you are following on social media by unfollowing stores and blogs. The less you see, the less temptation you will face to “swipe up” and swipe your credit card.
  • Buy for you – not your friends
    Recognize that everyone’s budget is different. We all have different incomes and expenses, so going on the expensive trip or upgrading your kitchen may have fit into your friends budget, but might not fit in yours and that’s OK.
  • Ignore the pressure
    Just like in high school, saying “no” to your friends might seem hard, but your friends should understand that sometimes you have other financial obligations. Finding an alternative hang out plan or trip that is affordable or further in the future that gives you time to save are great solutions to avoid the pressures of going out to spend.

Remember, FOMO is not an excuse to put you into debt. We’re not saying you should deny yourself of every experience, but instead when making purchases ensure 1) you can afford it and 2) it is making you happy – not your friends. Folding to the pressures of social media and your friends will not help your budget and will affect your finances later in life. It’s important to recognize the pressures of FOMO spending habits so you can spend responsibly.

#MONEYTALKs to have before marriage

Money is an important conversation to have in any relationship. Our Conexus experts share their advice on important #MONEYTALKs to have with your partner.


Wedding season is upon us and love is in the air. Have you had the #MONEYTALK with your significant other yet? Money can cause stress in a relationship and having discussions about money with your partner can help ensure you’re on the same page, and not become a bigger issue down the road.

So what type of #MONEYTALKs should you have with your partner? We asked our Conexus experts to give us their best marriage financial advice – here’s what they had to say:

“These conversations can be complex and sometimes uncomfortable to have. Everyone’s situation is unique. I would advise having many smaller conversations around priorities, resources and goals to find common ground.” ~Jason A.

 

“What are your goals and dreams and what does success look like for you? For some people, it’s all about saving, while for others, they want to focus on enjoying life. Making sure you’re on the same page about saving vs. spending is absolutely key.” ~Nicole H.

 

“It’s important to agree on a process for discussing finances and building that as a regular part of the relationship. Over time, life happens, goals change, etc. and having money chats as a regular discussion in your relationship is a great way to ensure that money doesn’t become something that pulls you apart over time, but rather, something that can help bind the family together.” ~Eric D.

 

“Have a discussion around personal feelings related to debt (i.e. what the couple is willing to go into debt for vs. what they’re not.) If one person is okay with debt and the other is not, it can cause strain. Communication and ensuring you find someone that shares your financial values helps to support a strong relationship.” ~Kim M.

 

“Discussions about money seem to be awkward for many. Early on, establish a mutual agreement to keep no secrets. Be upfront and honest with each other about your individual financial health and set goals together. And let’s not forget that this usually means compromise by all parties!” ~ Susan S.

 

“Include your financial experts early on in the conversation to help alleviate fears and concerns and help come up with the right plan and approach for you and your partner!” ~Kyle D.

 

“Have a good degree of financial knowledge. When both people have a good understanding of the topic, the conversations will be stronger and one person won’t be making all of the decisions while the other merely accepts what is happening.” ~ Marcie A.

 

“Share the responsibility of paying bills, budgeting, savings, etc., if you decide to have only joint accounts. It’s important that each partner have this knowledge and share the responsibility so that if something were to happen to the other person, they’d be able to continue these financial tasks.”~Kyla F.

 

“Understand how your ‘love language’ relates to finances. If one person’s language is gifts and the other prefers quality time, this could play into budgeting and lifestyle goals. Be sure to have conversations around as many aspects of finances as possible to ensure you understand each other’s feelings towards money and are on the same page.”~Lisa C.

Money is one of the biggest causes of issues, arguments and stress in a relationship. It may not always be easy to talk about, but starting early and discussing frequently can reduce stress and make these difficult conversations easier to have. It can also help prevent bigger issues from happening further down the road.

Do you have advice for other financial #MONEYTALKs couples should have before getting married? Comment below!

jar labelled budget with coins in it

The importance of having an emergency fund

Life happens and sometimes an unexpected curveball is thrown our way, threatening our financial well-being and causing stress. Having an emergency savings fund helps us be prepared for these unexpected life events.


If your furnace broke down tomorrow, do you have the money to fix it? What about if you were laid off from work, do you have money set aside to cover daily expenses until you got back up on your feet? Or what If you got hurt while playing a sport causing you to be off work for six weeks, would you be able to cover your mortgage payments, bills, groceries, etc.?

Life sometimes throws us a curveball, threatening our financial well-being and causing us stress. An emergency savings fund helps us be prepared for those unexpected life events.

What is an emergency savings fund?

An emergency savings fund is money you’ve set aside for life’s unexpected events such as the loss of a job, a debilitating illness or injury, or a major repair to your home. It provides you with a financial safety net and gives you comfort knowing that you can tackle any of life’s unexpected events without adding money worries to your list.

What if I don’t have an emergency savings fund?

Without an emergency savings fund, you’re living on the ‘financial’ edge, hoping to get by without running into a crisis. If an emergency does happen, it can cause a little problem to turn into a big, expensive financial situation. It can also cause a lot of additional stress.

As well, without an emergency savings fund, many people turn to debt instruments such as credit cards and lines of credits, to help cover costs. Depending on your financial situation, this could cause even more money worries as it’s only a short-term solution.

How much money should I save for an emergency?

When looking at the amount you need to save for an emergency, a good rule of thumb is three to six months’ worth of expenses. Calculate this amount using a budgeting tool. Over a few months, track the amount you’ve spent on your needs including housing, utilities, food, insurance, transportation, debt and personal expenses. Once you’ve completed this, you should have a good idea of the amount you should set aside for emergency purposes.

How can I save for an emergency?

Making regular payments into a savings account each payday is the simplest and most effective way to save money. It may not seem like a lot to begin with, but don’t let that discourage you. Over time, if managed properly, the fund will grow to the required amount.

When should I use my emergency savings?

When determining whether to use your emergency fund, ask yourself the following three questions:

1. Is it unexpected?

An unexpected emergency is one that you didn’t anticipate occurring, such as:

  • Loss of a job;
  • A debilitating illness or injury; or
  • Major repair to your home or vehicle caused by circumstances out of your control.

Annual reoccurring expenses, such as property taxes, would not qualify as an unexpected emergency.

2. Is it necessary?

Needs are often confused with wants and you’ll need to determine if the unexpected emergency is a want or a need. For example, if you have a water leak in your kitchen and you have to put in new flooring, this could be considered a need or an emergency. On the other hand, if your flooring is old, and you want an updated look, this would be considered a want and you’re emergency savings should not be used.

New items are great; however, your emergency funds should not be used for them.

3. Is it urgent?

When an immediate need arises, the last thing you want to worry about is how you’re going to pay for it. When making a decision on whether the expense is an urgent need, determine if it will affect your ability to provide the basics for you and your family.

Remember, the money you have set aside should only be used if you have an unexpected, immediate expense. If you do use money from your emergency savings, be sure to replenish the money as soon as you get back on your feet by making regular payments.

Life may throw you curveballs, but being prepared will give you peace-of-mind knowing you have money set aside for those unexpected events. It will also help your overall financial well-being and reduce stress.

Are you prepared for an emergency? We’d love to help you get started – contact us today!

person handing setting of keys to another person

Tips for first-time homebuyers

Purchasing your first home is a big life decision. Our Mobile Mortgage Specialists share advice for first-time homebuyers on what to know and consider when purchasing your first home.


Buying your first home is a huge life event and can sometimes cause a bit of stress. Figuring out where to start can also become a bit overwhelming. All the questions you begin to ask yourself – how much can I afford? Who should I talk to? How much money do I need to put down? To help get you started, and reduce some of that unnecessary stress, we sat down with our Mobile Mortgage Specialist Team to give us their advice on what to know and consider when purchasing your first home.

Planning

As it’s one of the biggest decisions of your life, planning is essential to ensure you don’t get in over your head. Planning early is key and includes asking yourself some important questions including:

  • What type of home do you want to buy? A condo, residential home or perhaps one that has a legal suite in the basement allowing for potential income – or what some like to call a mortgage helper?
  • How long do you plan to live in this home? Is it your starter home? Forever home? What does your life look like in the next 5-10 years? Family, pets, etc. – will this home need to be able to grow with you?
  • What can you afford? What payment would you be comfortable paying that allows you to still live comfortably? Does this amount include all home-associated costs such as utilities, maintenance, etc.? What other expenses impact your affordability such as debt repayment, etc.?
  • How much money do you have saved for a down payment and what will you need?

When starting to think about purchasing a home, these are just a few of the questions you need to be asking. We recommend speaking with an expert, such as a Mobile Mortgage Specialist, to walk you through these questions and to help you come up with a plan. Doing so will allow you to become focused and help you understand exactly what you need to do to get you where you want to be.

Pre-approvals & affordability

Once you have an understanding of what you’re looking for, it’s important to determine how much money you can borrow. Getting pre-approved sets parameters for the amount of loan you’d be approved for and helps ensure you’re not looking at homes outside of your price range.

When getting approved for a mortgage a number of factors are considered including your income, length of employment, credit history, monthly obligations, assets, liabilities, etc. Debt is also a big factor when it comes to being approved. Credit cards, lines of credit, and loans can have a huge impact on how much you’re approved for.

Also, it’s important to understand how your pre-approved amount equates to your payment cycle. Is this amount something you can afford each month, bi-weekly or weekly? And how long do you want to be paying this mortgage off? Twenty years? Twenty-Five? A longer length of time may make your payments lower but can cost you more interest in the long run.

Remember, whatever you are pre-approved for doesn’t mean you need to spend the full amount on a home. Purchasing a lower-priced home means you’ll need to borrow less money, potentially smaller payments, and the ability, if it works within your budget, to potentially pay off your home more quickly.

Down payments

First-time homebuyers are required to put down a minimum of 5% of the purchase price – for example, if you’re looking to purchase a $300,000 home, you’ll need to put down $15,000. Seems like a lot, right? And another reason why planning is essential.

Start saving for a down payment as early as you can. Consider putting into a savings account, Tax-Free Savings Account or RRSP. Take the ‘pay yourself first’ approach and put a certain amount of money into a separate account each payday. Label the account something that means something to you such as ‘down payment’ or ‘house account’ as you’ll have a better chance leaving the money alone. Also consider putting any extra money you receive such as a work bonus, gift money, money you make selling some of your own personal items, income tax refunds, etc. into this account to help grow your savings faster.

Programs and incentives for first-time homebuyers

There are several programs and incentives for first-time homebuyers that you should be aware of.

  • The Home Buyers’ Plan allows first-time homebuyers to withdraw money from your RRSP to buy or build a qualifying home. You will need to repay these funds back into your RRSP within 15 years.
  • Saskatchewan’s first-time home buyer’s tax credit provides first time homebuyers with a provincial non-refundable income tax credit of up to $1,075 to eligible taxpayers on qualified homes.
  • The Head Start Equity Builder Program allows first-time homebuyers to take a personal loan as a down payment to purchase a new home constructed by the HeadStart on a Home Program.

Also, consider looking at what local builders have to offer homebuyers. During certain times of the year, or in certain community developments, builders offer incentives such as no down payments or down payment grants to encourage homebuyers to purchase through them.

Other considerations/things to know

There is a lot to know when it comes to purchasing and owning a home, and it can be hard to think of it all by yourself. Along with the advice above, here are a few additional things to know and consider.

  • Lean on your experts. Don’t try to do this alone and work with people who are experienced and have your best interests in mind. Your realtor and mortgage specialist are there to offer you a wealth of information to help guide you step by step and ensure as little stress as possible during this exciting time.
  • Set money aside for all the additional fees associated with purchasing a home such moving expenses, inspection fees, home and life insurance, utility hookups, taxes, lawyer’s fees, etc. We recommend setting aside 1.5-2% of the purchase price to help cover these different costs.
  • Filling your new space can come with a cost. The great part about planning in advance means you can also start setting money aside for furniture, household items and your first grocery trip to fill your cupboards with all of the staple items. Another great tip is to create a list of items you’ll need, watch for sales and purchase throughout your planning timelines, putting anything into storage until you move. Be sure to share this list with family and friends for ideas on what to get you for birthdays and Christmases.
  • Use www.expressaddress.com to have your mail forwarded to your new address, update your address within existing companies and even set up your utilities for your new home. It’s free and will help you save time.
  • Budget. Budget. Budget. With new home ownership comes new expenses, and it’s important to have an understanding of your money and budgeting for your newest life chapter. When setting a budget, be sure to put money aside for some of those unexpected expenses such as maintenance or breakdowns. Check out our Setting a Budget blog to get you started.

Buying a home for the first time can be stressful but with a bit of planning, and working with a team of experts, your transition into home ownership can run smoothly. Remember, you’re not in it alone. We’re here to help.

Ready to start your first-home plan today or have additional questions? We’d love to talk to you – contact one of our mortgage specialists today and let’s start planning your future today!

retired couple hiking in field

Retirement: will you have enough?

Retirement – whether far away or just around the corner, it will require some planning in advance. Are you prepared?


We all dream of the day we’ll retire. No more alarm clock and having to get up early to go to work. Being able to take a nap whenever we like. And doing the things we want, whenever we want – a golf game at 2 p.m. on a Wednesday afternoon, why not?

Being able to do all the things we want when we retire though will require some planning in advance. It’s recommended to start early and if you haven’t started yet, it’s not too late. When planning for your retirement, here are a few things you should consider.

How much money will I need?

The amount of money you’ll need to retire will depend on what you plan on doing and the expenses you’ll incur. Ask yourself the following questions:

  • At what age do I want to retire?
  • What types of expenses will I have when I retire such as housing, bills, etc.?
  • What type of health insurance will I need? Will I need extra coverage as I get older?
  • What types of activities/hobbies do I plan on doing such as traveling, etc.?
  • Will I move into a senior’s complex and what expenses will I have?
  • Do I want to leave an inheritance for my family?

Considering all factors, what yearly income would you need and feel comfortable living off of? Take this amount and divide by 12 to get your monthly income. Is this still an amount you’re comfortable with? If not, you may need to relook at the things you may want to do or think about increasing your yearly income to make an amount that you’re happy with.

I know how much money I’ll need, but now what?

Now that you have an amount in mind that you want to retire with, you need to put together a plan on how to start saving money to reach this goal. Starting early is key as it allows you to save more over a longer period of time. Starting later is still possible, but you may have to put more money away in a shorter amount of time to reach your goals.

A retirement calculator helps you figure out the amount of savings you’ll need each year to meet your retirement needs. It takes into account any money you’ve already saved, retirement income you may receive from the government or an employer and rate of returns. It also helps show if you’re on track and provides advice on adjusting your savings if you have a shortfall.

Through the calculator, you’ll be able to see what yearly contributions you should be making. To find a monthly amount, take the yearly contributions and divide by 12. Does this amount fit your budget? If not, consider adjusting your retirement goal or putting away smaller amounts that fit your budget now with a plan to reevaluate and increase contributions over the next several years.

When creating a plan, it’s great to have an understanding of what your goals are and what is needed from you now in order to reach your long-term goals. It’s also important to know that things change in life and you may need to adjust your plan along the way. This is why it’s also important to speak with a financial advisor when creating a plan as they can provide guidance and advice based on your needs and things that may change over time. A financial advisor can also help determine what products would be in your best interest and help reach your goals.

Where should I invest my money?

Everyone’s situation and goals are unique as should be the products to best meet your goals and needs.  There are many different ways you can save and invest money for retirement such as RRSPs, TFSAs, etc. Talking with a financial advisor will help determine what products work best for you. Prior to discussing, become familiar with the different options available and jot down any questions you may have.  Your financial advisor can help answer these questions and set you up with any products identified in your personalized plan.

When planning your retirement, there are many factors to consider and starting as early as possible is key. First, understand what you want when you retire and factor in all related expenses. Talk to a financial advisor to help determine where you want to be and how to get there. And then start investing today. Putting as little as $20 every couple of weeks now can make a big difference later on. There’s no better investment than in yourself and your future… so what are you waiting for?

holiday cup and pastry

Holiday entertainment on a budget

The holidays can be quite busy and costly, especially if you’re hosting a holiday party with family and friends. Here are a few tips on how you can save when entertaining for the holidays.


When you think of December the first few words that may come to mind are busy and expensive. From the parties, work events, concerts, school activities and more, it all starts to add up not only in costs but also time.

Hosting a party  can be a daunting task in itself and when you factor in the stress of costs, it may not seem worth it. To help save on costs, and stress, we’ve put together a few tips for holiday entertaining, ensuring to make you the hostess-with-the-mostess.

Invite guests by e-card

There are tons of great free ecard options available online that allow you to invite your guests by email. These sites are quick and easy to use and also give you the ability to design the invitation to fit your party theme. As an added bonus, some sites even allow you to manage RSVPs and message guests through the invite! A site we recommend for all your party invitation needs is www.evite.com.

Image via www.evite.com.

Host a potluck

Potlucks not only make it easier on the host but also are a great way to save on costs. Instead of planing and purchasing every food item for your event, request your guests each bring a dish.

To switch it up from the usual random potluck, select a theme and have everyone bring a dish related to that theme. You can then carry the theme throughout the rest of your party in your decorations or even a signature drink. Check out a few great potluck theme ideas here.

Borrow from the outdoors

Decorating can be the most expensive part of hosting a party. Luckily you shouldn’t need to invest too much into décor since you likely have already decorated for the holiday season. To add that something extra to your table setting, try bringing the outdoors inside by using spruce trees, branches and pine cones as your centrepiece. We love the idea of using pinecones as a name tag holder or to label your guests’ potluck dishes.

Image via DIY Cozy Home.

Holiday mug gift exchange

Having a gift exchange is a great way to get into the holiday spirit of giving. Why not put a spin on the gift exchange and ask your guests to each bring a holiday mug to your party to exchange. You can set a price limit on a mug and have your guests purchase from a local store, or you can do a re-gift only where your guests will bring a holiday mug they already own for the exchange.

Take the theme further by having a dessert hot chocolate bar where your guests can use their new mugs. Don’t forget to include the marshmallows, whip cream and all the candy fixings to go on top!

Image via Home Cooking Memories

Cozy Up With The Classics

Nothing screams the holidays like a classic holiday movie! Have your guests bring their favourite holiday movie and then get everyone to vote on which one to watch. Most votes wins. All you’ll then need to do is pop some popcorn and cozy up to watch a holiday classic!

Here are a few of our favourites:

  • It’s a Wonderful Life (1946)
  • Miracle on 34th Street (1947)
  • A Christmas Carol (1951)
  • A Charlie Brown Christmas (1965)
  • A Christmas Story (1983)
  • Home Alone (1990)
  • The Nightmare Before Christmas (1993)
  • Elf (2003)

The holidays are about gathering with loved ones, reminiscing about the past year and filling your home with joy, laughter and fun. Your party should not be measured by the amount spent, but instead on the memories made. Spending more money can make your party look more impressive, but it’s the experience and the memories you share that make the night priceless.

Home for sale sign

Mortgage stress tests: what to know

Keep hearing the term mortgage ‘stress’ test but unsure what it means to you. In this blog, we break it all down for you and provide advice on what you should consider when it comes to your mortgage.


There has been a lot of talk about the new mortgage restrictions aka “mortgage stress tests”. But with all the coverage and information out there, what does this actually mean and how does it impact you?

Starting Jan. 1, 2018, if you’re applying for a new mortgage (e.g., buying a new home), re-advancing an amount on your mortgage (e.g., renovations), or switching your mortgage to another financial institution, you’ll be subject to a “stress test”. What this means is that your advisor will assess your finances and qualifications based on a higher interest rate than what they are today.

What many don’t know is this process is already in existence for people applying for mortgages with a down payment of less than 20% of the home purchase price or those with a term of less than five years. The new restrictions will now include those who have a larger down payment and longer term time.

Credit unions are not governed federally, and provincially are not legally bound to comply with these new restrictions. However, as a mindful and trusted community partner, many credits unions already have similar policies to ensure our member’s financial well-being is a long-term focus.

“Approving a member for a mortgage that they could not afford to repay over the long term, simply to satisfy a higher purchase price, does not agree with our values as a credit union, nor increase a person’s financial wellness,” said Kris Wanner, Manager, Financial Services, Conexus Credit Union. “Also, it doesn’t promote community growth, all of which are key components to our cooperative.”

This “stress test” is being put into place to protect homeowners from rising interest rates which may impact their overall finances.  Lending rates have been at a historically low level for a number of years. Lately, we’ve seen a rise in interest rates which speaks to the why behind this stress test.

By factoring your ability to repay, and in turn how much they can spend on a home purchase, at a higher rate of interest provides you peace of mind knowing the greatest asset (and largest borrowing) you will ever have is something you can afford to repay.  It also presents the opportunity for you and your advisor to discuss the difference between “What I qualify for” and “What I can afford”.

“Being aware of your finances and your plans will give you a better understanding of what you can afford and not feel stressed,” said Wanner. “It’s also important to think of all variables when looking at affordability. Many times people forget of other expenses, which can cause them financial stress in the future.”

When it comes time to applying for a mortgage or renewing your mortgage, take a broad look at your finances and your plans – look back at what’s changed and where you want to go. Don’t forget to also look at all other factors and expenses that may be associated with homeownership, such as:

  • Property taxes;
  • Condo fees;
  • Utility bills;
  • Insurance; and
  • Home security.

Other expenses such as loan and credit card payments, food, entertainment, etc. are also important to consider.

Homeownership all starts by understanding the money you have and what you spend. Once you have an understanding, you can then create a holistic plan that works for you.

If you have any questions on what you just read or would like further information on mortgages, ask in the comments below or click the ‘Talk to us about banking button’ below to contact us.

young family in park

What to know when it comes to RESPs

A Registered Education Savings Plan (RESP) is a great investment allowing you to put money aside for your child’s education. Here are a few things to know when it comes to RESPs.


When looking at your child’s future, it may become overwhelming especially when you start thinking about all of the costs related to their post-secondary education. A Registered Education Savings Plan (RESP) is a great investment to help you put money away for your child’s education.

What is a RESP?

A RESP is a tax-deferred, savings account that can be used to save money for your child’s post-secondary education. You can contribute as much as you’d like (up to a lifetime maximum of $50,000) and watch it grow.

To help your money grow faster, the federal government also contributes a percentage of money to the RESP each year based on your contributions.

What types of RESPs are there?

There are two different types of RESPs available – family plans and individual plans.

A family plan is available for families with multiple children, allowing you to add multiple beneficiaries to one plan.

An individual plan can be set up for one beneficiary, and can only have one beneficiary. A common scenario for an individual plan would be in a blended family situation. More details on the two plans can be found here.

When is the best time to start saving for a child’s education?

Starting early, and contributing often, is key. The sooner you start to save, the sooner you’ll start earning interest on your money and receiving federal contributions to your RESP.

If you don’t start early though, it’s never too late to start. There’s no better time to start than today. By just saving as little as $5 each week, it can add up quickly and help your child in their post-secondary dreams.

How much should I save?

Conexus’ education savings calculator can help you figure out the cost of your child’s post-secondary education and map out what type of savings you’ll need to help meet your financial goals.

I’m not sure I can afford a RESP. Is there a minimum amount I must contribute each month or yearly?

Some types of RESPs have no minimum deposit requirements, while other RESPs do. It’s important you talk to a financial advisor to determine what RESP works best for you and what you can afford, whether monthly or yearly.

Where can I go for more information or set up a RESP today?

To learn more on RESPs visit the Government of Canada’s website.

To determine what RESP is best for you and set up an RESP, talk to your financial advisor today.

 

Have a question regarding Registered Education Savings Plans? Ask below in the comments section or contact us today.

Bowl of ramen noodles

It doesn’t just need to be ramen noodles

Money can be stressful when you’re a student but that doesn’t mean you need to live off ramen noodles. We sat down with Braden, a University of Saskatchewan student, to learn more about how he manages money while going to school.


We all know post-secondary education can be quite expensive. In the 2016-17 academic year, a Canadian undergraduate student paid, on average, $6,373 in tuition. And that’s not including the additional costs related to textbooks, school fees and living expenses.

When having the #MONEYTALK with students across the province, we heard over and over the challenge of managing money while going to school. What can a student do to reduce money-related stress caused by tuition and living expenses?

We recently sat down with Braden C., a 3rd-year University of Saskatchewan student and Conexus member, who told us how he manages money while being a student.

Tuition can be expensive. How have you been able to manage the costs of tuition?

My parents have helped me out greatly when it comes to paying for tuition. They’ve been putting money into an Registered Education Savings Plan (RESP) since I was born, knowing I would need it at this point in my life. This has definitely relieved a lot of stress when it comes to paying for school.

That’s great to hear! What else can a student do to help cover the cost of tuition or save money for things such as textbooks?

Scholarships are a great way to reduce your tuition costs. There are many different scholarships available from the schools, local businesses, etc. It can take some time to apply but can be worth it in the end by offsetting some of the costs you need to pay.

When it comes to textbooks, a great way to save money is buying used. For example, the U of S has a program where you can sell your textbooks back to the store. Often you can find a used textbook at a lower price than a new book and from my experience, many of the used books look like new.

What about other expenses such as living costs – how do you make or save money for all of the additional expenses you face?

To allow me to focus on my studies during the school term, I only work during school breaks, such as the summer, and put the money I make into savings. I work as many hours as I can in the summer to provide enough money I’ll need for the eight months I’m in school. I know not everyone can do this, and some may need to work part-time while going to school, but I recommend putting as much as you can into savings during the off months so you can work a bit less during the school term.

Are there any tools you use to help you manage your money?

I use several tools including online banking and Conexus’ Personal Financial Management tool. It allows me to set budgets and track how much I spend relative to those budgets. Each month, I look at what I spent in the previous month and make decisions and changes based on what I think will be coming up in the next month. For example, if I know a band I want to see is coming, I adjust my budget so that I have some money set aside for entertainment. This may mean I don’t eat out a couple of times that month, but I’m also not going over my budget.

What are the biggest challenges you face as a student with your money?

My biggest challenges with money are probably in the area of groceries. When I know the upcoming week is going to be busy for me, I tend to buy foods that require little to no preparation. I have found, over the past three years, these meals are usually less healthy for me and also cost a little bit more than if I were to buy basic ingredients and make the meals from scratch. I also tend to impulse-buy things when I have cravings.

What tips do you have for other students that are needing to manage their money while going to school?

The biggest thing is to set a budget and track your spending. When you are able to see where your money is going, you can get a better understanding of your needs but also find areas where you maybe don’t need to spend so much such as eating out or buying coffee.

 

Thanks Braden! Money can be stressful when being a student but that doesn’t just mean you need to live off of ramen noodles. With a bit of understanding and planning, you can set goals, budget and take control of your finances. Here are a few more ways students can save money:

  • Taking advantage of school discounts. There are many places on campus as well as local businesses that offer students a discount by showing their student card.
  • Walking or taking the bus to school. You can save money on gas and parking!
  • Using loyalty reward program cards for places you shop at frequently. For example, Superstore has a PC Plus program that allows you to earn points you can use to take money off your next grocery bill – and it’s free.
  • When shopping for necessities such as groceries, make your meal plans based on what is on sale. Sometimes you may need to buy in groups, but then that just means you can use for another meal the next week.

What other tips do you have for managing your money while going to school? We’d love to hear them – share in the comments below.