It’s never too early or too late to start financial planning. One way to do this is to base your savings plan on whatever stage of life you’re in.
In Canada, organizations like the Canada Deposit Insurance Corporation (CDIC) protects eligible deposits at each of its member institutions against the possibility of bank failure. Knowing this safeguard is there can help you focus on building your savings with greater peace of mind at every stage of life.
Below are some tips for four key stages you may experience:
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1
First paycheque
Starting a new job is exciting, especially the feeling of getting your first paycheque. Consider saving part of it—to maximize this, you may want to look into an account that allows you to save your money without paying tax on it, like a Tax-Free Savings Account (TFSA).
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2
First home
When it comes time to start house hunting, think about what makes a house a home and what matters most to you. When you’re ready to start putting money aside, one option is holding your deposits tax-free in a First Home Savings Account (FHSA).
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3
New parents
Though it might seem far away right now, your child may one day pursue a post-secondary education. To prepare for this, you could open a Registered Education Savings Plan (RESP), a special investment account designed to help save now for future post-secondary studies. RESPs offer tax-deferred growth and government incentives, which can make them attractive savings tools.
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4
Retirement
After all those years of hard work, it’s time to sit back and relax. A Registered Retirement Savings Plan (RRSP) is designed to help make sure you’re financially prepared. This is another tax-deferred plan that can let you grow your money, tax-free, until it’s withdrawn.
Whether it’s reaching your savings goal or entering a new stage in life, don’t forget to celebrate when you hit those milestones.
Learn more about deposit insurance and how to calculate your coverage.