Feeling chilly about your finances? Here are 4 simple ways to prepare for cold-weather expenses

Winter is on the way, meaning we’ll soon be enjoying snowy days, festive gatherings with friends, and cozy evenings spent relaxing and catching up on our favourite shows.

However, it’s also that time of year when unexpected expenses tend to pop up (and no, we’re not just talking about holiday shopping!).

The cold weather can take its toll on our homes, automobiles, and more. From frozen pipes to leaky roofs to car battery issues, and even costs associated with increased heating bills and snow removal services, the season can bring its fair share of surprises for home and car owners, renters and lessees alike.

In fact, a recent survey by Capital One Canada* that polled 1,500 adults across the country revealed over half (54%) of respondents have had one or more unexpected cold weather expenses in the past five years — most of which are home or auto-related. 

Further, around half (49%) who do not have an emergency fund set aside for these types of unexpected expenses would need to borrow or use their credit card to cover an expense over $500.

Sound familiar? You’re not alone, especially after the year we’ve had that was marked by economic uncertainty. While we all understand the importance of being prepared for a rainy (or icy) day, knowing where to start can be a challenge.

That’s why, with the help of Capital One — which strives to support Canadians on their journey to financial well-being — we’ve put together some helpful tips to get you on the right track.

Make a budget

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Creating a budget is the first step. Calculate your net monthly income, track your essential expenses, and keep some room for discretionary spending (i.e., non-essential but enjoyable things like going for coffee or eating out from time to time).

Once this is done, you’ll be able to figure out how much you have left over to save each month, or to put towards your monthly credit card balance to build your score (more on this later). Remember, no number is too big or small; as long as you’re able to make the minimum payment.

Set up an emergency fund

According to the survey, 56% of respondents with an income under $60,000 live without an emergency fund for unexpected expenses, along with 33% of those earning more than $100,000 annually.

Once you’ve figured out how much you can afford to put away each month, it’s important to set up a savings account that will act as your emergency fund.

It helps to set up a pre-authorized debit that transfers a certain amount from your chequing account into the savings account monthly on a day that suits you. This way, you won’t be tempted to spend the money before saving it.

Pro tip: If you keep your money in a high-interest savings account, you can watch it grow as you earn interest on your savings.

Build credit

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In addition to having an emergency savings fund, there may be times when unexpected high-cost expenses require you to consider borrowing money. This is where having good credit comes in, as it can help you qualify for loans and lower interest rates.

Building credit is a journey that differs from person to person — how long it takes depends on whether you’ve had credit before or need to improve it. Really, it just takes consistency and a little bit of financial savvy.

The good news is that there are some basic things we all can do to build our credit score, which is so important as we look to reach our short or long-term financial goals.

When it comes to using a credit card, make at least the minimum payment each month or pay off your balance in full before the due date.

Use Capital One Canada’s free tools

Capital One wants to help Canadians build a healthy relationship with credit and work toward their financial goals by providing the right access, tools, and products that can make each one of us feel in control of our finances.

If you’re applying for a credit card, you can try Quick Check to see which Capital One credit card you’ll be approved for before you even apply. The Quick Check tool will help you find a Capital One credit card that’s right for you without impacting your credit score.

For those just starting out or looking to improve credit, Capital One Canada’s Guaranteed Secured Mastercard is ideal for getting those gears in motion. It works just like any other credit card, except that security funds are required as collateral. Or, check out the new
Smart Rewards Mastercard — the only Canadian credit card that celebrates and rewards customers for payments made toward their balance.

Meanwhile, Credit Keeper by Capital One lets you check your credit score online for free, even if you don’t have a Capital One credit card. It’s fast, easy, helps you stay on track, and has no impact on your credit score — no matter how often you want to check it.

To find out more about how Capital One Canada can help you build credit and prepare for any unexpected expenses, visit the Capital One Life and Credit blog.

^{*Capital One Canada commissioned an online omnibus survey through Leger. Leger fielded an online survey of 1,502 adults across Canada in September 2023.}