The COVID-19 pandemic has taken a heavy toll on the Canadian economy, and many of us are experiencing financial stress from mounting bills, reduced incomes, and job uncertainty. Here are some tips to manage your finances and reduce your stress during the COVID-19 pandemic:

1.  Understand and access government assistance

Under the federal government’s COVID-19 Economic Response Plan, workers and businesses may be eligible for financial assistance including:

• Canada Emergency Response Benefit (CERB) to eligible workers who have lost their income due to COVID-19.
• A one-time Goods and Services Tax credit (GSTC) doubling the payment to approximately $400 for singles and $600 for couples, for low- to mid-income families.
• Parents will receive an extra $300 per child in the Canada Child Benefit payment amounts, applicable for the 2019/2020 benefit year.
• Canada Emergency Student Benefit (CESB) to students and recent graduates who are unable to work, or unable to find work, due to reasons related to COVID-19.
• A six-month interest-free moratorium on the repayment of student loans.
• Mortgage payment deferral
• Extra time to file your income tax return
• A one-time tax-free payment of $300 for seniors eligible for the Old Age Security (OAS) pension, with an additional $200 for seniors eligible for the Guaranteed Income Supplement (GIS).
• Reduced minimum withdrawals for Registered Retirement Income Funds by 25 per cent for 2020.
• Temporary extension of GIS and Allowance payments if seniors’ 2019 income information has not been assessed.

2.  Build a budget and adjust your spending for reduced income

If you don’t have a budget, now is a good time to put one together. Know where your money goes. Separate your needs from your wants and eliminate non-essential spending. Discuss short-term changes to your repayment schedule for existing debt with your lender.

Be on the look-out for programs that are offering lower rates, deferred payments, and flexible payment plans to assist people who are experiencing financial hardship because of COVID-19. Telecommunication providers, such as Bell, Rogers and Telus, have removed data caps on internet and data plans, and waived cross-country long distance and international roaming fees. They are also offering flexible payment plans and will not suspend services for those unable to pay bills. For those with travel bookings, some airlines, travel companies, and hotels are providing credits, refunds on service fees, and in some cases, full refunds.

Speak with your bank. Not only are they offering deferrals of mortgage payments for up to six months for certain customers, they are also providing relief on credit products, including loans and credit cards.

Finally, determine what additional bills you can eliminate. These may include subscription fees to digital and other services and monthly donations.

3.  Manage your savings

You may need to tap into your emergency savings. If so, do so strategically. Start with cash and TFSAs, since there are no tax implications. Tapping into RRSPs or non-registered tax investments should be your last resort. Which accounts to tap into first will depend on your individual tax situation. Lastly, if you are considering a loan, look for those with the lowest interest rate and most flexible terms, such as a line of credit, and avoid expensive payday loans.

After health and family, finances will be the biggest concern for many Canadians. As we  work through this extraordinary time, be calm, keep a clear mind, and assess where you are right now and prepare for what may come.