Managing a 'negative' income during COVID-19
Canada adds more jobs in June, but gender gap persists
In a flurry of rehiring in June as lockdown restrictions began to ease, the Canadian economy created 952,900 new jobs, surpassing economists’ estimates of a 700,000 increase. “An unambiguously strong print, with good breadth across sectors and regions,” Brett House, deputy chief economist at Bank of Nova Scotia in Toronto, told Bloomberg News in this report by Shelly Hagan. However, the gains benefited men more than women: there were 366,700 jobs added for men in June, versus 323,400 for women. And while the employment jump is promising, there's still a long road ahead to get employment numbers back up to pre-pandemic levels.
There's a $50-bill shortage in Canada
In the early days of the pandemic, Canadian households were stockpiling items like toilet paper, hand sanitizer, yeast and, it turns out, $50 bank notes. The Bank of Canada confirmed to BNN Bloomberg that there is a “temporary” shortage of notes in that denomination at some Canadian bank branches. Anne Gaviola explains what’s driving Canadians to hoard the polymer bills.
Most vulnerable Canadian debtors holding up during crisis
Subprime borrowers — those with below-average credit scores typically subject to higher-interest loans — are weathering the economic contraction admirably with the help of government aid and a steep drop in spending, as reported by Bloomberg News’ Chris Fournier. Non-bank lenders active in the subprime market, like goeasy Ltd. and Fairstone Financial Holdings Inc., are reporting stable and falling delinquencies. That comes as a relief to policymakers worried that job losses would unleash a wave of defaults.
Saskatchewan moves to regulate financial advisors
Saskatchewan is moving forward with legislation to regulate the titles of “financial planner” and “financial advisor.” The act restricts the use of the commonly-used titles to those who have approved credentials from a government-appointed body. Quebec is currently the only province with title regulation in place. Ontario’s Financial Professionals Title Protection Act received royal assent in May 2019, but the process of implementing it has gotten bogged down. As Personal Finance Columnist Dale Jackson explains, most Canadians, for now, remain vulnerable to bad financial advice from those claiming to be professionals.
Applying for EI or CERB: Ask BNN Bloomberg
The lines have become blurred for workers who lost their jobs before the COVID-related shutdowns, and many are confused about which form of financial aid to apply for. Daniel in Montreal says he was on employment insurance (EI) in February during a sick leave, but since returning to the workplace, his employer says it will only pay him under the federal wage subsidy until mid-July. Melissa Leong, author of Happy Go Money, weighed in on whether Daniel should apply for EI or the Canada Emergency Response Benefit (CERB).
Pandemic money lessons for millennials
The COVID-19 pandemic has been financially tough for many people. But there's a cohort of Canadians that has been particularly vulnerable: millennials. A recent survey from Equifax Canada revealed 41 per cent of millennial respondents said they were limiting their spending because they already had too much debt, compared with 32 per cent of respondents 35 and older. And one-quarter of respondents in the younger cohort said the government benefits they’re receiving won't be enough to cover their bills, compared to just 18 per cent in the older age group. CTV's Chief Financial Commentator Pattie Lovett-Reid shares some financial tips she's learned over the years to help younger people get through these trying times. "It's tough enough for someone starting out on their financial journey without having to contend with a pandemic," she says.
Trading in exotic beaches for mountains as a COVID vacation alternative
As travel restrictions limit Canadians' vacation choices this summer, some are turning to camping as an affordable alternative. Shane Devenish, executive director of the Burlington, Ont.-based Canadian Camping and RV Council, told The Canadian Press that demand for both tent and RV camping has been at an all-time high since the beginning of June. The Canadian Press' Audrey Carleton outlines different costs to consider when planning your trip, such as equipment and distance to the campsite.
"The most important thing Canadians need to keep in mind is there are pros out there, certified financial planners, qualified associate financial planners. And if debt is screaming at you, maybe (seek out) someone like a non-profit credit counsellor.” —Kelley Keehn, consumer health advocate at FP Canada, on managing financial stress during the pandemic
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