A quick guide to spring cleaning your finances

Just like when you tidy your closet, start your financial cleaning by taking stock. Ask yourself whether your current financial products are meeting your needs or if there are better options available. As just one example, if you’d prefer a low-risk investment that you know will provide a return, a Guaranteed Investment Certificate (GIC) may be a good choice. It guarantees a specific interest rate while you own it, and the repayment of your initial investment once the GIC’s term has ended.

Consider what you want your future to look like to help determine how best to store your assets, then organize them into different accounts for specific purposes. For example, one way to prepare for life after your career is with a tax-deferred Registered Retirement Savings Plan (RRSP). Or, if you want to open an account to save for post-secondary education, then a Registered Education Savings Plan (RESP) may work best for your family. The key is to organize your assets in a way that suits your needs.

Once everything’s set up the way you like it, you’ll want to make sure your money is safe. You can find out how your deposits are protected through online tools like CDIC’s online calculator. We protect eligible deposits, like GICs and other term deposits, money in savings or chequing accounts and foreign currency, in the unlikely event of a bank failure. There are several categories of protection covering a variety of savings options, including RRSPs and RESPs, and each is protected up to $100,000.

To make organizing and tracking your finances easier, consider setting your accounts to automatically transfer specific amounts of money from one account to another, which can help make saving money and paying bills simpler and worry-free. Spreadsheets and other online financial programs, like the Financial Consumer Agency of Canada’s financial goal calculator and budget planner, can also be useful in tracking your spending habits and your progress toward your savings goals.