Author Archive: Natasha McKenna

The ABCs of RESPs

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210From: Canadian Living Magazine

Holding your newborn, you gaze lovingly into his eyes and imagine all the things he may one day become. Will he be an architect, an artist, a chef? Then it hits you — how on earth are you going to pay for all his schooling?

When your little one is ready to graduate high school, the projected cost of pursuing a four-year post-secondary education in Canada will be upwards of $55,000, depending where you live (including tuition, fees and books), and a mind-boggling $90,000 or more if junior decides to go away to school. Add in a specialized degree and the costs go up, way up, from there.

So what’s a parent to do? In a word, plan.

Be informed

Patricia Trott, manager, investor communications, with the Ontario Securities Commission (OSC), urges parents to do their homework before opening a Registered Education Savings Plan (RESP) by investigating what kind of plan they want, deciding who is the best provider of that plan and paying careful attention to the fees, limitations and terms involved.

“You want to make sure you understand all the issues, such as can you transfer the plan? What happens if your child doesn’t enrol in post-secondary education?” says Trott. “It’s very important to do your research.”

RESPs

The current darling of saving plans, an RESP allows contributors to sock away as much as they can annually for a lifetime contribution of $50,000 per child (the limit was raised earlier this year from $42,000), non-deductible. The funds grow tax-free until withdrawn (an RESP can stay open for up to 26 years), and the grant and growth portion of the education payments are then taxed to the student who is enrolled full- or part-time in a “qualifying education program.” Luckily, most students typically have little other income, so they’ll pay minimal tax on the money coming their way.

Look at the options

RESPs are available through banks and trust companies, credit unions, investment dealers, mutual fund companies and scholarship plan dealers. While not the only way to save for a child’s education, they are a popular option — more than 1.5 million Canadian children are beneficiaries of an RESP. You must have a social insurance number for yourself and your child in order to open a plan. Don’t have one for your child yet? You can download an application at servicecanada.gc.ca.

Financial institution RESPs

Most financial service providers offer self-directed or money-managed RESP plans. From there, you have two choices: an Individual Plan or a Family Plan. Anyone (parents, grandparents, extended family or friends) can open an individual RESP and contribute money for a child, referred to as the “beneficiary.” In a Family Plan, you can name one or more beneficiaries of the RESP, but they must be related to you. They may be your children — including adopted children — grandchildren, brothers or sisters.

Group (scholarship plan) RESPs

Scholarship plans pool the contributions of many investors. When you join a group plan, you agree to buy a set number of plan units according to a set schedule. Each unit gives you a share in the pooled earnings of the group, which are then paid out when it matures to qualifying students the same age as your child.

Get more money

As if rising tuition fees weren’t enough incentive to stash some cash, depending on your net family income, the federal government could add 40, 30 or 20 cents on the first $500 saved per child up to age 17, for every dollar you save in your child’s RESP. This grant is courtesy of the Canada Education Savings Grant (CESG), — for a lifetime maximum of $7,200. “It’s actually a pretty generous program,” says Trott. Should the RESP not be used 26 years after it’s opened, the amount you saved and the interest earned will go back to you, and the CESG may be used for another child’s education.

On the first $500 you save in your child’s RESP, the Canada Education Savings Grant will give you:

  • 40 cents per dollar, if your net family income is $37,178 or less;
  • 30 cents per dollar, between $37,178 and $74,357;
  • 20 cents per dollar, if your net family income exceeds $74,357.

No matter what your net family income is, the CESG will give you 20 cents for every dollar you save up to $2,500.

To get the CESG in two easy steps, you must:

  • Apply for a social insurance number for your child;
  • Open and deposit money in an RESP for your child.

Ask your RESP provider to apply for the CESG on behalf of your child. It will be deposited directly into her RESP.
Modest income families may also be eligible for a $500 Canada Learning Bond, plus an additional $100 per year up to age 15:

  • If your child was born after Dec. 31, 2003, and
  • You receive the National Child Benefit Supplement as part of the Canada Child Tax Benefit (commonly known as “family allowance” or “baby bonus”). This usually applies to families whose net income is $37,178 or less.

Live in Alberta? You’re already ahead. Thanks to the Alberta Centennial Education Savings Plan, any child born in the province on or after Jan. 1, 2005 receives $500 towards her RESP. These kids will also get an extra $100 at ages 8, 11 and 14, provided the parents are residents of the province and their children are enrolled in an Alberta school.

For more information regarding RESPs and the CESG, log on to the Human Resources and Social Development Canada website, hrsdc.gc.ca.

Just in case winning the lottery doesn’t pan out, senior editor Robin Stevenson has started saving diligently for her daughter’s post-secondary education.

Tips to Stash the Cash

  • Plough any cash gifts your child receives into an RESP. Ask relatives to contribute to an RESP in lieu of large holiday or birthday gifts.
  • Encourage children to allocate a portion of their allowance or any earnings (babysitting, snow shovelling) towards their education. Visit the financial institution to deposit the money together. Remind her that some goals must be saved for in advance.
  • Resolve to make cuts where you can this year; even little ones add up. Swap just one high-priced latte each day for the office brew and save $80/month. Brown-bag your lunch just twice a week and save $60/month. Combined, that’s a savings of more than $1,600 a year towards junior’s education.

Sourced from: http://www.canadianfamily.ca/parents/organizing/abcs-resps/

5 Tips for Keeping Your Family Road Trip Stress Free

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FANCY-00044406-001From: Canadian Family Magazine

In the past year alone, our family has driven from Toronto to Atlanta, from Atlanta to Myrtle Beach, from Myrtle Beach to Milwaukee, from Milwaukee to Toronto (twice!), and from Toronto to Milwaukee. It’s safe to say that our children spend a lot of time in the car. Because of this, we have become experts in the art of surviving the family road trip. In fact, many of our friends actually come to us to ask for tips on how to make road-tripping as stress-free as possible and I always recommend the following five things:

1. Entertainment device: Make sure each child has some sort of electronic entertainment device of his or her own. Having a DVD player in the car is wonderful and can really come in handy on long road trips, but in can also become a source of fighting, arguments and frustration. Pro tip: Steal away your child’s iPod and put a surprise movie on it, or steal away the gaming device and pop in a brand-new surprise game.

2. Personal snack bags: Pre-pack a bag filled with drinks and snacks and treats. I find that kids tend to love taking ownership of their things, and they like opening up their bags seeing the things that they love to eat and don’t have to share with their siblings. Pro tip:Always overpack when it comes to food. Bring several different kinds of fruit, veggies, string cheese, granola bars, etc. The more you offer, the better your chances are of having packed something the kids will love.

3. Colouring Projects: Activity books of all kinds are an absolute necessity on road trips. Colouring books, word searches, Mad Libs and crosswords are great. But often these can end in the infamous “Mommy! I dropped my crayon/pen/marker/pencil” or “Mommy! I just drew with marker all over my car seat/legs/windows/clothing!” which is really no fun for anyone involved. This is where Crayola’s Color Wonder activities come in handy. The colours appear on the designated paper only and not on clothing, body parts or your vehicle.

4. The licence plate game. Oh, this game. It’s an oldie, but it really is a goodie. Print out a map of the US and Canada, or simply have fun trying to find/list of the states and provinces together. When you spot a licence from that place, cross it off the list. It’s a fun challenge that will keep little eyes focused on something other than a glowing screen.

5. Strategically-planned pit stops. You shouldn’t only stop for the necessary gas fill-ups or bathroom visits. Instead, plan ahead and find places to just take a break from the road. Find a park or an open field or a place to run around and stretch your legs. Sometimes changing up the scenery and getting out of the car for a little bit can renew youngsters’ energy and gear them up for some more time in the car.

What are your no-fail family travel tips?

If you’re looking for more road trip survival tips, check out our travel tips for a family road trip.

—Ali, Senior Associate Editor of CF.ca

Sourced from: http://www.canadianfamily.ca/activities/travel/5-tips-for-keeping-your-family-road-trip-stress-free/

Highway To The Danger Zone: How To Avoid Spending Money You Don’t Have

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From the Huffington Post

205Most people have a strange relationship with money; even with good budgeting, there rarely seems to be enough to go around. But what do you do when your money burns holes through your pocket faster than it actually lasts in your wallet? It may be time to reevaluate your spending habits and, more importantly, come to terms with how much you can really afford. Here are a few financial tips to get you started!

1. Don’t let the freebies fool you
Countless people have been convinced to initially sign up for a shiny piece of plastic in exchange for a free t-shirt or a light-up pen; before you know it, you’re tearing through Groupon and Amazon like a demon possessed. You wouldn’t make a large purchase, such as a car or a TV, without researching first. Why would signing up for a credit card be any different? Remember that a credit card is a bigger commitment than you think and shouldn’t be decided on in a whim. Researching which credit cards are compatible with your hobbies can benefit you in the long run, as opposed to blindly signing your name away. This is especially prevalent for financially vulnerable college students, to the point where the U.S. federal government has banned credit card marketers from university campuses. No word on a Canadian equivalent to this regulation — yet.

2. Cash and debit over Credit
It’s painful for anyone to part with their hard-earned money, even if the expenses are absolutely necessary. That’s part of the appeal of credit; you don’t truly feel the money physically leaving your wallet at any point during your purchase. But don’t be too eager to repress that uneasy feeling of spending! By spending what you have on you at that moment, you’re more likely to avoid spending money that you don’t have – something that you might not otherwise notice building up on your credit bills. Paying with cash and debit will make it seem like you got hit hard today, but it’s better than racking up the dollars on bills that you can always ‘get to’ tomorrow.

3. Stick to a budget
Allot a specific amount for every expense you have for that week or month, and don’t be tempted to dip into that amount for other frivolous things. Budgeting on paper helps, and if you’re not the pen-and-paper kind, there are a multitude of phone apps that can aid you on-the-go. If you have $50.00 to spend on eating out that week, don’t go over that amount on your next dining experience. Have an eye out for a new piece of clothing you’ve wanted? Walk away from that dream jacket if it’ll take breaking the bank to have it. Put down the bucket of sweet, guilty-pleasure ice cream if it’s not on your grocery list. And speaking of lists…

4. Lists are a good idea
This is a good idea for visual learners who can work with written cues. Writing a list — even if it’s for something simple as picking up your dry cleaning, buying pet food and a new blouse for your job interview — can serve as a visual reminder on the things you are actually set on purchasing. Not on the list? Don’t buy it. Restrain yourself from buying things that are not on your list, as the things you write down on a piece of paper before you leave your house will be the things that you intended on buying, not the things you convinced yourself were good ideas at the time.

5. Never get yourself a reward with money you don’t have
It’s part of human nature to seek out pleasure and comfort after, say, a long day at work or back-to-back coursework. It’s good to treat yourself to a comforting pricey coffee or that new phone case once in a while, but treating yourself after every single accomplishment you make in your day-to-day life will quickly leave you with empty pockets. If you’re really waiting for a big-ticket item, budget and save up for the purchase. Not to mention, if having beers after a day at work becomes a way of rewarding yourself, it will most likely become the new norm for you. Don’t rely on material rewards to re-energize and motivate you, and let ‘rewards’ remain more sporadic than constant.

Sourced from: http://www.huffingtonpost.ca/2014/03/31/avoid-spending-money-you-dont-have_n_5051234.html

How To Deal With Temptations

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10 Steps- With Pictures: A WikiHow Article

670px-Deal-With-Temptation-Step-1Are you any good at resisting temptation? All of us succumb to a little temptation now and then, but some people are blessed with more self-control than others. Temptation is about wanting something that you really want, often something that isn’t right or good for you.

Resisting temptation is difficult because the object or subject of our desire is often all the more desirable because it’s forbidden, out-of-reach, or hard to obtain. Sometimes temptation can turn into obsession if it’s not possible to obtain the desired thing or person; other times, being able to give in to temptation leaves us feeling dissatisfied, guilty, or upset because we’ve done something we shouldn’t have. This article discusses ways of dealing with temptation.

Click Here to Link to Full Article

Assertive Versus Aggressive

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By: Family Service PEI

Are you assertive enough in your everyday life?  Being assertive is a necessary communication skill to practice in order to avoid being taken advantage of, and to protect yourself from harm and wrongdoing. Being assertive involves expressing your feelings honestly and comfortably, without violating the rights of others.  It is a way of effectively expressing your likes, dislikes, interests, opinions and feelings in a way that people will easily understand.  Being assertive also involves being able to politely disagree with others, saying no to others’ demanding requests, and taking a stand for what you feel is right.

So, what are the benefits of developing an assertive communicate style?  It leads to better self-esteem and strong supportive relationships involving mutual respect. It lets others know that you are not willing to be taken advantage of and that you have a voice of your own.  Furthermore, being assertive better prepares you to accept compliments and positive feedback.

However, it is important to understand and recognize the difference between being assertive and being aggressive.  So, let’s break down the difference between the two:

Assertive                                Vs.                                 Aggressive

–  Speaking openly                                                            – Interrupting and talking over others

– Uses a conversational tone                                          – Speaks loudly and abrupt

– Maintains good eye contact                                         – Stares and glares at others

– Shows expressions that match the message            – Intimidates others with expressions

– Relaxed appearance with open posture                    – Stands rigidly with crossed arms, invades personal space.

– Participates in groups                                                   – Controls groups

– Values self equal to others                                           – Values self more than others

– Tries to hurt no one (including self)                          – Hurts others to avoid being hurt

 

Believe it or not, assertion is not a natural trait that we are born with, we must continue to learn  and develop this skill regularly.

10 Questions to Ask Your Financial Planner

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By: The Financial Planning Standards Council

Financial planners can help you plan for retirement, find the best way to finance a new home, save for your child’s education or simply help put your finances in order. Whatever your needs, working with an appropriately qualified financial planner is a crucial step in helping you meet short-term and long- term goals that will help ensure your future financial well-being.

Finding the right planner is extremely important because your choice will almost certainly affect the security of your financial future. The following questions will help you interview and evaluate financial planners to find a competent, qualified professional with whom you feel comfortable and whose business style suits your needs.

Don’t be afraid to ask these and any other questions you feel need a full and open answer. Any professional will welcome them.

  1. What are your qualifications?
  2. What experience do you have?
  3. What services do you offer?
  4. What is your approach to financial planning?
  5. Will you be the only person working with me?
  6. How will I pay for your services?
  7. How much do you typically charge?
  8. Could anyone besides me benefit from your recommendations?
  9. Are you regulated by any organization?
  10. Can I have it in writing?

1. What are your qualifications?

Many people offering financial services call themselves financial planners. However, financial planning is a detailed, comprehensive process requiring hands-on experience and a strong technical understanding of topics such as personal tax planning, insurance, investments, retirement planning and estate planning – and how a recommendation in one area can affect the others.

In addition, in Canadian provinces with the exception of Quebec, there is no legislated standard in place for those who call themselves financial planners to obtain any credentials whatsoever. Be sure that your planner is appropriately trained, certified and held accountable to professional oversight – as Certified Financial Planner® professionals are today.

Ask the planner about his/her qualifications to offer financial advice and if, in fact, s/he is a qualified planner.

Ask what training s/he has successfully completed.

Ask what steps s/he takes to keep up with changes and developments in the financial planning field.

Ask whether s/he holds any professional credentials including the CFP® credential, which is recognized internationally as the mark of the competent, ethical, professional financial planner.

2. What experience do you have?

Experience is an important consideration in choosing any professional. Ask how long the planner has been in practice, the number and types of firms with which s/he has been associated, and how their work experience relates to their current practice. Inquire about what experience the planner has in dealing with people in similar situations to yours and whether s/he has any specialized training. Choose a financial planner who has at least three years’ experience counselling individuals on their financial needs.

3. What services do you offer?

The services a financial planner offers will vary and depend on their credentials, registration, areas of expertise and the organization for which s/he works. Some planners offer financial planning advice on a range of topics but do not sell financial products. Others may provide advice only in specific areas such as estate planning or taxation. Those who sell financial products such as insurance, stocks, bonds and mutual funds, or who give investment advice, must be registered with provincial regulatory authorities and may have specialized designations in these areas of expertise.

4. What is your approach to financial planning?

The types of services a financial planner will provide vary from organization to organization. Some planners prefer to develop financial plans encompassing all of a client’s financial goals. Be sure to work with a planner who considers your overall financial goals, values and attitudes even where they may specialize in a specific area such as taxation, estate planning, insurance or investments. As an example, an investment specialist’s portfolio recommendations should consider your investment objectives and risk tolerance, but as well your cash flow needs, tax situation, risk management and estate goals. Ask whether the individual deals primarily with clients with specific net worth, levels of income or investable assets, and whether the planner will help you implement the plan s/he develops or refer you to others who will do so.

5. Will you be the only person working with me?

It is quite common for a financial planner to work with others in their organization to develop and implement financial planning recommendations. You may want to meet everyone who will be working with you. Financial planners often work with other professionals, including the ones you already use, such as your lawyer and accountant.

6. How will I pay for your services?

Your planner should disclose in writing how s/he will be paid for the services they will provide. Understand how your potential planner will be compensated and choose whatever model works best for you. Planners can be paid in several ways:

From the cost of the product: Some planners receive their compensation directly from the product manufacturer when you purchase a product through the planner, as part of the management fee of the fund for example. In this case no money is exchanged between the client and the planner. Rather, the cost to the client is embedded in the cost of the mutual fund.

Percentage of assets under management: Some planners will charge a fee as a percentage of the assets they are managing or administering on your behalf.

Fee-for-service: Some planners charge an hourly or set fee for the service they provide.

7. How much do you typically charge?

While the amount you pay the planner will depend on your particular needs, the financial planner should be able to provide you with an estimate of possible costs based on the work to be performed. Such costs would include the planner’s hourly rates or flat fees or the percentage s/he would receive as commission on products you may purchase as part of the financial planning recommendations

8. Could anyone besides me benefit from your recommendations?

Ask the planner – regardless of fee structure – if they have a written professional obligation to put your interests ahead of their own. For example, CFP professionals must attest to a code of ethics annually that clearly states that your interests will always come first.

9. Are you regulated by any organization?

Financial planners who sell financial products such as securities and insurance or who provide investment advice must be regulated by provincial regulatory authorities and may also subscribe to a code of ethics through a professional association. Others who are members of the accounting and legal professions are usually members of professional bodies that govern their fields. Planners who hold the CFP credential are subject to internationally recognized professional standards of competence, ethics, and practice set and enforced in Canada by Financial Planning Standards Council (FPSC®).

It is a fair question to ask if a prospective financial planner has ever been the subject of disciplinary action by any regulatory body or industry association. You can verify the answer by contacting the relevant organization. Ask the financial planner whether s/he subscribes to a professional code of ethics such as the FPSC Code of Ethics for CFP professionals..

10. Can I have it in writing?

Ask the planner to provide you with a written agreement that details the services that will be provided. Keep this document in your files for future reference.

Sourced from: http://www.fpsc.ca/10-questions-ask-your-planner#1

The Questions That Will Save Your Relationships

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195

By: Glennon Melton

When I was a mama of three very tiny, very messy, very beautiful rug rats, we had DAYS THAT WENT ON FOR LIFETIMES. Craig left at 6:00 a.m. every morning and as I watched his showered, ironed self leave the house I felt incredibly blessed and thrilled to have so much time alone with my babies and incredibly terrified and bitter to have so much time alone with my babies. If you don’t believe that all of those feelings can exist at once — well, you’ve never been a parent to many tiny, messy, beautiful rug rats.

When Craig returned each day at 6:00 p.m. (he actually returned at 5:50 but took a STUNNINGLY LONG TIME TO GET THE MAIL) he’d walk through the door, smile and say — “So! How was your day?”

This question was like a spotlight pointed directly at the chasm between his experience of a “DAY” and my experience of a “DAY.” How was my day?

The question would linger in the air for a moment while I stared at Craig and the baby shoved her hand in my mouth like they do — while the oldest screamed MOMMY I NEED HELP POOING from the bathroom and the middle one cried in the corner because I NEVER EVER EVER let her drink the dishwasher detergent. NOT EVER EVEN ONCE, MOMMY!!! And I’d look down at my spaghetti-stained pajama top, unwashed hair, and gorgeous baby on my hip — and my eyes would wander around the room, pausing to notice the toys peppering the floor and the kids’ stunning new art on the fridge…

And I’d want to say:

How was my day? Today has been a lifetime. It was the best of times and the worst of times. There were moments when my heart was so full I thought I might explode, and there were other moments when my senses were under such intense assault that I was CERTAIN I’d explode. I was both lonely and absolutely desperate to be alone. I was saturated — just BOMBARDED with touch and then the second I put down this baby I yearned to smell her sweet skin again. I was simultaneously bored out of my skull and completely overwhelmed with so much to do. Today was too much and not enough. It was loud and silent. It was brutal and beautiful. I was at my very best today and then, just a moment later, at my very worst. At 3:30 today I decided that we should adopt four more children, and then at 3:35 I decided that we should give up the kids we already have for adoption. Husband — when your day is completely and totally dependent upon the moods and needs and schedules of tiny, messy, beautiful rug rats your day is ALL OF THE THINGS and NONE OF THE THINGS, sometimes within the same three minute period. But I’m not complaining. This is not a complaint, so don’t try to FIX IT. I wouldn’t have my day Any.Other.Way. I’m just saying — it’s a hell of a hard thing to explain — an entire day with lots of babies.

But I’d be too tired to say all of that. So I’d just cry, or yell, or smile and say “fine,” and then hand the baby over and run to Target to wander aisles aimlessly, because that’s all I ever really wanted. But I’d be a little sad because love is about really being seen and known and I wasn’t being seen or known then. Everything was really hard to explain. It made me lonely.

So we went went to therapy, like we do.

Through therapy, we learned to ask each other better questions. We learned that if we really want to know our people, if we really care to know them — we need to ask them better questions and then really listen to their answers. We need to ask questions that carry along with them this message: “I’m not just checking the box here. I really care what you have to say and how you feel. I really want to know you.” If we don’t want throwaway answers, we can’t ask throwaway questions. A caring question is a key that will unlock a room inside the person you love.

So Craig and I don’t ask “How was your day?” anymore. After a few years of practicing increasingly intimate question asking, now we find ourselves asking each other questions like these:

When did you feel loved today?

When did you feel lonely?

What did I do today that made you feel appreciated?

What did I say that made you feel unnoticed?

What can I do to help you right now?

I know. WEEEEEIRRD at first. But not after a while. Not any weirder than asking the same damn empty questions you’ve always asked that elicit the same damn empty answers you’ve always gotten.

And so now when our kids get home from school, we don’t say: “How was your day?” Because they don’t know. Their day was lots of things.

Instead we ask:

How did you feel during your spelling test?

What did you say to the new girl when you all went out to recess?

Did you feel lonely at all today?

Were there any times you felt proud of yourself today?

And I never ask my friends: “How are you?” Because they don’t know either.

Instead I ask:

How is your mom’s chemo going?

How’d that conference with Ben’s teacher turn out?

What’s going really well with work right now?

Questions are like gifts — it’s the thought behind them that the receiver really FEELS. We have to know the receiver to give the right gift and to ask the right question. Generic gifts and questions are all right, but personal gifts and questions feel better. Love is specific, I think. It’s an art. The more attention and time you give to your questions, the more beautiful the answers become.

Life is a conversation. Make it a good one.

Sourced from: http://www.huffingtonpost.com/glennon-melton/the-questions-that-will-save-your-relationships_b_4618254.html

Coping Financially During Long Term Illness

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money-illness-225x300By: Adam Buller

Illness is something which can occur unexpectedly and out of the blue. Sometimes though the effects of an illness can stay with you for a long time affecting many aspects of your daily life. It can be extremely frustrating not being able to do what you once could but it can be even more frustrating when the illness begins to hit your finances, especially if you have a family you are trying to provide for. Hopefully you will have some savings put away in an emergency fund but these will likely soon become exhausted if your illness really does prove to be long term. So what else can you do to cope financially during a long term illness?

Admit your problem and put pride to one side-
One of the hardest things for many of those who are suffering is actually admitting that they can’t do what they once did. We all like to stay financially independent for as long as possible in the hope that we will be able to recover from our illness and get on with life as normal again. This pride can often cause your financial situation to become even more dire as the unpaid bills start to stack up and charges start being added. So the first step is to recognise and admit that you may need to make some changes or seek some short or long term financial assistance before your finances spiral out of control. So what changes can be made and what assistance can you seek? Let’s consider a few things that can be done.

Check your existing policies-
If you currently have any insurance policies in place related to life or income then it can be a good idea to get out the document box and sift through the details of all policies to see if there are any unexpected benefits in that policy that may be relevant to your situation. If your illness is particularly serious for example then you may find that your life insurance policy has a critical illness element to it which will pay out on diagnosis. You may find that you still have some sort of income protection policy in place that you set up years ago but never got around to cancelling. We’re looking for the expected and the unexpected here so even if you don’t think that any of your policies contain these benefits it is still worth an hour of your time finding out on the off chance that they do.

Another thing that you should check is whether you have any insurance policies on your mortgage, loans or finance deals. If you do then there is a good chance that you may be covered for medium term illness and you may be able to make a claim to help pay these commitments in part or in full whilst you recover from your illness.

Are you eligible for benefits?
If you have found that your income has significantly decreased due to your illness then you might now be eligible for benefits such as increased tax credits or even housing benefit. Pride can again play a part here as most of us don’t like to admit that we can’t support our loved ones on our own steam anymore. The problem with pride is that it won’t change the situation you are in. These benefits can also take a long time to sort out and you often cannot backdate them without a valid reason. So if your financial situation has changed because of your illness then it’s wise to find out what you are eligible for and make any claim as soon as possible. You can always cancel a claim later on if your health improves but it’s better to plan for the worst case scenario and claim what you are entitled to early on.

Can you work from home?
If your employer offers the option of working from home while you get over your illness then perhaps this could be something you could cope with? If this option isn’t available then maybe you could use your skills to top up your income with an online business or by freelancing as and when you feel able. It’s obviously wise to check whether any work you are doing would negatively affect your sick pay or benefits but if you are able to add a few extra pounds to your weekly budget then this could really help during this tough time in your life.

Making lifestyle changes
The timing of this decision can also be tough, when to make those lifestyle changes? If you expect your illness to end quite soon then it can be tempting to delay making changes to how you live. The problem here is that life doesn’t always go as you expect it to. The wise thing to do would be to make cutbacks and start saving money right away just in case your illness lasts for a lot longer than you were expecting. These changes could include slashing your food budget, reducing cable packages; mobile phone tariffs etc., anything that can be changed without incurring a penalty. Perhaps you could even cancel some contracts.

Again it can be difficult to admit that you can’t now afford the things you once could but if this is the case then it is best to deal with the problem yourself before someone else – the debt collectors – deal with it for you. Creating a workable budget, even if it is just for a temporary time, can reduce the stress in the long run which could then help drastically with your ability to overcome your illness.

It can happen to anyone-
As we’ve discussed, one of the biggest things that can prevent us from improving or protecting our financial position during illness can be our own pride. You may be reluctant to make lifestyle changes, claim benefits or seek advice. What is it they say though, ‘pride comes before a fall’? If you’re feeling down on yourself then just remember that you are not alone in what you are facing. There are many people out there dealing with long term illness or even critical illness. It truly can happen to anyone so you should not be afraid to make changes and seek advice, it could mean the difference between keeping your finances afloat during this hard time of life, or not.

Sourced from: http://moneybulldog.co.uk/coping-financially-during-long-term-illness/

What Does Family Violence Look Like?

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With Family Violence Prevention Week quickly approaching (February 9-15), it is everyone’s responsibility to be educated, raise awareness, and reduce stigma surrounding family violence.

What is family violence?

The Canadian Justice Department defines it as, “Any form of abuse, mistreatment or neglect that a child or adult experiences from a family member, or from someone with whom they have an intimate relationship.” More specifically, family violence can be broken into 5 forms:

Physical

Inflicting or attempting to inflict physical injury. Example: grabbing, pinching, shoving, slapping, hitting, biting, arm-twisting, kicking, punching, hitting with blunt objects, stabbing, shooting

Withholding access to resources necessary to maintain health. Example: medication, medical care, wheelchair, food or fluids, sleep, hygienic assistance. Forcing alcohol or other drug use.

Sexual

Coercing or attempting to coerce any sexual contact without consent. Example: marital rape, acquaintance rape, forced sex after physical beating, attacks on the sexual parts of the body, forced prostitution, fondling, sodomy, sex with others

Attempting to undermine the victim’ sexuality. Example: treating him/her in a sexually derogatory manner, criticizing sexual performance and desirability, accusations of infidelity, withholding sex

Psychological

Instilling or attempting to instill fear. Example: intimidation, threatening physical harm to self, victim, and/or others, threatening to harm and/or kidnap children, menacing, blackmail, harassment, destruction of pets and property, mind games, stalking, isolating or attempting to isolate victim from friends, family, school, and/or work. Example: withholding access to phone and/or transportation, undermining victim’s personal relationships, harassing others, constant “checking up,” constant accompaniment, use of unfounded accusations, forced imprisonment

Emotional

Undermining or attempting to undermine victim sense of worth. 
Example: constant criticism, belittling victim’s abilities and competency, name-calling, insults, put-downs, silent treatment, manipulating victim’s feelings and emotions to induce guilt, subverting a partner’s relationship with the children, repeatedly making and breaking promises

Economic

Making or attempting to make the victim financially dependent. 
Example: maintaining total control over financial resources including victim’s earned income or resources received through public assistance or social security, withholding money and/or access to money, forbidding attendance at school, forbidding employment, on-the-job harassment, requiring accountability and justification for all money spent, forced welfare fraud, withholding information about family running up bills for which the victim is responsible for payment.

Source: New York State Office for the Prevention of Domestic Violence

5 Reasons to File a Tax Return

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SBEXRF-00094356-001By: The Investor Educator Fund

If you owe tax, you have to file a tax return. If you don’t owe tax, you still might want to file a return to take advantage of certain tax credits.

​1. You owe tax or want to receive a refund

If you are a resident of Canada for part or all of a tax year, you must file a tax return if you owe tax or want to receive a refund.

2. Recover any tax you overpaid from your pay cheque

You may have had too much tax deducted from your pay cheque and not benefited from all the deductions and tax credits you were entitled to.

3. Take advantage of refundable tax credits

Examples of refundable tax credits: Child Tax Benefit, GST/HST Credit, the Working Income Tax Benefit. You won’t receive these credits if you don’t file a return.

4. Create contribution room in an RRSP

If you have earned income, you can make RRSP contributions, which reduce your net income. If you don’t use your contribution room in any year, you can carry the unused amounts to future years. Learn more about RRSPs.

5. Carry forward or transfer any unused tuition, education or textbook amounts

If you don’t have enough income to use these tax credits, you can carry them forward to future years. Or you can transfer them to a family member.

When you don’t have to file a return

You don’t have to file a return if your tax is withheld at source – taken off your pay cheque – and you have no other sources of income or deductions, or you have no income to report.
Sourced from: http://www.getsmarteraboutmoney.ca/en/managing-your-money/planning/