2026 is already in sight, and as the year winds down and we get ready to enjoy the holidays, now’s a great time to ensure your finances are in shape for the New Year. In this blog post, we’ll share five end-of-year financial best practices to help you end 2025 in the right way, and start the new year strong.
1. Families: strategize RESP contributions and grants
RESPs are Registered Education Savings Plans, and they’re a great way to save for your children’s futures. Every child gets a lifetime RESP contribution limit of $50,000 and there’s no annual cap, so you can contribute as much or as little as you like. However, strategic contributions are important if you are to maximize the various government grants available. The Canada Education Savings Grant (CESG) will match 20% of the first $2,500 contributed to your child’s RESP annually, giving you a potential $500 bonus each year up to the lifetime maximum of $7,200 per child.
Eligible low-income families can also benefit from the Canada Learning Bond (CLB), which offers up to $2,000 whether you’re able to make contributions or not.
Top tip: If you’re able, contribute at least $2,500 per child per annum to maximize CESG matching. The deadline for grants is December 31 each year.
2. Maximize your RRSP contributions
Any money you contribute to your Registered Retirement Savings Plan (RRSP) is deductible from your total income, helping to reduce your tax bill or increase your refund. The RRSP limit for 2025 is 18% of the prior year’s earned income, up to a total of $32,490. The deadline for 2025 RRSP contributions is March 2, 2026, but any unused room will carry over indefinitely. If you’re unsure whether contributing to your RRSP or TFSA is the best use of your savings, you can use our TFSA vs RRSP calculator to find out which option works best for you.
Top tip: A spousal RRSP can help you better balance your income split to minimize your tax burden in retirement.
3. Contribute to your TFSA
A Tax-Free Savings Account (TFSA) is a great way to grow your savings without paying tax on interest or withdrawals. This year’s deadline to contribute to your TFSA is December 30, and there’s a contribution limit of $7,000. However, if you haven’t met the contribution limit each year since the TFSA scheme was implemented, then you’ll have cumulative room. If you’ve never contributed since the scheme started in 2009, them that cumulative room represents a total of $102,000. Make sure you’re maximizing your contributions each year to make the most of all that tax-free interest.
Top tip: As you don’t pay tax on withdrawals, TFSAs are great for short-term goals, or as a flexible investment account alongside your RRSP.
4. Build an emergency fund
An emergency fund is a pot of savings you can dip into if something goes awry. A job loss, auto or home repairs, medical bills or some other unforeseen event — there are all kinds of reasons why you might need an emergency fund, and yet one in three Canadians lacks sufficient emergency savings to cover even three months of expenses. Use the turn of the year as an opportunity to look at your savings in light of your current expenses. How much do you have, and how far will it go?
Top tip: You should aim to have 3–6 months of expenses set aside as an emergency fund. Use a High-Interest Savings Account (HISA) to maximize your interest.
5. Review your insurance plans
Preparing for a rainy day isn’t just about saving. Insurance plans can help to safeguard your family, your business, and yourself against unforeseen events. The year-end is a great time to review your insurance plans, including:
- Life insurance
- Health insurance
- Disability insurance
- Home/property insurance
And if you’re a business owner:
- General liability insurance
- Commercial property insurance
- Business interruption insurance
Top tip: Your personal or professional circumstances may have changed over the course of the year, so make sure the terms of your existing policies are working for you: the amount you’re covered for, your deductible, your premium, and other variables.
New Year’s Eve may be fast approaching, but there’s still plenty of time to put these end-of-year financial best practices into action before the year is out. If you’d like support getting your finances into shape for 2026, book an appointment with a Coast Capital advisor today.
This article is provided for general information purposes only. It is not to be relied upon as financial, tax, or investment advice or guarantees about the future, nor should it be considered a recommendation to buy or sell. Information contained in this article, including information relating to interest rates, market conditions, tax rules, fees, and other investment factors are subject to change without notice and Cost Capital Savings Federal Credit Union is not responsible to update this information. All third party sources are believed to be accurate and reliable as of the date of publication and Coast Capital Savings Federal Credit Union does not guarantee accuracy or reliability of such sources. Readers should consult their own professional advisor for specific financial, investment, and tax advice tailored to their needs to ensure that individual circumstances are considered properly and action is taken based on the latest available information.
