updated RAG

docs/fiscal_knowledge.md

@@ -300,3 +300,1103 @@ A HELOC, or Home Equity Line of Credit, is a secured line of credit using your h
 
 Inflation is the general rise in prices over time, which reduces the purchasing power of money. In Canada, the Bank of Canada targets inflation around 2%. If inflation is running at 3% and your savings account is only earning 1%, your money is losing real value. That's why holding large amounts of cash in a low-interest account long-term isn't ideal. Keeping savings in a high-interest savings account or GIC, and investing a portion in diversified assets like equities, helps protect your wealth against inflation.
 
+
+## Dealing with a rise in interest rates
+
+Pay down your debt as much as possible to deal with a rise in interest rates. If you have less debt, you may be able to pay it off more quickly. This may help you avoid the financial stress caused by higher interest rates and bigger loan payments.
+
+You may deal with a rise by using these tips:
+reduce expenses so you have more money to pay down your debt
+pay down the debt with the highest interest rate first. This may allow you to pay less interest over the term of your loan
+consolidate high interest debts, such as credit cards, into a loan with a lower interest rate
+avoid getting the maximum mortgage or line of credit that a lender offers you
+avoid taking on unnecessary debt with things you want but don’t need
+avoid borrowing more money as it could limit your ability to save for your goals
+find ways to increase your income to help you pay down debt
+make sure you have an emergency fund to deal with unexpected expenses. This may help you cover higher loan payments to avoid penalties
+
+
+# Choosing a debt repayment strategy
+A clear repayment strategy may help you pay your debt more efficiently. It may also reduce the stress and uncertainty of managing multiple debts.
+
+## Choose a payment schedule
+
+Set a reasonable and affordable payment schedule. This may help you maintain your progress without feeling overwhelmed.
+The length of your payment schedule affects the total interest you’ll pay. If interest rates rise, your monthly payments may increase. Make sure you have some flexibility in your budget to account for increases in interest rates.
+Your payment schedule needs to align with your monthly budget.
+
+Consistently paying on time over a longer period may improve your credit score. Missing payments due to an aggressive payment schedule may harm your credit.
+
+With a shorter payment schedule:
+- you pay less interest but have higher monthly payments
+- you might have difficulty keeping up with your payments
+- it may seem impossible to continue to make your payments
+
+With a longer payment schedule, your monthly payments will be lower but you’ll pay more interest. It may make payments more manageable. If your payment schedule is too long, you might lose your motivation because you won't see progress.
+
+## Decide which debts to pay off first
+
+Deciding which debts you’ll pay first depends on your financial goals and motivation. There are 2 main strategies to determine which debts to pay first.
+You may start with:
+- debts with higher interest rates
+- debts with the lowest balance
+- There are benefits for each strategy. With either strategy, you need to continue making the minimum payments on all your debts.
+Before you chose a debt repayment strategy, consider paying off past due accounts first.
+
+## Past due accounts
+
+If you don't pay on time, your account becomes past due. Companies call these past due accounts or accounts in arrears.
+Paying them off quickly may prevent extra charges from accumulating.
+Late payments harm your credit score. Paying off your past due accounts may help you protect or improve your credit. If your accounts remain past due for too long, your creditor may send them to a debt collector. This may lead to more severe consequences, including legal action.
+
+## Debts with higher interest rates
+By paying off your debts with the highest interest first, you’ll pay less interest. This will help you be debt-free sooner.
+To use this strategy, list your debts in order, from the highest interest rate to the lowest. Put money towards the debt with the highest interest rate.
+
+## Debts with the lowest balance
+You may find it easier to start repaying your debt with the lowest balance.
+You may see progress quickly, which may help you stay committed to your debt repayment plan. This can keep you motivated to maintain your goal to become debt-free. This strategy may cost you more over time.
+To use this strategy, list your debts in order, from the lowest balance to the highest. Use any extra money to pay down the debt with the lowest balance.
+
+# Working with your creditors
+Effectively managing debt may involve talking and negotiating with your creditors.
+
+## Financial institutions and other companies
+Contact your creditors to discuss your financial situation. Your creditors are the financial institutions and companies you owe money to.
+
+They may offer:
+- a lower interest rate on your debt
+- to extend your payments over a longer period to reduce your minimum monthly payment. This will cost you more in interest
+- to consolidate your debts into 1 loan
+
+## Family and friends
+If you borrowed money from family or friends, talk to them about the amount you owe.
+Commit to a payment schedule that works for both of you. You may create a written agreement that includes the amount and the payment schedule. Consider writing post-dated cheques or setting up automatic money transfers to follow your payment plan.
+This will show your commitment to repaying them.
+
+## Closing your accounts
+Once you pay a loan, line of credit or credit card, consider closing that account. Only keep what you need and can manage responsibly.
+Consider keeping open the credit account you’ve had the longest. This helps you maintain a long-term credit history, which may improve your credit score.
+
+# How student lines of credit work
+A line of credit is a credit product that lets you borrow money repeatedly up to a pre-set limit. You can borrow money, pay it back and then borrow again, up to your credit limit.
+
+A student line of credit is a product for students. It helps you pay for expenses related to post-secondary education, like tuition or books. You can also use it to help cover everyday expenses, like food and transportation.
+
+With a line of credit, you only have to pay back the money you borrow. You also only have to pay interest on the money you borrow. For example, suppose your line of credit has a $10,000 limit. You borrow $3,000. This means that you’ll pay interest on the $3,000.
+
+With a student loan, as opposed to a line of credit, you receive a set amount of money and have to pay it all back.
+
+# Applying for a student line of credit
+You may need someone, like a parent, to co-sign your line of credit application. This person will also be responsible for the debt if you can’t pay it back.
+
+Your financial institution will set the maximum amount of money you’ll be able to borrow. The amount you can borrow may depend on the program you’re studying and the school offering the program. It may also depend on your living expenses, credit history and ability to repay the money you borrow.
+
+You can apply for a student line of credit at any time. Usually, you apply online, over the phone or in person. Contact your financial institution to find out how to apply for a student line of credit.
+
+You’ll need to provide proof that you’re either a full-time or part-time student at a recognized Canadian post-secondary institution.
+
+# Insurance on a student line of credit
+Your lender may offer you optional credit insurance on your student line of credit. It may help cover your payments in cases of serious illness, accident, death or if you lose your job.
+
+You don’t have to take loan insurance to be approved for a student line of credit. The lender can't insist that you buy insurance.
+
+If you decide to get insurance, make sure that the product meets your needs in terms of protection. If your lender is a federally regulated bank they must offer and sell you products and services that are appropriate for you. The offer must be based on your circumstances and financial needs. They also must tell you if they’ve assessed that a product or service isn’t appropriate for you.
+
+Take the time to describe your financial situation to ensure you get the right product. Don't hesitate to ask questions and make sure you understand the insurance product you have or want.
+
+Federally regulated lenders, such as banks, can’t add optional loan insurance without your permission. You can file a complaint with your bank if it adds the insurance without your permission. You should also ask your lender to remove the optional service and reverse the charges.
+
+
+# Accessing money from your student line of credit
+You should be able to access the available credit in your student line of credit soon after:
+
+- you’ve signed all the necessary documents
+- your application is approved
+
+You can usually access the available credit from your student line of credit:
+
+- at a branch of your financial institution
+- at an ATM
+- through online, mobile or telephone banking
+
+With some lines of credit, you may also access the money by writing a cheque.
+Financial institutions each have their own terms and conditions for the lines of credit they offer. Speak with your financial institution for more information about the student borrowing options they offer.
+Borrow only as much money as you need to cover your needs while studying. Think about whether you’ll be able to make at least the interest payments while you’re studying. Also think about whether you’ll be able to repay your line of credit debt when you graduate.
+
+# Paying back your student line of credit
+You must pay at least the interest on your line of credit, even while you're studying. Once you finish school, most financial institutions allow you to continue to pay only the interest for a period. That grace period is usually 6 to 12 months after you graduate.
+
+After that period, you must start to pay back both the money you borrowed (the principal) and the interest. You'll continue to pay interest until you repay your balance. You can start paying back the principal at any time, even while you're still studying.
+
+Speak with your financial institution to find out their student line of credit repayment terms and conditions.
+
+If you have a Canada Student Loan instead of a student line of credit, the repayment terms are different. For a student loan, you’ll have a 6-month non-repayment period after you graduate. During that period, you won’t have to make payments.
+
+# Comparing student lines of credit with government student loans
+There are pros and cons to government student loans and student lines of credit. With a line of credit, you’ll have to pay back the money that you withdrew from your available credit. You may also get more money from a student line of credit.
+
+When choosing between options to borrow money, it’s also important to compare the amount of interest you’ll pay. Since April 1, 2023, the Government of Canada eliminated the accumulation of interest on all Canada Student Loans. This includes the loans that are currently being repaid. Students still have to pay any interest that may have accrued before April 1, 2023. Depending on your province, interest may also accrue on the provincial portion of your loan.
+
+If you have a Canada Student Loan instead of a student line of credit, you have access to the Repayment Assistance Plan (RAP). This plan helps students who are having trouble paying back their government student loan. This plan is not applicable to the money you borrow through a student line of credit.
+
+# Before borrowing from a student line of credit
+You may be able to pay for your education without having to borrow any money at all. For example, you may use savings or grants, bursaries or scholarships. A part-time job or co-op program can also help you cover the costs of your education.
+
+Find out if you're eligible for scholarships, bursaries and grants from the Government of Canada:
+- Scholarships
+- Grants
+
+Provinces and territories also offer grant and bursary programs for their permanent residents. You may be eligible for their programs even if you don’t have a Canada Student Loan.
+To learn about grant and bursary programs in your province or territory, check with your student financial aid office.
+
+## Know your rights before you borrow
+When you get a loan or line of credit with a federally regulated financial institution like a bank, you have the right to receive key details. These details will usually appear in an information box on your credit agreement. They can also be part of a separate document they provide to you when they approve your application.
+
+# Lines of credit: know your rights
+
+## Know your rights before you borrow
+When you get a loan or line of credit with a federally regulated financial institution like a bank, you have the right to receive key details. These details will usually appear in an information box on your credit agreement. They can also be part of a separate document they provide to you when they approve your application.
+
+## Your express consent for a line of credit
+Federally regulated financial institutions can only provide you with a line of credit if they have your express consent. If you give verbal consent, they must provide you with confirmation of your consent, in writing, without delay.
+Banks must also obtain your express consent before increasing the limit on your line of credit.
+
+## Your right to information about lines of credit
+Federally regulated financial institutions must provide you with information about your line of credit. The information must be disclosed in a manner, and using language, that is clear, simple and not misleading.
+Before you sign a credit agreement, take the time to read and understand the terms and conditions. Ask questions if anything is unclear or if you’re not sure about what you’re signing.
+
+### Information when you get your line of credit
+Federally regulated financial institutions that issue a line of credit must disclose certain information.
+
+They must provide this information in a disclosure statement that is:
+- part of the application
+- part of the credit agreement, or
+- set out in a separate document
+- They must also provide certain information in an information box.
+
+It can be at the beginning of your credit agreement or in a separate document you receive with it. If you’re dealing with a bank, they must present it in a single prominently displayed information box.
+
+This includes information such as:
+- the initial credit limit if they know it at the time of disclosure
+- the annual interest rate, or, if it’s a variable rate, a brief description of the method for calculating it
+- the date when they start charging interest, and information concerning the interest-free grace period, if any
+- the amount of the minimum payment required in each payment period and a brief description of how they calculate it
+- the foreign currency conversion rate, how it’s determined and when it applies
+- any non-interest fees charged on an annual basis
+- any other fees they may charge and the dates they apply
+
+Your credit agreement or disclosure statement must also include:
+- each period for which they’ll provide an account statement
+- the description of any asset (what you own) you might have provided as security for the line of credit
+- information about any related optional product or service that you accept. This includes the charges for each optional service and how you may cancel the service. This applies if they didn’t disclose the information in a separate statement before providing the optional service
+- a telephone number to get information about the account during regular business hours. The number must be:
+
+Your federally regulated financial institution may not know the initial credit limit when they provide the initial disclosure statement. In that case, they must disclose it in:
+- the first account statement you receive, or
+- a separate statement that you receive before or at the same time you receive your first account statement
+
+
+### Exceptions
+You might not get the additional disclosure statement if there haven’t been any advances or payments, and:
+- there’s no unpaid balance at the end of the period, or
+- you’ve defaulted on your payments, and they suspended or cancelled your agreement and demanded payment of the unpaid balance. They will send you a notice about this
+
+You might only get the additional statement every 3 months if:
+- there haven’t been any advances or payments
+- the unpaid balance is less than $10
+- no fee or interest is being charged or accumulated
+
+### Display of information about credit agreements
+Banks must disclose required information about credit agreements by:
+
+* making it available:
+   * at each of their branches in Canada and points of service
+   * on each of their websites through which they offer products or services in Canada
+* providing or sending it to you, upon request
+
+
+### Information when advertising lines of credit
+Federally regulated financial institutions may promote a line of credit by advertising:
+- the annual interest rate
+- the amount of any payment, or
+- any non-interest charge in relation to the loan
+- If they do, they must disclose the annual interest rate and all non-interest charges and present it at least as prominently as the other information.
+Any advertisement in Canada that a bank makes must be accurate, clear and not misleading.
+
+## Your right to receive electronic alerts
+Your bank is required to send you an electronic alert, without delay, in 2 situations:
+
+- when the balance of your chequing or savings account falls below $100 or an amount you’ve set
+- when the credit available on your credit card or personal line of credit falls below $100 or an amount you’ve set
+- Your bank will automatically set the electronic alert to $100. You may ask your bank to set the alert to a different amount. You may also change the amount yourself through your bank’s mobile app or website.
+
+The alert must tell you:
+- that the balance of your account has fallen below the amount described above
+- that the credit available on your credit card or line of credit has fallen below the amount described above
+- what charges or penalties may apply to current or future transactions
+- what steps to take to avoid charges or penalties and the deadline for doing this
+
+Your bank will send the alert to you automatically. You don’t have to sign up, but you may opt out at any time by informing your bank in writing. This could be done by email.
+The alert doesn’t apply to accounts opened for business purposes.
+Your bank will send the alert via push notification, text message or email. It will depend on your contact information with the bank, the preferences you’ve set-up and the systems your bank has in place.
+You won’t receive the alert if you didn’t provide your bank with the necessary contact information. For example, you didn’t provide your mobile phone number or email address.
+For more information on electronic alerts, contact your bank or visit their website.
+Other financial institutions may choose to offer electronic alerts. Contact yours to find out if they offer them.
+
+# Making a budget
+
+## Why make a budget
+A budget is a plan that helps you manage your money. It helps you figure out how much money you get, spend and save. Making a budget can help you balance your income with your savings and expenses. It guides your spending to help you reach your financial goals.
+
+A budget is especially important if you:
+* don't know where your money is going
+* don't save regularly
+* have problems paying off your debts
+* feel overwhelmed by your finances
+* feel like you're not in control of your finances
+* want to make the most of your money
+* are planning for a major purchase or a life event
+
+Making a budget can help you:
+* set spending limits
+* find ways to pay down your debts
+* reduce costs and save more
+* live within your means
+* reduce financial stress
+* have more money for things that are important to you
+* feel in control of your finances
+
+## What to consider before you make a budget
+Take these simple steps before you make your budget.
+
+### Think about your financial goals
+Identify your short-term and long-term goals. Make saving for those goals part of your budget.
+
+Short-term goals:
+* paying off your credit card
+* reducing your weekly expenses
+* starting to build an emergency fund
+
+Long-term goals:
+* paying off all of your debts
+* saving to buy a home or a car
+* saving to have children, to go to school or to retire
+
+To deal with unexpected situations, create an emergency fund. Your emergency fund should provide you with enough money to cover your living expenses for 3 to 6 months. Having an emergency fund will help you reduce financial stress and avoid getting trapped in a debt cycle.
+
+### Know where your money is going
+Tracking your money will help you figure out what comes in and what goes out of your pocket. Every dollar you spend affects your overall budget.
+
+Try this exercise for 1 or 2 months:
+* keep track of everything you buy, from groceries to a daily cup of coffee
+* keep track of bills you pay during this period
+* try dividing your expenses into 2 categories: "needs" and "wants"
+
+Small changes to spending habits can have a major impact on your budget and your ability to save.
+
+### Evaluate your needs and wants
+Knowing the difference between your needs and your wants is key to making a smart budget.
+
+A "need" is something that is necessary, required or essential. For example, a roof over your head, clothing, food, or medication.
+
+A "want" is something that you'd like, but don't necessarily need. For example, meals at a restaurant, a trip, a gym membership, or designer shoes.
+
+## How to make a budget
+
+### Step 1: List your income, savings and expenses
+* take your recent pay stubs, bills, and account statements
+* enter the amount of income, savings and expenses into each category
+* review the amounts to make sure you didn't forget anything
+
+### Step 2: Review your results
+Look at the different alerts for each category:
+* green thumbs up: this amount is within the average range
+* yellow warning sign: this amount is slightly above the average range
+* red hand sign: this amount is above the average range
+
+### Step 3: Review your next steps
+Review personalized suggestions based on your situation. Follow links to useful educational tools and content to improve your budget.
+
+## Tips to help you stick to your budget
+* keep all your receipts and bills
+* limit your spending as much as possible to what's in your budget
+* update your budget with any changes, for example, a pay raise or a bill increase
+* compare your budget to what you actually spend at the end of each month
+
+Ask yourself the following questions when reviewing:
+* are there large differences between your actual spending and your budget?
+* which categories have the largest differences?
+* are differences due to an unusual situation or is this likely to happen each month?
+* can you save enough money to reach your financial goals or pay off your debts?
+
+# Managing your budget as a student
+
+## Costs to include in your budget
+Make sure to include all the costs of student life when making your budget.
+
+### Tuition fees
+Tuition fees are what you pay your university or college to enroll in their program and attend classes.
+
+Tuition fees may vary depending on:
+* your study program
+* the school you attend
+* the province or territory you're studying in
+* your residency status or citizenship
+* the number and type of classes you take
+* whether you're a part-time or full-time student
+
+### Student fees
+You'll need to pay student fees such as student union fees and administration fees. The exact fees will depend on your school.
+
+### Health insurance
+Private health insurance coverage is usually included in student fees. This insurance covers medical and/or dental costs not covered by your provincial or territorial health insurance.
+
+### Books and other course materials
+To reduce the costs of books and other course materials you may:
+* buy used books
+* buy textbooks from online retailers at a lower price than the campus bookstore
+* get electronic versions of course materials
+* check your school library to see if any course material is available to borrow
+* sell your used textbooks
+* use an older edition of the textbook if possible
+
+### Living expenses
+
+#### Living on campus
+Check student residence and meal plan costs on your school's website. Consider living in a shared residence room because shared rooms often cost less than single rooms.
+
+#### Living off campus
+You may choose to live with roommates, family or on your own. Sharing costs while you study could cut your living expenses by thousands of dollars each year.
+
+Remember to consider the cost of food, heat, electricity, internet and tenant's insurance.
+
+#### Transportation
+Consider whether taking public transit is cheaper than driving to school. If you live away from home, most airlines, bus and train companies offer discounts to students.
+
+#### Entertainment costs
+To reduce entertainment costs, focus on what you need instead of what you want. You may be able to save money using student discount cards.
+
+### Consider rising costs
+Your tuition and living costs may rise each year due to inflation. Remember to include these increases when making your new student budget each year.
+
+## Sources of income
+Your income may come from personal savings, working while in school, or your parents. To add to your income, also consider:
+* scholarships
+* grants
+* a government student loan
+* a student line of credit from your financial institution
+
+## Tax deductions and tax credits for students
+A tax deduction reduces your taxable income for the year. As a student you may be eligible for deductions for moving expenses and childcare expenses.
+
+A non-refundable tax credit reduces the amount of tax you owe. You may be eligible for credits for:
+* tuition fees
+* books
+* public transit
+* interest paid on your student loan
+
+Make sure to file your income tax return on time each year to avoid penalties.
+
+## Paying back student debt
+
+### Canada Student Loans
+If you have a Canada Student Loan, you'll have a 6-month non-repayment period after you:
+* finish your final school term
+* reduce from full-time to part-time studies
+* leave school or take time off school
+
+### Provincial student loans
+The repayment rules of provincial student loans vary depending on the province or territory where you applied for your loan.
+
+### Student lines of credit
+If you have a student line of credit, you'll have to pay the interest on the money you borrow while you're still in school.
+
+### Student credit cards
+The annual interest rate for student credit cards in Canada is around 21%. Credit cards are a very expensive way to borrow if you don't repay the balance in full each month.
+
+### Include your payments in your budget
+Build your student debt payments into your budget and try making more than the minimum payments. If you have more than one loan, card or line of credit, make sure you know when each payment is due.
+
+## How student debt affects your credit score
+Student loans and lines of credit form part of your credit history. If you miss or are late with your payments, it can affect your credit score.
+
+A poor credit score can affect your ability to:
+* get a job
+* rent an apartment
+* get more credit
+
+
+# How do I prepare a budget?
+
+## Why managing your money is important
+Learning how to manage your money can determine what you can do and where you can go in life. The first step on the path to financial success means understanding that you are in control of your financial future.
+
+By developing good money management skills, you can:
+* save money
+* plan for your future
+* pay off your debt
+* achieve financial independence
+* become a savvy consumer
+
+## Steps to create a budget
+A budget will help you understand how much money you have coming in and how much money is going out. If the amount going out is more than the amount coming in there is a problem.
+
+### Step 1: Add up your monthly income
+Money coming in could be:
+* income from employment
+* an allowance
+* interest
+
+### Step 2: Add up all your monthly expenses
+
+#### Fixed expenses
+Fixed expenses come up every month and are roughly the same amount. These include:
+* housing
+* insurance
+* utilities
+* telecom services like cable or internet
+
+#### Variable expenses
+Variable expenses can change each month. These include:
+* groceries
+* eating out
+* transportation
+* clothing
+* entertainment
+
+#### Irregular or periodic expenses
+These don't occur every month. These include:
+* tuition
+* travel
+* car repairs
+* gifts
+* unexpected costs
+
+You can account for irregular expenses by:
+* budgeting a set amount every month for unexpected costs
+* spreading a known expense like tuition over several months so you have the entire amount saved when you need it
+
+### Step 3: Subtract expenses from income
+* if you have a surplus, consider starting an emergency fund or making an extra payment on a loan
+* if you always have something left over, add a savings category to your budget
+* if your expenses are more than your income, you have a deficit and need to cut back on non-essential items
+
+## Tracking your expenses
+The best way to keep track of expenses is to record them as soon as possible:
+* record all purchases, bill payments and savings
+* keep receipts and use them to check your bills at the end of the month
+* keep track of cash payments
+
+Once you start tracking your spending it's easy to know where your money is going. Then you can make adjustments to your spending habits as needed.
+
+## Wants versus needs
+An excellent way of reducing expenses is to understand the difference between a want and a need.
+* a "want" is something nice to have
+* a "need" is something essential
+
+Examples of needs:
+* food
+* shelter
+* clothing
+* electricity
+* transportation
+
+Examples of wants:
+* electronic gadgets
+* eating out
+* video games
+* travel
+* sports events and concerts
+
+By identifying your wants and making an effort to reduce spending on these items you will find a more balanced budget.
+
+## Ways to reduce your expenses
+Whatever your age or income, there are always changes you can make to your spending habits. Small savings add up quickly.
+
+* take advantage of seasonal sales
+* shop around and negotiate
+* use free services like your local library
+* scale back on nice-to-haves
+* replace a product when necessary, not because a newer version came out
+
+
+
+# Dealing with Debt
+If you borrow money, borrow only what you can afford to pay back within a reasonable period of time. Managing your debt will help you feel more in control of your finances.
+
+## What does your debt really cost you
+Part of managing your debt is understanding how you got there. If you could not pay for a purchase in cash and needed to borrow money, the true cost was probably higher than the sticker price because of the interest you paid.
+
+For example, a $2,000 TV bought on credit at 18% interest:
+* at $40 per month: true cost is $3,724 and takes 7 years and 10 months to pay off
+* at $100 per month: true cost is $2,395 and takes 2 years to pay off
+* paid in full immediately: true cost is $2,000
+
+Whatever type of debt you have, remember to pay as much as you can and as often as you can. Additional and frequent payments mean you'll pay off the debt sooner and pay less interest. Regular and on-time payments will also help you maintain a good credit history and credit score.
+
+## Government student loans
+Government student loans are interest-free while you are enrolled in post-secondary education. They are payable six months after you leave your studies, although interest is accumulated during that time. They may also entitle you to student loan tax credits.
+
+If you are having trouble paying back your student loan, you may be eligible for the Repayment Assistance Plan. The plan allows you to pay back what you can reasonably afford depending on your current situation.
+
+## Recognizing debt danger signs
+Be on the lookout for signs that you are having trouble with debt:
+* using your credit card as a necessity rather than a convenience
+* taking out cash advances on credit cards for daily expenses
+* continually missing payments
+* being near or exceeding the limit on your credit cards
+* borrowing from one credit card to pay off another
+
+If any of these apply to you, it may be time to get help managing your debt.
+
+## How to take control of your debt
+There are many ways to take control of your debt:
+* use your savings to pay off debt, especially if you're paying a higher interest rate on your debt than you are earning on your savings
+* pay down your highest interest rate debts first to pay less in total interest costs and become debt-free sooner
+* switch to less expensive credit cards with lower interest rates or no annual fees
+* call creditors to negotiate lower interest rates so more of your payment goes toward the principal
+* set up automatic bill payments to stay on schedule and avoid late payments
+* leave your credit cards at home and bring cash to avoid impulsive purchases
+* stay away from "buy now, pay later" offers as administrative fees and high interest rates will only add to your debt burden
+
+## Getting help with debt
+You may decide to work with a third party to help you get out of debt. Options include:
+
+### Debt consolidation loan
+Combines all your debts into a single loan with one monthly payment. If you get a lower interest rate than what you are currently paying, it will reduce your overall interest costs. Note that your debt is not gone, it is just combined into one larger debt.
+
+### Credit counselling
+A non-profit credit counselling agency will work with you to find the best way to pay off your debt, often through a debt management program paid over several years.
+
+### Consumer proposal
+You work with a trustee in bankruptcy to prepare a proposal that lets you reduce your debt and pay off the balance gradually. Payments to creditors are made through the trustee.
+
+### Bankruptcy
+A trustee in bankruptcy will consolidate your assets to try to pay back your creditors. Not all debts are discharged through bankruptcy. For instance, student loans are not discharged until after seven years. All of these options will affect your credit history and credit score, some for several years.
+
+## Rebuilding after debt
+Once you have taken action to conquer your debt, work at rebuilding your credit rating. It will take time, but it is worth it. Small efforts now will bring big payoffs in the future.
+
+# How Do I Live Within My Means
+
+## Why small changes matter
+It is worth making an effort to reduce your costs. Small changes in your spending habits will result in big savings over time. Living beyond your means can be a costly and sometimes lifelong mistake. By identifying ways to reduce your spending, you can quickly and easily get back on track.
+
+## Track your spending
+Once you know what you spend and where you spend your money, you can begin to take action to control your expenses.
+
+Try this exercise for one to two months:
+* keep track of everything you buy or spend money on, from your daily cup of coffee to groceries, lottery tickets, and gifts
+* use an expense recording system that works for you such as a notebook, mobile app, spreadsheet, or software
+* ask your financial institution if it has ways to help you categorize your expenses
+
+At the end of a couple of months, you'll get a clear picture of how you're spending your money and where to cut back. Most people who do this exercise are surprised at how much they spend on things like coffee, eating out, and impulsive purchases.
+
+## Look for savings
+Now that you've recorded and better understand your spending habits, you can look for areas where you may be spending too much. Small savings add up quickly.
+
+### 1. Check your bills and statements
+* look for any errors or overcharges
+* read your bills carefully each month
+* call your service provider to ask about items or charges you don't recognize
+* pay on time every month to avoid costly interest charges
+
+### 2. Negotiate better plans
+* call each of your service providers regularly to ask about your account
+* find out how much you're spending on your plans and how you can lower your charges
+* shop around to find out what other vendors are offering
+* call your provider to see if it will match the competition
+* don't be afraid to ask for a discount or a better deal
+
+### 3. Lower your banking fees
+* know your banking options and choose the right banking package
+* look for no-cost and low-cost account options
+* use the Financial Consumer Agency of Canada's Cost of Banking tools to find the right banking package for you
+
+### 4. Consider bundling your services
+* find out if you can get several services from one provider
+* ask if there are discounts for getting all your services with them
+* negotiate with the provider
+* this usually works well with telecom providers who offer cable, internet, and phone
+
+### 5. Reduce impulsive spending
+* always use a list when you shop and stick to it
+* before making any unplanned purchases, ask yourself if you really need the item
+* bring only enough cash to buy what you planned to buy
+* sleep on it and see if you still want the item the next day
+
+### 6. Plan ahead
+* plan your meals for the week to create your grocery list and encourage you to bring your lunch instead of buying it
+* carry a refillable water bottle to avoid buying bottled water or other beverages
+* plan your day the night before to prepare coffee at home, pack your lunch, and take public transit
+
+## How to cut back on expenses
+To find $100 in monthly savings, create a table with the following columns:
+* category where you can cut back such as food, transportation, or cell phone plan
+* what you would do differently to save money
+* daily savings amount
+* weekly savings amount
+* monthly savings amount
+
+For example, packing a lunch three times a week instead of eating out saves $5 a day, $15 a week, and $60 a month. That adds up to $720 a year from one small change.
+
+Fill in the table for all your spending categories and add up the monthly savings column to reach your goal.
+
+## Keys to living within your means
+* know what you're spending
+* have a plan to cut back
+* have some discipline
+
+You will face challenges from time to time, but keep at it and you will see the results in no time.
+
+# Saving and Investing
+Saving puts you in control. It allows you to have choices in life. And investing gives opportunities to make your money grow.
+
+## Why save
+The reasons to save are many:
+* for a sense of greater security and control
+* to be prepared for unexpected events
+* to reduce stress
+* to provide for a major expense
+
+Whatever your reason, use it as a source of motivation.
+
+## Setting savings goals
+Research shows that on average Canadians save less than 5% of their income. Ideally you should try to save at least 10% of your income.
+
+To motivate yourself, set savings goals that are specific:
+* identify a specific amount you want to save
+* identify the period of time it will take to get there
+* identify the steps to take to reach your goals
+
+For example, a vague goal is "get rid of my debt and save money." A better goal is "reduce debt by $1,000 and establish an emergency fund of $2,000 over the next eight months by saving $200 every paycheque."
+
+Tips to stay motivated:
+* write down your goal to make it more real
+* track your progress regularly
+* if you are saving for something specific like a trip, keep a picture of your destination on your fridge or in your wallet
+
+## Four steps to saving
+Savings don't just happen. You have to make an effort and a plan to save.
+
+### Step 1: Build an emergency fund
+* save the equivalent of at least three to six months of take-home pay
+* keep the money in a savings account or an investment that can be easily cashed
+* do not touch it unless there is an emergency
+
+### Step 2: Pay yourself first
+* consider your savings as any other bill you have to pay regularly
+* put aside a set amount such as 10% of your take-home pay every paycheque
+
+### Step 3: Set up automatic transfers
+* set up an automatic transfer of money to a savings account
+* this makes saving easier and more consistent
+
+### Step 4: Make your money grow
+* put your money in savings vehicles that offer the best possible interest rates at a risk level you are comfortable with
+* take advantage of compound interest, which is interest paid on both the initial deposit and any interest earned in previous periods
+* compound interest helps your money grow faster over time
+
+## Ways to grow your savings
+Every investment comes with a risk. You may not make any money or you may even lose money. Generally more risky investments have a higher potential return and less risky investments have a lower return.
+
+Before choosing an investment you need to:
+* decide how much risk you can handle
+* set your investment objectives
+* determine when you will need access to the money
+
+There are four major types of investments:
+* investments that pay interest such as savings accounts, Canada savings bonds, and guaranteed investment certificates
+* shares in a company such as stocks and mutual funds
+* property including real estate, precious metals, and art
+* direct investment in a business
+
+### Savings accounts
+You can set up a savings account with a financial institution. Interest rates vary depending on the type of account and the institution. Shop around for the account with the best rates and features for you.
+
+### Guaranteed investment certificates (GICs)
+* typically guarantee the principal and usually guarantee the return on your investment
+* rates and terms vary by GIC type
+* a longer term GIC generally pays a higher interest rate
+* longer term GICs may limit your access to your money or charge penalties if you withdraw before the term ends
+
+### Mutual funds
+* pool money from many investors
+* a professional fund manager invests the money in various investment products
+* you must buy and sell mutual funds through a financial professional or an online brokerage account
+* you can generally buy and sell mutual funds at any time
+* understand the mix of investments in the fund as well as the fees charged as both will affect your rate of return
+
+### Registered savings plans
+These plans allow you to save for a specific purpose while offering tax benefits.
+
+#### Registered Retirement Savings Plan (RRSP)
+* helps you save for retirement
+* contributions are tax deductible meaning the contribution value can be deducted from your taxable income
+* savings can grow tax-free until you withdraw the money
+
+#### Registered Disability Savings Plan (RDSP)
+* helps families save for long-term care of relatives with disabilities
+* contributions are not tax deductible but the money in the plan grows tax-free
+
+#### Registered Education Savings Plan (RESP)
+* helps you save for a child's post-secondary education using after-tax dollars
+* contributions are not tax deductible but the money in the plan grows tax-free
+
+#### Tax-Free Savings Account (TFSA)
+* contributions are not tax deductible
+* any interest you earn on money in the account is not taxable
+* you can hold cash, bonds, GICs, stocks, and mutual funds in your TFSA
+
+## The three knows
+Regardless of where you decide to invest your money, there are three main things you need to know.
+
+### Know yourself
+* understand your risk tolerance
+* understand your investment goals
+* understand your timeline
+
+### Know your investment
+* is it right for you?
+* will it help you meet your goals?
+* what fees apply?
+
+### Know your financial advisor
+* make sure the advisor understands your risk tolerance and savings goals
+* verify that he or she is qualified to give you investment advice
+* ask about the advisor's background and do some research of your own
+
+## Key takeaways
+* start saving as soon as possible and save regularly
+* set specific savings goals to keep yourself motivated
+* follow the four steps to saving: build an emergency fund, pay yourself first, set up automatic transfers, and make your money grow
+* choose different types of investments that fit within your risk level
+* always know yourself, know your investment, and know your financial advisor
+
+# How to Protect Yourself from Financial Fraud
+Financial fraud can happen to anyone. Be alert and take steps to protect your personal and financial information. Every year Canadians lose millions of dollars to fraudsters. Fraudsters are very creative and come up with new ways to trick you. Technology also makes it easier for fraudsters to contact more people.
+
+Fraudsters are not always strangers. When someone you know asks for personal information or asks you to invest in something that sounds too good to be true, be cautious and don't say yes right away.
+
+## Types of fraud
+
+### Identity fraud
+Identity fraud is when a criminal steals your personal or financial information and tries to use it to:
+* access your bank accounts
+* open new credit accounts in your name
+
+You may unknowingly provide your personal information to a fraudster over the phone, by email, or on a fake website made to look like a real one.
+
+### Phishing
+Phishing is when fraudsters send you a legitimate-looking email asking for your personal information or containing a link to a fake website where you are asked to enter your account information.
+
+Phishing emails usually:
+* begin with a generic greeting and don't use your real name
+* appear to be from a financial institution or large company you may deal with
+* refer to a problem with your account
+* include a link to what appears to be a legitimate website
+* have a sense of urgency
+
+Keep in mind that financial institutions and large companies will never notify you of a problem with your account through an unsolicited email. To check the validity of a link, point to the address with your cursor without clicking to show the URL. If it does not match the address shown in the email it is probably a scam. When in doubt delete the email and contact your financial institution directly.
+
+### Vishing
+Vishing is when you receive a telephone call or voicemail asking you to provide or confirm personal information.
+
+### Warning signs of fraud
+No matter what type of scam or how you are contacted, look for these warning signs:
+* a stranger or someone you know is asking for personal or financial information to help with a problem
+* there is a sense of urgency to get your information or money before you realize it's a scam
+* they want you to move large sums of money often through a non-traditional way such as a wire transfer
+* they ask you to keep it secret and not tell anyone
+
+### Lottery scams
+* claim that you've won a prize but you need to send money to receive it
+* require you to send money before getting your reward
+
+### Money transfer scams
+* request that you move money for someone else
+* promise big rewards in return
+
+### Inheritance scams
+* claim that a long-lost relative has died and you will inherit their fortune
+* ask you to help with banking fees or transfer of funds before receiving anything
+
+### Fraudulent job offers
+* bogus job ads offer high pay for little or no work, ask you to do the company's banking, promise wages in cash, and do not provide a company name or address
+* identity theft job offers ask for personal information needed by human resources in an attempt to steal your identity
+* employment fee scams promise a job but only if you pay a fee for things like supplies or administration
+
+Always remember: if it sounds too good to be true, it probably is.
+
+## How to protect your identity and finances
+Follow these rules to avoid fraud:
+* never open unsolicited email
+* never send money before getting any service
+* never share your personal information without confirming the source of the request is legitimate
+* always protect your passwords and PINs and change them on a regular basis
+* only use secure websites when transmitting personal information online — look for addresses starting with "https" or a padlock image on the page
+* never share personal information when using a public internet connection such as at an internet café or a library
+* keep your computer anti-virus software up to date
+
+## What to do if you are a victim of fraud
+If you are taken in by a fraud:
+* notify your financial institutions as soon as possible
+* notify any other companies where your accounts may have been tampered with
+* inform Canada's two credit reporting agencies Equifax and TransUnion so they may put a note on your file
+* report the incident to the police and the Canadian Anti-Fraud Centre
+* keep a written log of all activities, transactions, and interactions including when you first noticed the fraud, what actions you took, and who you communicated with
+
+Don't be embarrassed to admit you fell for a scam. Sharing your experience could save others from the same fate.
+
+## Key takeaways
+* there are several different types of fraud and new ones are being created every day
+* fraudsters try to get you when you are most vulnerable such as when you are looking for a job or dealing with a financial institution
+* educate yourself, be alert, and always verify before sharing any personal or financial information
+
+
+# Understanding Credit
+Using credit when needed can be a helpful tool if you don't let it get out of control. It's important to pay your bills in full and on time to build a good credit history.
+
+## Types of credit
+There are several types of credit products available to most Canadians:
+* credit cards
+* student loans
+* car loans
+* personal loans
+* lines of credit
+* mortgages
+
+When you use credit products, credit reporting agencies track how you use them and create a credit report. Credit reporting agencies are private companies that sell credit reports to their members which include banks, credit card companies, and other financial institutions.
+
+## Credit reports and credit scores
+
+### Credit report
+A credit report is a summary of your credit history. Your credit report is created when you borrow money or apply for credit for the first time.
+
+A credit report includes:
+* personal information
+* dates of account openings and loan applications
+* credit balance
+* payment history
+* how much money you owe
+* any debts sent to collection agencies
+
+When you apply for credit, the lender reviews your credit report before approving your application. The lender wants to make sure you have a record of being a good borrower who makes regular payments and pays debts back in full.
+
+Late payments and other information such as personal bankruptcy will stay on your credit report for several years. The length of time varies by credit reporting agency and sometimes by province.
+
+### Credit score
+A credit score is a three-digit number based on information in your credit report along with other factors. In Canada credit scores range from 300 to 900 points with 900 being the best score.
+
+The main factors used to calculate your credit score include:
+* payment history
+* use of available credit
+* length of credit history
+* number of inquiries for your credit report
+* having a mix of credit products
+
+You gain points for actions that show lenders you can use credit responsibly. You lose points for things that show you have difficulty managing credit.
+
+### Credit reporting agencies
+In Canada there are two major credit reporting agencies:
+* TransUnion
+* Equifax
+
+Both companies provide you with a free copy of your credit report whenever you ask for one. This report does not include your credit score which is a paid service.
+
+To get your free credit report you may order it by:
+* mail
+* fax
+* telephone
+* in person
+
+It is important to review your credit report regularly to check for errors or fraud. A simple mistake on your credit report can cause problems when you apply for credit. Review your credit history annually and work out ways to improve your credit score.
+
+A poor credit history could:
+* make it harder to get a credit card or a loan
+* cause you to pay more to borrow money
+* affect your ability to rent housing or get hired for a job
+
+## Key facts about credit cards
+
+### Grace periods
+Each financial institution sets its own grace period. Federally regulated financial institutions require a grace period of at least 21 days. However a lender could choose to have a longer grace period.
+
+### Late payments
+Regardless of how soon after the due date you pay, a late payment could be recorded on your credit file and stay on your record for several years.
+
+### Cash advances
+Interest starts adding up on cash advances right away unlike a credit card purchase where you are charged interest only after the grace period has passed unless you are carrying a balance from month to month.
+
+## How to avoid problems with credit cards
+* pay the balance in full every month to minimize interest charges
+* if you cannot pay the balance in full do not make just the minimum payment — pay as much as you can
+* pay your balance a few days before the due date to ensure your payment is credited on time
+* if you typically carry a balance look for a credit card with a low interest rate
+* consider transferring your credit card balance to a line of credit with a lower interest rate
+* leave your credit cards at home until your debt is paid off to avoid temptation
+
+## The true cost of minimum payments
+Using a $1,000 credit card balance at 18% annual interest as an example:
+* paying only the minimum monthly payment of $30 takes 10 years to pay off and costs almost $800 in interest
+* paying an extra $5 per month for a total of $35 pays off the balance 3 years and 10 months sooner and saves $286 in interest
+* paying a fixed $100 per month pays off the debt in less than a year and costs less than $100 in interest
+
+Always pay as much as you can above the minimum payment to reduce the total interest you pay and become debt-free sooner.
+
+## Key takeaways
+* understand the different types of credit products available to you
+* review your credit report annually and check for errors or fraud
+* pay your credit card balance in full and on time every month
+* know your rights and responsibilities before accepting any form of credit
+* use credit responsibly to build and maintain a good credit history
+
+
+# Do You Have a Financial Plan
+
+## What is a financial plan
+A financial plan is a roadmap to help you manage your finances over the long term so that you can reach your life goals. It is never too early to start planning for your future.
+
+When working on your financial plan, you should ask yourself:
+* where am I today?
+* where do I want to be?
+* how do I get there?
+
+A full financial plan includes:
+* the resources you have available
+* your debts
+* your earning potential
+* insurance
+* legal commitments
+* income taxes
+* pensions
+* other factors
+
+## Difference between a financial plan and a budget
+A budget compares your current income with your expenses and helps you manage your spending. A financial plan goes beyond a budget by:
+* setting goals for your life and ways to work toward them
+* thinking about future earnings
+* identifying steps needed to reach your financial goals
+
+Whether your goal is to get out of debt, buy a condo, take a year off work, or save for retirement, your financial plan should always answer where you are, where you want to be, and how to get there.
+
+## How a financial plan can help you
+A financial plan can help you:
+* balance today's needs with your future goals
+* make the best use of your financial resources
+* manage your taxes and insurance
+* stay motivated and save for your needs
+* write a will
+* plan for short-term and long-term goals
+
+A financial plan is a living document meaning it should be kept up to date. Once you create your plan review it frequently as your life or financial situation may change and have an impact on your goals.
+
+## Information needed to prepare a financial plan
+Preparing a financial plan is a matter of answering a series of questions:
+* what do I want to do?
+* what am I starting out with?
+* will I have enough money to get where I want to go?
+
+Each question requires you to enter personal and financial information. Once completed your plan will help you:
+* calculate your net worth
+* identify your monthly income and expenses
+* determine what is needed to reach your goals
+
+If you don't have all the information you need when you create your financial plan, enter your best guess and update your plan when you have more accurate information. For more complex financial plans use the services of a certified financial planner.
+
+## Calculating your net worth
+Your net worth is defined as your assets — what you own — minus your liabilities — what you owe. Calculating your net worth is an important step in your financial plan and should be updated on a regular basis.
+
+### Step 1: List all your assets
+List all your assets and their monetary value including:
+* savings
+* investments
+* real estate
+* motor vehicles
+* any other possessions that have a monetary value such as art and collectibles
+
+Add up the total value of your assets at current market prices.
+
+### Step 2: List all your debts
+List all your debts and their values including:
+* credit card balances that you cannot repay within a month
+* loans such as car loans and student loans
+* balances on a line of credit
+* any mortgage balances
+* any other debt such as income taxes you haven't paid or money owed to family
+
+Add up the total value of your debts.
+
+### Step 3: Calculate your net worth
+Subtract your total debts from your total assets.
+* a positive number means your assets are greater than your debts
+* a negative number means your debts are greater than your assets and you should try to repay them as fast as you can
+
+## Key takeaways
+* a financial plan is a roadmap to help you reach your life goals
+* it goes beyond a budget by looking at the big picture of your financial future
+* review and update your financial plan regularly as your life situation changes
+* calculating your net worth helps you understand where you are starting from
+* stay focused and you will feel rewarded every time you reach one of your life goals
+
+# Planning and saving for retirement
+
+## Determining how much you need for retirement
+The amount you need to save depends on how you want to spend your retirement.
+
+To help you plan, consider:
+* your age when you retire
+* your hobbies
+* your travel plans
+* if you'll work after you retire
+* if you'll have family members to support financially
+* whether you'll have debt to pay such as a mortgage or a loan
+* where you want to live during your retirement
+
+If you plan on retiring in another country, other rules and regulations may apply. Taxes, public pensions, and medical care may work differently outside of Canada.
+
+### Compare your current spending with expected retirement spending
+Think about your lifestyle and look at how much you spend now. Then determine how those expenses may change when you retire. For example:
+* you may not have work-related expenses
+* you may decide to spend more on hobbies or travel
+* you may decide to live in a smaller home or a condo
+
+### Decide when you'll retire
+When you want to retire has a big impact on how much you need to save. You'll need to make sure you have enough money to support yourself for the entire length of your retirement. Once you know when you'll retire you'll have a better idea of how much and how long you have to save.
+
+## When to start saving for retirement
+It's never too early to start saving for retirement. Saving early means:
+* you may have to save less each month
+* your money will have more time to earn a larger amount of compound interest
+
+For example, if you want to save $100,000 for retirement with a 5% annual interest rate:
+* with 20 years to save you'll need to save $243 per month
+* with only 10 years to save you'll need to save $643 per month
+
+Starting early means you earn significantly more in compound interest over time, reducing how much you need to contribute each month.
+
+## How inflation may affect your retirement
+Inflation is the rising cost of consumer goods and services. In Canada inflation is measured by the Consumer Price Index which measures changes in the price of over 600 consumer goods and services over time.
+
+Inflation affects your retirement in two ways:
+* it will increase the cost of goods and services you buy
+* it will reduce the buying power of your savings over time
+
+For example a $100 purchase made in 2013 cost about $129 in 2023. If you plan to retire in 20 years and want to have what $50,000 buys today, assuming a 2.5% annual inflation rate, you'll need $81,900 in 20 years.
+
+### Inflation and pension plans
+* the Old Age Security (OAS) pension and the Canada Pension Plan (CPP) are protected against inflation, meaning as the cost of living goes up the value of your benefit goes up as well
+* not all employer pensions are protected against inflation — contact your pension administrator or employer to learn more about your pension
+
+## How to start saving for retirement
+Start saving a portion of every paycheque if you can afford it. The earlier you start saving the longer your money can earn interest and grow.
+
+Tips to start saving for retirement:
+* set up automatic deposits to transfer a set amount of your pay automatically into a savings account
+* consider increasing the amount of the automatic transfer as your pay increases
+* adding a small amount on a regular basis can make a big difference in the long term
+* talk to your financial institution about registered plans that may help you save for retirement
+
+### Balancing your current financial priorities
+Saving for retirement can be difficult when you have other demands on your money such as a mortgage, rent, car payments, or student loans. Make a budget to help you figure out how much money you can afford to save for retirement.