Money Honey

[KayaTran]

Be a Smart Saver
Whether you're saving money for a house down payment or putting it away for emergencies, high-rate savings account from alternative banks like ING Direct, ManuLife Bank and Citizens Bank of Canada are essential, as they pay far more in interest than most big banks.

Watch Those Credit Cards
They're a great way to generate reward points for travel, and to defer payments on big purchases for a few weeks. But at an average 19 percent interest, credit cards are the absolute worst ways to carry debt. If you have a card balance, make it your top financial priority to beat it down to zero.

Exploit Registered Retirement Savings Plan(RRSPs)
You don't have to "max out" with your contribution every year, but failling to take advantage of the one great tax shelter available to all Canadians is sheer financial negligence. Banks, brokers and financial advisers can help you manage your RRSP, or you can save on fees and go it alone using a discount broker.

Guard Your Credit Rating
To ensure credit when you want it, and at the best possible rates, avoid making late payments on credit cards, bouncing cheques and falling behind on loans. Also, check the accuracy of the data in your credit file (mistakes aren't uncommon) by contacting Equifax Canada(equifax.ca). If you're a woman who has cards under her husband's name, develop a credit rating of your own.

If you have kids, get a registered education savings plan (RESP)
When you put up to $2,000 per year in an RESP, you're eligible for a matching 20 per cent government grant. These plans are virtually mandatory for parents when you consider what it will cost to put kids through University or College in the next 20 years.

April 2006, Chatelaine