Over the course of your life, you’ll go through many changes that will likely affect your personal finances.
Major life changes may be happy, sad, stressful – or anywhere in between – and money management issues can add stress to an already complicated situation.
3 events that commonly make a significant impact on finances
- Starting a family can significantly change your financial situation because you go from only having to cover your own expenses to being responsible for others. You’ll need to consider insurance to replace your income if anything happens to you, and saving for your child’s post-secondary education.
$193,000 to $250,000 – that’s how much it will cost to raise a Canadian child from birth to adulthood.
- Getting divorced/breaking up can negatively impact your financial situation. When you go from 2 incomes to 1, you’ll need to update your overall financial plan, investment strategy and will, among other things.
According to Statistics Canada, 41% of marriages will end in divorce before the 30th year of marriage, an increase from 36% in 10 years.
- Taking care of a loved one can be challenging emotionally and financially. This kind of help can take various forms, like helping them make tough financial decisions or covering some of their expenses. If you have to take unpaid time off work to help provide care, that can add financial strain and may affect your own financial goals.
According to Statistics Canada, 18% of caregivers who live with their care receiver do not have a job.
When life changes, the best way to prepare financially is to do your research, ask lots of questions and get to know all of your optionsOptions An investment that gives you the right to buy or sell it at a set price by a set date. The buy right is termed a “call” option, and the sell right is termed a “put” option. You buy options on a stock exchange.+ read full definition.
Check out these links for additional information:
- Learn more about the Ontario Disability Support Program.
- Get tips from Service Canada on raising a family.
- Visit the Ontario government’s site for information on the divorce process.
There are many more life events that can significantly change your finances. Check out these articles to learn about more that may apply to you.