Managing Your Money Together, Part 3 – Let’s Talk it Out

This is the third post in a series about how to manage your money as a couple. Previously I discussed options for managing money separately or jointly. Last week I started outlining some methods to minimize your risk regarding joint finances. I'll continue with that analysis today.  First, here are the general risks I will be discussing: Joint money management One partner may assume control of all financial decisions and steamroll over the desires or fears of the other. (See last week’s post.) An uninvolved partner may not be capable or willing to take over money management in the case of death, disability,…

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Managing Your Money Together, Part 2 – Let’s Talk Risks

Managing money as a couple can be rewarding and/or challenging. A couple can make more money than an individual can. Two people can combine their knowledge and strengths to make better decisions. And partners with different money management styles can balance out each other’s extremes. However you can also be negatively affected by your partner’s money management, sometimes severely. If you don’t want to read the whole article, this is the most important point: You must have full disclosure with your partner, regardless of how you manage your money choices on a day-to-day basis. Nothing can ruin your relationship or…

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Managing Your Money Together, Part 1 – Separate Or Joint?

Managing Your Money Together, Part 1 – Separate or Joint?

Should you and your partner have separate or joint finances? This is one of the most controversial subjects on financial forums and blogs. Every time this topic is broached there is a barrage of judgments. I’m not sure why angry opinions (often stated as facts) tend to dominate the conversation. However my suspicion is that people who aren’t 100% happy with how finances are handled in their relationship are the quickest to jump all over those with different approaches. Even though this topic isn't new it is certainly important. And I feel I have a different spin on this topic that will hopefully…

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Education Bonus Post – Saving the Canada Child Tax Benefit

One last tip about educational savings. You can possibly reduce your own taxes by investing the Canada Child Tax Benefit or Universal Child Care Benefit under your child's name. See this quote from the this page on the Canada Revenue Agency website: “Generally, when you invest your money in your child's name, you must report the income from those investments. However, if you deposited Canada child tax benefit or universal child care benefit payments into a bank account or trust in your child's name, the interest earned on those payments is your child's income.” If you don't need the income…

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Saving for your Child’s Education – Comparison

In recent posts I discussed the TFSA and RESP programs. But which is the better choice when saving for your child's education? It's a complicated question without a simple answer. Let's start with a chart comparing the highlights of the two plans: Here are the most significant points to remember: With the TFSA your contribution room never goes away. Withdraw $10,000 for education and you can put it back the following calendar year. Usually higher overall limits with the TFSA (depending on number of children and number of contributors). TFSA can be used for any purpose. Using an RESP will result…

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