Most people thought Hillary Clinton would be the next president of the U.S., but that’s not what happened. The pollsters yet again got it wrong. In one of the biggest upsets in political history, Donald J. Trump defeated Hillary Clinton to become the next President of the United States. It wasn’t close either – Trump won in impressive fashion, winning in a landslide. What does a Trump presidency mean for Canada? Let’s take a closer look.

The Immediate Aftermath of a Trump Presidency

It was predicted stock markets would be down worldwide if Trump was elected President. Although markets were down initially, that’s not what happened. Stock markets fell at first once Trump won the election, but ended up ultimately closing higher on Wednesday. The Dow hit a record high later in the week, while the TSX saw small gains.

It probably has a lot to do with Trump’s victory speech and his meeting later in the week with outgoing President Obama at the White House. Instead of his usual combative tone, Trump seemed presidential. Investors seem to be optimistic Trump’s promises to boost infrastructure spending, reduce taxes and cut government red tape will help the economy.

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How Will Canada Be Impacted by President Trump?

A Trump victory could actually be good news – at least for Canada’s struggling oil and gas industry. Former Canadian Prime Minister Stephen Harper tried his best to get the Keystone XL pipeline approved, but ultimately President Barack Obama nixed it. Keystone XL may be one of the first items on the agenda for Trump when he officially takes office. During his campaign, he promised to approve Keystone XL if elected President. If Trump follows through, this could lead to plenty of opportunities for Canada’s oil and gas industry stateside.

Trump campaigned on rejecting globalism by putting America first. Although much of that talk was aimed at Mexico, this still introduces a lot of uncertainty since the U.S. is Canada’s largest trading partner. Specifically worrisome is Trump’s promise to tear up NAFTA if it’s not renegotiated. With a Republican president and the Republicans controlling both the Senate and House, Trump may actually be able to follow through on his promise. All he needs to do is give six months’ notice and he can withdraw the U.S. from NAFTA. This could hurt both the American and Canadian economies.

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With a lot of Americans promising to move to Canada if Trump became president, Canada’s real estate market could get a nice boost. Although Vancouver is less attractive with its 15 percent foreign buyers tax, Toronto remains a world-class city many would be proud to call home. Despite the high real estate prices in the Big Smoke, our real estate prices remain affordable for Americans due to our low loonie. The U.S. greenback has about a 30 percent advantage over the Loonie. That advantage is expected to widen if the U.S. Federal Reserve hikes interest rates in December as many are expecting.

November is many different things to many different people. It’s “Movember,” a month to raise the awareness of cancer among men. But that’s not all. It’s also financial literacy month, a month dedicated to raise the awareness of financial literacy. Financial literacy is such an important topic, yet it’s still not mandatory in schools in Ontario. That needs to change. Let’s take a look at why financial literacy matters, as well as the benefits of being financially literate.

Financial Literacy in Ontario

We learn about science, math and the arts, but when it comes to financial literacy, it’s often up to parents to teach their children. Ontario has made some progress on financial literacy in recent years, but there’s still more work that needs to be done. Since 2011, the province has been working to revamp how financial literacy is taught in schools. The province is aiming to include financial literacy for students in grades 4 to 12. Topics taught include money, personal finance, budget and money management.

While this is a step in the right direction, it’s still up to the individual teacher to decide what’s covered. The fact that the teachers teaching financial literacy may not understand it themselves is a concern as well.

The Benefits of Being Financially Literate

With half of Canadians living paycheque to paycheque, there’s never been a better time to learn about financial literacy. Perpetually low interest rates have led to Canadian households going on a borrowing frenzy, pushing household debt to an all-time high. Household debt is so high it has the government worried. Much of that debt is from mortgages. To slow down the debt binge, the government recently introduced new mortgage tightening rules.

Being financially literate has many benefits. When you’re financially literate, you’re less likely to get into trouble with consumer debt. You’ll know how to manage debt and use credit cards responsibly. When you manage your money better, you’ll have more money left over to save and invest. You’ll better be able to save for long-term financial goals like homeownership and retirement. You’ll also be a better investor. You’ll understand key investing concepts like asset allocation and diversification.

Financial Literacy Gives Confidence

Walking through the doors of a bank can be intimidating. Whether you’re getting a mortgage or a car loan, it can be nerve-racking. When you’re financially literate, it gives you the knowledge and confidence to make important financial decisions. You’ll understand the difference between stocks, bonds, ETFs and mutual funds. Investment fees are so important, but far too many of us are complacent about them. Being financially literate means you’d understand the benefits of ETFs like those offered by Smart Money Invest – better performance and lower fees.

Financial Literacy month is all about education. Take advantage many of the free events going on across the city. Attend an event on a topic you’ve always wanted to learn about like investing. By improving your financially literacy, it will pay off – literally – for the years to come.

Happy financial literacy month everyone!

Investing can be exciting, but just like Halloween, it can also be downright spooky. Everything from high fees to a lack of diversification can scare away decent investment returns. By being aware and paying close attention to your portfolio, you can help stop them. Here are three scary things that lurk inside your portfolio.

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High Fees

One of the most popular Halloween costumes is a ghost. Making a ghost costume can be as easy as taking a bed sheet and cutting some eye holes out. So, what do ghosts and high fees have in common? Plenty.
We’ve discussed high fees plenty of times. Similar to ghosts, high fees are invisible. I like to call high fees the “invisible destroyer of wealth.” You may not think an MER of 2.5 percent seems like much, but on an investment portfolio of $500,000, that’s $12,500 in “invisible” fees you’ll be paying each year. Still think those fees are like Casper the Friendly Ghost?
How do you avoid scary investment fees? The simplest way is to purchase ETFs. Instead of funds with loads, ETFs come with ultra-low fees. By investing in ETFs like the ones offered by Smart Money Invest, you can save thousands in fees over your lifetime and avoid a Halloween horror.

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Lack of Diversification

Another scary thing that may be lurking inside your portfolio is a lack of diversification. Many Canadian investors suffer from something called “home bias.” To understand home bias, it helps to look to Trick-or-Treating. When going Trick-or-Treating, you’re more likely to stay close to home and only visit houses in your neighbourhood (unless you live on a farm). The same can be said for investing. Canadians would rather invest in Canadian equities, ETFs, stocks and bonds. While there’s nothing wrong with investing in our great country, it can become problematic when you invest too much of your portfolio in the red and white. Canada is a country with three main industries, while the U.S. has 10. If one of those industries like oil and gas falls upon hard times and you’re investing 100 percent in Canadians equities, your portfolio will be hard hit. That’s why it’s important to diversify by investing in Canada, the U.S and internationally. That way if Canada is underperforming, other countries and regions are likely to offset it.

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Not Paying Attention to Performance

Don’t dress like an ostrich for Halloween and stick your head in the sand. There are consequences for not paying attention. If you don’t pay attention to how many Halloween candies you’re eating, you’ll wake up in the middle of the night with a tummy ache. The consequences for investing are a lot more severe.
If you’re investing in an actively managed fund like a mutual fund, it’s especially important to pay attention to performance. How do you measure how your investment is doing? By assessing it against a benchmark like the S&P/TSX Composite Index. The facts don’t lie: most actively managed funds underperform the benchmark long-term. That underperformance means you might not be able to reach your long-term goals like homeownership or an early retirement.
Instead of putting your investments on autopilot, take the time to review your statements and see how your investments have been doing over the last five years and beyond.

Now that you’re aware of these scary things, you can hopefully avoid them. Happy Halloween, everyone!

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If you were walking down the street one day and someone asked you, “what’s your asset allocation?,” would you know what you’d say? Your asset allocation is an all-important decision not to be overlooked. It can have a big impact on how your investment portfolio performs over the long haul and whether you’re able to meet your long-term financial goals like homeownership or an early retirement.

Understanding Asset Allocation

Asset allocation is a fancy term for how much of your investment portfolio you have invested in the three main asset classes: equities, fixed income and cash. With the risk asset allocation, you can accomplish several things at once: you can take the right level of risk for your expected rate of return, be able to access your money when you need it, and let your money grow to achieve your financial goals. The easiest way to achieve the right asset allocation is with a properly diversified investment portfolio.

Your asset allocation isn’t set in stone. Sometimes life happens. You could lose your job or have a baby. As such, it’s important to remain flexible. You have to be ready, willing and able to adjust your asset allocation over time. For example, if you decide to retire early, you may allocate more of your money towards fixed income and cash (which tend to be less volatile) and less toward equities.

Asset Allocation and Canada’s Food Guide

Asset allocation may sound intimidating, but it’s really not. To better understand asset allocation, it helps to think of it like Canada’s Food Guide. Similar to how asset allocation has asset classes, Canada’s Food Guide has food groups: vegetables and fruit, grain products, milk and alternatives, and meat and alternatives.

Your asset allocation depends a lot on your age (and gender). For example, if you’re years away from retirement, you’ll want to invest more aggressively, putting more of your money into equities and less into fixed income and cash. However, if you’re nearing retirement, you’ll want to invest more conservatively with less of a weighting in equities and a bigger portion of your portfolio in fixed income and cash.

Going back to Canada’s Food Guide, the recommended number of services per day also depends on your age and gender. For example, if you’re a female between the ages 19 to 50, it’s recommended that you have seven to eight servings of vegetables and fruit per day (eight to 10 servings per day for males in this age range). However, for females and males age 51 or older, it’s recommended that you only have seven servings per day of vegetables and fruit. Going beyond the recommended number of servings doesn’t do you any benefit and can actually increase your risk of health issues like obesity, diabetes and heart disease (especially red meat).

Choosing the Right Asset Allocation

Your asset allocation largely depends on three key factors: your tolerance for risk, financial goals and time horizon. The right asset allocation can be achieved in a proper investment portfolio consisting of low-fee ETFs like those that Smart Money Invest offers.
Not sure about the best asset allocation for you? Contact Smart Money Invest today for help determining the right allocation to meet your long-term goals.

It’s often said imitation is the sincerest form of flattery. If you’re looking to be the next successful investor, looking to those who have already achieved investment success is a good place to start. Here are four successful investors who provide timeless lessons to learn from that will help shape your investment philosophy. To round out the field we have two Americans and two Canadians.

Warren Buffett

Warren Buffet is the Chairman and CEO of Berkshire Hathaway. He’s also arguably the most successful investor the world has ever seen. There’s a never-ending argument over what’s better: active or passive investing. Buffett has clearly picked a side: index investing. Buffett famously made a million-dollar bet: by investing in a low-fee index fund he could outperform a powerful hedge fund. A decade later and Buffett has proved the naysayers wrong, as he managed to do just that.
Investment fees (or MERs) can take a big bite out of your investment portfolio. If you’re looking to build a solid investment portfolio, low-cost investments like ETFs (that Smart Money offers) are your meal ticket to growing your portfolio long-term.

Peter Lynch

If you don’t understand a business, you probably shouldn’t invest in it. That’s one of the many golden investments lessons from American investor Peter Lynch. In fact, he takes it a step further: never invest in any idea you can’t illustrate with a crayon. Lynch once famously took a class of seventh graders out for dinner, illustrating each stock with a little drawing. If an investment is so complex that you have no idea where your money is going, you’re better off not investing. Maybe if more investors followed this lesson during the late 2000’s we could have avoided the financial crisis since few understood how mortgage-backed securities worked.

Kevin O’Leary

Kevin O’Leary has made a name for himself for not being shy to “say it how it is” as a venture capitalist on Dragon’s Den and Shark Tank. O’Leary (or Mr. Wonderful as he likes to call himself) isn’t afraid to speak his mind if he sees a bad idea. When he’s not on TV, O’Leary is a successful investor. One of O’Leary’s golden rules is that he won’t invest in a stock unless it pays a divided. And this makes sense. Many investors chase after yield, but it’s dividends that can make you rich. If you invested in the stock market since 1926, you would have made more money from dividends than capital gains. Divided-paying stocks encourage a long-term investing philosophy. You “buy and how” and watch the money slowly trickle in – and it adds up over time.
Who opened O’Leary’s eyes to dividend investing? It was his dear, old mother. When she passed away, he was amazed at the investment portfolio she had accumulated using dividends. O’Leary has a strict investment rule: if it doesn’t pay a dividend, he won’t buy it. You don’t have to be that strict of an investor, but it’s something to consider.

Derek Foster

Derek Foster is six-time National Bestselling author. He is also Canada’s youngest retiree, leaving the workforce at the ripe, old age of 34. Foster is a millionaire. Despite spending his 20’s backpacking through Europe, he’s a self-made millionaire. How did he do it? By investing his money in recession-proof stocks. For example, when the economy tanks, do people stop brushing their teeth? Of course not! That’s why Foster invests in blue-chip stocks like Colgate. Colgate has been increasing its dividend steadily for decades. Foster is living proof you don’t have to be an investing genius to strike it rich. In his book, The Idiot Millionaire, he shares his secrets of how anyone can achieve investing success like him by following his simple investing philosophies.

Who needs October playoff baseball when you have the U.S. election? Our beloved Toronto Blue Jays may be in the middle of a playoff race, but a lot of us seem to be captivated by the U.S. presidential election. On Monday we had our first of three presidential debates. The jury’s still out on who won, but that didn’t stop the Donald from continuing to make up his own facts.

Canadians are watching the U.S. election closely and with good reason. Canada has a lot at stake in the presidential election. Let’s take a look at what President Clinton or President Trump would mean for Canada’s economy.

What a Clinton Presidency Would Mean for Canada

Considering Canada is the U.S.’s largest trading partner (Canada and the U.S. exchanged $2.4 billion in goods and services every day in 2014, according to the Government of Canada), anything that impedes free trade could have serious consequences for the Canadian economy. The North American Free Trade Agreement (NAFTA) has been a hot-button issue during the U.S. presidential election. Hillary Clinton used to be a champion of NAFTA (her husband, former President Bill Clinton, signed NAFTA into law in 1993), but she has recently changed her tune. (Although, if there’s a saving grace, it’s that President Barack Obama was opposed to NAFTA when he ran for president, but didn’t end up renegotiating it.)

Clinton’s lack of support for NAFTA is concerning for the Canadian economy to say the least. The Canadian economy is predicted to grow at 2.1 per cent in 2017, according to the OECD. Any changes to NAFTA could lead to lower GDP growth for 2017 and beyond. This highlights the importance of Canada better diversifying its economy by not relying on the U.S. so much and signing other free trade agreements like the Trans-Pacific Partnership (TPP). That being said, the anti-trade sentiments and rise in protectionism expressed by the world’s biggest economies, such as the U.S. and the U.K. with Brexit, could have serious consequences on world trade.

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What a Trump Presidency Would Mean for Canada

While Clinton has been wishy-washy on her position on trade, Republican presidential candidate Donald J. Trump has been crystal clear: he opposes it. The Donald has been highly critical of NAFTA, referring to it as a “poorly-negotiated trade deal,” blaming it for the U.S. trade deficit.

“I like free trade, but free trade is not free trade, it’s dump trade because we lose with China, we lose with Mexico, we lose with Japan and Vietnam and every single country that we deal with,” said Trump in a campaign stop in Rochester, New York, in April. He went on to mention Canada: “We lose with Canada --- big-league. Tremendous, tremendous trade deficits with Canada.”

Despite economists presenting facts that free trade leads to a higher standard of living for everyone, the Donald doesn’t see it that way. Trump has called out NAFTA on several occasions, promising to “renegotiate” or “break” it if he’s elected president. Trump isn’t a big fan of the TPP either, calling it a “bad deal” for America that’s sending jobs overseas. (The TPP is essentially dead in the water for Canada if the U.S. doesn’t end up signing on, which is a distinct possibility at this point.)

How Will the Election Play Out?

With election day, November 8, 2016, quickly approaching, it will be interesting to see how the election plays out. The election has already impacted investors. The Fed has decided to leave interest rates where they are for the time being to see how it plays out. If the Fed decides to hike rates in December, it could lead to a lower loonie, which could hurt Canadian investors if the Bank of Canada Leaves interest rates where they are. Circle election day on your calendar if you haven’t already – this is likely to be the most exciting campaign to date.

Are you looking to start a family in the near future? Better factor this into your home-buying decision. The challenges millennials face today are well-documented: record-high student debt, a lackluster job market, and a pricey housing market, to name a few. Before you make an offer on your dream home, it’s important to factor in how having a child will impact your family’s budget.

Having a child is a wonderful experience, but it doesn’t come cheap. The average cost of raising a child to age 18 is $243,660, finds MoneySense magazine. You should expect to spend $12,825 per child annually or $1,070 per month (and that’s without considering the added cost of post-secondary education). If you’re planning on having more than one child like many parents do, you can easily end up spending more on raising your children than your housing costs (not that there’s anything wrong with that, but it’s important to be aware).

Why are children so darn expensive? One of the main reasons is sky-high childcare costs. In Toronto, which holds the dubious honour of being Canada’s most expensive city to raise a child, parents can expect to spend an average of $1,033 a month on daycare fees, finds a study by the Canadian Centre for Policy Alternatives.

Be Ready and Willing to Make Trade offs

When it comes to buying a home in red hot real estate markets like Toronto and Vancouver, home-buyers often have to make trade-offs. Just because your lender says you can afford a home for $800K, doesn’t mean you should spend that much. It’s important to run the numbers and see what your mortgage payments would be. If you can find a home for $700K or $750K with everything you’re looking for – great! It gives you and your budget that much more breathing room.

Also, don’t forget to factor in lower income during maternity or parental leave. You can only expect to receive 55 percent of your working income during maternity/parental leave up to a maximum of $537 per week. If you decide to return to the workforce, you’ll have to factor in daycare costs, as well (if your parents are willing to babysit for you, it can mean the difference between buying your dream home and a smaller home in a not-so-nice neighborhood). If you feel your budget leaves little room to raise a family, you may be better off opting for a starter home or condo instead of your dream home.

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Buying As Much Home As You Can Afford

Avoiding the common mistake of buying as much home as you can afford, makes raising a child that much easier. You can spend time with your family and may not have to take on a second job to pay for your dream life. Most importantly, a home you can afford gives you more of a cash cushion. You won’t find yourself “house rich, cash poor.” You’ll have money left over to save and invest in your RRSP, TFSA and RESP. (To help your savings grow even faster, Smart Money has a number of low-fee ETFs to choose from.)

There’s no better experience in the world than starting a family, just make sure you aren’t blindsided by the costs. Buying a home you can truly afford makes life a whole lot easier for your family and you.

“To boldly go where no man has gone before.”

It’s the 50th anniversary of Star Trek – can you believe it? No one could have predicted Gene Roddenberry’s brainchild, the original Star Trek, which was cancelled after only three seasons, would become a billion dollar franchise. Since then Star Trek has produced numerous TV shows (the latest of which is being filmed in Toronto), movies and even a Klingon dictionary. Star Trek has a loyal following – there are millions of Star Trek fans (or Trekkies, as they prefer to be called) around the world.

Now I know what you’re thinking – what do Star Trek and investing possibly have in common? More than you think. In Star Trek, low ranked ensign officers where red shirts. There’s a running gag that the red shirt ensigns are usually the first to die in a dangerous situation by latest enemy, whether it’s the Klingon or Romulans. Relating this back to investing, while red shirt ensigns may be funny in the Star Trek universe, what isn’t funny is red shirt ensigns (or what I like to call high-fee mutual funds) weighing down your investment portfolio.

CRM2: Where No Man Has Gone Before
The introduction of CRM2 has really helped open the eyes of investors on the high mutual funds fees they’re paying. A management expense ratio (MER) of 2.5 percent may not seem like a lot on a $100,000 portfolio, but when it’s expressed in actual dollar figures – $2,500 – it can come as quite a surprise. The higher your mutual fund’s MER, the tougher it is for it to match the benchmark, let alone outperform it.

MERs aren’t the only thing weighing down your investment portfolio. Your financial advisor is compensated in other ways. One of those ways is loads. A load is a one-time fee you pay when buying or selling mutual funds; it typically ranges from 4 to 8 percent (although sometimes it’s a flat fee). As the names suggest, a front-end load is a fee you pay when you buy a mutual fund, while a back-end load is a fee you pay when you sell.

Surviving the Next Klingon Invasion
Similar to the expendable red shirt ensign in Star Trek, loads mean you’re likelihood of survival (or outperforming the benchmark) is that much less since you’re already starting from behind. With a front-end load, money it taken off before you even invest in the mutual fund. That means you need to make back the load – 4 to 8 percent – before you can break even. With back-end loads, you pay a fee when you sell. The longer you hold onto the mutual fund, typically the lower the fee. This only encourages you to hold onto underperforming mutual funds (red shirt ensigns) in your investment portfolio.

While most mutual funds don’t have loads, many still do. You may have one in your investment portfolio without even knowing it. There are a plethora of mutual funds in the Canadian market: of the 6,200 mutual funds, 4,000 are no-load – that means 2,200 still charge a load.

How do you avoid paying a load? The easiest way is by buying ETFs. Unlike mutual funds, ETFs don’t come with loads. By replacing high-fee mutual funds with ultra-low fee ETFs like those offered by Smart Money Invest, you’ll better your chances of survival during the next market downturn – or Klingon invasion.

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It’s back to school time! For parents and children it’s time to get back into the school year routine. Your child may be years away from attending college or university, but it’s never too early to start planning. As a parent you’re well aware sending your child to college or university is expensive, but do you know how much it truly costs?

According to a recent poll by CIBC, four out of five parents aren't able to accurately estimate university tuition fees. The average tuition fee for an undergraduate program is $6,191 per year, according to StatsCan. Only 20 percent of parents correctly estimated that tuition fees range from $6,000 to $9,999.

Tuition fees aren’t the only thing causing confusion amongst parents. 37 per cent of parents said they had no idea how much to budget for non-tuition expenses, such as books, supplies, groceries and accommodations.

Putting your child through college or university doesn’t come cheap. Parents can be expected to shell out on average $25,000 per year or $100,000 over a four-year university degree.

Many Parents Don’t Understand RESPs

Registered Education Savings Plans (RESPs) are specifically set up for parents to save towards their children’s education, yet there’s a lot of confusion surrounding them. Despite the confusion, many parents still use them: 76 percent of parents opened an RESP to save toward their children’s post-secondary education.

A misunderstanding of RESP rules means parents may not be taking full advantage of their child’s RESP. 31 percent of parents were surprised to learn they could catch up on claiming Canada Education Savings Grants (CESG) in a following year. Although RRSPs and RESPs may both be registered account with Canada Revenue Agency, only RRSP contributions are tax deductible; RESP contributions aren’t. Despite this, 53 percent of parents believed they could claim RESP contributions on their tax return. Furthermore, 45 percent of parents believe the money from their child’s RESP can only be used to pay tuition fees, when this simply isn’t true; it can go towards other education-related expenses.

What You Need to Know About RESPs

To take full advantage of the RESP, it helps to understand the rules. You may not receive a tax deduction for contributing to an RESP, but like an RRSP, your money grows tax-free inside. You may be wondering why you wouldn’t simply save for your child’s education in your Tax-Free Savings Account (TFSA). What makes the RESP advantageous is RESP contributions are eligible for a 20 percent government grant. You can maximize the grant by contributing $2,500 each year (that works out to an annual grant of $500). Not able to take advantage of the full grant in a year? No problem. You can catch up and qualify for grants for previous years. Post-secondary education is costly – the good news is you can contribute a lifetime maximum of $50,000 to your child’s RESP until they reach age 31.

Once your son or daughter is ready to go to college or university, any money withdrawn from the RESP is taxed in their hands. This can lead to major tax savings, since your child is usually at a lower tax bracket (he or she may not work or work part-time during college or university). On top of that he’ll be eligible for the tuition, education, and textbook amounts tax credit, further lessening any taxes payable.

The RESP is flexible and can hold various investment types. SmartMoney has Exchange Traded Funds (ETFS), perfect to hold inside your child’s RESP and save towards their post-secondary education.

This is only a brief overview of RESPs. You can read more on the Canada Revenue Agency website.

It’s the most wonderful of the year – at least for parents, not children (if you haven’t seen this hilarious Staples back to school TV commercial, be sure to check it out). With Labour Day next week, back to school is just around the corner.

Back to school spending is expected to be up this year – parents are expected to spend an average of $472 per child on back to school supplies, finds a survey by RetailMeNot. This is likely explained by the new Canada Child Benefit (CCB). Under the CCB, families with children under age 6 can expect up to $6,400 per year, while those with children between the age of 6 and 17 can expect up to $5,400 annually.

Worried about going over-budget? Here are four back to school spending tips, so you don’t break the bank.

1. Make a List and Check it Twice
Similar to Jolly Old Saint Nicholas, it’s a good idea to make a list and check it twice. Before heading to the mall, take the time to make a back to school shopping list in the comfort of your home. To teach your son or daughter the value of a dollar by getting them involved. Come up with the list together or make two separate lists and compare. Take an inventory of what you already have. You might be surprised to find out your daughter has enough pencils to last her until university at the bottom of her closet.

2. Finding a Diamond in the Rough
Don’t wait until the last minute to do your back to school shopping – avoid the crowds at the mall and start early. The minute school is out for summer, be on the lookout for deals. Whenever you see a good deal, stock up. If you wait until the Sunday before Labour Day, chances are the good deals will be all gone and you’ll end up paying full price for something you could have bought for half price last week.

3. Shop from the Comfort of Home
Wouldn’t you rather spend your Labour Day long weekend relaxing at home and enjoying the nice weather, instead of being cooped up at the mall? Don’t just assume the best deals are to be had in stores. There are plenty of deals to be found online, you just have to be willing to take the time to look. Some retailers even offer free shipping on orders over a certain threshold, say $50. Smartphone apps like RetailMeNot make couponing and comparison shopping even easier.

4. Come Up with a Budget
How do you know if you’re going to go over budget if you haven’t taken the time to come up with a proper budget? A budget helps keep your spending in check. Instead of filling your shopping cart up with school supplies and realizing you don’t have the money when your credit card statement comes up, set a budget ahead of time and track your back to school spending. If you’re going over budget, consider delaying the nice-to-haves like a new laptop, especially if the old one works perfectly fine.

Bonus Tip: Invest in Your Child’s Future
Don’t let your child face the burden of the high cost of post-secondary education on their own. As soon as your child is born, set up a Registered Education Savings Plan (RESP). Regularly contribute to your child’s RESP with low-cost ETFs and watch your child’s education savings grow.