Biggest mistakes each generation makes with their finances

Financial mistakes by age

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The financial decisions you make (or don’t make) at each stage of life can have long-lasting consequences.

When it comes to personal finance, most mistakes aren’t made because people are reckless, they’re made because life is busy, priorities shift,and good intentions get delayed.

The financial decisions you make (or don’t make) at each stage of life can have long-lasting consequences.

Here’s a look at the single biggest money mistake Canadians tend to make at each age and how to avoid them:

In their 20s: Not starting at all

The biggest financial mistake people make in their 20s is doing nothing. Retirement feels impossibly far away, and saving often gets pushed aside in favour of travel, rent, and lifestyle spending. The problem isn’t that young adults don’t save enough, it’s that many don’t save at all.

How to avoid it: Start small, but start now. Even modest contributions to a TFSA or RRSP benefit enormously from compound growth over time. Automating savings, even $50 (or less) a month, is often more important than the amount you can put in up front.

In their 30s: Lifestyle inflation

As incomes rise, so do expectations. Bigger homes, newer cars, and more expensive habits often arrive just as family responsibilities increase. The mistake many Canadians make in their 30s is allowing spending to grow faster than savings.

How to avoid it: Pay yourself first. Increase savings whenever your income goes up, before expanding your lifestyle. This is also a critical decade to balance competing goals like childcare, housing, and long-term investing.

In their 40s: Ignoring risk and concentration

By their 40s, many Canadians have accumulated meaningful assets and that can lead to complacency. A common mistake is being over-concentrated in a single investment, employer stock, or real estate, without fully appreciating the risk.

How to avoid it: Review your portfolio for diversification and alignment with your goals. This is a good decade to stress-test your plan and ensure that a single market or job setback wouldn’t derail your financial future.

In their 50s: Waiting too long to plan for retirement

The biggest mistake in your 50s is assuming there’s still “plenty of time” to figure out retirement. This decade often includes peak earning years, but also the last real chance to make meaningful course corrections.

How to avoid it: Get specific. Know when you want to retire, what it will cost, and where your income will come from. Tax planning, pension decisions, and debt reduction matter more now than ever.

In their 60s: Making emotional decisions at retirement

Retirement is a major life transition, and emotions often drive poor financial choices. Some retirees panic and move everything to cash, while others overspend early without a clear income plan.

How to avoid it: Focus on income, not just investments. Understand how your RRSPs, TFSAs, pensions, CPP, and OAS work together. A well-designed drawdown strategy can be just as important as your investment returns.

In their 70s: Overlooking tax and estate planning

In their 70s, many Canadians underestimate how much tax can be triggered at death or how outdated their estate plans have become. This can result in unnecessary taxes, family conflict, or delays in settling an estate.

How to avoid it: Review your will, powers of attorney, and beneficiary designations regularly. Proactive tax planning, including strategic withdrawals and charitable giving, can significantly reduce the tax burden on your estate.

In their 80s: Avoiding financial conversations

The most common mistake in your 80s is silence. Many seniors avoid talking about money, health, or decision-making authority, often to avoid burdening family members. Unfortunately, this can lead to confusion, poor decisions, or vulnerability to fraud.

How to avoid it: Simplify and communicate. Consolidate accounts where possible, document key information, and ensure trusted individuals know your wishes. Clear communication is one of the greatest financial gifts you can give your family.
There’s no such thing as a perfect financial path but most money mistakes are preventable with timely action and honest conversations.

The earlier you address the biggest risk of your decade, the more options you’ll have in the next one.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.

While there's potential for higher returns, investing in private equities has its risks

Investing in private equities

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Because private equities aren’t traded publicly, they are harder to value and much harder to sell.

When people talk about investing, they’re usually referring to stocks, bonds, mutual funds, or ETFs—things that trade on public markets and can be bought or sold easily.

Private equity is different. It can sound exciting and sophisticated, but it also comes with risks that many everyday investors don’t fully understand. So, what exactly is private equity, and does it belong in your portfolio?

What is private equity?

Private equity involves investing in companies that are not listed on a public stock exchange. These are often growing businesses, family-owned companies, or firms that are being restructured. Instead of buying shares on the stock market, investors pool their money into a private fund that buys and manages these companies directly.

Because these investments aren’t traded publicly, they are harder to value and much harder to sell. When you invest in private equity, you are typically committing your money for many years.

Why some investors are attracted to private equity

One reason private equity gets attention is the potential for higher returns. If a private company grows significantly or is eventually sold or taken public, investors may see strong gains. Private equity returns also don’t move in lockstep with the stock market, which can help diversify a portfolio and potentially provide some downside protection.

Another attraction is access. Private equity can give investors exposure to businesses and industries that aren’t available through public markets, such as specialized manufacturing, private healthcare companies, or niche technology firms.

The main risks investors need to understand

The biggest risk with private equity is often illiquidity. Once your money is invested, it may be locked in for five or even ten years (or longer). If your financial situation changes or markets decline, you usually can’t get your money back easily—if at all. And while some people selling private equity offerings may convince you that their particular investment is fully liquid, you need to confirm if that can change at any time.

There is also valuation risk. Unlike public stocks, private companies don’t have daily market prices. Their value is estimated, which means returns can look smooth on paper even when the underlying business is struggling.

Fees are another concern. Private equity funds often charge high management fees and take a share of profits. These costs can significantly reduce what investors actually earn.

Finally, private equity investments are complex and less regulated than public markets. This increases the risk of poor governance, aggressive assumptions, or overly optimistic marketing.

Pros and cons at a glance

On the plus side, private equity can offer diversification, access to unique investments, and the potential for higher long-term returns. On the downside, it involves long lock-ups, higher fees, limited transparency, and a real risk of loss—especially if a company fails or a fund underperforms.

Key red flags to watch out for

Be cautious if an investment promises “stable” or “guaranteed” returns. Private equity is inherently risky, and no credible provider should suggest otherwise.

Watch out for pressure tactics, such as being told an opportunity is only available for a short time. Legitimate investments should allow time for questions, review and independent advice.

Lack of clear information is another warning sign. If you can’t easily understand how the investment makes money, how fees work, or how and when you might get your money back, that’s a problem.

How Canadians can invest more safely

For most Canadians, private equity should only ever be a small portion of a well-diversified portfolio—if it’s appropriate at all. Many professional financial planners suggest limiting alternatives like private equity to a modest percentage and only after core needs are met, such as emergency savings and retirement planning.

Investors can also reduce risk by accessing private equity through diversified funds rather than single deals, and by working with a qualified financial planner (CFP or QAFP) who understands both the product and their personal financial situation.

Private equity isn’t inherently good or bad—but it definitely isn’t simple. For the right investor, used carefully and in moderation, it may play a role. For others, the risks, costs, and lack of flexibility may outweigh the benefits.

As with any investment, understanding what you own—and what could go wrong—is far more important than chasing potentially higher returns.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.

Six simple moves to put you on a firmer financial footing this year

New Year's financial health

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You can make simple steps now to make 2026 a better financial year for yourself, says Brett Millard.

The start of a new year is a natural time to think about money, but instead of big resolutions on Jan. 1 that fade by February (or earlier), the end of January is a great goal line to take a few practical steps that can quietly put you on much stronger financial footing for the year ahead.

If you want 2026 to feel calmer and more predictable from a money standpoint, here are six moves worth considering now.

The first is rebalancing your non-registered investment portfolio. Many investors intentionally delay rebalancing late in the year to avoid triggering capital gains in the prior tax year. If that sounds familiar, January is the moment you were waiting for.

Rebalancing brings your portfolio back in line with your intended risk level after a year of market ups and downs. Left unchecked after a strong market year like 2025, portfolios can drift into taking more risk than you realize. Rebalancing now lets you reset with a clean slate and align your investments with your long-term goals.

Next, consider making an RRSP contribution well before the March 2, 2026 deadline. While you technically have until that day to contribute for the previous tax year, waiting often turns it into a rushed decision or one that never happens at all. Contributing earlier gives your money more time to grow and allows you to plan more deliberately around how much of a tax deduction you actually need. If cash flow allows, spreading RRSP contributions throughout the year can also make saving feel more manageable.

A third smart move is shifting some non-registered savings into your TFSA using the new $7,000 of contribution room that just opened up. TFSAs are often underused because people think of them as “extra” accounts. In reality, moving money from a taxable account into a TFSA can be one of the simplest ways to reduce future taxes. Once funds are inside a TFSA, any growth or withdrawals are completely tax-free. Even partial transfers each year can make a meaningful difference over time.

If you’re planning to buy your first home, move four is opening or contributing to a First Home Savings Account (FHSA). You’ve gained another $8,000 of contribution room, and the FHSA combines some of the best features of both RRSPs and TFSAs. Contributions are tax-deductible, and withdrawals for a qualifying home purchase are tax-free. Even if buying a home is still a few years away, getting started early gives you flexibility and more room to grow your savings.

Step five is less exciting but incredibly effective—start getting organized for tax season now. Waiting until April often means scrambling for documents, missing deductions, or paying more than you need to. Take time early in the year to set up a simple system for tracking income slips, receipts, donations, medical expenses, and investment statements. Being organized reduces stress and makes it easier to spot planning opportunities before deadlines sneak up on you.

Finally, try to avoid getting a tax refund in 2026 by estimating your income now and adjusting your withholdings if needed. While refunds feel good, they usually mean you overpaid your taxes throughout the year. By projecting your income, factoring in RRSP contributions and other deductions, and adjusting employer tax withholdings where possible, you can keep more money in your pocket each paycheque instead of lending it to the government interest-free.

None of these steps require dramatic lifestyle changes or risky decisions. Taken together, though, they can create a stronger, more confident financial foundation for 2026 and beyond, without the pressure of unrealistic New Year’s resolutions.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.

Key money takeaways from 2025 to strengthen your finances in 2026

Financial health check

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Financial success doesn’t come from predicting the future perfectly, it comes from adapting, building resilience and focusing on what you can control, says Brett Millard.

As we move into the second week of January, many Canadians are still taking stock of what the past year meant for their money.

While 2025 wasn’t without challenges, it offered some important lessons that can help households build a more stable and prosperous financial foundation in 2026.

Here are five key money takeaways from 2025 and how you can learn from them and do things differently this year:

1. Higher interest rates changed how debt really feels—Even as inflation showed signs of easing in 2025, interest rates remained elevated compared to what many Canadians were used to for years. Mortgage renewals, lines of credit, and credit cards became noticeably more expensive, and many households felt the squeeze. The lesson is clear: debt is not just about what you owe, but how sensitive your finances are to rate changes.

Going into 2026, consumers should focus on reducing high-interest debt first and stress-testing their budgets. Ask yourself, if rates stayed where they are for another year or two, would you still be okay?” If the answer is no, that’s a signal to prioritize debt reduction or refinancing where possible.

2. Cash finally mattered again—For much of the last decade, holding cash felt pointless because savings accounts paid almost nothing. In 2025, that changed. High-interest savings accounts and money market funds paid meaningful returns, reminding Canadians that cash has a role beyond emergencies.

The takeaway for 2026 is not to abandon investing, but to be more intentional about cash. Keeping a portion of savings accessible can help you avoid borrowing when unexpected costs arise and give you flexibility during uncertain times. A good starting point is to aim for a modest emergency fund and keep short-term goals out of volatile investments.

3. Market ups and downs rewarded patience, not perfection—2025 reinforced an old but important investing lesson: markets don’t move in straight lines. Many Canadians were tempted to react emotionally to short-term swings like the one we saw last April, while those who stayed invested generally fared better.

The key takeaway is that trying to time the market rarely works, especially for everyday investors. In 2026, focus on consistency instead of predictions. Regular contributions, diversification, and a long-term mindset matter far more than guessing what markets will do next month or next quarter.

4. Financial scams became more sophisticated—Scams continued to evolve in 2025, with fraudsters using artificial intelligence, realistic emails, and even fake voices to target Canadians. The lesson is that no one is immune, regardless of age or experience.

For 2026, protecting your money needs to be an active goal. Simple steps make a big difference: slow down before acting on urgent requests, never share verification codes, and double-check unexpected messages with a trusted source. Building a habit of pausing before you respond can prevent costly mistakes.

5. Financial stress is about confidence, not just income—One of the most important takeaways from 2025 is that financial stress affects people at all income levels. Many Canadians earning good incomes still felt anxious because they lacked clarity or control. The lesson here is that financial stability is as much about organization and planning as it is about dollars.

Heading into 2026, a powerful goal is to improve visibility: know what you own, what you owe, and where your money goes. Even simple tracking or an annual check-in with a financial professional can significantly reduce stress.

Looking back at 2025 shows that financial success doesn’t come from predicting the future perfectly. It comes from adapting, building resilience, and focusing on what you can control.

By applying these lessons, Canadians can move into 2026 with greater confidence and a stronger sense of financial stability.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.