Financial Planning

Investments for Post-Secondary Education

Post-secondary education costs are rising, and it’s important to start saving early to make the most of your money. Whether you’re saving for your own education or your child’s, there are a variety of investment options to help you reach your goal. FNBC can help you get started.

Term Deposits

Term deposits are a reliable investment that guarantees a set return over a fixed period. This makes them a great option when saving for a specific goal, like education.

• Short-Term vs. Long-Term: Short-term deposits require a higher initial investment but may offer a slightly lower return. Long-term deposits typically have a lower minimum investment and often provide higher interest rates over time.
• Interest Payout: Interest is paid monthly on any term longer than 90 days.

Term deposits provide a safe, predictable way to grow your savings over time. Start early, and watch your education fund grow!

The Cost of Education

With education costs on the rise, many students find it necessary to borrow money to cover expenses. At FNBC, we believe the last thing you should stress about before a big exam is how to afford another term. Fortunately, there are several financial solutions available, from government student loans to student-specific credit lines, to help you focus on your studies.

How Much Should You Borrow?

Before applying for a loan, it's crucial to make a budget.

• Calculate Your Expenses: Account for tuition, books, transportation, and living costs for the upcoming school year.
• Assess Your Resources: Determine how much you already have saved or expect to earn.
• Calculate the Difference: The difference between your expenses and your available resources is the amount you'll need to borrow.

Consider your repayment strategy too. Can you handle the loan terms and monthly payments once you graduate? If not, explore other financing options or ways to reduce your total costs.

Borrowing Options

• Government Student Loans: These often offer the best terms, with no payments or interest due until after graduation. Plus, if you qualify, you may only have to repay a portion of the loan.
• Student Line of Credit: If you’re ineligible for a government loan, a student line of credit can cover your expenses. Though the terms aren’t as favorable as government loans, they are generally better than personal loans.

Explore your options early to find the best way to fund your education and avoid financial stress.

Student Accounts

Whether you're funding your education with student loans, working hard to save, or juggling a part-time job while studying, we're here to help you find the right financial solutions to make your life easier.

Benefits of a Chequing Account

A chequing account provides easy access to your money and makes managing your finances simpler.

• Convenience: Use cheques or debit cards to pay for tuition, textbooks, and rent – safer than carrying cash and helps track your spending.
• Record Keeping: It’s easier to monitor your expenses with a chequing account than with cash.

While a chequing account is essential, don’t forget to keep a savings account for emergencies. Even a small amount saved regularly can make a big difference over time.

The Importance of Credit

Building a solid credit history is crucial for future financial goals. Here's how to start:

• Credit Cards: Used responsibly, they can help you build your credit score and give you a safety net in case of emergencies.
• Lines of Credit: If you need funds for big expenses like a new computer or extra tuition costs, a student line of credit can give you the flexibility you need.

At FNBC, we want you to focus on your studies, not your finances. Let us provide the tools to keep your financial life stress-free.

• Think through all options: If buying a new car isn’t in your budget, a used car might be the perfect solution. Whether purchasing from a dealer or a private seller, proceed with caution.
• Do your research: Compare prices, and take your time. Since most of us aren’t car experts, it’s wise to have a licensed mechanic inspect the vehicle after your test drive to avoid any costly surprises.

Lease or Finance

That new car smell is tempting, but many of us don’t have the cash to buy outright. The next choice is whether to lease or finance.

• Leasing: Leasing offers the benefit of driving a new car with lower monthly payments. However, you won’t own the car, and leases often come with restrictions and penalties, so read the fine print carefully before committing.
• Financing: Financing typically means higher monthly payments, but the upside is that, eventually, the car will be yours.

Whatever route you choose, factor in all costs, including maintenance and insurance. Make sure the car suits your needs, fits your budget, and is something you’ll enjoy driving for years to come.

Financial Preparation for Home Buying

When buying a home, understanding your financial situation is key. Here’s what to keep in mind:

Pre-Approval Benefits

• Defines your price range, simplifying your search.
• Strengthens your offer by showing vendors you’re financially prepared.

Choosing a Mortgage

• Fixed Rate: Predictable payments, ideal for stable incomes.
• Variable Rate: Flexible, but may fluctuate with interest rates.

Down Payments and High-Ratio Mortgages

• If your down payment is less than 20%, you’ll need a high-ratio mortgage.
• Mortgage insurance is required for high-ratio mortgages, approved by organizations like CMHC.

By planning ahead, you’ll be ready to make confident financial decisions when purchasing your home.

Protecting Your Investment Through Renovations

Renovations can enhance your home’s functionality, comfort, and value. Here’s how to approach them effectively:

Benefits of Renovating

• Repairs: Address necessary maintenance like roofing or siding.
• Upgrades: Improve insulation, mechanical systems, or add modern finishes.
• Expansions: Create additional living space with extensions or basement conversions.

Planning is Key

• Start with thorough research and planning.
• Confirm your plans meet local zoning regulations and building codes.
• The saying “measure twice, cut once” applies—careful preparation saves time and money.

Hiring the Right Help

• For small tasks, DIY may suffice if you have the skills.
• Larger projects often require certified tradespeople or a professional renovator.
• Consider a full-service renovator to handle permits, planning, and supervision.

Managing Costs and Financing

• Get at least three estimates from qualified contractors.
• Budget for an extra 10–15% to cover unexpected expenses.
• Explore financing options, such as renegotiating your mortgage or applying for a personal loan.

At FNBC, we’re here to help you finance your renovations and protect your investment.

• Make Repairs: Fix anything in disrepair to boost appeal.
• Deep Clean: Present a spotless home, inside and out.
• Highlight Key Features: Showcase what made you fall in love with the home—it might attract buyers too.

• Stage Effectively: Arrange furniture and decor to maximize space and appeal.
• Maintain a Welcoming Atmosphere: Ensure your home feels inviting during showings.

• Review the Offer: Offers include the bid amount and any conditions from the buyer.
• Make a Decision: Accept, reject, or counter the offer. Remember, accepting an offer legally binds you to its terms.
• Avoid Rushing: Take the time to secure an offer that meets your financial goals and family’s needs.

• Consider all your assets: Take stock of all your assets, from real estate to insurance policies, and decide how you want them distributed.
• Understand all your options: Consider strategies like gifting assets or setting up trusts to minimize taxes, but be aware of the tax implications for your beneficiaries.