Budgeting
5 mins
5 Eh-mazing Tips on How to Save Money in Canada
Author
Krista Fabbro
Published
Feb 6, 2022
Making ends meet can be tough. It's easy to feel overwhelmed (even lost) when managing your hard-earned dollars.
The good news is that there are a lot of helpful tips on how to save money in Canada. And don’t worry—you don’t have to be an expert penny-pincher for them to work.
Here are five tips to help you start saving money in Canada right now.
Tip #1: Identify Needs & Wants
One of the keys to saving money is figuring out what you really need and what you’d be open to living without for a time.
What Are Needs?
Think of your needs as the essentials—the things you absolutely must have to get by. They’re the non-negotiable expenses that keep a roof over your head and food on the table, including:
Rent or mortgage
Groceries
Utilities
Basic clothing
What Are Wants?
Wants are the things that enhance your life but aren't necessary for survival like:
Eating out at restaurants
Premium cable packages
Extra pairs of brand name shoes
Wants are always nice to have. But if you're trying to save money, especially quickly, this is where you might be able to cut back.
Where Do I Start?
An easy way to start organizing your needs and wants is to:
Make a list: Write down all your monthly expenses.
Categorize: Separate them into "needs" and "wants".
Evaluate: Look at the "wants" and see if there are items you can reduce or get rid of for now.
You don’t have to remove all enjoyment from your life to be a successful saver. Instead, think of it as finding a balance between the essentials and the extras.
Tip #2: Take Advantage of Government & Community Programs
In Canada, there are a lot of government and community organizations that offer assistance programs to individuals and families with lower incomes. These types of programs can help reduce your costs on essential items like food, shelter, and childcare, which could free up some money in your budget for other needs or saving goals.
Some available programs include:
GST/HST Credit: A tax-free quarterly payment that helps individuals and families offset all or part of the GST or HST they pay.
Canada Child Benefit: A tax-free monthly payment for families to help with the cost of raising children under 18.
Food banks: Many community organizations offer food at little or no cost.
Provincial assistance programs: Some provinces offer additional support like rent subsidies, disability benefits, or low-cost healthcare options.
Where Do I Start?
You can tap into these resources by:
Researching: Use Canada's Benefits Finder tool to find programs that make sense for you.
Contacting your local community centre: They often have information on local food banks, shelters, and other support options.
Keeping records: Keep track of documents and deadlines to ensure you receive the benefits you're entitled to.
Tip #3: Shop Smart
When money is tight, finding ways to save on everyday purchases can make a real difference, and there are plenty of ways to save while shopping in Canada.
(Plus, who doesn’t love a good deal?)
Where Do I Start?
The next time you’re shopping for essentials, try:
Making a list: Know what you need before going to the store to avoid impulse buying.
Buying generic brands: These brands are often just as good as name brands but come at a fraction of the price.
Using coupons: Keep an eye out for coupons in flyers, newspapers, and online.
Shopping during sales: Many stores have regular sales cycles. Waiting for these can result in some pretty decent discounts.
Buying in bulk: Sometimes, buying in bulk can save you money in the long run, especially for non-perishable items.
Price matching: Some Canadian retailers will match a competitor's price, so it pays to ask.
Joining rewards programs: Many stores offer loyalty programs that can lead to future savings.
Shopping smart doesn't make you cheap. It just means you're resourceful and mindful about your spending.
Tip #4: Reduce Monthly Bills
Monthly bills can feel like a never-ending burden, especially when you’re on a tight budget. But, with a few small adjustments, you might be able to trim those bills down.
Changes like these can lead to ongoing savings:
Cancelling unnecessary subscriptions: Review your monthly subscriptions like magazines, streaming services, or gym memberships. If you're not using them, consider cancelling or downgrading.
Using public transportation: If possible, taking public transportation can save on fuel, vehicle maintenance, and parking.
Cooking at home: Eating out or ordering in adds up fast. Cooking at home is generally more economical and can be just as tasty!
Where Do I Start?
Begin to track these saving opportunities by:
Creating a checklist: Write down your regular monthly bills.
Identifying potential savings: Make note of where you think you can make changes using the tips above.
Implementing the changes: Make the necessary adjustments and track the differences in your bills.
Even if it doesn’t seem like much at first, remember that every penny counts!
Tip #5: Start Small
Starting a savings habit doesn't require a mountain of cash. The truth is that even tucking away a little bit here and there can make a big difference over time without a lot of effort.
Where Do I Start?
Here's how to start small with saving:
Determine a realistic amount: Even if it's just one or two dollars a week, decide what you can reasonably set aside.
Choose a method: Whether it's a jar of change or an automatic bank transfer to your savings account, find what works best for you.
Make it a habit: Set a reminder or make it a part of your daily or weekly routine.
Monitor your progress: Keep track of your savings and celebrate milestones, no matter how small.
Creating a savings routine is about building a habit that becomes second nature, and starting small keeps it from getting overwhelming.
Go Forth & Save!
The thought of building a savings habit may feel like a lot, especially if you’re just starting to learn about personal finance. But with these practical, everyday strategies on how to save money in Canada, you can make small, consistent steps towards a brighter financial future—no matter your income level or financial know-how.
See! Saving isn’t so scary after all, eh?
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