3 money-saving tips for British Columbians this December
With 2024 nearly behind us, many in BC are looking to the horizon and the fresh start a new year brings. But for British Columbians who have ridden the wave of unaffordability this year and weathered the storms of economic hardships, experts suggest there are a few things that will set folks up for smoother sailing on the SS Economy, and it’s time to batten down the hatches this month to do so.
Invest wisely
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According to Vito Poletto, a wealth advisor at BC’s Legacy Family Office, one option potentially overlooked by younger adults is Canada’s “First Home Savings Account” because some millennials just don’t have the $8,000 to put in right now.
Poletto recommends that you act quickly to open the account before Dec. 31, even depositing just the minimum required by your financial institution. By acting quickly, you will be entitled to $8,000 of extra contribution room.
The Savings Account has attractions even to those who have no expectation of home ownership:
“The FHSA is basically additional RRSP contribution room. So it actually makes sense first, even if you’re not really planning to buy a home right now, to contribute to the FHSA and maximize it. Because even if you don’t buy a home after 15 years, you can transfer it to your RRSP completely tax-free,” he explained.
“It has savings account in the name, and that wouldn’t be the right way to use it. It should be called a first-time home investment account because it is almost like a TFSA. The best thing to do with those, because they grow tax-free, is to actually invest it,” he said.
But while there are still a few weeks left in December, all this must be done soon, as appointments must be made before 2025.
Quantify your spending
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Looking for a New Year’s resolution? Perhaps 2025 is the year you find out exactly where your money goes. Did you splurge for Taylor Swift tickets? That might be an obvious one, but those little purchases add up as well.
“That’s one thing I encourage people to do, is just even quantify how much they’re actually spending at Starbucks or whatever. Because you don’t really know how much you can afford if you don’t know what you’re spending your money on or how much money you’re spending,” Poletto said.
University Canada West assistant professor Yasamin Alami agrees and shares that thinking about your budget should start now, ahead of the holiday mega-spend, but it doesn’t have to be a big resolution.
“Everybody treats it as all or nothing, but a budget is a living thing, so don’t be scared,” she said. “You don’t have to budget for the whole year. You can budget for a month. You can budget for a week, and just track your spending and see what you’re spending money on and it’s not set in stone.”
Adding, “You can adjust your budget. [If] you don’t achieve that goal, you can set a different goal. But I think it’s still worthwhile to try your best and be accountable to yourself. Have a bit of discipline with your money and be saving for the future.”
Alami said a great Christmas gift could even be something that makes money in the years ahead.
“I’ve been recommending to some of my friends to buy a stock for each other. So it’s a gift that kind of keeps on giving. Instead of having Apple products, you have an Apple share, and it’ll kind of go up in value in the future,” she said.
“If that seems too risky, or you’re not comfortable with the stock market, something that’s a bit lower risk [would be] going after a GIC or going after a Canada bond, that would give you a bit of a return, but be a bit more secure than the stock market is.”
No matter what, you want to stay within your financial limits.
“You don’t want to check your bank statement in January and be flabbergasted,” she said.
Decide if it’s worth your time
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With many money-saving hacks or tips and tricks, there comes an element of time. But for many, it’s just not worth it in the end.
Alami said you should feel empowered to pivot from things like couponing if it’s not working for you.
“Yes, it’s a really good way to save some money, but I think you spend so much of your own time cutting out coupons, finding the best deal, and driving around town that it costs more of your time to do that than the savings that you’re getting from a coupon,” she said.
“Your peace of mind has a lot of value. So I would argue that if it’s a really desperate time, or if there’s something very specific that you’re looking for, then by all means, or if you can find five coupons somewhere you’re going anyways, then absolutely I would recommend that.
“But if you’re going out of your way, you’re stressing yourself out; you’re chopping up all these coupons and making a list, then the value of your time doing something else would probably get you more money than the act of couponing.”
Adding that at the end of the day, saving money should be about balance, and you shouldn’t give up your time and your passions to stick to too-strict a budget.
“I think people think they have to make a huge sacrifice in their lifestyle if they want to save their money,” she said. “It’s all about being able to enjoy the things that you like in moderation but have something saved away for a rainy day as well.”