Pennies aren’t around anymore, but the saying ‘a penny saved is a penny earned’ is still relevant. And just like it takes many cents to add up to a dollar, there are lots of little things you need to decide when you begin to budget.

Budgeting is more than saving or paying down debt. It’s about considering your needs, wants, and your personal feelings about to how to achieve those. Whether you’re on your own or have a partner, you’ll need to find a budget strategy that works for everyone.

I have been on my get-out and stay-out-of-debt journey for nine months now and it has been quite the ride. I’ve wanted to quit many times and go wild with online shopping and my credit card, but I’ve managed to restrain myself. I’ll confess – I haven’t been perfect. There were a couple of months when I went slightly over budget and had to dip into my small savings. Creating new spending habits is a lifestyle change which doesn’t happen overnight.

Until a few months ago, I used to think I would be in debt forever. I am only 29 years old, but I’ve acquired a significant amount of debt with my student loan, car loan, mortgage and credit cards. I was stressed. Being financially unwell was even impacting my physical and mental health.

Working in the pension industry, I’ve learned enough about retirement planning to know I don’t want the burden of retiring with unmanageable debt. So, I resolved to start tackling my debts. To achieve my goal, I had to answer the following four questions.

With interest rates rising, people of all ages are getting real about their debt.

If all your debt were paid off tomorrow – credit cards, car loans, student loans, mortgage – you’d likely feel a huge sense of relief. Every dollar that goes to debt is one less dollar you can use for your retirement planning. However, if your savings account has a $0 balance, you’re still not ready to retire.

So, which should be your primary focus - paying down debt or bulking up your retirement savings?

Hint: There is no wrong answer.

Here at PEPP, we’re passionate about pensions and personal finance. So, we’re excited to be celebrating Financial Literacy Month with you!

Since 2015, the Financial Consumer Agency of Canada has worked to build financial literacy among all Canadians. This year’s theme is Make Change that Counts: Managing Your Money in a Changing World.

Throughout November, we’ll be sharing financial literacy tips to help you make the most of your hard-earned money.

September is Life Insurance Awareness Month, so it’s a great time to take stock of insurance coverage you have, and insurance coverage you might want to consider.

One of the biggest concerns a parent has is saving enough money for their children’s future education. An RESP is a tax-advantaged investment account designed to help you save for your child's post-secondary education.

Types of RESPs

Individual RESP Family RESP Group RESP

This plan is pretty straightforward, in the sense that anyone can open an individual RESP and contribute to it. This can be a parent, a grandparent or anyone.

Feeling uneasy about the markets recently? You’re not alone. So far in 2022 the markets have seen a lot of ups and downs. The war in Ukraine, COVID-19 lock-downs, and supply disruptions have created volatility in markets around the world. This has led to a rise in inflation and cost of living, which impacts retirement savings. While most investment experts tell us to stay the course, it’s easier said than done.

Not many of us are well versed in tax lingo, so let’s simplify one set of terms that we all should be familiar with – tax deductions and tax credits.

Let’s say your taxable income is $100,000 in 2022 and you owe approximately $30,000 in income tax.

Tax deductions

Tax deductions work to decrease your taxable income or that $100,000 that you've earned.

Tax deductions are things like child care expenses, RRSPs, professional association fees and union dues, and charitable donations to name just a few of the more popular ones.

One positive to arise from the global pandemic is the engaged approach taken by the younger generations when it comes to retirement savings.

Generation Z (ages 18-23) and Millennials (ages 24-40) often are labelled as poor money managers. They’re saddled with debt – student loans, car payments and other self-inflicted debts - and have little concern with paying it off.

That’s not an ideal recipe for a comfortable retirement.

Though the widespread uncertainty precipitated by the ongoing pandemic may have helped shift a focus on saving and spending habits.