Dave Ramsey calls attention to 3 ‘dumb’ money mistakes he hears callers making all the time — and Canadians are no different

“These things baffle me, that’s why I'm hitting them,” Ramsey said. “Because they’re just illogical.”

While Ramsey’s advice comes from his own experience, the three mistakes he flagged translate north of the border as well — with some important local nuances that make them even more financially treacherous in some cases.

1. Co-buying property with someone who isn’t your spouse

Ramsey has long opposed the idea of buying property with anyone who isn’t a married partner. His concern is practical: if the relationship ends — while not all do, some will — untangling shared assets between unmarried individuals can become an expensive, drawn-out and emotionally burdensome experience.

“Separating assets between an unmarried couple can be complicated,” Ramsey has said. “They do not always share the same property rights as married couples.”

In Canada, this warning carries added weight — because the property rights of common-law couples varies dramatically depending on the province or territory you live in.

In British Columbia, couples who have lived together for at least two years are treated similarly to married spouses under the Family Law Act when it comes to dividing property and debt (2). But in Ontario, common-law partners don’t have an automatic right to equalize net family property the way married spouses do under the Family Law Act — meaning a partner who contributed financially to a shared home may have to fight for their share in court (3).

Québec offers even less protection: under the Civil Code, de facto (common-law) couples have no automatic right to the family home or to any division of each other's property upon separation, regardless of how long they were together. Each partner walks away with what is legally in their own name (4). However, as of June 30, 2025, Quebec's new parental union regime — introduced through Bill 56 — automatically extends property-sharing and succession protections similar to those of married couples to common-law partners who have a child together, representing a significant shift for unmarried parents in the province.

The housing affordability crisis has made co-ownership a tempting solution, particularly for first-time buyers. Canadian Mortgage Trends News acknowledges co-ownership as a growing strategy, especially in high-cost markets — but strongly recommends that any co-buyers, particularly those who aren’t married, establish a formal co-ownership agreement drafted with legal advice before signing anything (5).

If you’re not in a position to purchase on your own or with a spouse, there are still ways to participate in real estate as an asset class. Real estate investment trusts (REITs) available on Canadian stock exchanges allow you to invest in a portfolio of income-producing properties — commercial, residential or industrial — without taking on the legal and financial complexity of co-ownership. REITs are available through self-directed brokerage accounts, including those inside a Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP), which can further reduce the tax drag on returns.

If homeownership is the goal, the First Home Savings Account (FHSA), lets eligible Canadians contribute up to $8,000 a year (to a lifetime maximum of $40,000) to a registered account specifically for a first-home purchase. Contributions are tax-deductible, and qualifying withdrawals are tax-free — a powerful combination.

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2. Spending more on education than your career can repay

Ramsey’s take on post-secondary education is blunt: the return on investment needs to make sense.

“Don’t spend $250,000 getting a master’s degree in sociology so you can be a caseworker for the state making $38,000,” he said (1). He believes students should honestly assess their likely earnings before taking on debt for a degree.

Though the numbers look different in Canada, the same principle applies. Canadian universities are generally less expensive than their American counterparts, but tuition costs have risen steadily, and many graduates carry debt well into their working years.

As of the 2023–24 fiscal year, the federal government held approximately $22.6 billion in outstanding Canada Student Loans, according to the National Student Loans Service Centre (NSLSC) (6). That figure doesn’t include provincial student loan programs, meaning the total debt burden on Canadian students is certainly higher.

The lesson: before taking on student debt — whether for yourself or co-signing for a child — it’s worth calculating expected earnings against repayment obligations. The Canadian government’s student loan repayment estimator, available through the NSLSC, can help model different repayment scenarios (7).

For parents hoping to reduce the burden of post-secondary costs, the Registered Education Savings Plan (RESP) remains one of the most powerful tools available. Contributions to an RESP aren’t tax-deductible, but the money grows tax-sheltered. Also, the federal government adds a Canada Education Savings Grant (CESG) equal to 20% on the first $2,500 contributed a year — up to $500 annually and $7,200 over the lifetime of the plan for each child (8). That free money is difficult to beat.

For those who want to save beyond an RESP, or for adults saving toward their own continuing education, a Guaranteed Investment Certificate (GIC) can be a low-risk, predictable-growth option. GICs are offered by banks and credit unions and pay a fixed interest rate for a set term (9). Deposits held at member institutions are protected by the Canada Deposit Insurance Corporation (CDIC) up to $100,000 per depositor per insured category. Non-redeemable GICs typically offer higher interest rates but come with early-withdrawal penalties, so they work best for money you won't need to access mid-term.

For those already carrying student debt, consolidating higher-interest balances into a lower-rate personal loan — available through Canadian banks and credit unions — can reduce the total interest paid and simplify monthly payments. Speaking with a not-for-profit credit counsellor, such as someone certified through Credit Canada, is a free or low-cost starting point (10).

3. Upgrading your car when you don’t have to

Of all of Ramsey’s complaints, this one may be the most emotionally loaded.

“You were driving a $6,000 car,” he told one caller. “Your car gets totalled, you get a cheque for $6,000 and, suddenly, $6,000 cars aren’t good enough for you. That’s dumb (1)!”

According to Ramsey, a crisis or a windfall shouldn’t be the trigger for a lifestyle upgrade. A paid-off car is one of the cheapest vehicles to own — even if it’s old — because there are no monthly payments and, typically, lower insurance costs.

In Canada, the temptation to upgrade has never been more expensive. The average transaction price for a new vehicle in Canada reached approximately $63,000 by the end of 2025, according to AutoTrader (11). That figure doesn’t include financing costs, mandatory insurance, fuel or maintenance — all of which add hundreds of dollars to the monthly burden of a new vehicle.

If a vehicle replacement truly is necessary, Ramsey’s advice holds: Buy used, pay cash if possible and drive it as long as it runs. If financing is unavoidable, shop for the lowest interest rate available — and don’t let the monthly payment be your only measuring stick. A longer amortization lowers monthly costs but increases total interest paid significantly.