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  1. Financial Education
  2. Financial Advice Hub
Financial Advice Starts Here

Money is always on our minds, so let's talk about it!

Saving, Planning and Investing

At Crossroads Credit Union, we believe that understanding your finances is the first step toward achieving your goals. Here are some answers to some common questions about saving, planning, and investing—so you can make confident decisions about your money.

  • Set Clear Goals: Decide what you’re saving for (emergency fund, vacation, retirement).
  • Pay Yourself First: Automate transfers to savings as soon as you get paid
  • Track Spending: Use a budget to identify areas to cut back.
  • Start Small: Even small, regular deposits add up over time.

Tip: Automating savings removes the temptation to spend.

Feature

TFSA

 

RRSP

Tax on Growth

Pay No tax on any growth inside the investment/savings.

Tax-deferred until withdrawal

Contributions

Not tax deductible

Tax deductible (reduces taxable income)

Withdrawals

Always tax free

Taxed as income when withdrawn

Purpose

Flexible savings (any goal)

Primarily for retirement

Age Limit

Must have reached the age of 18 and no age cap.

You can be under the age of 18 if you have filed a tax return. Must convert to RRIF by age 71.

Note: Both have annual contribution limits. Over-contributing can result in penalties.

  1. Estimate Expenses: Consider housing, healthcare, travel, and daily living.

  2. Calculate Income: Add up pensions, government benefits, and savings.

  3. Fill the Gap: If expenses exceed income, increase savings or adjust plans.

  4. Start Early: The sooner you start, the more time your money has to grow.

  • Use Retirement Calculators: Many online tools can estimate if your savings will last.

  • Rule of Thumb: Aim to replace 70–80% of your pre-retirement income.

  • Review Annually: Update your plan as your situation changes.

Tip: Meet with a member of the Crossroads Wealth team for advice tailored to your specific goals.

  • List Priorities: Short-term (vacation), medium-term (car), long-term (retirement).

  • Set SMART Goals: Specific, Measurable, Achievable, Relevant, Time-bound.

  • Review Regularly: Adjust as your life changes.

Tip: Our Crossroads team is here to help with advice that is tailored to you and your specific goals.

  1. Educate Yourself: Learn basic investment terms and options.

  2. Set Goals: Know your timeline and what you’re investing for.

  3. Open an Account: Choose a platform or an advisor.

  4. Start Small: Begin with what you can afford.

  5. Diversify: Don’t put all your money in one place.

  • Definition: Your comfort with investment ups and downs.

  • Why It Matters: Investments with higher returns often have higher risk. Knowing your tolerance helps you choose suitable investments. Meeting with an advisor can help you determine what your risk tolerance is including your capacity to assume that risk.

  • Savings Accounts & Term Deposits: Low risk, low return.

  • Mutual Funds: Offer bonds, equities or a combination of both.

  • Stocks: Higher risk, potential for higher returns.

*Note: Stocks and other investment options are available through our Qtrade platform. Reach out to a member of our team for more information.

Diversification may balance your portfolio, increase return consistency, potentially decrease the risk of your investments and reduces the impact of investing solely in on particular asset class.

Protecting Against the Unexpected

Life can change in an instant. Whether it’s a job loss, medical emergency, or natural disaster, being prepared can make all the difference. Here are some answers to questions on how to protect yourself and your loved ones from the unexpected—so you can face the future with confidence.

An emergency savings account is a special fund set aside for major, unexpected events—like losing your job, facing a medical crisis, or dealing with urgent home repairs.

  • Purpose: To cover essential living costs when life throws you a curveball.
  • Not the Same as a Rainy-Day Fund: Rainy day funds are for smaller, occasional expenses (like car repairs or a broken appliance). Emergency savings are for bigger, life-altering events.

  • General Rule: Save enough to cover 3–6 months of essential living expenses (housing, food, utilities, insurance, debt payments).

  • Why: This cushion gives you time to recover from a major setback without going into debt.

Tip: If you have dependents, unstable income, or own a business, consider saving even more.

  1. Start Small: Open a separate savings account and set a modest initial goal (e.g., $500 or one month’s expenses).

  2. Automate Savings: Set up automatic transfers from your main account, even if it’s a small amount each payday.

  3. Cut Unnecessary Expenses: Redirect money from non-essential spending to your emergency fund.

  4. Celebrate Milestones: Every bit saved is progress.

  • Review Your Policies: Check your health, home, auto, life, and disability insurance.

  • Update as Needed: Make sure coverage matches your current needs (family size, home value, income).

Note: Insurance is a safety net for risks you can’t afford to cover out-of-pocket.

  • What to Store: IDs, insurance policies, wills, property deeds, financial account info, etc.

  • How to Store: Keep these in a safety deposit box, use a fireproof safe at home and/or secure digital storage (with strong passwords).

  • Accessibility: Make sure a trusted person knows how to access these documents in an emergency.

  • Power of Attorney: A legal authorization that enables an individual to appoint another person, to make decisions on their behalf. This can include managing financial affairs, making healthcare decisions, or handling legal matters when the individual is unable to do so due to illness, absence, or incapacity. *Note: There are different types for different purposes.

  • Health Care Directive: States your wishes for medical care if you're unable to communicate.

  • Will: Outlines how your assets will be distributed after your death.

Tip: These documents protect you and your loved ones if you're unable to make decisions.

For Business Owners:
    • Identify key risks (loss of income, staff illness, shortage of work).
    • Create a written plan for how to keep operations running during disruptions.
    • Review insurance coverage for business interruption.
For Employees:
    • Know your rights and benefits (severance, unemployment insurance).
    • Update your resume and network regularly.
    • Have a plan for alternative income if needed.

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Daily Financial Management

Managing your money every day is the foundation of financial health. Whether you’re paying off debt, building savings, or making smart spending choices, small steps can lead to big results. Here’s what you need to know to take control of your daily finances.

Start by building a small emergency fund; enough to cover unexpected expenses (about $500–$1,000).
Next, focus on paying off high-interest debts like credit cards.


Once high-interest debt is under control, split extra funds between debt repayment and savings.

Tip: Paying off debt saves you money on interest, but having some savings prevents new debt in emergencies.

  • Interest Rate: Higher rates mean more expensive debt.

  • Monthly Payment: Can you afford it in your budget?

  • Total Cost: What will you pay over the life of the loan?

  • Need vs. Want: Is this debt necessary or just convenient?

  • Store credit cards often have higher interest rates than regular credit cards.

  • They’re usually only valid at one store and can tempt you to overspend with special offers.

  • Too many cards or high balances can also hurt your credit score.

  • Can encourage overspending

  • Late fees if you miss payments

  • May impact your credit

  • Pay bills on time—even minimum payments count.
  • Keep credit card balances low (use less than 30% of your limit).
  • Check your credit report for errors and dispute any you find.
  • Don’t open unnecessary accounts.

  1. List all your income sources.

  2. Track your expenses—fixed (rent, bills) and variable (food, entertainment).

  3. Set spending limits for each category.

  4. Review your budget monthly and adjust as needed.

Pay off debts with the highest interest rate first while making minimum payments on others. This saves the most money on interest over time.

Pay off the smallest debt first while making minimum payments on others. Quick wins build motivation to keep going.

  • Check your budget: Is there room after essentials and savings?

  • Consider opportunity cost: Will this purchase delay or prevent other goals?

  • Wait 24 hours before buying to see if it’s truly necessary.

  • Logical buying is based on needs, research, and budget.

  • Emotional buying is driven by feelings, impulses, or social pressure.

Tip: Pause and ask, “Do I need this, or do I just want it right now?”

  • Prioritize needs over wants.
  • Plan purchases and avoid impulse buys by making a list.
  • Compare prices and quality for value.
  • Review past purchases to learn and improve.

Your financial goals matter—because they’re yours.

Connect with one of our experts today—because your goals deserve advice that’s as unique as you are. You don’t have to navigate this alone. Let’s build a plan that works for you.

CONTACT US

Borrowing and Debt Management

Borrowing money can help you reach your goals, but managing debt wisely is essential for long-term financial health. Here are some answers to key questions about credit scores, loan preparation, and debt repayment strategies—so you can make informed decisions with confidence.

A credit score is a three-digit number that shows how likely you are to repay borrowed money.

  • Range: 300–900

  • Based On: Your payment history, how much credit you use, how long you’ve had credit, the types of credit you have, and recent credit checks.

  • Loan Approval: Lenders use your score to decide if you qualify for loans, credit cards, or mortgages.

  • Interest Rates: Higher scores can mean lower interest rates and better loan terms.

  • Other Impacts: Your score can affect your ability to rent an apartment, get a cell phone, or even some jobs.

Access your Equifax consumer credit report and credit score at no charge at equifax.ca. Both your report and score are updated once per month. Accessing your TransUnion credit report with your credit score does cost money and is available as part of TransUnion’s subscription-based real-time monitoring service available at transunion.ca.

Your credit report is a helpful reference because it serves as the basis of your credit score. If you know how a credit score is calculated, then you know how to look for factors on your credit report that might be influencing your score for better or for worse. It’s also an easy way to look at account openings, account closings and what your repayment history looks like.

Debt servicing means making regular payments (principal + interest) on your debts.

  • Debt Service Ratio: Lenders look at what percentage of your income goes to debt payments.
  • Why It Matters: A high ratio can make it harder to get new loans.

  1. Check Your Credit Score: Know your starting point.

  2. Review Your Budget: Make sure you can afford new payments.

  3. Gather Documents: Income proof, ID, and details of existing debts.

  4. Make an Appointment: Connect with a Crossroads Credit Union advisor to set up an appointment.

PROS CONS
  • One monthly payment simplifies life
  • May extend repayment period
  • May lower your interest rate
  • Fees or penalties may apply
  • Can improve monthly cash flow
  • Does not fix overspending habits

Note: Debt consolidation works best if you avoid taking on new debt. Reach out to one of our advisors for advice tailored to your financial goals because everyone's financial situation is unique. 

  • Avalanche Method: Pay off debts with the highest interest rate first—saves the most on interest.

  • Snowball Method: Pay off the smallest debt first—quick wins can boost motivation.

  • Choose What Works for You: Pick the method you’re most likely to stick with.

Looking for in-person advice?

Stop by our Sturgis Advice Centre this Wednesday—because you deserve expert guidance for your financial goals! Our Advice-Only Days are all about you.

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