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WHEN YOUR FINANCIAL PLAN NEEDS A LEGAL SHIELD: NAVIGATING GTA DEBT AND THE INSOLVENCY SURGE

Woman holding a protective financial plan shield she got by filing a consumer proposal with Ira Smith Trustee & Receiver with house and car icons against a stormy Toronto sky with CN Tower and lightning, symbolizing asset protection.

Financial Plan Introduction: The Urgent Need to Shift from Conversation to Action

November’s Financial Literacy Month encouraged Canadians to “Talk Money”, create a financial plan and break the stigma around debt. That conversation is vital. Talking openly about money helps reduce shame and encourages people to seek help. But for many households in the Greater Toronto Area (GTA), talk alone is no longer enough.

During Financial Literacy Month, the Office of the Superintendent of Bankruptcy (OSB) and the Canadian Association of Insolvency and Restructuring Professionals (CAIRP) issued a joint statement encouraging Canadians to take proactive steps toward financial wellness. The release urges those facing unmanageable debt to speak openly about their financial challenges and to seek early support through trusted resources—such as the OSB’s Debt Solutions Portal, CAIRP’s Navigating Financial Distress page, and regulated professionals like Licensed Insolvency Trustees (LITs), who are legally authorized to guide individuals through formal debt relief options.

On November 12, 2025, our national association, CAIRP, issued a media release indicating that there were 36,256 consumer insolvency filings in Q3 2025. Their media release stated that these latest insolvency statistics, as disclosed in the CAIRP media release, confirm what many families already feel: consumer insolvencies surged to their highest quarterly volume since the 2009 global financial crisis. For GTA residents already stretched by housing costs and rising living expenses, this is not just a statistic—it’s a wake-up call.

For many GTA residents, their 2026 budget process to create their updated or new budget must go beyond budgeting. It requires expert intervention from a Licensed Insolvency Trustee, the only professional legally authorized to administer authorized and Bankruptcies in Canada.

Building Your Personal Financial Foundation: The Core Components

A strong financial plan is like a well-built home—it starts with a solid foundation. Whether you’re just starting to assess or you are reassessing your finances after a turbulent year, understanding the core components of financial planning is essential.

Understanding Your Current Financial Snapshot

Begin by taking stock of your income, expenses, assets, and liabilities. This snapshot helps you see where you stand and what needs attention. Use tools like net worth calculators or budgeting apps to get a clear picture.

The Cornerstone: Budgeting and Emergency Savings

Budgeting your cash flow is the bedrock of any financial plan. It helps you allocate funds for essentials, savings, and goals. Aim to build an emergency fund covering 3–6 months of expenses. This buffer protects you from unexpected costs like car repairs or job loss.

Defining Your Financial Goals

Set short-, medium-, and long-term goals. These might include paying off debt, saving for a home, funding your child’s education, or retiring comfortably. Clear goals guide your decisions and keep you motivated.Woman holding a protective financial plan shield she got by filing a consumer proposal with Ira Smith Trustee & Receiver with house and car icons against a stormy Toronto sky with CN Tower and lightning, symbolizing asset protection.

Charting Your Future: Key Financial Planning Areas

Once your foundation is set, expand your plan to include growth, protection, and legacy strategies.

Smart Investing for Growth

Investing helps your money grow over time. Consider RRSPs, TFSAs, and diversified portfolios. Understand your risk tolerance and time horizon, and seek professional advice if needed.

Protecting What You Have: Insurance and Risk Management

Insurance safeguards your income, health, and assets. Life, disability, and home insurance are key components. Risk management also includes having legal documents like powers of attorney in place.

Securing Your Later Years: Retirement Planning

Retirement planning ensures you can maintain your lifestyle after you stop working. Contribute regularly to your RRSP and consider employer pension plans. Estimate your retirement income needs and adjust your savings accordingly. Make use of all retirement accounts available to you. The Government of Canada and others provide a Canadian Retirement Income Calculator.

Planning Your Legacy: Estate Planning Essentials

Estate planning isn’t just for the wealthy. It ensures your wishes are honoured, and your loved ones are protected. Create a will, designate beneficiaries, and consider trusts if appropriate. Legal advice is always recommended for estate planning needs.

Optimizing Your Finances: Tax Strategy

Smart tax planning can save you thousands. Use deductions, credits, and registered accounts to minimize your tax burden. Stay informed about changes in Canada’s tax laws and consult a tax professional when needed.Woman holding a protective financial plan shield she got by filing a consumer proposal with Ira Smith Trustee & Receiver with house and car icons against a stormy Toronto sky with CN Tower and lightning, symbolizing asset protection.

Your Financial Plan as a Shield: Mitigating Risks

Even the best financial plan can be undermined by external threats. In 2025, Canadians face rising risks that demand more than traditional planning.

Protecting Against Frauds and Scams

Financial scams are on the rise. Be cautious with unsolicited calls, emails, and offers for different investment accounts. Use secure passwords and monitor your accounts regularly. The Canadian Anti-Fraud Centre offers resources to stay informed.

Safeguarding Against Financial Abuse

Financial abuse—especially among seniors—is a growing concern. Watch for signs like unexplained withdrawals or pressure to sign documents. Protect yourself by involving trusted professionals and maintaining control over your finances.

The Turning Point: When a Financial Plan Requires Legal Intervention

Despite best efforts, many Canadians are finding that traditional financial planning is no longer enough. The latest data confirms a troubling trend:

  • Q3 2025: 36,256 consumer insolvency filings, the highest since 2009
  • 48% of Canadians are within $200 of insolvency each month. This reality dates back to an Ipsos poll conducted in 2016. This statistic has not gotten better with ongoing polls up to today.
  • On November 26, 2025, Rental Market Trends reported that GTA rent averages around $2,350.
  • The Canadian Bankers Association reports that residential property mortgages make up 74-75% of household debt.

These figures reveal a structural crisis. Budgeting and saving can’t solve insolvency. When debt becomes unmanageable, your financial plan must evolve into a legal solution.Woman holding a protective financial plan shield she got by filing a consumer proposal with Ira Smith Trustee & Receiver with house and car icons against a stormy Toronto sky with CN Tower and lightning, symbolizing asset protection.

Why a Licensed Insolvency Trustee Is the Expert Your Financial Plan Needs

A Licensed Insolvency Trustee is the only professional legally authorized to administer Consumer Proposals and Bankruptcies in Canada. LITs are impartial officers of the court, required to review all options before recommending a formal filing.

Consumer Proposals: The Preferred Path for GTA Clients

  • Asset Protection: Keep your home and car if secured payments continue
  • Fixed, Interest-Free Payments: One predictable payment over up to five years
  • Immediate Legal Peace: Stops wage garnishments and creditor calls
  • Credit Recovery Advantage: Removed from your credit report three years after completion

This is not failure—it’s financial maturity. A Consumer Proposal is a regulated financial plan designed for recovery.

Frequently Asked Questions (FAQs)About Your Financial Plan

Q1: Why is having a strong financial plan so urgent right now?

While talking openly about money is important, taking action on your financial plan is now crucial for many households, especially in the Greater Toronto Area (GTA). Data confirms that consumer insolvency filings surged to their highest point in Q3 2025 since the 2009 global financial crisis. High living costs, such as average GTA rent around $2,350, and large household debts (with residential property mortgages making up 74-75% of that debt), reveal a structural problem. For many, budgeting alone is no longer enough to manage these risks.

Q2: What are the core components that build a strong financial plan?

A strong financial plan is like a well-built home—it needs a solid foundation. The core components involve:

• Understanding Your Current Snapshot: You must first take stock of your assets, liabilities, income, and expenses to see where you stand.

• Budgeting and Emergency Savings: Budgeting your cash flow is the bedrock of the plan. You should aim to build up an emergency fund that covers 3 to 6 months of expenses to protect you from unexpected costs like job loss or car repairs.

• Defining Your Financial Goals: Set clear goals for the short-, medium-, and long-term, such as paying off debt or saving for retirement. These goals help guide your decisions.

Q3: How does a financial plan cover long-term growth and protection?

Once the foundation is set, your financial plan should expand to cover growth, protection, and legacy strategies. Key areas include:

• Smart Investing: This helps your money grow over time using tools like Tax-Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs).

• Protecting What You Have: This involves insurance (like life, disability, and home insurance) and ensuring you have legal documents, such as powers of attorney.

• Retirement and Estate Planning: You need to regularly contribute to retirement savings. Estate planning ensures your wishes are honored and your loved ones are protected through documents like a will.

Q4: What should I do if my financial plan cannot handle unmanageable debt?

If debt becomes unmanageable, even the best traditional financial plan may fail. When debt becomes overwhelming, especially in the high-cost GTA market, your plan must shift into a legal solution.

You should seek early support through trusted resources. If budgeting and saving are not working, it is time to speak with a Licensed Insolvency Trustee (LIT). An LIT is the only professional legally authorized to administer formal debt relief options, such as Consumer Proposals and Bankruptcies, in Canada.

Q5: What is a Consumer Proposal, and how does it help recovery?

A Consumer Proposal is a regulated financial plan that is designed for recovery when you are overwhelmed by debt. For many people in the GTA, it is the preferred path.

Key benefits of a Consumer Proposal include:

• Immediate Legal Peace: It stops creditor calls and wage garnishments right away.

• Fixed Payments: You make one predictable, interest-free payment over a period of up to five years.

• Asset Protection: You can keep assets like your home and car, provided you continue making secured payments.

A Consumer Proposal is seen as an effective tool for getting out of debt, protecting assets, and starting fresh. Speaking with an LIT allows them to evaluate your specific situation and options.Woman holding a protective financial plan shield she got by filing a consumer proposal with Ira Smith Trustee & Receiver with house and car icons against a stormy Toronto sky with CN Tower and lightning, symbolizing asset protection.

Conclusion: From Planning to Protection

So, following the lead of November’s Financial Literacy Month, just talking about finances will not be good enough for most GTA residents’ financial future. Your financial plan should grow with your needs. Heading into 2026, that means recognizing when traditional tools aren’t enough. If you’re overwhelmed by debt, especially in the high-cost GTA market, it’s time to speak with a Licensed Insolvency Trustee.

Debt is incredibly common in Canada. Rising living costs, expensive housing, long vehicle loans, unexpected emergencies—these things affect real people every day. If you’re struggling, you’re not alone, and there’s no shame in seeking help.

A consumer debt proposal isn’t a magic solution, but for many Canadians, it’s an effective tool to get out of debt, protect assets, and start fresh. The key is getting proper advice from a Licensed Insolvency Trustee who can evaluate your unique situation.

Whether you ultimately file a proposal, pursue another option, or find you don’t need insolvency proceedings at all, the important thing is taking that first step. Understanding your options is empowering.

If you’re in the Greater Toronto Area and want to discuss your situation, I’m here to help. At Ira Smith Trustee & Receiver Inc., we’ve been helping GTA consumers, entrepreneurs and their companies with debt problems for years. Our consultations are free, confidential, and pressure-free.

You don’t have to figure this out alone. Reach out today and let’s talk about your path to financial freedom, Starting Over, Starting Now.

The time to act is now.

Contact Ira Smith Trustee & Receiver Inc. today:

905.738.4167

Toronto line: 647.799.3312
brandon@irasmithinc.com or ira@irasmithinc.com
https://irasmithinc.com/

Disclaimer: This analysis is for educational purposes only and is based on the cited sources and my professional expertise as a licensed insolvency trustee. The information provided does not constitute legal or financial advice for your specific circumstances.

Every situation is unique and involves complex legal and factual considerations. The outcomes discussed in this article may not apply to your particular situation. Court decisions are fact-specific and depend on the particular circumstances of each case.

Please contact Ira Smith Trustee & Receiver Inc. or consult with qualified legal or financial professionals regarding your specific matter before making any decisions.

About the Author: Brandon Smith is a Licensed Insolvency Trustee and Senior Vice-President at Ira Smith Trustee & Receiver Inc., serving the Greater Toronto Area. With years of experience helping Canadians overcome debt challenges, Brandon provides practical, compassionate guidance for people seeking financial relief. For a free consultation, visit irasmithinc.com.Woman holding a protective financial plan shield she got by filing a consumer proposal with Ira Smith Trustee & Receiver with house and car icons against a stormy Toronto sky with CN Tower and lightning, symbolizing asset protection.

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5 SURPRISING THINGS YOU CAN DO WITH YOUR CANADIAN TAX REFUND (THAT AREN’T SHOPPING)

canadian tax refund

What is a Canadian tax refund?

In April, Canadians must pay their income tax liability for the prior year and when most Canadians file their income tax returns. Getting a Canadian tax refund can be an amazing experience for numerous Canadians. It’s like obtaining an unexpected reward from the federal government. The idea of having extra money to spend can be thrilling as well as inspiring, and it can offer a sense of relief and security for those that might be battling financially.

Even just the knowledge that you will be getting a tax refund is exciting, as taxpayers excitedly wait for the confirmation of how much money they will be getting back. Everyone uses this time to think about how they are going to spend their refund. Overall, the enjoyment of receiving a tax refund is a favourable experience.

But what is a Canadian tax refund? Following the filing of their annual income tax return to the Canadian government, a taxpayer may receive a sum of money known as a tax refund. This refund represents the variance between the total amount of taxes paid by the taxpayer throughout the year and those they actually owe, based on their income and tax deductions/tax credits. In the event that a taxpayer has paid more taxes than they are required to, they will be issued a refund for the surplus amount.

While many people find it appealing to go on a shopping spree or book a holiday with that extra cash, there are really a lot more surprising and also functional things to use for your Canadian tax refund. In this Brandon’s Blog, I will explore 5 things you may not have thought about that you can do with your reimbursement that will certainly not only profit you financially but also assist you to accomplish your long-term objectives.

From investing in your retirement to repaying some financial debt, these alternatives might not be as interesting or exciting as a brand-new wardrobe or a journey to an exotic location, but they can have a substantial effect on your financial well-being. So, before you hit the shopping centre or book your next trip, take a minute to take into consideration these alternate suprising ways to use your tax refund. You may be amazed at just how much more satisfying it is to put that money towards something that will benefit you financially in the future. Let’s jump in!

5 surprising things you can do with your Canadian tax refund

It’s that time of year yet again – tax time. While it can be a difficult time for many, there’s always the possibility of a silver lining: the opportunity for a tax refund. According to the Canadian federal government, the average Canadian tax refund was $2,086 in 2022. There are at least 5 surprising things you can do with your Canadian tax refund that isn’t shopping.

So if you’re questioning what to do with your Canadian tax refund this year, keep reading – you could be surprised by the choices available to you. Here are the 5 ways that will help with your financial planning and money management:

1. Utilizing your Canadian tax refund to plan for your retirement is a wise decision.

Here are some practical ways to achieve this:

  • Establish an RRSP: It is recommended to open an RRSP account with a reputable financial institution or insurance company as a means of building your retirement savings. You can contribute up to 18% of your previous year’s earned income, up to the 2023 limit of $30,780. This approach enables you to save more for your future while minimizing your tax liability today. As a result, every dollar of your Canadian tax refund will have a meaningful impact on your retirement fund.
  • Make a contribution to your existing RRSP: Use your Canadian tax refund to make a contribution to your existing RRSP account. The payment is tax-deductible, which will lower your taxable income and therefore your 2023 tax obligation.
  • Select your financial investments: Choose exactly how you wish to invest the money within your RRSP. You can select from a potpourri of financial investment options, all depending on your risk tolerance and how far away from retirement you are. This is an important element of financial planning.
  • Monitor and also readjust your portfolio: Frequently review your investment portfolio to make sure that it is aligned with your long-term goals. Make changes if essential to make certain that you’re on track to accomplish your retirement goals.

Investing in your retirement is a wonderful way to guarantee that you have adequate cash to support your lifestyle after you quit working. By using your Canadian tax refund to make payments to your RRSP, it is both good financial and tax planning because you’re capitalizing on a tax-efficient method to save for your future.

2. Donate to a charity or a cause you care about

Contributing all or a part of your Canadian tax refund to a charity that you believe in is a fantastic way to produce a positive impact on the world. Follow these sensible actions to make a distinction:

  • Select a charity: Donate to a charity that resonates with your values and beliefs. You can choose one or more charities that contribute either to your local area or anywhere around the world.
  • Make a contribution: Use your Canadian tax refund to make a donation to your chosen charity. The majority of charities accept contributions via online platforms, and many permit automatic month-to-month contributions.
  • Think about a matching gift: Examine if your company provides a donation program to specific charities that match the amount of money you donate to. See if any of those charities appeal to you.

3. Pay off high-interest debt

Using your Canadian tax refund to pay off high-interest debt is a clever way to improve your financial situation. Below are some actions you can take:

  • Determine what your high-interest debt is: Take a look at your debts and find those with the greatest rate of interest. These are commonly credit cards, personal loans, or payday advances.
  • Establish the total up to pay off: Calculate just how much of your Canadian tax refund you can afford to use to repay the high-interest financial debt. It’s of course best to be able to pay off the entire debt, but if you can’t, pay down as much as you can of the high-interest rate debt.
  • Make the repayment: Use your tax refund to repay in full or pay down the highest-interest rate debt first. Make certain to comply with any payment conditions set by your lender or financial institution.
  • Prevent accumulating brand-new financial debt: Once you’ve settled the high-interest financial obligation, stay clear of building up new high-interest rate financial debt by budgeting your expenses and restricting your use of credit cards. You don’t want to start increasing high-interest-rate debt again after you have paid it off.

Settling high-interest debt is a clever financial action since it can conserve your money in the future by reducing the amount of interest you’ll pay. It can also help improve your credit rating, which can help you in the future when you need to apply for a home or car loan. By using your Canadian tax refund to settle high-interest debt, you can take a step in the direction of financial stability and ultimately freedom from debt.

4. Take a course or learn a new skill

Utilizing your Canadian tax refund to take a program or discover a brand-new skill can be a fantastic financial investment in yourself as well as your future. Here are some steps you can take:

  • Select a training course or skill: Determine a course or skill you wish to learn that can benefit you in your work or personal development. This can be an accreditation program, a language course, or a skills workshop.
  • Study choices: Look for reliable establishments that supply the program or skill you intend to learn. You can additionally look for online options or free courses offered on the internet.
  • Determine the cost: Establish the overall price of the program or skill, including any kind of materials or books you might need to acquire.
  • Pay for it with your tax refund: Use your Canadian tax refund to pay for the course or skills training. This way you don’t have to pay any money to invest in your personal growth.
  • Devote yourself to learning: Once you have actually enlisted in the training course or skills workshop, dedicate yourself to completing it. Set aside time each week to attend class, do homework and study. Stay encouraged by setting objectives and tracking your progression.

Using your Canadian tax refund to further your education and learning can help your personal development and your career, or just find a brand-new interest. By using your Canadian tax refund to take a course or discover a brand-new skill, you’re making a wise financial investment in your future.

5. Start or add to your emergency fund

Using your Canadian tax refund to begin or contribute to your emergency fund can be a clever way to plan for unforeseen expenses. Here are some steps you can take:

  • Establish just how much to save: In previous Brandon’s Blogs, I have recommended that everyone have an emergency fund of 3 to six months’ worth of household expenses in their reserve. Calculate how much you must save based on your monthly household expenses.
  • Open a separate account: Open up a separate savings account for your emergency reserve. Treat this account as untouchable, except in the case of a real emergency. This will make it less complicated to track any emergency expenses you must pay from this account. You must honestly treat this account as being “in case of emergency break glass” and not use it as a nice place to get some money from whenever you feel like it.
  • Set up automated transfers: Set up automated transfers from your everyday bank account to your emergency fund interest-bearing account. This will allow you to maintain the discipline of saving monthly from your income and avoid forgetting to contribute to your fund.
  • Use your Canadian tax refund: Use your tax refund to make a round-figure payment to your emergency reserve. This can assist you in reaching your savings objective faster.
  • Stay clear of utilizing the cash for non-emergencies: Resist the lure to utilize your reserve for non-emergency expenses. Keep the cash in the account until you need it for unexpected emergency expenses like additional medical costs, a major auto repair bill, or in case of job loss.

Beginning or contributing to your emergency fund can provide additional financial security when faced with unforeseen expenses. Use your Canadian tax refund to jumpstart your financial savings. You are taking positive action to reach financial stability and freedom.canadian tax refund

Canadian tax refund conclusion

In conclusion, your Canadian tax refund presents an opportunity to do more than just indulge in shopping sprees. By exploring alternative uses for your refund, you can not only make the most out of your money but also achieve various personal and financial goals. Whether it’s investing in your future, contributing to a cause you care about, or simply treating yourself to an experience, the possibilities are endless. So, before you hit the stores or add to your cart, take a moment to consider these surprising options and think outside the box. Your tax refund could be the key to unlocking new opportunities and experiences that will enrich your life for years to come.

I hope you enjoyed this Canadian tax refund Brandon’s Blog. Revenue and cash flow shortages are critical issues facing people, entrepreneurs and their companies and businesses. Are you now worried about just how you or your business are going to survive? Are you worried about what your fiduciary obligations are and not sure if the decisions you are about to make are the correct ones to avoid personal liability? Those concerns are obviously on your mind. Coming out of the pandemic, we are also now worried about the economic effects of inflation and a potential recession.

The Ira Smith Team understands these concerns. More significantly, we know the requirements of the business owner or the individual that has way too much financial debt. You are trying to manage these difficult financial problems and you are understandably anxious.

It is not your fault you can’t fix this problem on your own. The pandemic has thrown everyone a curveball. We have not been trained to deal with this. You have only been taught the old ways. The old ways do not work anymore. The Ira Smith Team makes use of new contemporary ways to get you out of your debt problems while avoiding bankruptcy. We can get you debt relief now.

We have helped many entrepreneurs and their insolvent companies who thought that consulting with a trustee and receiver meant their company would go bankrupt. On the contrary. We helped turn their companies around through financial restructuring.

We look at your whole circumstance and design a strategy that is as distinct as you are. We take the load off of your shoulders as part of the debt settlement strategy we will draft just for you.

The Ira Smith Trustee & Receiver Inc. team understands that people facing money problems require a lifeline. That is why we can establish a restructuring procedure for you and end the discomfort you feel.

Call us now for a no-cost consultation. We will listen to the unique issues facing you and provide you with practical and actionable ideas you can implement right away to end the pain points in your life, Starting Over, Starting Now.canadian tax refund

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WHAT IS FINANCIALLY LITERATE? GOOD NEW FLORIDA LAW LATEST TO REQUIRE HIGH SCHOOL STUDENTS TO PASS FINANCIAL LITERACY COURSE

what is financially literate

What is financially literate? When should it be learned?

Florida high school students will soon start learning more about how to stay financially healthy. Florida’s new financial literacy law requires high school students to take a personal finance course, and for the first time, administrators will be able to report how well they’ve met the requirement to the state Department of Education. The requirement, approved by the Florida Legislature last year, is a graduation requirement.

The course is required of all Florida students. Last week, Governor Ron DeSantis signed the legislation into law. Every high school student must take the course. I think this is great.

Financial literacy transcends national boundaries. Financial literacy is a necessity. Students in Ontario are now required to take a financial literacy course as part of the grade 10 curriculum. Students in high school now take a financial literacy course as part of the course curriculum. The purpose of Brandon’s Blog is to provide you with an understanding of what is financially literate and why it is important to have the proper financial knowledge to be able to make good financial decisions.

What is financially literate?: Financial literacy background

Despite there have been some improvements, there are lots of Canadians that still have a tough time with money abilities and living the best financial life possible. The Financial Consumer Agency of Canada was created in 2013 to aid with financial proficiency and increase the financial skills of Canadians.

Many Canadians have a post-secondary education but lack knowledge when they enter the workforce. People of all ages need financial literacy. Through financial literacy programs, students are now learning about budgeting, debt management, and retirement planning.

The United States also has a financial literacy problem. Lacking basic knowledge in financial matters, financial literacy isn’t something that comes naturally. While most of us have savings in our bank accounts, few of us have the money management skills or know-how to make our money last. You can learn the skills you need to succeed, and there’s no better time than now to start.

what is financially literate
what is financially literate

What is financially literate?: What is the best definition of financial literacy

Exactly what is financial literacy? Whats the best definition of financial literacy? Managing money, budgeting, and investing. Individuals should manage their financial affairs in a reliable manner.

Money can be used as a tool with such education. A person with financial literacy is able to save money, make wise investments, spend wisely, and manage debt. What is financially literate? It involves having access to, understanding, and effectively using financial management skills, knowledge, and information in order to make informed decisions.

What is financially literate?: What is financial literacy and why is it important?

Students in Grade 10 in Ontario are expected to gain an understanding of good financial health from the following concepts:

  • fiscal responsibility; and
  • Services are available to help them prepare for post-secondary life in a financially proficient manner.

Students are expected to:

  • Understand the principles of financial responsibility.
  • Identify various options for financial savings.
  • Explore banking and other financial planning tools.

    what is financially literate
    what is financially literate

What is financially literate?: Examples of the Ontario financial literacy program

The new financial literacy component of the Ontario career studies program consists of several parts for teaching money matters and increasing financial awareness. It includes:

  • How to set up and follow a budget with monthly payments
  • What a credit union is versus a bank
  • Managing its own accounts
  • Interest-bearing accounts and their interest rates
  • TFSAs (tax-free savings accounts)
  • RRSPs (registered retirement savings plans)
  • Student loan debt
  • Student loans (and the resulting student loan debt) from federal and provincial governments, such as those offered through the Ontario Student Assistance Program (OSAP)
  • Bursaries and loans from local governments
  • Loans from financial institutions (unsecured), such as banks or credit unions
  • Lines of credit, credit cards, and overdrafts
  • Understanding the advantages and disadvantages of different types of credit
  • When used properly, a bank loan can be used to purchase a costly item, such as auto loans or a home mortgage and monthly mortgage payments
  • The advantages of borrowing from family or friends, as well as the downsides of defaulting on repayment

What is financially literate?: Financial literacy for students in Florida

In Florida, Gov. Ron DeSantis signed a bill last week which is a financial literacy strategy. It requires high school students to take a financial literacy course before graduation. Students will need to take a half-credit course in personal financial literacy and money management under the Dorothy L. Hukill Financial Literacy Act. Under the law, the course must include basic skills with various financial products like managing a bank account, balancing a cheque book, credit cards, filling out a loan application, and calculating federal income taxes.

Students will also learn about other financial concepts such as local tax assessments, disputing incorrect billing statements, basic insurance policies, and simple contracts. The hope is that by learning financial literacy principles, they will have a brighter financial future.

Students should learn financial literacy as part of their overall education. Everybody benefits when students can have financial stability, know how to access financial resources, and get a leg up on their financial well=being. They will be prepared to manage their finances and possibly own a business one day. Financial literacy is a good cause that everyone should support.

With the new law, Florida becomes the 11th state in the country to require financial literacy as a graduation requirement. The states of Alabama, Mississippi, Missouri, Nebraska, North Carolina, Ohio, Rhode Island, Tennessee, Utah, and Virginia already had a law requiring the teaching of what is financial literacy to young adults.

In 2021, nearly 7 out of 10 high school students in the U.S. would have access to a standalone personal financial education, but only 1 of 5 would be required to take it to graduate.

Yanely Espinal, Next Gen‘s director of educational outreach, said several other states are considering a wide range of legislation requiring in-depth knowledge of personal finance courses, including Michigan, Georgia, and South Carolina. He believes that every state should require that financial literacy resources be available and that passing a course like the ones already in existence should be mandatory for graduation from high school.

what is financially literate
what is financially literate

Budgeting can be stressful, but it doesn’t have to be. With a little patience and the right tools, you can learn how to budget so you know exactly what your money is doing, and where. It’s no exception with personal finance, either. With popular budgeting websites like Mint, YNAB, and You Need A Budget, it’s easy to learn how to budget so you can be in control of your money. But which tools should you use?

People talk about rules all the time. There are rules to live by, rules to obey, rules to prevent you from breaking them, and rules to prevent others from breaking them, too. When it comes to personal finance, there are some common rules that come up again and again when people talk about budgeting. Here are five of them:

  1. Live below your means when considering your monthly expenses.
  2. Pay yourself first. You never know when a life event will require you to find money fast.
  3. Start small and build up.
  4. Track your progress.
  5. Stick to it.

To abide by a budget is, above all, about control. Being in control of your finances will bring you peace of mind. Money is spent for a reason, and if we take the time to analyze our purchases, we can decide where to direct our money. Financial literacy and proper money management is a lifelong journey so that people will be able to overcome their financial hurdles.

What is financially literate? Key takeaways

Financial literacy for beginners is so important. More students need to come out of high school and begin their post-secondary careers, whatever that may be, by having better financial management skills. If so, then hopefully more people will be able to stay clear of insolvency. All Canadian provinces and all US states should make it mandatory to have to pass a financial literacy course in order to graduate. Rather than just having a financial literacy month, we should think in terms of a financial literacy year. Everyone should possess knowledge of the basics of money management.

I hope you found this what is financially literate Brandon’s Blog. Are you on the edge of insolvency? Are bill collectors hounding you? Are you ducking all your phone calls to the point where your voicemail box is always full?

If so, you need to call me today. As a licensed insolvency trustee (formerly called a trustee in bankruptcy) we are the only professionals licensed, recognized as well as supervised by the federal government to give insolvency assistance. We are also the only authorized party in Canada to apply remedies under the Bankruptcy and Insolvency Act (Canada). I can definitely help you to choose what is best for you to free you from your financial debt issues.

Call the Ira Smith Team today so we can get free you from the stress, anxiety, and discomfort that your cash issues have created. With the distinct roadmap, we establish simply for you, we will without delay return you right to a healthy and balanced problem-free life, Starting Over Starting Now.

what is financially literate
what is financially literate
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MANAGING FAMILY FINANCES: DO YOU NEED FAMILY FINANCIAL PLANNING AT 65 AND BEYOND?

MANAGING FAMILY FINANCES 0
managing family finances

Managing family finances: Introduction

Many Canadians are under the mistaken impression that financial planning is a young person’s game. After all, you’re now retired and you have your pension(s) and perhaps some savings. What financial planning is there to do for managing family finances? I’m here to tell you that it’s never too late to have a financial plan. You may not realize it but there are many financial decisions still to make – even after the age of 65.

Managing family finances: CIBC financial planning advice

Lana Robinson, executive director, CIBC financial planning and advice, says it’s never too late to plan. The biggest mistake for those heading into their 70s and 80s would be not to have a plan or mistaking a budget for a plan, she said. They might say ” ‘Well I have a budget and I’m living to my budget‘ but is that really a plan?

Have you:

  • taken into account all the needs you might have?
  • anticipated the cost of healthcare?
  • Figured out whether your goal is to have in-home care as opposed to living in a retirement home?

Managing family finances: Can you answer these seven questions?

  1. Should you take your Canada Pension Plan (CPP) at 65 or defer it?
  2. Should you take your Old Age Security (OAS) at 65 or defer it?
  3. How much do you know about Registered Retirement Income Funds (RRIFs) and annuities?
  4. Do you need to rebalance the risk in your investment portfolio?
  5. What is the most financially helpful way to use your RRSPs?
  6. What are your financial goals and what are these goals going to cost you?
  7. Are you in debt?

Managing family finances: Don’t retire in debt

If we can give you one piece of extremely valuable advice for managing family finances it’s DON’T RETIRE IN DEBT! If you do, your retirement will be extremely stressful trying to figure out how to make ends meet. Family financial planning is not fun when you need a financial plan to get out of debt. But, don’t despair – we can help.

The Ira Smith Team has many years of experience helping people just like you facing financial crisis or bankruptcy that need a plan for Starting Over, Starting Now. We approach every file with the attitude that financial problems can be solved given immediate action and the right financial plan. Give us a call today and take the first step towards a debt free retirement.

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managing family finances
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Retirement Planning Advice: Every Comprehensive Guide To Retirement Planning MUST Include A Healthy Lifestyle Plan

retirement planning advice
retirement planning advice

Retirement planning advice: Introduction

As part of the credit counselling process, many people start asking for retirement planning advice. When I ask, do you have a retirement plan? people start talking to me about how they will need to grow their savings and investments. Retirement planning is so much more than that. What your retirement ultimately looks like is largely dependent on your healthy lifestyle plan.

Retirement planning advice: You can’t go from full throttle to neutral

You’re most likely used to working at least a 40 hours a week. And, at the end of the rainbow is retirement – no more alarm clocks, no fighting rush hour traffic or an overcrowded public transport system, no more brown bag lunches… Now you can reclaim at least 40 hours a week in addition to the hours that you spent commuting; but what will you do with those hours?

Retirement planning advice: The key to a happy retirement is having a healthy lifestyle plan

People that retire are very prone to depression, particularly men, whose sense of identity is closely tied to work. A 2013 study from the Institute of Economic Affairs that says retirement increases the chance of suffering from clinical depression by about 40%.

Men also have the highest rates of suicide worldwide, according to the World Health Organization. It’s not the job or the money that men miss so much in retirement, but the socialization and self-esteem that work brings, says Ken LeClair, co-chairman of the Canadian Coalition on Seniors Mental Health (CCSMH) and professor of psychiatry at Queen’s University in Kingston.

Retirement planning advice: Retirement is a huge adjustment

Retirement is a huge adjustment and like all stages of life, requires a plan. The key to a happy retirement is having a lifestyle plan. Do you have hobbies and interests? Volunteer work? Learning new things? Meaningful friendships? Travel? Lifestyle planning should ideally start 5 – 10 years before retirement starts so that you’ll be prepared for the transition.

Retirement planning advice: Start saving early on for your healthy lifestyle plan in retirement so as not to have to make tough financial adjustments

The likelihood is that once you retire there is going to be a significant change in your income. Most retirees can’t continue to live the same lifestyle as when they worked full time. The reality is that you’re going to have to make some financial adjustments that may involve downsizing your residence, driving a more economical car, traveling less.

However people generally want to do more in retirement. They have put off their travel and hobbies because they lacked one of the most precious resources – time. Many retirees start off by doing more now that they have the time. There is only one problem; they never saved properly during their working years to have the money to turn their dreams into reality in retirement.

Retirement planning advice: What to do if you have too much debt in retirement?

Unfortunately many retirees are taking on debt they can’t afford by using credit that they can’t repay to support their lifestyles. This is a recipe for disaster and the sooner you seek professional help the better.

A professional trustee can help. Although your particular situation may seem catastrophic, Ira Smith Trustee & Receiver Inc. can get you back on track Starting Over, Starting Now with sound advice and the right action plan. Give us a call today so we can help you start on your healthy lifestyle plan.

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MANAGING YOUR PERSONAL FINANCES IS RISKY BUSINESS

managing your personal financesManaging your personal finances: Introduction

Managing your personal finances may seem like a good idea in theory but according to Eric Kirzner, a professor of finance at the Rotman School of Management in Toronto, “Going solo on your financial future probably isn’t worth the risk”. Never-the-less many Canadians are under the mistaken impression that managing their personal finances is a DIY project.

Managing your personal finances: How knowledgeable are Canadians about personal finance?

According to a recent survey by Tangerine:

  • Only 50% of Canadians surveyed consider themselves knowledgeable when it comes to personal finances
  • 39% consider their personal finance knowledge satisfactory, saying they only have enough knowledge to get by
  • 12% say they have limited or no knowledge

Managing your personal finances: Why aren’t more Canadians hiring financial planners?

There are a lot of misconceptions about financial planning – it’s only for the rich or young, or that it’s too expensive. And, many Canadians think that financial planning is only about budgeting or retirement planning.

Managing your personal finances: What is a financial plan?

A financial plan is a roadmap that shows you where you are today and helps you define your financial goals and aims for the future. And it provides you with the tools, information and structure to help your realize your financial goals and aims. A study by the Financial Planning Standards Board reports that 69% of Canadians still don’t have a comprehensive written financial plan to meet their life goals.

Managing your personal finances: What are the benefits of financial planning?

A study conducted on behalf of the Financial Planning Standards Council has shown that:

  • People who engaged in comprehensive financial planning have higher levels of financial and emotional well-being
  • Individuals with a financial plan have a better handle on their cash flow, have a plan to pay down debt and are more ready for emergencies
  • They have a better understanding of their investments, they know what to do to retire comfortably and have greater peace of mind3bestaward

Managing your personal finances: Why do I need a financial plan?

According to the Government of Canada a good financial plan will help you understand what your choices are today and in the future, reduce uncertainty about the future and help you make good decisions. A financial plan will answer these types of questions:

Managing your personal finances: What if I managed to accumulate too much debt?

Managing your personal finances may compromise your financial future. Always consult with a professional for financial services advice. If you’re seeking advice about debt, consult with Ira Smith Trustee & Receiver Inc. Our expertise in insolvency and financial restructuring can help you overcome your financial difficulties Starting Over, Starting Now. We’re just a phone call away.

 

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BABY BOOMERS DEBT CRISIS: WAITING FOR AN INHERITANCE TO BAIL YOU OUT?

BABY BOOMERS DEBT CRISIS: WAITING FOR AN INHERITANCE TO BAIL YOU OUT?Baby boomers debt crisis. The subject of inheritance is always highly charged – especially if you are in a Baby Boomers debt crisis. Parents seem to be divided into several camps. There are those who are self made and who believe that their kids will learn more from making it on their own than by receiving it on a silver platter. Others have spoiled their kids with a lavish lifestyle that only an equally lavish inheritance will be able to support. And there are those like billionaire Bill Gates who fall somewhere in the middle. This is his take on his wealth and inheritance for his children.

“It will be a minuscule portion of my wealth. It will mean they have to find their own way. They will be given an unbelievable education and that will all be paid for. And certainly anything related to health issues we will take care of. But in terms of their income, they will have to pick a job they like and go to work. They are normal kids now. They do chores, they get pocket money”.

Sadly there are many people who are living well beyond their means and waiting for an inheritance to bail them out of serious debt issues. They are living the life they believe is their right and as a result have an enormous mortgage, leased cars, maxed out credit cards and nothing but a mountain of debt to call their own.

  • An HSBC Bank report released in September, 2013, found 39% of working people are banking on some type of inheritance with the median value expected to be $77,213.
  • A report by Moneyville calculates that baby boomers are poised to inherit about $1 trillion over the next two decades as their parents and other close old relatives die.
  • According to MoneySense, 36% of the wealthiest families have received an inheritance; the average amount of that inheritance was $136,000.

However a BMO report shows that what many Canadians expect and what they may receive are quite different:

  • About 1.5 million Canadians are relying on their inheritance as the primary source of capital to fund their retirement.
  • On average, Canadians expect to receive a total of $150,600 in cash or cash equivalents, and $151,200 in non-cash inheritance.
  • In reality, inheritance sums received were significantly less – the average inheritance received was $56,000; certainly not enough to provide a solution to the question – Will I ever be able to retire?

Waiting for an inheritance to bail you out of a baby boomers debt crisis or other serious financial problems is clearly not a sound plan. If you have serious debt issues you need a professional. Contact Ira Smith Trustee & Receiver Inc. today. As professional trustees we can offer a sound financial plan and a way out of your baby boomers debt crisis for Starting Over, Starting Now. Take the first stop towards living a debt free life.

Call a Trustee Now!