According to the Angus Reid Forum, Canadians expect to spend $136 while celebrating Father’s Day this year. While the price tag of June’s holiday is nowhere near what we typically spend on mom (we up our budgets by $50 on Mother’s Day), June 18 can still end up being too expensive. Many of us can’t afford to spend over $100 on dad, even if he deserves much more for putting up with our antics as kids.
If you can’t pull out all of the stops for dad this Father’s Day, don’t let the guilt sink in yet. Your dad’s an understanding guy, and he would rather you spend your money wisely than waste it on a novelty tie, #1 dad mug, or equally cheesy (aka terrible) gift popular around Father’s Day. That’s why in honour of the big day, we’re sharing our 3 favourite money saving tricks our frugal fathers have taught us.
- Budget: A financial plan is the only way you’ll know how much of your cash is leftover once you pay for all of the necessities. Taking the time to table a budget in detail can help you prepare for the future, as you’ll see your spending habits (good or bad) in no-nonsense black and white. Once you can account for every loonie in and out of hands, you’ll be able to identify where you’re overspending.
Take a look over your bank statements starting from 6 months ago, so you can get a good understanding of your variable costs in addition to recurring purchases like rent, insurance, and utilities. Cut out any unhealthy spending habits or impulse buys that waste your money with little to no payoff.
- Invest: Once you cut the fat off of your budget, you’ll start to see your account balance go up. While it’s tempting to spend all of this extra cash on an all-inclusive trip this summer or finally trading in your beat up Android for a brand new Pixel XL, these purchases aren’t exactly dad approved. Financial experts suggest roughly 10–20% of your income should go into savings, so you can prepare for your future. Look into your options, including GICs, Tax-Free Savings Accounts, RRSPs, and Mutual Funds, to see how you can start building a nest egg for a rainy day, retirement, or an unlucky emergency.
- Borrow: No one goes through life anymore without a little bit of debt — and that includes your dad. Until your careful budgeting builds up savings, you’ll need a little help to cover everything from mortgage payments and car leases to unexpected bills and household repairs.
While conventional lenders can provide secured loans for life’s larger purchases, payday lenders can help you cover small bills and repairs. In Canada payday loans come from companies like GoDay that offer up to $500 for first time borrowers. Though they’re small, they provide just the right amount of cash to help pay for surprise, non-recurring expenses that threaten to bust your budget.
All dad asks is you make your choice of payday loan responsibly, and these financial products can be a practical solution to your cash shortages. Along with budgeting and investing, borrowing the right way can be a financially wise tactic regardless of your goals. But these aren’t the only financial tricks and tips up his sleeve. Just like his seemingly never-ending supply of puns, financial advice is something he’s willing to share this Father’s Day.