The holiday season can be the happiest time of the year, but it can also challenge your wallet with the added financial pressures of gift-giving and celebrations. To help make sure you wrap up 2025 on a strong note and step confidently into the new year, here are our top 10 year-end financial tips for credit union members in Ontario.
1. Review Your 2025 Financial Goals
Take a moment to reflect on your progress toward 2025 financial goals, whether they involve savings, debt repayment, or investments. Now is the time to identify areas for adjustment, such as topping up your emergency fund or planning for 2026 goals. It might be a good time to set up an automatic savings plan (ASP). An ASP allows you to automatically transfer a set amount of money into your savings account at regular intervals, making it an effortless way to grow your savings without having to think about it.
2. Maximize Your Tax-Advantaged Accounts
While the Registered Retirement Savings Plan (RRSP) deadline is March 2, 2026, assess your contribution room now to plan effectively to reduce your taxable income. Consider moving year-end bonuses or extra savings into a Tax-Free Savings Account (TFSA) to benefit from tax-free growth, or to a First Home Savings Account (FHSA) if you’re saving for a downpayment on your first home. For members with children or dependents, contributing to a Registered Education Savings Plan (RESP) or Registered Disability Savings Plan (RDSP) before December 31 can maximize government grants.
Pro tip: Make sure you have available contribution room for 2025 before moving funds into your registered accounts. Overcontribution can result in costly penalties when tax season rolls around. Speak with your financial planner to get personalized advice on the savings strategy that’s right for your circumstances and goals.
3. Make Charitable Donations Before December 31
By donating before year-end, you can qualify for 2025 federal and Ontario tax credits. Consider supporting local charities or non-profits that are helping to support the well-being of your community. Make online donations for fast, trackable records.
Pro tip: You can claim some or all of the credits for 2025 or carry forward any portion for up to five years, to maximize your tax savings. Speak with your financial planner or tax advisor to see if this strategy is right for you.
4. Use Remaining Employee Benefits or Health Spending Accounts
Many benefit plans reset on January 1, so now is the time to book that massage or get new glasses. If you haven’t already, be sure to read through your employer’s benefits information booklet to check what’s covered under your plan. You may have coverage for vision, dental and paramedical service providers (such as registered massage therapists, chiropractors and more), as well as some medical supplies and devices. If you have a Health Spending Account (HSA) through your employer, you may be able to get reimbursed for a wider range of expenses. It’s a good idea to read through your coverage and check your balances to ensure you’re fully utilizing these benefits.
You may also be able to claim eligible out-of-pocket medical expenses on your tax return. Visit the Canada Revenue Agency (CRA) website to find out more.
5. Review Household Bills and Budget
Review your household budget to make sure your money is flowing to the right places. Our free budget worksheet is a great place to start – it’ll help you get a sense of your expenses vs income, and identify areas where you might be spending more than you thought.
While some bills are non-negotiable, it’s worth exploring if you can reduce any monthly expenses. Compare home and auto insurance rates, as Ontario premiums can vary widely. It’s also a great time to review your subscription services, which tend to add up throughout the year. A great tip is to subscribe to one entertainment streaming service per month – when you’re ready for a new set of shows, cancel and subscribe to another one next month!
6. Pay Down High-Interest Debt Before Holiday Bills Arrive
It’s no secret that credit cards have high interest fees. If you’re carrying a high balance on one card, or balances on multiple cards, it may be worth exploring consolidating your card balances into a lower-interest loan or line of credit. You’ll pay down your debts faster by paying less interest; plus, you’ll only have to make one payment each month. Setting up an automatic payment for at least the minimum payment will ensure you avoid late-payment fees.
7. Check Your Credit Report and Score
Checking your credit report every year helps you catch identity-theft signs early, correct errors that could lower your score, and protect your ability to borrow at good rates. Regular annual checks ensure your information stays accurate and your financial health remains strong. In Canada, you can request your free credit report directly from Equifax Canada or TransUnion Canada.8. Use or Redeem Loyalty Points and Rewards
Check the expiry dates on your points and rewards through loyalty programs or credit cards. Some programs expire their points at the end of the year. Use up your points to help with holiday purchases and travel to avoid losing value. If you have any gift cards at the bottom of your drawer, be sure to check the expiry dates on those, too.
9. Organize Financial Documents for Tax Season
Make tax season a breeze next year by getting organized early. Create a digital folder for important receipts from this year, such as charitable donations and eligible medical expenses. In the new year, you can add other tax documents such as your T4 from your employer, T5 from investments, and so on. When April rolls around, you’ll be prepared!
10. Book a Year-End Financial Check-In
Managing your finances can be challenging – but the good news is, you don’t have to do it alone. As a Kawartha member, you’re able to take advantage of our complimentary financial planning services. Our advisors will take the time to understand your finances and help develop a plan to ensure you reach your short-term and long-term goals – including support with budgeting, borrowing, investing, retirement planning and so much more. We’re here to help you every step of the way.
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