Home Economics aims to help Canadians navigate their personal finances in the age of social distancing and beyond.
Jobs growth slows in November
The Canadian economy added the smallest number of jobs last month since the recovery began in May. Still, the labour market proved resilient as the country added 62,100 positions in November, triple the median forecast in a Bloomberg survey, and down just slightly from an 83,600 gain in October. Perhaps unsurprisingly, employment fell the most in accommodation and food services, and information, culture and recreation.
Fiscal update initiatives that could affect your pocketbook
In its fiscal update Monday, the federal government introduced a number of initiatives that could affect Canadians’ money as it looks for ways to support economic recovery from the COVID-19 pandemic. Some of the measures include temporarily boosting payments to families entitled to the Canada Child Benefit, a $400 tax deduction for remote workers, and a plan to collect GST and HST on digital sales from foreign tech giants like Netflix and Airbnb. The government also made it clear that unleashing the cash pile Canadians have been sitting on during the pandemic “will be a key element of the government’s recovery plan.”
Consumer debt hits $2 trillion in Canada
Total consumer debt in Canada surpassed the $2-trillion mark in the third quarter, according to Equifax Canada’s latest quarterly report. Increased demand for mortgages and car loans were the key drivers for the added debt. While 90-day non-mortgage delinquency rates hit their lowest level since 2014, Equifax warns the low number is masked by the large uptake in deferral programs during the COVID-19 pandemic.
Tap your retirement savings in a tax-efficient way
While a lot of effort goes into investing your money for retirement, perhaps not as much thought goes into the most efficient way to withdraw it. A good tax strategy is required for tapping into your nest egg, and there could be less to enjoy if it is not deployed properly, according to Personal Finance Columnist Dale Jackson. He says retirees should think about their savings as several buckets, and breaks down the tax consequences of each of them.
Cottage prices surge as workers flee big cities
Cottage prices in Canada are on the rise as remote workers look to escape the city permanently, according to a report published Monday by Royal LePage. Prices of single-family recreational homes rose 11.5 per cent to an aggregate of $453,046 in the first nine months of 2020, the report said. Meanwhile, average home prices in Canada’s biggest city dropped off from their October highs last month, according to Toronto Regional Real Estate Board (TRREB) figures released this week, while the condo market continued to cool amid dwindling demand.
A guide for supporting local businesses
The COVID-19 pandemic has caused financial strain for many, but especially for small businesses. As a result, many Canadians are looking to spend their holiday shopping budget locally while avoiding corporate giants like Amazon. But for some, finding the best way to support small businesses can be challenging. BNN Bloomberg put together a guide on the best way to go about it.
Bank of Mom and Dad still open for business
The dream of homeownership hasn’t faded during the pandemic, with major markets across the country seeing consistently strong sales figures. And a new poll from RBC found parents are still willing to help their children with the big purchase despite financial challenges brought on by COVID-19. The amount they're willing to spare isn't insignificant: Canadians were willing to give an average of $60,513 to support their child’s home purchase, with only 49 per cent expecting to be paid back, the poll found.
“Use it right away, like literally right away, like as soon as you get it.” - Retail analyst Bruce Winder on the risk of gift cards during the COVID era