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Christmas Shopping Is Not All Black and White

Budgeting for the Christmas holidays is always difficult; in fact, it’s the one time that is guaranteed to wreak havoc far into the next financial year. For holidays in general, we would advise incorporating your spending into your monthly budget. However, if you haven’t already, don’t despair, there may be some Christmas cheer for you yet.

Knowing how much money you have for shopping is one thing, being able to allocate where that money goes, when contemplating your holiday shopping is something else.
Click to download our Holiday Gift Giving Planner that can help.

Christmas, as we all know, is in December – which conveniently follows the month of November, and two of the biggest shopping days of the year – Black Friday on November 23rd, closely followed by Cyber Monday on November 26th. Although these two shopping holidays are more popular with our neighbours to the south, an estimated 80% of Canadians took advantage of the deals on offer in the 2011 sales. While you may not wish to fight for this year’s big sellers during these mega sales days, they are ideal for swooping under the radar and picking up deals on gifts for extended family and friends.

Another great idea for holiday budgeting, although a little sneaky, is to invite the whole family around for dinner and subtly find out what they want for Christmas. It will get everyone in the holiday spirit, and you’ll save yourself from that frantic, and often expensive, last minute search for the ideal gift. Make sure to set a limit for each person you buy for and keep track of what you bought for whom and how much you paid.

Remember too, that not everyone is concerned with material gifts. Consider making a donation to charity, or, buying a gift with a conscience, such as a milking goat for a 3rd world family on someone’s behalf. If you really want to go the extra mile, why not accompany them on a food drive or to serve at a soup kitchen over the Christmas holidays?

When the holidays are over, your budgeting tasks are not yet done. Take advantage of the New Year’s sales, where you can make huge savings on clothes, toys, electronics and even gifts for the following Christmas.

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Students Can Create a Better Future by Saving Now

Sometimes saving isn’t easy – especially when you look at it as a luxury – reserved only for
times when you have the cash to spare. The first step to successful savings is, ‘out of sight,
out of mind’. Your savings should be part of your budget, and as such, you should consider
that money spent before it is earned. Where does the money come from for savings in the first
place? You may ask. Well, if you budget smart, you will find a number of sources at your
disposal.

First of all take a look at the monthly services you subscribe to. Do you really need those
extra cable channels? What about that gym membership that you have neglected for over a
year? Your internet and phone service may come with added features; most of which you are
probably not even aware of, but are paying for every month. Cutting those payments, and
reallocating them to savings, is simply making better use of money that you never missed in
the first place.

The money you are left with after loans have been paid is ideal for saving. You have already
resigned yourself to that money being debiting from your account each month, so you won’t
miss it by paying it to your savings account instead. However, be careful when you actually
open a savings account – for example, some banks may charge you fees for falling below a
minimum balance. Check the terms and conditions carefully, and choose the account that best
suits your savings budget.

While it is important to save for your future, ensuring you have good credit is equally
important. The easiest way to have good credit is to pay all you bills on time. For credit
cards you should look for a low, fixed rate card, with no annual fees, and, clear and concise
terms for additional services, late fees, balance transfers and other charges. If you are going
to use a credit card pay off the entire balance each month and make sure you pay it on time!

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Financial Tips for University and College Students

Are you struggling with student debts, paying bills or otherwise making ends meet? Well,
knowing where, when and on what you spend your money is the best way to manage your
student budget. If you live month to month, on the premise that there are good times and bad
times, then you need to take a closer look at your finances.

Never spend all your money, just because it is there. Remember those bad times? That
spare cash would have come in pretty handy, if you still had it. Sit down and take stock of
everything you spend each month. Keep all your receipts and create spending categories
such as food, rent, school costs and clothes. Deduct these costs from your income and you
will begin to get a picture of where your money is going. Next you need to decide which
outgoing costs should take priority, and where you can afford to make cuts. Note: This does
not necessarily mean cutting out complete categories, but rather, streamlining what you spend
on each.

Certain categories, of course, are fixed and need to be paid first. Your rent, and loan
payments are examples of fixed costs, however, in some cases you may be able to negotiate
lower payments if you are struggling. Luxuries, on the other hand, are fair game. Until you
have a working budget in place, it is likely that you will have to cut back completely on the
small pleasures in life. Remember, renting a movie costs significantly less than a trip to the
movies, eating in is the new eating out, and thrift clothing is just another name for retro.

Wherever possible, spend cash and avoid using credit cards. If you have to use credit cards
at all, make sure that you pay off the balance in full each month. When you start to see spare
cash in your budget, do not immediately go on a spending spree. Lastly, save whatever you
can, no matter how small an amount, and look at it as a emergency savings or a nest-egg for
the future.

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November is Financial Literacy Month in Canada

Did you know that the month of November is Financial Literacy Month?

This initiative is a nationwide campaign aimed at helping Canadians increase their financial knowledge so that they can make more informed decisions when it comes to their personal finances. Understanding basic financial principles and practices is an essential ingredient to every household’s financial stability.

At Creditaid, one of our highest priorities is helping families understand how the credit system works and how to manage their finances wisely. Many people fall into financial crisis without being fully aware of how they got there in the first place. We believe a clear understanding of the credit system and available financial tools can help people turn their situations around before they find themselves too far in debt. Financial management is key and we are happy to provide you with the tools and information you need to get there.

Creditaid is committed to helping Canadians and we’re here to help. With the Creditaid Budget Bootcamp, we have taken this commitment one step further. Our Budget Bootcamp will take you step by step through a comprehensive budgeting plan, aided by many of the tools we use to help our clients on a daily basis.

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Help With Your Finances from the Ottawa Government

Here at Creditaid, we believe in giving you the tools that will help you manage your finances.
So when we learned that the Federal government has issued a financial toolkit, we just had to
share the news with you. The Financial Consumer Agency of Canada, the Investor Education
Fund and l’Autorite des marches financiers, teamed up with the government to produce the
toolkit, which aims to help Canadians better understand their daily finances.

The move was sparked bystartling figures, showing that an average household debt of
152 percent of disposable income is pushing many Canadians into the red. An effort to
reinvigorate the economy, through low interest rates, is one of the factors contributing to so
many Canadians suddenly finding themselves in debt. The Bank of Canada, backed by the
finance minister, had also voiced concerns about overspending, leading up to the introduction
of the financial toolkit.

The toolkit itself is available both online and in printed form. Worksheets, quizzes, videos
and questionnaires will help you understand and manage your finances. The skills that you
acquire from using this toolkit will not only help you with your current spending, but will
give you the tools you need to ensure you keep on the right track in your future spending.
This is certainly welcome news in these tough economic times, and we hope you find the
toolkit as useful as we have.

For more info visit – http://www.fcac-acfc.gc.ca/ft-of/home-accueil-eng.html

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Paying Down Debt Is an Increasing Priority According to RBC Survey

There were some very interesting statistics generated from a recent online poll conducted by the Royal Bank of Canada, which made comparisons between the debt carried by Canadian households in 2012 versus 2011. The number of survey respondents who had no personal debt, outside their mortgage, increased from 22% to 26% during the last year; a very positive move towards debt-free living.

In spite of this positive direction, there were still some indicators of concern.

For those respondents which did have personal debt, the average amount of that debt did increase by $84 over last year’s number, instead of going down. Just over half, 51% of the respondents, indicated that they were more concerned with paying down debt than investing in the future. In addition, one in three of the survey’s participants noted that they experienced anxiety over their debt levels, an increase in those statistics over 2011.

Canadians appear to be moving in towards more debt-free living, according to this survey, but there is still work to do, to increase the financial stability of Canadian households in general.

Read More about RBC Debt Poll – http://www.rbc.com/newsroom/2012/1010-debt-poll.html

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Get your Finances in Shape with Budget Bootcamp

Deciding to set up a budget is the easy part of organizing your finances; doing it effectively
is where things begin to get tricky. Every day we hear from clients who say they attempted to
budget, only to find that they were no better off at the end of each month. It is an extremely
frustrating position to find yourself in, and one that seems hopelessly irresolvable. However,
we at Creditaid know from experience that budgeting works, as long as you have the drive,
the right tools and a well executed plan.

Everyone’s circumstances are different, so what works for your friends and family may
not work for you. We have always been conscious of this, which is why we have created a
number of tools to suit every need. With the Creditaid Budget Bootcamp, however, we have
taken the battle against financial hardship to a new level. The strategy we are bringing to you
today will take you step by step through a comprehensive budgeting plan, aided by many of
the tools we use to help our clients on a daily basis.

The Budget Bootcamp consists of a free five day plan, delivered to you by email. At each
stage you will receive tips and advice on creating a budgeting plan and prioritising your
finances, as well as access to tools that will help you along the way. We appreciate that you
may have questions that are not addressed in the plan, but don’t worry, we won’t leave you to
fend for yourself. Each email you receive will contain links to relevant help pages and tools,
along with a link that you can use to contact us by email. Subscribe today and look out for
your introduction email, which will guide you through the first steps on the road to financial
freedom.

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Helping Canadians Get Out of Debt

How well do you know the credit counselling agents that you deal with? Are you looking for a more personal experience with a high level of discretion? At Creditaid, we offer you a different kind of experience. Personal finances can get very complicated. Budgets and bills are not just numbers on a piece of paper – they have real life
implications.

How well do you know the credit counselling agents that you deal with? Are you looking for a more personal experience with a high level of discretion? At Creditaid, we offer you a different kind of experience. Personal finances can get very complicated. Budgets and bills are not just numbers on a piece of paper – they have real lifeimplications.

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Its True – Cost of Kids is Rising

You are not imagining things, the cost of raising kids has indeed increased. Everything from food, entertainment, education, sports and clothing, comes at an astronomical cost. We are living in times where prices are rising faster than we can shuffle our budget to accommodate them. We all want the best for our kids, however, we need to step back and redefine exactly what that means. Here is a hint – it doesn’t mean the product with the highest price tag.

Food is perhaps the quickest way to make savings. Buying fresh ingredients, bulk buying staple foods at discount and pre-planning meals are all great ways to cut down your shopping budget. Forget about the high priced brands too, find a cheaper equivalent. Coupons have not gone extinct either, so seek them out in newspapers, stores and online. Most importantly of all, reduce food waste as much as possible. You paid for it, so make sure you use it.

The word retro is your friend – at least when it comes to clothing, sports and entertainment. Ask any musician or sports fanatic and they will tell you that used equipment is best. Second hand musical instruments and sports equipment will dramatically cut your costs. Similarly, you can find last season’s clothes, along with some in-style throwbacks, in any thrift store. As for games consoles and media – pre-owned means paying half the price within a month of release. The average game takes less than a week to complete for most avid gamers. Your kids can also trade in their games, once they have completed them.

Planning for your children’s education will require the most forward planning. Start saving for school, college and university from the second that you find out you are expecting. Contact schools to find out about the annual costs of books, extra-curricular activities and other expenses. Compare college investment plans and choose the one that best suits your budget. When your child begins school, re-evaluate your plan year on year.

Kids can be expensive, but if you plan and spend sensibly, you can greatly cut the cost.