Challenge 008: Send Your Money Back to School

Even if we may not all be sharpening our pencils and filling up our backpacks like so many who are headed back to school, the school of managing your money is back in full swing (after a light and practical summer course load!)

With the RRSP deadline and tax season about six months away, it’s the perfect time for a pulse check to see how we’re doing with our financial year-end goals.

If you haven’t yet strategized your long-term financial future, there’s still plenty of time to get started and send your money back to school!

What We’ve Gained

Over the summer we were pretty busy.

Rain or shine, we uncovered ways to have seasonal fun for free, we got started on planning for the unexpected, and we even squeezed out some end-of-season savings!

These areas of focus helped us to:

  • Develop good habits on having quality time without the spend
  • Approach our finances in an organized way
  • Pad our bank accounts with bonus savings we wouldn’t have otherwise had

We’ve gained some extra savings and poised ourselves for more, and if we keep it up, we can use what we learned from planning for the unexpected to approach our finances in a future-forward way.

So how can we make the most of that future, and who are the major players?

How to Grow It

From an RRSP (Registered Retirement Savings Plan) to an RESP (Registered Education Savings Plan), there are different avenues where your contributions will help secure a financial future for yourself and your loved ones.

Your considerations will not only include those in your life, but how much money you’re saving and how fast you need it to grow. Each option comes with its own benefits, whether it’s a retirement fund, a TFSA (Tax-Free Savings Account) or maybe a high-interest savings account if your shorter term goals are a priority.

Who’s Invested

What stage are you at in saving for retirement?

Whether you’re at the beginning or twenty years in, when it comes to building that nest egg, it’s always worth checking your plan against those in your life it may include.

Do you have children or grandchildren?

If you do and you’d like to start a college fund, it might be time to look into your options to see how much you need to contribute and by when.

Are you looking to buy your first home?

If that’s an upcoming goal for yourself and your family, you could benefit from making RRSP contributions that ultimately save you taxes.

If you’re early in your career and not yet saving as much as you’d like, it could help to ask your employer what they offer in terms of matching contributions to RRSPs or a stock plan.

Once you consider who’s a part of your financial future and open up some conversations, you’ll be able to carve out a clearer path to establishing a financial plan and giving yourself a chance to stick to it.

So what’s the best plan for you?

In our next post we’ll help you find the answer, and while it’s not a crash course, it’s a way to help your money earn stellar grades as it graduates into your future!

In the meantime, enjoy a dose of financial advice in our candid and informative Ask Lisa column!