Let’s Talk Money

Let’s Talk Money!

We’re breaking down the essentials of personal finance to help you make confident, informed decisions. From budgeting and saving to credit management and future planning, we’ll highlight the key green flags that signal financial health—and the red flags that could spell trouble. By learning to spot these signs early, you can stay on track, avoid costly missteps, and build a stronger financial future.

Red Flag #1: Being uncertain about whether incoming e-Transfer emails or texts are real.

You are having trouble determining whether e-Transfer notifications via email or text message are legitimate - putting you at risk of missing real deposits or falling victim to fraud.

Green Flag #1: Enabling Auto deposit, reducing exposure to phishing or fraudulent notifications.

Setting up auto deposits helps reduce your funds' risk of being intercepted by fraudsters. It takes the onus off you to verify the legitimacy of email or text notifications. It also offers additional benefits, such as greater convenience and faster access to funds. This can be set up directly through Sunrise’s online banking and the Sunrise Lite App.

If you are unsure of an email, check the email address. Does it look like it is from a creditable source? Is everything spelled correctly?

Red Flag #2: Avoiding conversations about money with your kids.

Some parents avoid talking about money with their kids—whether out of discomfort or the belief that they’re not ready. But staying silent can lead to poor financial habits for them later in life.

Green Flag #2: Discussing money openly with your children from a young age.

Teaching your kids good money habits doesn’t have to be complicated and can set them up to become financially responsible adults. Even simple discussions—like explaining why you're choosing not to buy something or showing them how to save for a goal—can build a strong foundation for lifelong financial wellness. The ideal time to start teaching your children about money is when they are in the second or third grade according to the Child Mind Institute. If you are not sure where to start, visit our blog on talking to your kids about saving.

Red Flag #3: Impulsive spending on unnecessary items.

Frequent impulse purchases, particularly of unnecessary items, can be a sign of poor financial management. This habit may lead to challenges in saving for long-term goals and retirement.

Green Flag #3: Waiting 24 hours before acting on your impulse to make a purchase.

Introduce yourself to the rule of 24 hours. Before making any expensive purchases - or even a smaller one that’s more of a want than a need—give yourself a full 24 hours to think it over. If you still feel good about the decision after a day, make sure you also take the time to compare prices and read consumer reviews before you buy. When reading reviews, ensure you are reading ones that are written by verified buyers – individuals the website confirms that have actually purchased the item they are reviewing. Then you know you are getting honest, firsthand feedback you can trust.

Red Flag #4: Relying only on family, friends, or the internet for financial advice.

While it's natural to turn to friends and family for advice — or to do a quick internet search when you're unsure—relying exclusively on these sources for financial advice can lead to costly mistakes.

Green Flag #4: Consulting a financial professional for financial advice.

As the saying goes, don’t believe everything you read on Facebook – especially when it comes to your hard-earned money. We encourage people to have financial conversations with family and friends and learn from their experiences, but it is recommended to always be sure to get advice from trusted, credible sources. Everyone's financial situation is different, and what worked for someone else may not be right for you. Similarly, online advice can be generic, outdated, or even incorrect. When it’s time to act or build a financial plan, turning to a qualified professional can make a big difference. Having an expert assess your situation and tailor a plan to your goals is one of the smartest financial moves you can make. Get started today with a Sunrise Financial Advisor.

Red Flag #5: Saving only what’s left at the end of the month.

If your savings plan is to see what's left in your account at the end of the month, chances are there's nothing left – making it hard for your savings account to grow.

Green Flag #5: Setting aside savings as soon as money is received.

We all talk about wanting to save money – now it’s time to turn that intention into action! Before you pay bills, buy groceries or spend a single dollar of your pay cheque - pay yourself first.. You can transfer money manually or set up an automatic transfer that moves a set amount from your chequing to your savings account on payday—or any day you choose. The amount can be whatever you are comfortable with - $100 is great, but smaller amounts can also add up over time. Check out our blog post on paying yourself first.

Red Flag #6: Not thinking about retirement savings and future income.

Uncertainty about retirement savings. You are unsure about how much you’ve set aside—or what kind of income you can expect when you retire.

Green Flag #6: Maintaining a detailed retirement plan.

Let’s be honest, counting on a lottery win isn’t exactly the most solid retirement plan. A better idea is putting together a simple, realistic plan that shows your savings, where your income will come from when you retire, and how much you’ll need each month to live comfortably. It doesn’t have to be complicated - just clear and doable. Learn more with our blog about boosting your retirement savings.

Red Flag #7: Not creating a budget or track expenses.

Not fully understanding how to create a budget, track expenses, or manage financial goals effectively can leave you in a financial and stressful mess.

Green Flag #7: Tracking expenses and managing a budget regularly.

Knowing where your money goes, even the small stuff, makes you more mindful. A budget isn't a punishment; it's a plan. To get started, we recommend tracking your expenses for two months to see where your money is going. You can use a notebook, spreadsheet or a budget tracking app on your mobile device. For more tips check out our blog on budgeting.

Red Flag #8: Not keeping an emergency fund.

The purpose of an emergency fund is to have quick access to cash in the event of an emergency. Not having one can result in panic borrowing or financial chaos when things go sideways.

Green Flag #8: Maintaining an emergency fund with 3–6 months of living expenses.

Having an emergency fund included in your budget is a smart idea! It is recommended to have 3-6 months' worth of core living expenses in an emergency fund. When you are first starting, set smaller, more achievable goals like $500. When you reach that goal, aim for $1,000. Setting weekly or monthly contribution goals can help you stay consistent and build that safety net over time. Read more about emergency funds with this blog.

Red Flag #9: Overspending to keep up with friends.

Trying to match a flashy lifestyle - especially when it’s fueled by credit cards and debt - can lead to serious financial stress and problems down the road.

Green Flag #9: Living within your budget and avoiding unnecessary debt.

Living within your budget and steering clear of unnecessary debt shows real financial discipline. It might not be flashy, but making smart spending choices now sets you up for long-term stability and peace of mind. This is another reason why setting a budget will keep you in line with your financial goals.

Red Flag #10: Frequently missing bill payments.

Frequently missing bill payments can lead to consequences such as late fees, increased interest rates, a lower credit score, and accounts being sent to collections.

Green Flag #10: Scheduling bill payments through your online banking.

There are steps you can take to ensure that you don’t miss those due dates! You can set up automatic payments or use a bill tracking tool to stay on top of your bills. If you find that you are running short each month, try tracking your spending and identify where you can cut back – especially on non-essentials. When you have limited funds, prioritize your essentials first, such as rent or mortgage, groceries, and utilities. Learn more tips with our blog on managing your bills.

Red Flag #11: Maxing out credit cards or having ongoing credit card debt.

Doing this can lead to high interest rates and fees, poor credit scores, and falling into debt traps, such as only paying the minimum amount or using one card to pay off another.

Green Flag #11: Maintaining low credit card balances relative to limits.

Using a credit card responsibly is key to building healthy financial habits. Missing payments can hurt your credit score and lead to interest charges. Try to only use a small portion of your available credit limit and aim to pay off your balance in full each month. If you find it hard to manage your spending with a credit card, consider switching to a prepaid one where you are only spending the funds that you have loaded on the card. These cards can be used practically anywhere a credit card is accepted. Check out our blog to help you figure out which card is the best fit for your needs.

Red Flag #12: Hiding money problems from your partner.

Avoiding talking about finances with your partner may indicate discomfort, secrecy, or a lack of planning.

Green Flag #12: Discussing finances openly with your partner.

Healthy relationships thrive on open communication – and that includes talking about money. Try and make it a habit to regularly check in with your partner about your finances. Whether it’s budgeting, saving, or planning for future goals, being on the same page financially can strengthen your relationship and reduce stress. Don’t let money be the elephant in the room.

Red Flag #13: Living beyond your means.

If you are constantly buying things that don't align with your income, it might be time for a reality check.

Green Flag #13: Spending less than you earn and budgeting effectively.

Living within your means is about developing a mindset that focuses on spending less than what you earn. Learn to distinguish between things you need, things you want and savings. The 50-30-20 rule recommends 50% of your money toward needs (those are your bills, groceries, etc.), 30% toward wants and 20% toward savings. And as always, a budget is a great tool! Read more about budgeting here.

Red Flag #14: Not following a budget, overspending, or neglecting savings.

Bad money habits that include not sticking to a budget, not spending wisely, maxing out your credit card, and not saving for the future.

Green Flag #14: Maintaining consistent money habits like budgeting and saving.

Establish smart money habits for less stress and a brighter future. Begin by setting financial goals that are not only realistic but also achievable. These will motivate you to stay on track. Create an easy-to-follow budget so you know where your money is going and this will help keep you from overspending. To make saving easier, set up automatic transfers from your chequing account to your savings account. Check out this blog to learn more about setting financial goals.

Red Flag #15: Turning a blind eye to financial scams.

Fraudsters are constantly evolving—and they’re counting on people to stay uninformed. Believing you're immune to scams only makes you more vulnerable.

Green Flag #15: Keeping yourself aware of current scams.

In a world with constant access, it is a good idea to ensure that you stay aware and safe from fraudsters. There are many different types of scams out there ranging from promises of unexpected financial gains to buyer-seller fraud, threats, and extortion. Check out our blog on this topic and learn how to keep you and your money safe from the four most common scams.

By developing healthy financial habits, you can reduce both financial and mental stress, helping you move toward a more secure and confident financial life.

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