Personal Finance in the News – May 2020:
Here is a summary of May 2020’s Money News. This time around, topics that grabbed my attention included mortgage deferrals, COVID-19 scams, and changes in consumer behaviour.
Read & Watch: Canadians are falling victim to a variety of new COVID-19 scams. These articles by BNN-Bloomberg, CBC, and Richmond News detail the common types of scams out there right now. Furthermore, they also explain how scammers are preying on our collective fears about COVID-19. If you’re getting fraudulent texts, emails, or calls, report them to the Government of Canada here. Better yet, if someone is claiming to represent a bank, insurance company, or telecom, let that company know directly. Most financial companies and telecoms have fraud prevention departments where you can report the scam.
Read: There seems to be a lot of chatter on social media about the consequences of mortgage deferral. If you’re one of those people, this article in the Edmonton Journal is for you. The conclusion (spoiler alert) – only defer if it is absolutely necessary.
Read: The COVID-19 crisis has demonstrated the importance of cash on hand, having an emergency fund, and liquidity. Though net worth is very important, in times of financial strain, liquid net worth (or simply liquidity) is even more important. This article by Nick Maggiulli provides a good summary on the topic.
Read: Are you looking for some good news for 2020? Well, I don’t know if this cuts it, but savings rates are up, and borrowers are shying away from credit cards. This is a good thing. Contrary to what some economists say, robust economic foundations are not built on consumer leverage and government deficits or “stimulus”, but on household savings and consumer equity.
Read: Remember that taxes in the US and Canada have been delayed, but unfortunately must still be paid. In Canada, the deadline is coming up fast on June 1, and in the US the deadline has been extended to July 15.
Thanks for reading May 2020’s Money News! Stay tuned for more monthly money news next month and check out my latest blog post on preparing for a second wave and a new normal here.
Please keep in mind that I am not a financial advisor, and the opinions expressed are my own. My Money Moves does not provide financial advice – it is an informational website that details my own approach to my own money and personal finances. If you need specific financial help or guidance, please do your own research and seek out a professional who can work with you to reach your goals.