The End of CRB? | 2021’s Three BIGGEST Money Problems For Canadians (And How to Prepare)

While there's a lot of hope for 2021 to be a better year than 2020, let's talk about the biggest issues Canadians will still have to look out for when it comes to their money this year.

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1. The End of CRB

The CIBC Chart shows that 18% of Canadians are struggling to simply keep up with their bills and get by

For many who have been receiving this benefit, they will be applying for their final payment on March 29th. While this is still 3 months away, Canadian individuals, as well as the government should be starting to think about this approaching date now, and how they will transition to no longer receiving the benefit.

While there is precedent for the extension of these benefits (as we saw with CERB being extended multiple times while it was the main support), it’s less likely that this will be the case for CRB, since the program (in its entirety) is meant to cover Canadians until the end of September 2020.
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2. Increased Cost of Living / Inflation

It’s no secret that in many parts of the country, the cost of living has gone up.

Inflation is what we use to describe how the money we have today can buy less than it could before, either due to the cost of goods and services going up, or the value of our money decreasing.

And right now, we’re seeing signs that both of these things are happening, and may continue to in 2021.

One category that has been driving up the cost of living in Canada is food prices, with Canadian family’s set to spend nearly $700 more on groceries this year.

At the same time, the Bank of Canada is actively trying to increase inflation, through something called their “Quantitative Easing” program. Basically this program reduces how expensive it is to borrow money, in order to encourage spending to help the economy.

While this is something that does help to grow the economy and potentially create jobs, it also artificially grows real estate and stock prices, since it’s cheaper to borrow money to invest.

While this is good for people who have invested in stocks and real estate, it does have the potential to make life even more expensive for the average Canadian.

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3. Paying Off Debt

But the number 1 concern for most Canadians when it comes to their money is paying off debt.

Canada recently reached 2 TRILLION Dollars of Consumer Debt. This includes things like credit card debt, student loans, and loans for cars and houses.
Excluding Mortgages from this picture, this works out to the average Canadian owing $23,000.

And this comes at the same time as Canada having the highest savings rate in its history, with $90 Billion in excess cash saved up during the pandemic.

However, the increase in savings likely hasn’t been for all Canadians, as it’s likely that most of these savings were for mid to high income households, since low income Canadians dealt with the vast majority of job losses, and had to continue spending on necessities.

So if you’re in the position where your debt has increased, and you haven’t been able to save extra money during the past year, then you could be left in a pretty tricky situation.

On the channel we talk about lots of ways to save more money, so check out these other videos for more tips, but if you have a lot of high-interest debt, now could be a good time to look into combining that debt at a lower interest rate, courtesy of the Bank of Canada.

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DISCLAIMER: This video is intended to be used for entertainment purposes only, and is not to be interpreted as advice, financial or otherwise. Any decision made by an individual about their finances or benefit applications is entirely at the discretion of that individual. Russell Matthews does not warrant or represent that any information is accurate. This description contains affiliate links, and if you purchase an item, a portion of the sale will go towards supporting the channel, at no additional cost to you.

Видео The End of CRB? | 2021’s Three BIGGEST Money Problems For Canadians (And How to Prepare) канала Russell Matthews