The COVID-19 pandemic has many people justifiably worried. We have to consider our own health, the safety of the elderly and vulnerable, and the path forward in a very uncertain time. Nevertheless, a very urgent concern is also a familiar one: money. The pandemic has resulted in record levels of job loss and economic uncertainty. People are losing their income and savings without knowing when they will get them back. It is more important than ever to think about your finances. There are steps you can take to help lessen this impact and keep yourself afloat during this time.

Many companies find themselves facing an uncertain future without the regular flow of customers. This has resulted in numerous workers being laid off or having reduced hours. Canadians find themselves in a situation where they are without income but still have bills, rent, or a mortgage to pay. The Canada Emergency Response Benefit is one program designed to help, providing up to $2,000 monthly to those who lost work due to the pandemic. Employment Insurance is also still available. Additional benefits are being offered to businesses to help keep them afloat and their employees paid.

Investments and stocks have plummeted, impacting retirement funds and savings accounts across the country. Instead of withdrawing from these funds, Canadians strapped for cash can first turn to a line of credit and take advantage of low interest rates for a short-term loan. With current interest rates, people are more likely to take on brief loans to cover cashflow issues. This means tenants can negotiate with their landlord to have their rent payments deferred. Homeowners can request mortgage payment deferrals from the bank; this may result in additional interest, but this is nowhere near as problematic as failing to make a mortgage payment. Even credit card companies, notorious for their high interest, are offering forms of relief to customers such as reduced rates.

This is also the time to look at your own budget. The very nature of social distancing means more time at home, which entails less eating out and other activities that add up. Take the time to review your expenditures and decide what you can do without for the next while. Streaming services like Netflix are perfect for nights at home. But you might not need many of them, and can even share some accounts with family and friends to help them save. Take advantage of coupons and sales at the supermarket. It is great to support local businesses by getting take out or going to their websites, but limit it to what you can afford. Refrain from the temptation of excessive online shopping while stuck at home.

Widespread unemployment, decreased consumerism, and nosediving investments have all led to many people losing money during the COVID-19 pandemic. But you are not left without options! Take a look at government programs, deferred payments, and cost-saving measures that can help you and your family. By knowing the types of support that are available, you can try to ensure that money is not a major concern at this time. With one less worry off your plate, you can focus on time with loved ones and getting through this together.

Sources:

Friend, David. “Suddenly strapped for cash: Financial advisers on dealing with COVID-19 fallout.” CTV News. https://www.ctvnews.ca/health/coronavirus/suddenly-strapped-for-cash-financial-advisers-on-dealing-with-covid-19-fallout-1.4876280

Pope, Amanda. “Canadians will make and lose money amid the coronavirus outbreak: expert.” Global News. https://globalnews.ca/news/6655962/coronavirus-finances/

Robinson, Andrew. “People need to budget for COVID-19 pandemic, financial management experts warn.” The Telegram. https://www.thetelegram.com/news/local/people-need-to-budget-for-covid-19-pandemic-financial-management-experts-warn-435505/