To recap the financial concepts that got our attention this year, we’ve rounded up articles on the hot topics of 2022. Along the way, you’ll learn some tips to help prepare for a new year.
Top 12 money words of 2022:
A general increase in prices and fall in the purchasing value of money.
At the start of the year – and really ever since – everyone was talking about inflation. We couldn’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.
Inflation: What it means and how to protect yourself | Read time: 5 minutes
10 ways to beat inflation | Read time: 6 minutes
A combination of “stagnation” (i.e. lack of activity, growth, or development) and “inflation” (see definition above).
Just when we started to hear a bit less about inflation, in came its annoying cousin, stagflation. Which is just one of those made-up buzzwords that the media loves. While it is an annoying word, it’s still important to know what it means and how it affects you.
What is stagflation? | Read time: 5 minutes
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.
September rolled around, and fresh off that summer high – the Bank of Canada increased interest rates (again). 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.
What’s the impact of Canada’s interest rate increase? | Read time: 2.5 minutes
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? The media walloped us with talk of an inevitable recession. Early 2023 is looking like when a recession will begin in Canada. So, now’s a good time to understand what it might mean for you.
What is a recession and what does it mean for you? | Read time: 5.5 minutes
5. The Great Resignation
A trend where employees voluntarily quit their jobs, en masse, in the wake of the pandemic.
Around the globe, people began leaving their jobs in what became coined as “The Great Resignation.” Whether it was because of limited career opportunities, hostile work environments, or inflexible remote-work policies, the job market changed. Sure, quitting your job for any of these reasons is certainly tempting. But what does it mean for insurance benefits? And what are your options?
Quitting your job? Here’s what happens to your health insurance | Read time: 3 minutes
6. 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 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.
What do you do when the stock market drops? | Read time: 3 minutes
Volatile markets? 4 questions to ask your financial advisor | Read time: 2.5 minutes
The state of owing money.
Based on the first 6 topics on 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.
How to reduce debt and improve your finances | Read time: 4 minutes
8. Financial stress
Emotional tension related to money.
Again, of course financial stress was a topic of conversation this year. We all had a lot to deal with (eh hem, #1-7 on this list alone). 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.
How to cope with financial stress | Read time: 3 minutes
9. 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 this year. Luckily, not all retirement plans changed for the worse. But there certainly were some lessons learned about preparing for retirement!
How to avoid running out of money in retirement | Read time: 1.5 minutes
10. FIRE movement
A movement to maximize savings and retire by age 40 or 45.
Don’t worry, 2022 wasn’t all doom and gloom. It’s also when we heard about the FIRE movement, which stands for Financial Independence, Retire Early. And who can’t get behind early retirement? Have a read for yourself. The movement may inspire you.
What is the FIRE movement? | Read time: 5.5 minutes
11. 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.
Ethical Investing vs. ESG Investing: What’s the difference? | Read time: 4.5 minutes
12. 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?
How to save money in times of uncertainty | Read time: 2 minutes
Are you ready to make smart money moves for 2023?
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 2023.
Read more: How can you improve your financial literacy?
Do you need to start or revisit your plan? Talk to an advisor.
*Source : FP Canada
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.