What you need to know about the first-time homebuyers savings account + MORE Apr 3rd

Money scripts impact our thoughts, feelings and beliefs about money. But did you know they were written for us generations ago? And not just by our parents, but our grandparents, great-grandparents, long-ago ancestors. Even cultural influences have a hand in writing them. When left unexamined, money scripts remain in the unconscious and can lead to behaviours that negatively impact our finances. And understanding them can help people improve their relationship with money, psychologists have found (more on the research later).

Like what? Here are some examples of damaging behaviours that are caused by unrecognized money scripts:

Overspending Avoiding reading financial statements, bank balances and credit card balancesExcessive savings, a.k.a. financial hoardingObsessing with the markets an actively day trading without thinking considering risk Spending money as a status symbolPutting work ahead of friends and family

Understanding your money scripts can be key to developing a healthier relationship with money and achieving your financial goals…

Kyle Prevost, editor of Million Dollar Journey and founder of the Canadian Financial Summit, shares financial headlines and offers context for Canadian investors.

Freeland fires again at Canadian Banks

There are several big-picture looks at the important aspects of the Canadian federal budget that was unveiled on Tuesday. For this week’s “Making sense of the markets this week” column, we’re focussing on two lesser-reported items buried in the details: A new measure aimed at Canadian banks, and another at corporate shareholders. (Read MoneySense’s full coverage of the 2023 federal budget.)

The 2023 federal budget and banks

If you’re a Canadian bank shareholder you may already be smarting from the hit you took in the last budget when the Canada Recovery Dividend was announced, and an extra 1.5% corporate tax was placed on banking and life insurance companies.

On Tuesday, Finance Minister Chrystia Freeland announced that the Income Tax Act would be amended, and that dividends received on Canadian shares held by Canadian banks and insurers would be treated as business income…

First home savings account (FHSA) highlights
The FHSA is a type of registered account that allows you to contribute up to $8,000 annually, up to a lifetime limit of $40,000, to save for the purchase of your first home.FHSAs are scheduled to become available as early as April 1, 2023. However, availability will vary by financial institution. Many are expected to launch their FHSA later in 2023. 

Canadians will soon be able to boost their savings for a down payment on a home with a new type of registered account. The first home savings account (FHSA) creates up to $40,000 in tax-free savings room for first-time home buyers who face barriers to entry into the real estate market. In this article, we’ll explain why the FHSA was created, how it works, and how you can maximize its potential—whether or not you’re saving for a home. (More on using it outside of home ownership later on.)

The best FHSA in Canada

Banks and other financial institutions can begin rolling out their FHSAs as early as April 1, 2023…