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Start Saving Now for September: Your RESP Checklist Before the School Year Hits

  Canadian Money Brief · Family Finance September feels a long way off on July 1. That's exactly why now is the right time to look at your child's RESP — not in late August when the school supply list arrives and the grant math gets rushed. If you have a Registered Education Savings Plan (or you've been meaning to open one), here's what to check right now, and why the calendar year — not the school year — is what actually matters. Why July, Not August The Canada Education Savings Grant (CESG) — the government's 20% match on RESP contributions — runs on the calendar year , not the school year. Grant room for 2026 resets on a January-to-December basis, and it doesn't carry any special "back to school" deadline. But summer is genuinely the best time to check your numbers, for three reasons: You still have six full months left in the year to top up if you're behind. Contributions made now have more time to grow before your child needs the money. You av...
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Stock Markets: How High Interest Rates Are Hurting Bay Street

                                                    

Bay Street, the financial heart of Canada, is facing a tough challenge as interest rates rise and stock sales slow down. The Bank of Canada has raised its key interest rate four times since July 2020, reaching 1.75% in October 2023. This has made borrowing more expensive for businesses and consumers, dampening the demand for stocks and other riskier assets.

According to data from Bloomberg, equity offerings in Canada have fallen by 32% in the first nine months of 2023 compared to the same period last year. The total value of stock sales was $23.4 billion, the lowest since 2016. The decline was especially sharp in the energy and mining sectors, which have been hit hard by lower commodity prices and environmental regulations.

Some analysts expect the slowdown to continue for the rest of the year and into 2024, as the Bank of Canada signals more rate hikes to curb inflation and cool down the overheated housing market. This could put more pressure on Bay Street firms, which rely on fees from underwriting and advising on stock sales to generate revenue.

However, not all is gloomy for Bay Street. Some sectors, such as technology and health care, have shown resilience and growth potential amid the pandemic and the economic recovery. Some companies, such as Shopify and Lightspeed, have raised billions of dollars in secondary offerings on U.S. exchanges, boosting their valuations and profiles. And some investors, such as pension funds and private equity firms, are still looking for opportunities to buy undervalued or distressed assets in Canada.

The challenge for Bay Street is to adapt to the changing market conditions and find new ways to serve its clients and attract capital. The future may not be as bright as it was before the pandemic, but it is not as dark as it may seem either.


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