Personal Finance in the News – November 2020:
Welcome to Money News – November 2020! I have five noteworthy topics for you this month.
Read & Watch: Not all is doom and gloom out there in this Coronavirus pandemic. Canadians are sitting on a record $90 billion in cash according to this BNN-Bloomberg article. The Household Savings Rate has also increased from an average of roughly 3% to 28.2%. Furthermore, businesses are sitting on $80 billion. This is encouraging given that savings are the source of future spending, investment, and economic activity. That said though, Canadian household debt to GDP is 115%, so enthusiasm should be tempered.
Read & Watch: As for housing, condo owners are facing a double whammy. First, they continue to face soaring insurance costs. In Vancouver and Alberta, for example, premiums are up 16% from last year, in part because of larger deductibles. Second, while the housing market is roaring, condos are flat, which makes it hard for the move-up buyer, or for those hoping to escape insurance costs.
Read: Meanwhile, confusion over the Canada Emergency Response Benefit (CERB) continues. The Canada Revenue Agency (CRA) has warned 213,000 Canadians they may have to pay back CERB overpayments. Another 800,000 ineligible people apparently received CERB too. As a reminder, the CERB has now been replaced with the Canada Recovery Benefit (CRB). Program details can be found here.
Read & Watch: Do you have an old one-dollar or two-dollar bill stashed away? Turns out they are among the bills set to lose legal tender status in 2021. The $25, $500, and $1,000 dollar bills are also on the chopping block. Fear not though! The value of these bills as collector items is likely far higher than the face value printed on the bill. Hold tight and they may actually increase in value – take that inflation!
Read: If you’ve ever wondered about the average retirement savings by age, wonder no more. This article by NerdWallet has you covered. Though the numbers are based on American data, the trend and ratios are likely similar in Canada. The key takeaway here is simple: people aren’t saving enough for retirement.
That’s all for now – thanks for reading Money News – November 2020 edition! Stay tuned for more money news next month. In the meantime, check out my latest posts on investing 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.