Thanks to good nutrition and medical advances, Canadians are living longer than ever before. But will our savings last as long as we do?
December 18, 2023
Top 9 personal finance topics of 2023
By Jillian Stinson
What was on the minds of Canadians this year? Money. Actually, a whole lot more than that – but it was mostly money-themed. And rightfully so.
1. Inflation
A general increase in prices and fall in the purchasing value of money.
It seems like everywhere you go people are talking about inflation. We can’t escape hearing about it or, quite frankly, dealing with it ourselves. I still cringe when I see my grocery store receipts. But we found ways to help deal with inflation – since it’s not going anywhere soon. Plus, a few more ways you can protect your savings and retirement from the effects of inflation.
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2. Recession
A period of temporary economic decline when trade and industrial activity are reduced. It’s generally identified by a fall in gross domestic product (GDP) in two successive quarters.
As though we weren’t sad enough about the rising costs of just about everything – talk of a recession continued throughout the year. This fall, there were rumblings about a “technical recession.” As the future remains uncertain, now is a good time to learn more about it.
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3. Interest rates
Interest rate is the proportion of a loan that is charged as interest to the borrower. It’s typically expressed as an annual percentage of the loan outstanding.
This year was a rollercoaster ride from the Bank of Canada increasing interest rates. While the impact of an interest rate hike depends on whether you’re a borrower or a saver, it’s a good idea to know what’s-what either way.
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4. Market volatility
When the stock market rises and falls more than one percent over a sustained period.
The stock market was all over the place again this year. As a result, it was a major topic of conversation (and worry). When the stock markets drop drastically, it's natural to want to do something to reduce the volatility. But it’s honestly best if you don’t. At the very least, it’s a good idea to talk to your advisor before doing anything drastic.
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5. Debt
The state of owing money.
Based on the topics of this list – it’s no wonder debt is also top-of-mind for Canadians. Accumulating debt can happen when times are rough. Luckily, there are ways to pay back your debt, and get your finances on track.
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6. Financial stress
Emotional tension related to money.
Of course, financial stress was a topic of conversation again this year. We all had a lot to deal with. The cost of living, having enough money saved for the future and paying off debt concerned many of us. But are we doomed for a lifetime of financial stress? Nope. There are ways to cope.
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7. Retirement savings
A plan for setting aside money to spend after retirement.
The financial impact of the COVID-19 pandemic has caused a lot of uncertainty for Canadians’ retirement plans. This was a major topic of conversation again this year. Luckily, not all retirement plans changed for the worse. But there certainly were some lessons learned about preparing for retirement!
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8. Ethical investing
The practice of using your principles as the main way to decide which securities to invest in.
One of the better trends that came out of the pandemic was a greater sense of doing what is right for others. So, naturally there was a rise in popularity in ESG investing as a result. But what does it all mean? We can explain.
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9. Economic uncertainty
When the outlook for the economy is unpredictable.
What do all the above boil down to? A general sense of economic uncertainty. And in times of uncertainty, it can be easy to shut down and avoid making decisions. But it may be the best time to think about your financial plan. And, how you can even save money during this rocky financial period. What do you have to lose?
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Are you ready to make smart money moves for 2024?
We learned a lot of lessons (and new words) in the past year. One of the biggest take away’s for me was simple. Those who have a financial plan fare better than those who don’t.* And isn’t that motivation enough to make some changes? I know I’m motivated to glow up (financially-speaking) in 2024.
*Source : FP Canada
Need help figuring out what’s right for you?
An advisor can help put together a solid plan that suits your goals.
This article is meant to provide general information only. Sun Life Assurance Company of Canada does not provide legal, accounting, taxation, or other professional advice. Please seek advice from a qualified professional, including a thorough examination of your specific legal, accounting and tax situation.
