Archived newsletter – What to Do with Your Pandemic Savings

What to Do with Your Pandemic Savings

October 2021

Throughout the pandemic, Canadians collectively have been spending less and receiving more money than ever from government support programs.

As a result, we’re saving like never before.

In fact, Canadians amassed $212 billion last year, versus $18 billion in 2019, according to Statistics Canada. That works out to $5,574 per Canadian on average in 2020, compared to $479 in the previous year.

For many, the question now is, what to do with their unexpected savings?

According to Equifax Canada, a good number have already decided how to spend at least some of their funds. The credit rating agency reports that credit card balances are down, fewer people are behind on payments and credit scores are up.

Paying off any high-interest debt is a great idea. Bravo to those of you who’ve done so!

Now, depending on how much money you have remaining, you might consider putting extra payments on your mortgage, doing home renovations or rewarding yourself with some time off and travel.

And, of course, you know my view: You should always keep an eye on your most important financial goals. With this in mind, you might consider directing a portion of the funds towards your retirement savings.

And if you have school-age kids or grandkids, another option is to invest a part of the money into a Registered Education Savings Plan (RESP) to help pay for their post-secondary education.