It’s that time of year again, where pricey cold-weather repairs and other costs can start to pop up (surprise!). But don’t worry, because Capital One Canada is here to help, with tools and resources to stay ahead of those cold weather expenses.
Winter is on its way—and so are some sneaky seasonal expenses. In theory, this time of year should be easier on your wallet than, say, summertime, when travel, patios, and cute new outfits compete for your hard-earned coin. Winter is more about hunkering down, staying in and re-allocating that sunscreen budget towards hot chocolate at home, right?
Well, not quite. As the cold weather sets in, there’s a whole host of expenses that can crop up, like snow tires or winter-required car repairs, for example. Even staying in can come with its own costs, from home renos to make your nest a little cozier to food deliveries when it’s simply too cold to schlep to the grocery store.
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As we head into the winter season, of course, those costs are exacerbated by inflation, which has seen the prices for practically everything increase, sometimes quite dramatically. This can create anxiety and put stress on our finances as the temperatures plunge.
Recently, Capital One Canada commissioned a survey of more than 1,500 Canadians and found some eye-opening stats. For example, nearly half (49 per cent) of those surveyed said they don’t have an emergency fund—meaning they would have to borrow money to cover an unexpected winter expense of more than $500 if it cropped up.
The lack of such “just in case” funds was pretty common across income levels, by the way: The survey revealed that 56 per cent of people living with an income of $60,000 or below don’t have an emergency fund, while approximately one third (33 per cent) of people who earn over $100,000 don’t have one either.
And those surprise cold-weather expenses are not as atypical as you may think. According to the survey, over half of Canadians have had to deal with at least one over the past five years, with home and car being the most common expenses
Also super common? Worrying about one of those winter expenses popping up out of the blue: 68 per cent of people without an emergency fund say they would feel anxious about an unplanned cold weather expense. Even among those with emergency funds stashed away, it’s still a stressful thought for 45 per cent of these folks.
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So, what can be done about this? As with many things personal finance related, it’s a combination of small steps. Capital One Canada, which has provided over 4 million Canadians with access to credit, has a great guide on how to start building up your emergency fund.
For example, you can begin by just saving incremental amounts at a time, like keeping the spare change when you’ve paid for something in cash. Put that money into a high-interest savings account, allowing it to grow while it’s sitting there.
If a surprise winter expense strikes before you’re able to do that, however, credit can be a valuable tool to help you weather this storm, especially when used in conjunction with other healthy personal finance habits, like budgeting and saving for your money goals.
Working to build your credit score is also a great idea, it’s a key metric for longer-term financial goals, and used for things like getting approval for a car loan, a mortgage or an apartment rental. Not sure what your credit score is right now? Capital One Canada has a free, secure tool at creditkeeper.capitalone.ca that lets you check instantly.
And if you’re interested in getting access to credit through Capital One Canada, their free Quick Check tool at capitalone.ca/quickcheck also allows you to find out which of their credit cards you’ll be approved for—before you actually apply*—with no impact to your credit score.
It’s just another way you can financially prepare for those unexpected winter expenses. Now, who’s up for some tobogganing fun?
This content was created by The Kit; Capital One Canada funded and approved it.
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*Conditions and limitations apply.
Capital One Canada commissioned an online omnibus survey through Leger. Leger fielded an online survey of 1,502 adults across Canada in September 2023.
