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THURSDAY, JANUARY 25, 2024
RRSP TAX SAVINGS & RETIREMENT RICHES
How to teach kids about money T eaching kids about money is a crucial life skill that lays the foundation for their financial well-being as adults. Try these effective strategies to raise financially respon-
3. Lead by example Demonstrate responsible habits in your own life. Involve your kids in family financial discussions. Make them part of decisions, like budgeting for vacations or saving for major ex- penses. 4. Teach delayed gratification Teach kids to set goals and save for them over time. This instills the concept of patience and demonstrates that waiting can lead to more fulfilling rewards. 5. Explain needs vs. wants Encourage critical thinking about purchas- es by discussing whether an item is necessary or desired. This distinction helps kids make thoughtful spending choices. Do you want to set your kids up for future fi- nancial success? Talk to an investment advisor in your area to discover the possibilities.
sible children. 1. Start early
Start discussing money concepts, like saving, spending and earning, from a young age. Use relatable scenarios, such as shopping trips, to
explain these ideas in simple terms. 2. Provide hands-on experience
Provide a small allowance and encourage your children to allocate it among different categories like saving, spending and donat- ing. This practical approach teaches them the value of budgeting and decision-making. Ad- ditionally, allow your kids to open a savings ac- count. This could spark interest in saving and growing money over time.
9 ways to pay off your credit cards faster C redit card debt can trap you in a cycle of financial stress as high interest rates compound your balance, making re- temporary zero per cent or low introductory rate and transfer your balances to that card, allowing you to make significant headway
payment challenging. Paying it off demands financial discipline and smart planning. Here are 9 ways to tackle credit card debt. 1. Create a budget Establish a comprehensive budget that maps out your income, expenses and debt obligations. This transparency helps you identify areas where you can trim unneces- sary spending, freeing up more funds for debt repayment. 2. Use the debt snowball method This method involves paying off your debts with the smallest balances first, regardless of the interest rates. This can help you build momentum and motivation as you see your debts disappear one by one. 3. Use the debt avalanche method This method involves paying off your debts with the highest interest rates first, regardless of the balance size. This can save you money in the long run, as you’ll pay less interest over- all. 4. Consolidate your debt or transfer your balance Consider debt consolidation, whereby you secure a bank loan at a lower interest than your credit cards and pay off all your cards at once. Alternatively, get a credit card with a
during the interest-free period. 5. Increase your payments
Whenever feasible, contribute more than the minimum required amount. Even a small extra payment can significantly reduce the in-
terest that accumulates over time. 6. Negotiate lower interest rates
Negotiate lower interest rates with your credit card companies. A history of punc- tual payments and a good credit score can strengthen your position in these discussions. 7. Avoid new charges Temporarily stop using your credit cards until your existing debt is under control. Adding to your outstanding balance will only make matters worse. 8. Supplement your income Explore ways to increase your income, such as taking up a part-time job, freelancing or selling items you no longer need. Dedicate the extra funds to debt repayment. 9. Get professional help Working with a debt professional, like a fi- nancial advisor or credit counsellor can help you develop a debt reduction strategy that works best for you. They may even be able to reach out to your creditors to negotiate a bet- ter deal for you.
VARIABLE RRSP STARTING AT 3.90% * At this rate, you’ll get there.
Negotiating with creditors: 5 tips I f you’re swimming in debt, you may be able to get lower interest rates and gain more control of your finances by negotiating with your creditors. Does the thought of bar- gaining with credit card companies and banks seem daunting? Try these strategies. 1. Research and prepare the negotiation. Creditors are more likely to cooperate if you engage with courtesy and demonstrate your commitment to resolving the debt. 4. Have your terms ready
Get the most from your RRSP with tiered rates and expert advice to guide the way. Whatever you’re saving for, we’ll help you get there. The 2023 RRSP contribution deadline is February 29, 2024.
Propose a lower interest rate based on your research. Be prepared to provide evidence of competing offers or a track record of timely payments. Suggest a temporary rate reduction or a revised payment plan if needed. 5. Get it in writing Once you’ve reached an agreement, ensure you receive written confirmation from the creditor. This will help avoid any misunder- standings later. You can also solicit the help of a debt settle- ment company that may be able to negotiate better payment terms on your behalf.
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Before initiating negotiations, gather infor- mation about your debt, the current interest rates offered by competitors and your pay-
ment history. 2. Start early
Reach out to creditors before you’re in seri- ous financial trouble. Explain your situation honestly, highlighting changes in income, un- foreseen expenses or other challenges that af- fect your ability to make payments. 3. Be polite Maintain a respectful tone throughout
*Rate subject to change.
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