The reality is that raising children in Canada has become difficult for many middle-income families. That’s because the cost of living in many cities has become insanely expensive. In fact, your rent or mortgage will often be your largest expense.

The idea behind this post is to give you an average cost of what you’ll spend as a new parent in Canada. That said, if you’re American, many of the rough estimates will also apply. Regardless of if you’re a new parent or thinking about having a child, here are some of the costs to consider when raising a child.

Housing costs

When budgeting for a baby, many people forget to consider housing costs. It doesn’t matter if you’re renting or have mortgage payments; your childcare costs can be significant based on where you live. Major cities such as Toronto and Vancouver have high rent and housing costs. If you live in rural areas or smaller cities, your housing costs may drop, but then you may spend more in other areas.

The cost of housing will always be a concern. Families that grow may require more space, which typically means higher costs. Plus, moving can be expensive. You’d also have to spend more on utilities.

Maternity employment insurance

Maternity leave in Canada covers up to 15 weeks. You can take this paid leave during your pregnancy or after you give birth. After your maternity benefits run out, you can take standard parental leave up to an additional 40 weeks or 69 weeks for extended parental leave. During this time your employer must save your position, and if you’re lucky, they’ll offer some kind of top-up, but if not, maternity employment insurance will help you get by. Employment insurance is meant to replace 55% of your weekly earnings up to a maximum of $650 a week.

Those taking extended leave only get an income replacement of 33% up to a maximum of $390 a week. You’ll hit the cap if your salary is $61,500 or more. To make matters worse, the income is taxable.

Most couples choose to take the leave one after the other, but you could take it simultaneously if you wanted. Whoever has the better top-up benefits should take more time off, but try telling that to the woman who just carried and delivered a baby.

Start-up costs

New parents typically spend a lot when their first child arrives. The cost of a child will vary by family, but some expenses to factor in include:

• Car seat
• Crib
• Formula
• Stroller
• High chair
• Childcare expenses
• Diapers

Even when your kids get out of daycare and diapers, there will still be many expenses that come out. You’ll have to pay for things such as school supplies, extracurricular activities, summer camps, braces, personal care, uninsured healthcare, and more.

The cost of raising children is expensive, but it’s not like you need to accept the price tag of everything you see. Many things can be bought second-hand, which helps reduce the cost of raising kids. Trust me, newborns will not care if their clothes are new or gently used.

Also, if you keep your kids’ stuff in good condition, you can resell them later. That will reduce your total cost overall.

Child care costs

Where you live will determine your daycare costs. Licensed daycare in major cities can cost up to $2,000 a month. Unlicensed home care is a cheaper solution and is worth checking out. Note that some daycares will charge more based on your child’s age. Regardless of which route you decide on, there are limited spots, so put your child’s name on a waiting list as soon as they are born (if not earlier).

With the cost of child care so high, it might even make sense for one parent to stay home for an extended period. MoneySense has a great article on how to find and pay for child care. My wife and I checked out close to a dozen daycares before settling on one that made the most sense for us. We were fortunate that our first choice had availability when we needed it.

In Canada, there is $10-a-day daycare available, but not every childcare facility offers it. As you can imagine, the ones that do have a very long waitlist. 

Other considerations include nannies and private schools. Nannies can live with you, but that will cost more. Private schools often provide before and after-school care as part of your annual expenses. No matter what you settle on, the cost of childcare will add up.

Life insurance

Once you have dependents, life insurance for Canadians is an absolute must. Our children depend on our income to get by, so having a policy will leave them with enough money to get by until they become self-dependent adults.

If you’re young and healthy, term life insurance is affordable at roughly $25-40 monthly in insurance premiums. Generally speaking, the amount you want to get is enough to cover the funeral costs, the balance of your mortgage, and the cost of a college education. Getting life insurance is easy as you can do it all online via companies such as PolicyMe. You’ll still get access to licensed advisors. There’s just no need to meet face-to-face since they walk you through the policies.

Since I’m being all morbid, don’t forget to get your will done. Many people still prefer to go to a lawyer to get their wills done, but they can charge a fair amount. DIY wills kits aren’t bad, but I think there’s a better solution now in Willful. With Willful, you can create a legally binding will online. You only pay for it once and you get unlimited updates for free. Willful makes creating a will quick, easy, and inexpensive. Click my Willful affiliate link and use promo code MONEYWEHAVE15 to get $15 off your will.

Registered Education Savings Plan

Setting up an RESP isn’t mandatory, but I would consider it a cost of raising a child in Canada. You can get $500 free every year through the Canadian Education Savings Grant. The grant gives you a 20% match on the first $2,500 you save every year until your child turns 17, with a lifetime maximum benefit of $7,200 per child. Contributions aren’t tax-deductible, but any gains would be taxable under your child when withdrawn. Since your child typically won’t have much income, the gains are usually tax-free.

Lower-income families could potentially get a higher match, and they can access up to $2,000 to help kick-start their child’s RESP through the Canada Learning Bond. The money is completely free; no fees and no additional contributions are required.

The cost of college and university is expensive. While students can apply for loans, that’s often based on family income. In other words, if you have a high family income and haven’t saved for your child’s education, there’s no guarantee they’ll get approved for a loan later.

If setting up an RESP and investing is freaking you out, consider using a robo advisor such as Justwealth. Robo advisors have low fees and automate their investment strategy. All you need to do is set up an account and choose the year your child will graduate from high school. The robo advisor will then invest and balance your RESP with that target date in mind. When you sign up for Justwealth through my referral link, you’ll get a $50 bonus.

Canadian Child Benefit

The cost of raising a child in Canada is offset by the Canadian Child Benefit, which provides up to $6,997 per year ($583.08  per month) for each eligible child under the age of six and up to $5,903  per year ($491.91 per month) for each eligible child aged six6 to 17. This benefit was created with lower-income families in mind. If you’re in a household that earns a middle-income or higher income, there’s a possibility that you won’t qualify for the Canadian Child Benefit. Some people find that unfair as they may still have to pay for childcare and other expenses, but I don’t mind the current system. Use the child and family benefits calculator to see what you’re entitled to.

Food costs

When your child is an infant, food costs will be minimal you’re breastfeeding. Of course, not everyone can breastfeed, so if you need to purchase formula, you’ll need to budget for that. Even when your kids get to preschool age, you probably won’t spend more than an additional $100 per month to feed them. 

However, every child is different. Some kids eat a lot, so your monthly grocery budget could increase quite a bit. You’ll be shocked at how much fresh fruit your kids go through. My daughter is six now, and I’m spending about $100 a month on groceries a month for her alone. That said, I have friends that are spending double that because their child eats a lot. Can you imagine how much food will cost when they’re teenagers? 

Miscellaneous expenses

The above costs are good estimates for major expenses, but many people will forget about he miscellaneous expenses that add up. You won’t need to budget for all of the following right away, but it’ll be something that you’ll want to think about.

• Haircuts
• Clothes
• Sports equipment
• Classes
• School fees (field trips, pizza lunches, etc.)
• Activity books
• Subscription programs and apps
• Car seat

Final thoughts

Having a baby is a serious decision that should be made with our finances in mind. Most parents will divert all their savings toward their children, but it’s foolish to ignore your own retirement savings in the process. While trying to budget the average annual cost of having children is nice, the reality is that the real costs will always be unknown. Married couples that have dual income will often be in a better position than a single parent. However, just because you’re a married couple, that doesn’t mean raising a child is any easier.

Even if you work while attending classes, paying for your education in full will still be a struggle. There are plenty of options in place to help students out in these circumstances including student lines of credit. So, what is a student line of credit? And what else is out there in the form of student aid? Read on to find out.

What is a student line of credit?

So what is a student line of credit and how does it work? A student line of credit is a line of credit meant for student use. A line of credit is a loan that allows you to borrow money and pay it back repeatedly, up to a set limit. So, for example, if you have a line of credit with a spending limit of $10,000 and use $3,000 of that value, you only have to pay back the $3,000 (plus applicable interest). If you haven’t yet paid back the $3,000 used, you still have $7,000 in credit. But once you pay back the $3,000 you will once again have $10,000 credit.

Student lines of credit are meant to be used for any expenses that relate to your post-secondary education. This includes things like tuition and books as well as daily expenses including food and transportation. Student lines of credit do charge interest, but the rate you’re charged is typically lower than a standard line of credit.

Who can get a student line of credit?

Student lines of credit are meant for students, but there are several criteria that need to be met in order to qualify. These will differ from lender to lender, but common eligibility requirements include:

• Proof that you are a full or part-time student in a post-secondary educational institution.
• That post-secondary institution needs to be recognized by Canada as an eligible institution.
• You must be a citizen, resident, or landed immigrant in Canada

Some lenders will also have rules regarding the length of the program you are in. Again, the requirements for getting student lines of credit vary depending on lenders so if you don’t qualify for one, make sure to check out another.

How to apply for a student line of credit

Once you have found a lender you would like to apply for a line of credit with you can start the application process. This can usually be done either in person, over the phone, or online. You may need a parent or guardian to co-sign for you. Note that this person will be responsible for your student line of credit if you do not pay it back.

The lender will set out the maximum amount of money you are allowed to borrow. This could be a pre-set number or personalized based on your situation. If the loan amount is personalized, they will consider all applicable student expenses such as tuition, housing, and expenses as well as any credit history and your ability to repay the loan.

To apply for a student line of credit you will need:

• Proof of enrollment
• Government-issues ID
• Possibly a co-signer
• You may also be asked to provide bills and expenses related to rent & tuition

Note that you can apply for a student line of credit at any time as long as you meet the qualifications.

Who offers student lines of credit?

Student lines of credit are commonly offered by Canada’s big banks. Here are five of the most popular options for student lines of credit and some details about what they offer.

RBC Student Line of Credit

RBC offers student lines of credit starting at $5,000 but the total amount will vary based on your individual needs. You will need a co-signer for an RBC student line of credit along with estimates of your education costs and a list of your financial resources. RBC will allow students up to 2 years after graduation to start paying back the principal of their loan.

TD Student Line of Credit

TD bank offers student lines of credit of up to $20,000 per year (up to 4 years) for both full and part-time undergraduate students. They also have student lines of credit for graduate and professional student programs. On top of the main documents, you will also need to bring a list of expenses with you as well as any sources of income or other financial assistance. TD Student loans also allow a 24 month grace period after graduation before borrowers need to start paying back the principal.

CIBC Student Line of Credit

CIBC student lines of credit are offered for a maximum of $60,000 through both full or part time programs ($15,000/year for full time or $7,500 per year for part-time). There is no annual limit for graduate students but the same $60,000 maximum applies. Those who have student lines of credit with CIBC have up to 12 months after graduation to start paying back the principal.

BMO Student Line of Credit

Student lines of credit with BMO allow approved individuals to borrow up to $15,000 in the first year and then $10,000 in each remaining year up to a maximum loan of $45,000 spread over the course of 4 years. You must start repayment of the principal 2 years after graduation. A BMO student line of credit is available to both full time and part-time students so long as the program is at least 12 weeks long and hours per week and you will need a co-signer.

Scotiabank Student Line of Credit

The value of student lines of credit with Scotiabank vary depending on your studies. Undergraduates can get up to $80,000 maximum while graduate students can get up to $160,000. There are also options for individuals who are partaking in a certificate of apprenticeship program and those pursuing a professional degree. Once you have graduated, you have a one-year grace period before you need to start paying back the principal amount on your Scotiabank student line of credit.

How to use and pay back a student line of credit

Once you have been approved you can access your student line of credit through the usual methods; visit a branch of the bank you borrowed from, withdraw money via an ATM, or use online banking. Make sure to follow the terms and conditions set out in your agreement and only borrow what you need.

As for paying back student lines of credit, you need to pay at least the interest while you are studying (although you can pay back more if you can). Once you have graduated, the majority of institutions will allow you a grace period of 6-24 months where you can continue the interest-only payments. However, after this point, you’ll need to start paying back the actual principal as well as the interest until the student loan is completely paid off.

Student aid & other options

Student lines of credit can be very helpful for Canadians getting an education, but they shouldn’t be your first resort. If your parents set up a Registered Education Savings Plan, you should use that first since it’s money already saved.

However, if you’re not fortunate enough to have funds from your parents, look to student aid instead. Student aid in Canada can come in the form of grants, scholarships, and government loans. Grants and scholarships do not need to be repaid. Government loans do, however, most only need to start being paid after you complete your education. The Government of Canada offers plenty of options for grants, scholarships, and loans so it’s worth doing your research and applying. You can learn more about student aid here.

Since scammers often use sophisticated tactics to create the illusion of legitimate transactions, potential buyers and sellers must be aware of the risks of Kijiji. This can include posing as fake buyers who overpay for items and then request a refund of the difference or sellers who demand upfront payments for goods that don’t. Being aware of common scams on Kijiji can help you avoid losing money.

Recognizing Common Scams

The reality is that Kijiji is full of scams. It’s crucial to be vigilant against fraud since it can cost you money and potentially your personal information. Recognizing scams on Kijiji can ensure that you don’t become a victim of fraud..

Email and Communication Scams

Email and communication fraud come in many forms, but they often share a common goal: to mislead the victim. Always be cautious of messages with generic subjects and verify the sender’s identity. You can do so by looking up the person’s name or company to see if they have an online profile. Additionally, double-check links within emails. These links could look like real links but be slightly different or they may link to phishing sites. If they’re just sending you a link with no context, it’s definitely a scam.

Overpayment and Fake Check Scams

In overpayment scams, a scam artist might send a physical or digital cheque for more than the asking price of an item. They will then ask for the difference to be returned, but once the fake cheque bounces, the seller will lose all the money. Some sellers fall for this fraud because banks make some of the funds from the cheque available to be withdrawn right away. However, once the cheque bounces, your bank will claw back the entire amount. This tactic exploits the time it takes for banks to process these fake payments. Even though it’s clearly fraud, you willingly deposited a fake cheque and sent the funds, so you won’t get it back.

e-Transfer Scams

There are a few variations to fraudsters using e-Transfers to scam victims, but they all work in the same way. Often, they’ll try to lure you in with the overpayment method as mentioned above. However, instead of using a cheque, they’ll use an e-Transfer. This works because the scammers have hijacked a legitimate account to make the transfer. Once that account has been found to be compromised, the original owner will get the money back while you’re out of yours.

Another variation is where they’re the “seller” and they ask you to send a password protected e-Transfer. They’ll claim they never got it and suggest you send another one with a different password for a small amount such as 50 cents. Many people don’t realize this second password releases the funds from the original transfer they claimed they never got. Once they have the funds, you won’t hear from them again. In addition, since you willingly sent the money, the bank won’t reimburse you.

Rental Scams

Rental scams often involve too good to be true offers, where the property does not actually exist or is not available for rent. Fraudsters prey on the fact that many people are desperate for cheap housing. The scammers will pressure you into transferring a deposit before viewing the property. Similar to the above, once they have your money, you won’t hear from them again. Checking the property in person is a must to avoid falling into these traps. In addition, you’ll want to see paperwork that proves they’re the owner.

Auto Scams

Auto scams may include offers to ship vehicles without an inspection or meeting in person. They’ll claim they can’t see the vehicle in person because they’re being relocated, but their company is handling the costs. Of course, they’ll try to bait you with the overpayment scam.

Another Kijiji auto scam is where they claim Carfax Canada is not a reliable source to check your auto’s history and ask you to go through a different site. The link they send you may look real, but it’s actually a way to get you to part with your personal information.

If you’re the one looking to buy a car off Kijiji, be aware that there can be fake vehicle history reports designed to hide problems with the auto. Insist on a proper inspection with a mechanic of your choice and check Carfax Canada on your own.

Phishing and Identity Theft

Phishing and identity theft attempts are found everywhere, including Kijiji. Scammers often try collecting personal details through fake security alerts or account problem emails. These emails may appear to come from Kijiji, but they’re clearly fake. If you’re concerned by these emails, you could contact Kijiji through one of their official channels for verification. Never use or click any links in a suspicious email.

Shipping and Delivery Scams

In Canada, scams on online marketplaces like Kijiji are on the rise, especially involving shipping and delivery. These scams can be sophisticated, so users need to recognize the common signs to avoid being a victim.

Common Signs of Shipping Fraud

Inquiries from far away: A typical sign of a shipping scam involves an interested buyer who claims they are unable to pick up the item in person due to being out of town, often requesting shipping to a distant location. It’s best to only deal with people you can meet in person.

Suspicious overpayment requests: Scammers may offer to pay more than the asking price and then request that the excess funds be sent to a so-called shipping agent or moving company. If this is ever mentioned during the negotiations, it’s 100% a scam.

Fake tracking numbers: Fraudsters might provide a fake tracking number to prove that the items you have purchased have been shipped when, in reality, nothing was sent. It’s important to verify tracking numbers with carriers like Canada Post before proceeding with any payments.

Avoiding Delivery Scams

Verify buyer information: If an interested buyer requests shipping, independently confirm their identity and be wary of those refusing to provide verifiable contact details. One way to do this is to request a selfie with a government-issued I.D.

Use secure payment methods: Never accept overpayments and use secure platforms for transactions. This can be complicated because e-Transfers are not 100% secure. If the buyer suggests Bitcoin or a wire transfer, say no, as that’s often a clear sign of fraud.

Meet in person when possible: Whenever it’s practical, arrange for a local pickup and payment in person to avoid risks associated with delivery scams. Even when meeting in person, only accept cash. An e-Transfer or cheque they provide could still be fraudulent.

Safe transaction practices

When buying or selling on Kijiji, it’s crucial to prioritize safety, especially regarding payments and meeting spots. Sticking to proven methods can reduce the chances of you becoming a victim.

Preventing fraud during payment

Payment Methods: The safest method for transactions is cash. Interac e-Transfers are also reliable if the person is sending the transfer to you when meeting in person, as it’s less likely they’re using a compromised account. A certified cheque is a reasonable solution if it’s a huge sale. However, only accept it if you go to the buyer’s bank and see them get the certified cheque from a teller. Anyone suggesting PayPal, Western Union or a wire transfer shouldn’t be taken seriously.

When making any transaction on Kijiji, be aware of the following during payments:

• Avoid shipping for payment: For buyers, it’s recommended to be wary of sellers who insist on payment before shipping, especially if the price seems too low to be true.
• Reversible transactions: Sellers should be cautious of overpayments. Some buyers will say the overpayment was a mistake, while others will say it was intentional. Either way, it’s likely a scam.

Conducting transactions in person

Meetup Arrangements: The best way to ensure a Kijiji transaction is done safely is by arranging face-to-face meetings for the exchange and payment. These meetups should be done in public spaces to ensure both parties’ safety. The best places to meet are public places and during the day. For example, inside a coffee shop in the afternoon instead of a parking lot when it’s dark.

Some additional things to consider include:

• Cash transactions: Whenever possible, stick to cash transactions during these face-to-face meetings.
• Check items and money: Buyers should check the item thoroughly before handing over any funds. As for sellers, they need to verify cash to ensure there are no counterfeit bills.

Dealing with Suspicious Ads and Sellers

Unfortunately, Kijiji is full of fake sellers and buyers who are looking to scam you. Identifying suspicious listings and scrutinizing seller communication can reduce the risk of falling prey to scams.

Identifying Suspicious Listings

When you’re looking to buy something on Kijiji, you need to look at the listing in detail. Suspicious signs may include:

• Unrealistically low prices: If something is being sold way below market price, it’s probably a scam.
• Hard to get item: Be suspicious of any seller on Kijiji claiming to have stock of a specific item that’s nearly impossible to find at retail stores.
• Generic or stock images: Although real sellers may use pictures found online for their listings, it can also be a sign of fraud. Users can perform a quick image search to confirm the images’ authenticity. Alternatively, they can ask the seller for a real picture of the item beside a piece of paper that has the date and their user name.
• Vague descriptions: A lack of details about the item being sold can be a red flag.

Red Flags in Seller Communication

When interacting with a seller, there are some clear warning signs that they are attempting to scam you, such as:

• Urgency: They’re pushy for a quick sale.
• Payment methods: If they offer wire transfers or prepaid gift cards, it’s a scam.
• Personal information: Anyone asking for your detailed information should be ignored.
• Inconsistencies: Be cautious If their reason for selling or the item’s description doesn’t match the listing.

Generally speaking, if you’re wondering if this person is trying to scam you, they probably are.

Protecting your personal information

You need to protect your personal information when using sites like Kijiji. Scammers know the Kijiji users are looking to score a deal or to make some cash, so phishing scams are common on the site.

Avoiding phishing attempts

Phishing attempts typically come in the form of deceptive emails that look legitimately from Kijiji. They’ll often try to get you to give up your login details. To guard against these fraudulent attacks, you should closely check who the emails are coming from and avoid clicking on unsolicited links. If an email asks for personal information for account verification or security checks, it’s likely a scam. That said, you could cross-reference things with Kijiji’s official guides on Fraud: Phishing Scams.

Securing your Kijiji account

Securing your Kijiji account starts with having a strong password. It should be a unique amalgamation of letters, numbers, and symbols that’s not easily guessable or replicated. Regular password changes and adding two-factor authentication give you extra layers of protection against potential scams. Also be on the lookout for text messaging scams that relate to Kijiji as those are often phishing scams.

Navigating Covid-19 Related Scams

With the rise of Covid-19, scam artists have taken the opportunity to exploit the public’s fears. Similar to other scams, they’re just using the pandemic to get you to part with your money. Recognizing these Kijiji scams and understanding how to report them can protect your health and finances.

Identifying Pandemic Exploits

Scammers have been utilizing various tactics to take advantage of the pandemic. They may offer fake vaccines or promise access to medical supplies in exchange for personal information or money. They often use email and texts to reach potential victims with offers that purport to be from Health Canada or local health authorities. The fraud can be obvious if one of the following situations happens:

• An immediate demand for payment.
• Misspellings or incorrect grammar in the communications.
• Personal information is requested, such as Social Insurance Numbers or credit card details.

So, how does this relate to scams on Kijiji? Thieves will often visit online sites to find people desperately seeking certain items. In this situation, they’ll target people searching or advertising things related to Covid-19.

Reporting Health-Related Fraud

If you suspect a health-related scam, reporting it is essential for public safety. Reports should be directed to Kijiji, the Canadian Anti-Fraud Centre, and Health Canada. When reporting fraud, be sure to provide the following:

• Details about the scam (emails, texts, or phone calls).
• Any contact information of the scammer (email addresses, phone numbers).
• The time and date of the incident.

By reporting these incidents, you can help authorities track and combat these exploits, enhancing the overall safety of your community. Reporting helps to alert the relevant authorities to take necessary action and better protect the public from similar scams.

Contacting Kijiji Customer Service

When dealing with potential scams on Kijiji, it is crucial to contact Kijiji Customer Service to report fraudulent activities. The customer service team can sometimes provide necessary guidance and support, but don’t expect to get any lost money back.

How to Report a Scam

To report a scam on Kijiji:

1. Gather all relevant information about the scam, including communication records and ad details.
2. Visit the Fraud: Phishing Scams page for instructions on how to identify suspicious emails.
3. Email the full scam details to Kijiji’s help desk, or use the contact form available on the Contact Us section of Kijiji’s help desk.

Always keep personal contact information, such as phone numbers, private when reporting Kijiji scams.

Seeking Help and Advice

If you believe you’re a victim of fraud on Kijiji, you could do the following.

• Contact your financial institution and let them know that you believe an e-Transfer that’s been sent to you is fraudulent. You could also have them freeze any accounts where you think your information has been compromised.
• You could contact the police to report that you’re a victim of fraud. It’s highly unlikely they’ll be able to do anything, but you might be able to get an incident number, which could help for insurance purposes.
• If you’re not sure if you’re dealing with a potential scammer, Kijiji does have a guide on suspicious emails, which could help determine the authenticity of emails received.

Legal recourse and reporting to authorities

Victims of scamming incidents on Kijiji have a few legal channels they can pursue. While going this route is the right thing to do, the reality is that if you’ve already sent money to the scammer, it’s unlikely you’ll get your funds back.

When to involve law enforcement

Victims should file a police repor if they suspect that they have been defrauded. Contact your local police department immediately upon noticing unauthorized transactions. If you’re dealing with someone who scammed you in person, provide as many details as possible.

How to report to police and financial institutions

Reporting to the police can be done at your closest police department. Do not contact the emergency line. Provide all documentation related to the scam, including communications and transaction records. If the scammers use a traceable source, such as Bitcoin, there’s a slim chance that the police may be able to recover some funds.

As for your bank. Contact them as soon as you think you’ve been a victim of fraud. They may issue you new bank details to avoid any further fraud. Remember, if you’ve accepted an overpayment and willingly sent the extra funds to the fraudster, your bank won’t reimburse you.

Frequently Asked Questions

Can I get my money back from an e-Transfer?

Unfortunately, once an e-Transfer is accepted by a recipient, it is usually not possible to recover the funds. Banks typically treat e-Transfers like cash transactions.

What are the latest methods fraudsters use for scamming on online marketplaces?

Fraudsters frequently change their tactics. Currently, overpayment scams and payment outside of the platform, such as asking for gift cards or cryptocurrency, are common.

How can I identify a scammer among potential buyers?

A scammer might avoid meeting in person, rush the sale, or use suspicious payment methods. Having stock of something that’s sold out in stores is also a potential scam.

What steps should I take if I’ve become a victim of a scam?

You should report the incident to the police and contact your bank if any financial information was shared. Reporting the scam to Kijiji directly can help others from becoming victims of fraud.

What precautions can I implement to ensure a safe transaction?

Always meet in person, in a public place, verify the item’s condition, and ty to only accept cash as the payment method.

What are the most common types of scams encountered in online classifieds?

Common scams include non-delivery scams, fake listings, overpayment scams, and phishing attempts designed to steal personal information. Fake rentals are also very common.

What red flags should signal a rental listing might be fraudulent?

Unusually low rent prices, requests for a deposit without a signed agreement, and an inability to tour the property in person are major red flags.

In this PC Optimum points guide, I’m going to go over everything you need to know about the program including how to maximize your points. First off, PC Optimum is one of the most popular loyalty programs in Canada. It’s probably the #1 retail loyalty program in the country and you should definitely join it if you’re not already a member. It was formerly known as PC Plus and Shoppers Optimum, but the programs were merged into PC Optimum.

Since PC Optimum is the loyalty program for Loblaw’s owned grocery stores, Shoppers Drug Mart, and Esso/Mobil gas stations, it’s best used for people who shop there regularly. Unlike other store loyalty programs, PC Optimum allows you to earn points in multiple ways, and you can even get an increased value for your points when you make a redemption. Read this PC Optimum points guide for all the details.

PC Optimum points value

The first thing you’ll want to understand is your PC Optimum points value. The normal redemption rate is 10,000 PC Optimum points for $10 worth of free stuff. That gives your points a value of .1 cents each. Which is not bad considering this is a free program to join.

That said, Shoppers Drug Mart regularly has bonus redemption events where they’ll give you a bonus when redeeming points at specific thresholds. The most common bonus redemptions are as follows:

• 70,000 PC Optimum points = $70 plus a $30 bonus points offer for $100
• 130,000 PC Optimum points = $130 plus a $70 bonus points offer for $200
• 250,000 PC Optimum points = $250 plus a $150 bonus points offer for a $400

The best value for your points will always be using them for the maximum possible value during Shoppers Drug Mart bonus redemption events. While it’s true that Shoppers Drug Mart has higher prices compared to say Walmart, it’s still worth saving your points to redeem a high value item that’s the same price as everywhere else. For example, I’ve redeemed a Dyson hairdryer and Nintendo Switch. I’ve also redeemed video games on the lower-tier redemption since they cost close to $100 after taxes.

What many people don’t realize is that you can redeem your points online during these bonus redemption events. Shoppers Drug Mart has more products available online, so it’s a good place to look for things.

Another way to redeem your points is at Esso gas stations. 4,000 PC Optimum points get you 10 cents off per litre up to 40 litres in a single fill. That’s a total of $4, so the value is the same. However, you can also redeem 10,000 points for any free car wash package. If you use it on the highest value package, which is usually worth more than $10, you’re getting a good value.

Where can I earn PC Optimum points?

Since the PC Optimum rewards program is owned by Loblaws, you can earn points at pretty much all of their stores and gas station partners which include:

• Shoppers Drug Mart
• Pharmaprix
• Loblaw stores
• No Frills
• Real Canadian Superstore
• Fortino’s
• Independent CityMarket
• Valu-mart
• Zehrs
• Atlantic Superstore
• Maxi
• Dominion
• Joe Fresh
• Esso stations
• Mobil stations
• PC Travel

PC Optimum is aimed at people who shop at Loblaws owned grocery stores, Shoppers Drug Mart, and Esso/Mobil gas stations. Although some people don’t like that you have a limited amount of stores to make your redemptions, that’s not necessarily true. Basically, you can earn PC Optimum points at the largest grocery chain and drug store in Canada. You also get access to a lot of gas stations.

How to earn PC Optimum points

What’s interesting about PC Optimum (and that’s similar to other programs) is that you only earn points in three specific ways. By default, you don’t automatically earn points by joining PC Optimum and shopping at participating stores. There are actually three specific ways you earn PC Optimum points.

In-store offers

If you only have the PC Optimum card, you’ll only earn PC Optimum points whenever there’s an offer. For example, there might be an offer where you get 1,000 PC Optimum points for every $5 you spend on baked goods. This is actually a pretty good offer since it translates to 25% back in points. That said, since you’ll only earn points on in-store offers, it’ll take a very long time for you to accumulate a lot of points.

Targeted offers

You’ll get an email every week with targeted offers, but these load offers don’t become valid until you login to your account or open the app. This is obviously a way for PC Optimum to get you to look at the offers, but it’s a requirement so make sure you do it. The app usually gives you extra points for items you normally purchase as a way to get you back in the store. For example, some of my recent offers have been targeted towards fruits and vegetables since I’ve been buying those a lot as of late.

It’s also worth mentioning that Loblaws has recently introduced member promotions that are exclusive for PC Optimum members. For example, one time they had an offer of 6,000 points for every $12 you spent on IOGO yogurt. That’s 50% back in points!

Use a PC Financial Mastercard

If you get a PC Financial Mastercard, you’ll earn points on ALL of your purchases regardless of where you shop. The PC Financial Mastercards available are as follows:

• PC Financial Mastercard
• PC Financial World Mastercard
• PC Financial World Elite Mastercard

The PC Financial Mastercard has no minimum income requirement and gives you 25 PC Optimum Points per $1 dollar spent at Shoppers Drug Mart and 10 PC Optimum Points per $1 spent on all other purchases. This is great considering the card has no annual fee, but things become really lucrative if you have a personal income of $80,000 or a household income of $150,000.

At that income, you’ll qualify for the PC Financial World Elite Mastercard which gives you 45 PC Optimum Points per $1 dollar spent at Shoppers Drug Mart, 30 PC Optimum Points per $1 spent where PC Products are sold and at PC Travel; and 10 PC Optimum Points per $1 spent everywhere else. The PC Financial World Mastercard sits in the middle of the pack and has a personal income requirement of $60,000.

Some people use some of the best travel rewards credit cards in Canada to earn travel rewards, but you’ll usually get a higher return by using a PC Financial Mastercard wherever you can earn PC Optimum points. If you don’t like using credit cards, consider getting a PC Money Account as it allows you to earn PC Optimum points while using debit.

How to maximize your PC Optimum points?

PC Optimum is no different from any other loyalty program in the sense that if you really understand how it works, you can actually maximize your points. What I mean is that there are plenty of ways to earn more PC Optimum points, and there are also some ideal times to spend your PC Optimum points.

Join a Facebook group

There are a lot of people out there that are obsessed with PC Optimum and they’re happy to share tips in their Facebook groups. For example, the PC Optimum Points & Deals Canada group has a very active membership. They’re always listing out hacks for the current flyer and giving out advice on how to stack your deals (see below).

Save your offers

As mentioned, you’ll get PC Optimum points offers every week. While these offers are great, you may not need them that week. The good thing is that PC Optimum allows you to save your offer for the following week. Just click the offer in your app and then choose to save it for next week. When you do your regular shopping the following week, you’ll have the offer available.

Stock up on items when it makes sense

From time to time, you’ll get some incredible PC Optimum offers, such as getting 5,000 points when you spend $10 on General Mills cereal. Well, 5,000 points are worth $5, so you can basically get your cereal at 50% off. In this case, you might as well stock up on cereal and collect all those extra PC Optimum points.

It’s also worth noting that these offers are typically available at all the co-branded stores so you can shop around and save. Using the example above, let’s say General Mills cereal is on sale at No Frills. If you loaded up there, you’d be paying less and earning more points. Every so often you can get 50-70% off items by combining sale items with PC points offers.

Look for special promotions

You can always earn additional PC Optimum points thanks to in-store promotions. Some recent promotions include earning 7,500 PC Optimum points for every $75 spent on almost anything in Loblaws grocery stores, 15,000 points when you spend $50 or more on almost anything at Shoppers Drug Mart and get 70,000 PC Optimum points when you spend $200 or more on beauty online. Those three offers give you back 10%, 30% and 35% back in PC Optimum points, respectively.

Shoppers Drug Mart also often has an earn 20X the PC Optimum points on purchases over $75. When you do the math, that’s 30% back in points. Admittedly, Shoppers does cost more than other stores for many items, but 30% back in points is crazy.

Stack promotions when you can

A while back, Shoppers Drug Mart had a one-day promo where I would get 8,000 PC Optimum points if I spent $30. The weekly flyer at the time also had an offer of 2,000 PC Optimum points when you purchase Head & Shoulders shampoo. Let’s say the shampoo costs $5, if I bought $30 worth, I would have earned a total of 20,000 PC Optimum points (8,000 + 12,000). If I paid with my PC Financial World Elite Mastercard, I would have earned an additional 1,350 PC Optimum points. That’s a total of 21,350 PC Optimum points which has a value of $21.35 on a purchase of $30. In case you’re wondering, that’s a return of 71% in PC Optimum points.

I also took advantage of the recent Black Friday and 20X the points event where I bought a Dyson supersonic hair dryer which has a retail price of $499. I used the following promotions to my advantage.

• Get $400 in credit when you redeem 250,000 PC Optimum points (regular value $250)
• 104,485 PC Optimum bonus points earned due to 20X the points on spends over $75 and additional promos
• 4,500 PC Optimum points earned because I paid with my PC Financial World Elite Mastercard
• 500 Aeroplan points earned by using the Aeroplan estore to get to Shoppers Drug Mart and then taking advantage of the Aeroplan Black Friday sale

Although the hairdryer cost me $164.99 for the outstanding balance, I earned about $110 in PC Optimum points, plus I got that extra $150 in credit by redeeming my points during a bonus event.

Join PC Insiders 

*Note due to its popularity, PC Insiders is currently waitlist only. You can add your details on the webpage and be notified when it opens to subscription again.

PC Insiders is a subscription-based program that earns you extra PC Optimum points. It may sound crazy to pay to join a grocery/retail loyalty program, but when you look at the benefits included, it may be a good value for you. You do need to be a PC Optimum member and have a President’s Choice Financial Mastercard to apply. 

There are two options to sign up for: the annual fee or monthly fee program. The annual fee is $99 (plus tax) and the monthly fee is $9.99 per month (plus tax)

• 10% back in points on all PC products and Joe Fresh Products.
• Free shipping for joefresh.com and shoppersdrugmart.ca 
• No pickup fee on PC Express with priority time slots

Depending on your shopping habits, the PC Insiders program can be a great way to earn points quickly. That said, PC Insiders only really benefits you if you’re getting value out of the annual fee which is $99 plus tax. You would need to do some rough math to see if paying the annual fee is worth it. Read my PC Insiders review now for more details about the program.

Link your accounts

What’s interesting about PC Optimum points is that you can link different accounts into a single family account. My wife and I merged our PC OPtimum accounts so now everything is pooled. Even though the accounts are linked, the offers you get are still personalized within the individual apps. If you have one of the PC Financial Mastercards, then make sure you get supplementary cards so everyone can earn PC Optimum points.

Fill up your gas at Esso or Mobil

On the PC Optimum website, it states that you can earn at least 30 PC Optimum points per litre of gas filled at Esso or Mobil, but it’s important to understand how that breaks down. You’ll earn 10 PC Optimum points per purchased litre of gasoline or diesel fuel, 10 PC Optimum points per dollar spent on the card when you pay with your President’s Choice Financial Mastercard, and 10 PC Optimum points per litre of premium gasoline (Octane 89, 91, 93). 

Use the PC Health App

If you download the PC health App you can also earn points by completing health program activities. It’s an incentive to keep people active and moving on a daily basis. You can sign up for three programs at one time and will earn 20 PC Optimum rewards for every Health Activity you complete. This means you can earn an additional 60 PC Optimum points every day! 

Sign up for Shoppers Drug Mart text messages

Another way to earn more from the Optimum Program is to sign up for Shoppers Drug Mart text messages. Right now they have a sign up bonus of 10,000 PC Optimum points when you sign up and spend $40+ on almost anything in store. By signing up for text messages you will also receive promotional texts and special offers.

How does PC Optimum compare to others?

The closest thing to PC Optimum is Scene+. With Scene+, you can earn points at Empire-owned grocery stores such as Sobeys, IGA, and Foodland. They’re also partnered with Cineplex, select restaurants, Rakuten and more. Depending on where you do your grocery shopping, you may find Scene+ to be more appealing.

There’s also Rexall Be Well which is the loyalty program for Rexall. Since Rexall competes with Shoppers Drug Mart, you must compare the two programs. Here’s the thing, Rexall’s program is awful. Your earn rate is lower than PC Optimum. Plus, your redemption value is lower. If given the choice between the two programs, go with PC Optimum. That said, if Rexall is the only pharmacy near where you live, then you might as well collect Be Well points.

It’s also worth noting that PC Optimum points are only good if you shop regularly at stores that earn your PC Optimum points and you have a PC World Elite Mastercard. When you have that card, you’re basically earning a 3% return in points at grocery stores. However, there are credit cards that offer you a higher return on grocery purchases. For example, the American Express Cobalt Card gives you 5 points per $1 spent at grocery stores. I consider that an incredible value, which is why I now prefer to shop at Food Basics.

American Express Cobalt Card

• $15.99 Monthly fee ($191.88 yearly)
• 1,250 monthly points when charging $750 each month for a year (15,000 points total)
• Earn 5 points per $1 spent on eats and drinks
• Earn 3 points per $1 spent on streaming services
• Earn 1 point per $1 spent on all other purchases
• MESSAGE ME FOR A REFERRAL LINK

For reference, American Express Membership Rewards points have a value of 1 cent each. That means grocery store purchases are getting you 5% back. However, you can also transfer your points to Aeroplan at a 1:1 ratio. I personally value Aeroplan points at 2 cents each, so I feel like I’m getting a 10% return when I grocery shop.

Final thoughts

As you’ve quickly learned from this PC Optimum points guide, there are a lot of ways you can earn and redeem your points. The base value of your points is not bad, but you can really extend the value by using them at Shoppers Drug Mart during bonus points events. If you want to earn more PC Optimum points, then make sure you get one of the PC Financial Mastercards.

FAQ

How do I check my Optimum points?

You can see them online at pcoptimum.com or via the PC Optimum app. A cashier will also be able to tell you when you scan your PC Optimum card while making a purchase.

Do PC Optimum Points expire?

No, but if the account remains inactive for a period of 2 years (e.g. you don’t earn or redeem points) then you may have your account closed.

Can I transfer my PC points to somewhere else?

No, however, you can pool points with a family member or significant other by linking your accounts.

How to pay off your credit card

Let’s assume for a second that you’ve just received your credit card statement for the first time. You’ll see the total amount you owe, what your minimum payment is, and when your statement due date is. As long as you pay the full balance by the due date, you won’t incur any interest charges.

Paying off your bill is easy, and you have a few options, so choose the one that’s most convenient for you.

Pay your bill online 

You should see a pay bills option if you have an online bank account. Click that, and then it’ll ask you to search for the payee. For example, if you have an American Express credit card, you’d search American Express. Once you’ve selected your provider, it’ll ask for your account number. That’s the number on your card. 

Now that you’ve set up your credit card as a payee, you can pay them. Select them in the payee menu, and choose the account you’re paying from, the amount, frequency, and date. Once you click next/submit, your transfer will be initiated. Note that it’ll usually take two business days for the payment to clear, so don’t wait until the last minute.

It’s also worth mentioning that if your credit card is from the same financial institution as your day-to-day banking, you can usually choose the transfer option to move funds directly. This process clears almost instantly.

Pay in person

If your credit card is with a financial institution that has brick-and-mortar locations, you can go in person and pay in cash or with funds from your account if you bank there. All you need to do is line up and a teller can process the payment for you.

Pay via an ATM, phone, or cheque

Some financial institutions allow you to pay your bills via their ATMs. You’d have to be a client with a debit card to do so. Alternatively, you could pay your bills through telephone banking if you prefer to be old school. The last option is to mail a cheque. If you’re getting paper statements sent to you, it would likely include an addressed envelope. Put your cheque in that with the appropriate postage and throw it in the mailbox. 

Don’t forget if you’re going to cancel your credit card, you need to pay off your balance first.

How to pay your credit card from another bank?

Some people don’t realize that you can get a credit card from financial institutions you don’t bank with. In fact, some of the best travel credit cards in Canada are from American Express, and they don’t even have any physical locations. 

If you’re wondering how to pay your credit card from another bank, you’d follow these steps:

1. Log in to your financial institution
2. Select pay bills
3. Select add Payee
4. Type in the name of your credit card provider 
5. Add your account number (your credit card number)
6. Click finish/submit
7. Select the payee you just added 
8. Choose the account and amount that you want to send
9. Confirm the date and verify all the information
10. Click submit/finish

You’ll get a verification number to confirm the payment of the bill. Note that it may take 2-3 business days for the payment to clear.

Can you pay off your credit card before the statement?

Yes, nothing is stopping you from paying off your credit card before the statement’s due date. Some people will do it weekly or bi-weekly because it’s easier to track their spending and manage their debt. There’s no added benefit to paying off your statement early, so it’s entirely up to you.

Even if you only plan on paying your bill once a month when it’s due, it’s still worth reviewing your online statement every week. That’s because it’ll allow you to catch any suspicious activity. If there’s a purchase you don’t recognize, you could investigate it further. This could lead to a fraud investigation or a chargeback.

What happens if you don’t pay off your credit card?

Anytime you make a payment that’s anything less than the full amount, you’ll pay interest charges. Since credit cards typically charge 20%-24% interest, you could easily go into debt.

Generally speaking, if you pay at least the minimum payment required, your credit score will remain in good standing. However, if you’re making only minimum payments and racking up a lot of debt, your credit score could drop since you have a high credit utilization ratio. 

Now, let’s say you decide not to pay your bills at all. It won’t take very long for your credit score to completely tank. Your credit card provider will likely try to get in contact with you quickly to get bills settled. If you ignore the calls or refuse to pay, your debt will likely be sold off to a collection agency. Once that happens, your credit score will be ruined and it may take many years to repair.

How to pay off your credit card debt fast

Let’s be clear, there’s no quick way to pay off your credit card debt fast. If you come across a company saying they can clear your debt and fix your credit score quickly for a fee, the odds are it’s a scam.

Use a line of credit

Instead of looking for a quick fix to your credit card debt, you should look for ways to reduce the amount of interest you’re paying. Doing this will allow you to pay off your balances quicker since more of your payments will go towards the principal amounts owing.

Assuming your credit score is in good standing, you may qualify for a line of credit from your financial institution. This is another loan, but it comes with a much lower interest rate of around 3%-7%. 

If approved, you would take your loan and immediately pay off your credit cards. Your line of credit would then be your only remaining debt. Since the interest rate is lower, you could pay off the balance quickly.

While a line of credit is appealing, it’s still another form of credit. If you don’t use it responsibly, you could end up in more debt. Plus, lines of credit typically only require you to make interest-only payments. In other words, your balance may never hit zero if you’re not actively paying down your debt.

Switch to a low interest credit card

As you’ve likely figured out by now, paying off your credit card debt will be tough if you’re paying 20%+ interest. What you might not realize is that there are low interest credit cards that usually offer you an incentive to switch.

With low interest credit cards, your interest rate is typically 8.99%-12.99%. That’s an instant savings of at least 7% compared to most credit cards. Many of these cards offer a balance transfer option that usually comes with an even lower interest rate for a limited time. For example, you might pay 0% interest for six months. Since you’re not paying any interest during that time, you can greatly reduce your debt. Once your promotional period ends, you pay the regular interest rate.

Paying off your credit card balance in full and on time every month should be your priority. Anything less, and you’ll be in debt while paying crazy interest charges. If you find yourself constantly in the red, you may want to consider using a prepaid credit card instead. This way, you’re only spending money that you have available. 

The idea of paying an annual fee to a store may seem silly to some people, but once you understand the Costco membership benefits in Canada you get, you may quickly decide that it’s worth it to sign up.

What is Costco?

Costco is a member-only warehouse club that sells just about everything such as, grocery items, clothing, household appliances, electronics, gift cards, and vacation packages. They carry their own brand (Kirkland Signature) as well as high-end brand name items, often for much cheaper than you would find elsewhere since you buy in bulk. In order to shop at Costco, you will need to pay an annual fee for a membership.   

Types of Costco membership

There are two different types of Costco memberships: personal and business. There are also two different card options for each, which will be discussed in more detail below. 

While each card has different perks and benefits, all four types of Costco membership have the following features in common:

• Membership is valid in all locations around the world
• Membership is valid online
• Membership includes an extra household card that another individual in your household (spouse or adult family member) can use.  

Costco membership fees in Canada

How much is a Costco membership in Canada? Well, that depends on the type of membership. Here’s a breakdown of the different Costco membership costs for the various Costco membership types.

Personal Costco membership fees 

• Costco Gold Star Membership: $60 + tax per year
• Costco Executive Membership: $120 + tax per year 

Business Costco membership fees

• Business member: $60 + tax per year
• Executive member: $120 + tax per year 

Costco membership benefits in Canada

The main draw for many Costco members is the ability to buy groceries and brand-name products in bulk and at a discounted price. However, there are more Costco membership benefits to be aware of, including the premium services such as Costco gas station, Costco travel for cruises and vacation packages, Shutterfly discounts for photos, the Costco pharmacy (available to people without a membership), where you can fill any prescription drugs, the tire centre, as well as the Costco optical centre and Costco hearing aid centre. All of these services are available to Costco members, and fees are cheaper than you will find at other similar businesses in your community. 

On top of the benefits listed above, you will have additional benefits depending on your membership type. 

Costco Gold Star membership benefits 

• Ability to shop at all Costco locations and online
• Two membership cards (one for you and one for someone else in your household)

Costco Executive membership benefits 

• All benefits of the Gold Star membership 
• Costco connection magazine & Costco.ca insert by mail to your home address
• Individual executive Costco members will also earn 2% cash back on most Costco purchases (up to a maximum of $1,000). This cash back reward is given annually, however, you have to remain an executive member to get the cash back offer and it has to be redeemed at a Costco location within Canada.

Costco Business membership nenefits

• Ability to shop at Costco Business Centre, Costcobusinesscentre.ca, plus all Costco locations worldwide and online
• Two membership cards (one for you, one for someone else in your household)
• Ability to add up to 6 additional membership cards (for a $60 fee each)
• Ability to purchase for resale
• Costco Connection magazine plus the Costco.ca insert mailed to your home address

Business Executive membership benefits 

• All benefits of the Business membership
• Business executive Costco members will also earn 2% cash back on most Costco purchases (up to a maximum of $1,000). This cash back reward is given annually, however, you have to remain an executive member to get the cash back offer and it has to be redeemed at a Costco location within Canada.

Pros and cons of Costco membership

Pros

• Good quality food and items
• One-stop-shop for many items and services
• Costco return policy is very generous 
• Cheaper pricing than elsewhere
• Good benefits for members

Cons

• Costco only accepts cash, debit, or Mastercard brand credit cards
• Costco prices aren’t always the best deal out there. Some sales at other stores may be cheaper
• Costco sells in bulk, so if you can’t get through any food items fast enough its waste

Are Costco benefits worth it?

So, the big question is: are Costco membership benefits in Canada worth it? 

Well, it depends.  

If you are shopping for a family, then chances are yes. Costco sells lots of grocery products in bulk for much cheaper than you would find at Loblaws or other grocery stores. However, the deal is because these items are sold in bulk. So, when it comes to fresh groceries such as fruit and vegetables, you need to ensure you can use them up before they go bad. A family likely can, but an individual may not be able to. 

Premium Costco services such as the pharmacy and Costco gasoline are both good for saving money. Both are cheaper than what you will find elsewhere in your community. However, these services are only beneficial if you use them. If you don’t have a car or you don’t have any prescription medication, then there is no added value.  

As for which type of membership to choose, well, that depends on your spending habits. You can learn more about Costco executive membership to see if it’s worth the additional annual membership fee here.

How to Sign up for Costco Membership 

You can sign up for a Costco membership in person at a Costco location or online at Costco.ca.  

Once you become a member, you can also get a digital membership for free. This is handy because it means you can have a copy of your membership on your phone rather than always making sure you have the physical card on you. You can get a digital membership by downloading the Costco App and signing up with your membership account. You will then need to visit your local Costco to be verified, or you can call Costco at 1-800-463-3783, and they will help you register. 

Keep in mind that membership does need to be renewed annually. You will be reminded when it’s time to renew and can do so in person or online. 

FAQ

Is there a free Costco Membership?

No, there is no free membership option. However, if you have the Executive membership you may earn enough in cash back rewards to offset the fee for the following year. 

Can I shop with someone who has a Costco card?

A Costco member can bring a guest; however, the member has to be the one who pays for any purchases.

Does Costco.ca have different products?

Costco.ca does have different and more products available than the Costco warehouses. Your membership allows you to purchase online and have the products shipped to your home. You can also shop via the Costco app which sometimes offers different deals and discounts. 

Does Costco Price Match?

No, they do not.

Does Costco have a credit card?

Yes, the CIBC Costco Mastercard is the official Costco credit card. In addition, you can read my list of the best Costco credit cards in Canada. 

Many people agree that the regular Costco membership, the Gold Star membership is worth the annual membership fee. The real question is: is the Costco Executive Membership worth it? Well, that decision needs to be made on an individual basis, however, in this article, I’m going to help you decide if the Costco Executive Membership is right for you.

Why you should get a Costco membership

Before you figure out if the Costco Executive membership is worth it, you may be wondering if a Costco membership is worth it. After all, unlike a traditional grocery store, Costco is a club warehouse and you do need to pay for a membership to shop here.

As mentioned above, Costco is best known for its bulk groceries and supplies. You’ll find everything from packages of chicken breasts to cartons of orange juice to large packages of toilet paper. On top of groceries and household supplies, Costco also carries electronics such as TVs and cellphones, brand name clothing, and kitchen items such as coffee makers and mixers.

Costco stores also offer several services that members can take advantage of. These additional Costco services include:

• Costco Gas
• Costco Travel 
• Costco Pharmacy (non-members have access too)
• Costco Optical Centre
• Costco Tire Centre
• Costco Credit Cards

Thanks to being a club warehouse, Costco can offer all these items and services at a discounted cost to members, allowing you to save on your shopping needs. Whether it’s for everyday essentials or larger one-time or occasional purchases, Costco has a lot to offer its customers. Plus, of the best things about being a Costco member is the generous refund policy since they have a satisfaction guarantee.

Admittedly, single people and couples may not get as much value out of a Costco membership. That said, the products you get access to could be worth the yearly fee.

Costco membership prices and levels 

If you are planning on becoming a Costco member, you’ll have two membership levels to choose from: Gold Star Executive Membership or Executive Membership. Here’s a quick breakdown of the two options in Canada.

Gold Star Membership

The Costco Gold Star Membership is their basic membership. It costs $60 per year and can include up to two cards within the membership. The second card can be given to a spouse or another family member as long as they are 18 or older and have the same place of residence.

Executive Membership

The Costco Executive Membership is a step up from the Gold Star Membership. It comes with several additional perks, however, the annual fee is $120 per year. Like the Gold Star Membership, you can get a second card for free for a spouse or family member (as long as they live at the same address).

It should also be noted that Costco also offers business memberships. This is meant for people with their own business (you need an HST number to apply) and allows individuals to purchase items for resale. Just like with the personal membership options, the business membership has the regular option as well as an executive option.

Costco Executive Membership Benefits

So, what makes the Costco Executive membership worth twice as much as the Gold Star membership? Well, there are several perks and benefits that come with the executive membership. Again, this is for Costco in Canada.

2% cash back on purchases

The biggest draw for most consumers to get the Costco Executive Membership is the cash back aspect. All executive members will receive 2% cash back on the majority of their purchases (some items, such as alcohol, are not included in this). While the cash back is a big draw, you’ll want to make sure that, at the very minimum, you make back that $60 extra that you paid for this membership. To do that, you’ll have to spend at least $3,000 per year which is $250 per month.

Granted, this is a normal, if not low, amount for a family to spend on groceries and home supplies. However, if you live alone or if there are just two of you, it might be a stretch. You want to make sure that you are buying what you need and making up that money, not buying on a whim to make up the difference.

Exclusive offers and discounts

Having the Costco executive membership also comes with a few extra offers and discounts. These are usually for services such as insurance, real estate and mortgage programs, and business services such as cheque printing. Of course, these all still come at a cost but there are special discounts for executive members.

Costco Connection Magazine & Costco.ca inserts by mail

This may seem like a silly perk, however, it’s an easy way to keep on top of what Costco is bringing in and has available. Plus, if you know what’s coming then you can make sure that you are one of the first to get it. There’s nothing worse than hearing about a great Costco deal from a friend then going yourself only to realize that you missed it. Getting the Costco Connection Magazine allows you to stay on top of the newest and best deals and offers both in-store and online.

Shopping Online at Costco

Like most retailers nowadays, Costco also offers online shopping. You will need to take a few minutes to create an account with your membership number, but once you are set up you can shop online. You’ll find plenty of different and new products online that aren’t available in-store plus you’ll also be able to take advantage of some of your favourite Costco services such as the photo centre which will let you create custom photobooks or photo gifts from the comfort of your home. Shipping is available to most Canadian residences.

So, is the Costco Executive Membership Worth It? 

If you think that you will be a frequent shopper at Costco, then the Costco Executive membership is likely worth it. However, remember that while the intent of Costco is to save money, you shouldn’t be spending money on random unneeded items just to validate getting the more expensive card. If that’s the case, then the regular Gold Star Membership will do just fine.

More importantly, if you haven’t earned enough cash back by the end of the year to make up the difference from the Gold Star Membership, Costco will rebate you the difference. That means there is no downside to getting an Executive Membership.

It’s also worth mentioning that when items go on sale at Costco’s competitors such as Walmart, or No Frills, the prices are typically cheaper. Costco just usually has the cheapest everyday prices. Don’t forget, Costco also has an optical center and pharmacy where prices tend to be much lower.

CIBC Costco Mastercard

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• No annual fee
• 3% cash back on restaurant purchases
• 3% cash back at Costco Gas, 2% at non-Costco gas stations on the first $5,000 (1% after)
• 2% cash back on Costco.ca purchases up to $8,000 (1% after)
• 1% cash back on all other purchases
• Mobile device insurance

CIBC now provides the Costco Credit Card. You get increased cash back on restaurants, costco.ca, and Costco Gas. Additional benefits that come with the card include purchase protection, extended warranty, and mobile device insurance.

It’s worth noting that even though your CIBC Costcom Mastercard doubles as your Costco membership, so there’s no need to show your membership card. That said, you still need to pay the annual fee for your membership. It should also be pointed out that you don’t get any additional cash back at Costco stores. You’d earn the base earn rate of 1% there.

One alternative credit card to consider using at Costco is the WestJet RBC World Elite Mastercard since you’ll earn 1.5% in WestJet Dollars on all purchases. This card is obviously useful to people who fly WestJet a lot. The card also gives you an annual companion voucher, free checked baggage and a sign up bonus of $250 after your first purchase so it’s a great credit card.

Alternatively, some people will use their American Express Cobalt Card since you’ll get 5 points per dollar spent at grocery stores. Since Costco warehouses don’t accept American Express, the trick is to buy Costco gift cards at the grocery store and then redeem when you’re at a Costco warehouse.

WestJet RBC World Elite Mastercard

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• $119 annual fee
• 25,000 WestJet points after your first purchase
• 5,000 WestJet points up to twelve (12) weeks after your first purchase
• 30,000 WestJet points after spending $5,000
• 10,000 WestJet points up to sixteen (16) weeks after your first anniversary
• Earn 2 WestJet points per dollar spent on WestJet, WestJet Vacations, Sunwing Vacations, groceries, and gas
• Earn 1.5 points per $1 spent on all other purchases
• Receive a round-trip companion voucher
• Get free first checked bags for the primary cardholder and up to 8 guests on the same reservation

Another card to consider is the PC Financial World Elite Mastercard. You’ll earn 10 PC Optimum points per dollar spent so that works out to a 1% return which is nothing special but you can take advantage of PC Optimum has bonus events where you can redeem your points for extra value. E.g. claim 250,000 points for $400 in value when the normal value is $250.

If you want cash back, consider the BMO Cashback World Elite Mastercard or the Rogers World Elite Mastercard which both earn you 1.5%. Both of those cards are on my list of the best cash back credit cards in Canada so either is a great choice. 

Here’s a full list of the best Costco credit cards in Canada.

Once you understand how to read a credit card statement, you can make smarter financial decisions. That’s because you’ll be able to see what purchases you’ve made, how much credit you’ve used, and how many rewards you’ve earned. Here’s how to read a credit card statement.

What is a credit card statement?

First off, a credit card statement is a paper or digital statement that lists all of the transactions charged or refunded to your credit during the previous billing cycle. This would include things such as purchases, pre-authorized purchases, annual fees, and refunds.

Billing cycles typically last one month, and you get a minimum of 21 interest-free days. As long as you pay your entire balance on time, by the statement due date, you will not incur any interest charges.

Every credit card statement will include the following information:

• Credit card – Right at the top of the credit card statement, you’ll see which credit card the statement is for and your name. This is vital information if you have multiple credit cards with the same bank.
• Your name and credit card number – Below the credit card name, your statement will display your name and credit card number. Note that for privacy reasons, some of the digits of your credit card will be blocked out.
• Statement date – This is the date that your statement was issued.
• Statement period – The credit card statement period refers to the time period where your transactions would apply.
• Transactions – Under transactions, you’ll see a few different items. The transaction date is when you made the purchase. The post date is when the charge officially appeared as a charge on your credit card. Activity description usually refers to the name of the merchant where you made the purchase. Finally, you’ll see the amount due.
• Total new balance – The credit card statement balance is how much you owe. If the number is in the negatives, that means you have an outstanding credit. 
• Contact information – The contact numbers for your financial institution and loyalty program (if applicable) would appear here.
• Points/cash back earned – For those that have a points or cash back credit card, this section would show you what you’ve earned during the statement.
• Payment information – Arguably the most important section, the payment information, or account summary, displays your payment due date, credit limit available credit, and the annual interest rate for purchases and cash advances.
• Estimated time to pay – This calculation shows you how long it would take to pay your total balance if you only made the minimum payment each month.
• Calculating your balance – Under this final section, it would list any additional fees that would apply for the month, such as balance transfers, cash advances, interest, and late fees.
• Payment details – At the bottom of your statement, is a detachable portion that lists your payment details. This would be used if you pay at a branch or by mail.

Credit card statement example

The next step to learning about how to read a credit card statement is to look at a credit card statement example.

As you can see, this is from my TD Aeroplan Visa Infinite Privilege Card. The sections I always check are transactions and Aeroplan points earned. 

How often do credit card statements come?

Your next natural question might be how often do credit card statements come. They’re sent once a month immediately after your billing period ends. If you opt for paperless statements, they’ll be sent to your online banking account. Note that you’ll get an email alert when your statement is ready. For those that opt for physical statements, you can expect them in your mailbox a few days after your statement date.

While paper statements are convenient, some financial institutions may give you an incentive to go paperless. For example, you might get bonus points or cash back.

Your statement date would usually line up with the time you signed up and were approved for the account. For example, say you signed up on the 17th of the month. Your statement date would typically fall on the 17th of every month. You could request a different statement debt. You’d just have to call your credit card provider.

What to check for on your credit card statement

When learning about how to read a credit card statement, you need to check for a few specific things every month:

• Suspicious transactions – Check your credit card statement and review every line in the transactions section. What you’re looking for is any purchase you don’t recognize. If something looks off, investigate further by looking up the merchant that charged you. If you’re positive the purchase wasn’t made by you, contact your financial institution to start a fraud claim.
• Interest and fees – Anyone that pays their bills on time and in full should check the interest and fees under the calculating your balance section. You want to make sure no additional charges, such as balance protection, were added.
• Credit card balance – Since this is the amount you owe, you need to know what it is so you can make a payment. 

How points and cash back are calculated on credit card statements

If you earn points or cash back with your credit card, you’ll want to pay close attention to the breakdown. With cash back credit cards, the calculation is quite simple since it’s based entirely on your earn rate. 

However, with points cards, it’s not always so easy to understand the breakdown of your points. Let’s use my TD Aeroplan Visa Infinite Privilege credit card statement as an example again, but note that every reward program is different.

As you can see, there are points earned on purchases and bonus/adjustment points earned. This should be a simple calculation, but TD/Aeroplan makes it a bit more complicated than it needs to be. For points earned, the points earned refer to the base earn rate of 1.25 Aeroplan points per $1 spent. However, you earn 1.5 points per $1 spent on eligible gas, groceries, travel and dining purchases. The extra .25 points appear under bonus/adjustment points earned. Any bonus points, such as promotions, would also fall under bonus/adjustment points earned. For this statement, I received an extra 5,000 Aeroplan points when spending $1,000.

Most people know there are numerous types of credit cards. There’s cash back, travel rewards, store cards, and more. But if you were to ask them if they have a secured credit card or an unsecured credit card, they would have no idea. Keep reading this post to find out the differences between secured vs unsecured credit cards.

What is a secured credit card?

As you may have figured out from the name, a secured credit card is a credit card that is essentially backed by a security deposit. You, as the cardholder, would provide this security deposit to the financial institution as a guarantee that you will make your credit card payments. If you do not make your payments, the bank or financial institution will claim that security deposit against the outstanding charges.

The minimum security deposit amount depends on the credit card limit and the credit card itself. At its lowest, it will be the amount of the credit limit. So if your credit card limit is $500, that’s the price of the security deposit. However, it can go as high as double your credit card limit, so with our example, it would then be $1000. If you want a higher credit limit, you would add more security funds.

Secured credit cards are easy to get since they’re meant for building credit. The requirements to get a card are quite low since there’s no credit check or minimum income requirement.

How does a secured credit card work?

Aside from needing the security deposit as collateral, a secured credit card works pretty much the same as any other credit card. You can charge purchases to your credit card, and you get an interest-free period. As long as you pay off the full balance before your due date, your lender won’t charge you any interest.

With a secured card, you won’t get any perks, but that’s okay, as it’s meant to help people with bad credit. As you make your monthly payments, your credit history will get reported to the major credit bureaus (Equifax and Transunion). Eventually, your credit score will increase over time. Once you have a good credit report, you can apply for a traditional card from any credit card issuer.

Having a good credit score is essential if you ever need a loan in the future such as a line of credit or mortgage.

What is an unsecured credit card?

An unsecured credit card then is, by default, a credit card that does not require a security deposit. In fact, an unsecured credit card is what typically comes to mind when Canadians think of credit cards.

Due to the fact that there is no security deposit requirement, the application process for an unsecured card is a bit more in-depth and often requires a monthly income requirement and a good credit score. This is because credit card companies have nothing to fall back on should you not make your payments. 

Unsecured credit cards also tend to have perks and benefits. Just look at my list of the best cash back credit cards in Canada, you would never get those kinds of benefits with a secured credit card.

Of course, to be able to maintain your excellent credit score and ability to apply and qualify for unsecured credit cards, you need to stay on top of your payments and pay at least the monthly minimums on time. Check your credit score for free with Borrowell if you’re not what your’s is.

Secured credit cards vs unsecured credit cards differences

The biggest difference between secured and unsecured credit cards is the required security deposit for secured credit cards. However, there are a few more differences (and similarities) that are worth noting.

Differences

• secured credit cards are easier to apply for, unsecured credit card applications have more requirements to qualify
• secured credit cards may have a set-up fee (unsecured credit cards do not)
• secured credit cards are basic, there’s no chance at earning points or rewards vs unsecured credit cards often have perks, bonuses, and rewards programs
• secured credit cards may have higher interest rates

Similarities

• Both types of credit cards will build your credit score
• Both types of cards may have an annual fee (depends on the credit card)

Secured or unsecured credit cards: which is better?

The best answer to this question is; it depends on your situation. If you’re a young Canadian just starting out with credit cards and building a credit score, or a new immigrant to Canada, or perhaps someone who has filed for bankruptcy in the past or just has a low credit score, then a secured credit card is a smart choice. It’s the best option to help you build poor credit by using a credit card.

If this is not the case, then you are better off going with a secured credit card. They have more perks, benefits, and bonuses that consumers find valuable plus lower interest rates.

With that in mind, here are my top picks for the best secured credit card and the best unsecured credit card in Canada.

How to improve your credit score

Besides having your credit card account in good standing, there are a few other ways you can improve your credit score.

• Avoid late payments – Paying the full balance when your billing cycles end will help you boost your credit score. If you can’t afford to pay the entire bill, at least make the minimum monthly payment.
• Keep your credit utilization ratio low – The amount of credit you use relative to what you have access to is known as your credit utilization ratio. Try to keep yours under 30%.
• Limit credit applications – Every time you apply for new credit, your credit score drops by 5 – 10 points, so limit your applications.

The best secured credit card in Canada

There are a few choices for secured credit cards in Canada. As mentioned above, some of higher interest rates but those also tend to charge an annual fee, so it’s best to strategize on this and think ahead when choosing a secured credit card.

Personally, I suggest the Home Trust Secured Annual Fee Visa. It does have an annual fee of $59, however, it also has a low interest rate of 14.90%. This makes it ideal for those who may not be able to pay off the entire amount every month and will have to carry a balance. The minimum deposit required for this card is $500, and all you need to apply is to have a bank account.

The best unsecured credit card in Canada

There is no shortage of unsecured credit cards in Canada, and the best one really depends on what you are looking for. Check out some of my best of lists for inspiration:

• The best travel credit cards
• The best cash back credit cards
• The best credit cards with airport lounge access
• The best credit cards with no foreign transaction fees
• The best no fee credit cards

Final thoughts

At the end of the day, when it comes to secured vs unsecured credit cards in Canada, unsecured credit cards will likely be your first choice. There is no security deposit required plus you’ll have the option to earn rewards/points and get perks depending on the card. That being said, these cards aren’t always easy to apply for and not everyone qualifies. So, if you are new to Canada, new to credit cards, or building your credit score, then unsecured credit cards are a great option.

That money doesn’t just get refunded automatically whenever you request a chargeback. Nor can you request one just because you don’t like what you bought or the store isn’t offering a refund. For a credit card chargeback to be successful, a formal investigation needs to be done. If you want your chargeback to go through, then you’ll want to understand how they work.

What is a chargeback?

A chargeback is a demand by you (the consumer) for a merchant to reimburse you for a disputed transaction. There are specific circumstances where a chargeback would be allowed such as:

• If you’re charged the wrong amount
• You were charged twice
• You didn’t get the item or service that you purchased
• Your refund has not gone through
• Your purchase is not as described
• You were charged for something that you already cancelled

It’s important to know that a chargeback is different from your zero liability and fraud protection. With zero liability, you’re not responsible for any unauthorized charges. When it comes to fraud, you’re protected if your card is stolen or you’re a victim of identity theft. Both of those cases are usually quick to prove.

With a credit card chargeback, you’re asking for your credit card company to refund you the disputed charge directly from the merchant. 

How to initiate a chargeback

Generally speaking, you would reach out to the retailer first to see if there was an honest mistake. This also gives you a chance to gather your evidence. If you’re not making any progress with the merchant, you can ask your credit card provider to reverse or reimburse you for the charge.

While the process of starting a chargeback can be easy, it’s not always guaranteed to work. Your credit card provider will need to open a formal investigation, which includes speaking to the merchant for their side of the story.

To perform a chargeback, you would typically take the following steps:

• Check your credit card statement for any incorrect charges
• Contact the merchant to see if the issue can be resolved
• Gather any evidence such as receipts and email correspondence with the merchant for your chargeback
• If you’re not getting anywhere with the merchant, contact your credit card provider to initiate a chargeback
• Provide your credit card provider with any evidence you gathered
• Wait for your credit card provider to finish their investigation

Assuming you’re successful, your credit card provider will post a credit to your account. You’ll also get a physical letter in the mail that will explain their findings.

Credit card chargeback example

About a decade ago, I ordered a bunch of t-shirts from a merchant. I was charged immediately, but the shirts were never shipped. I emailed them multiple times, and they said they would be shipped soon. After 45 days, my shirts didn’t arrive, so I demanded a refund. The merchant said there were no refunds and the items would be shipped soon.

Since this merchant was already operating in bad faith, I didn’t think the shirts would ever be shipped. I contacted my credit card provider to open a dispute/chargeback. 

The 45-day mark was essential since I knew my credit card provider only allowed chargebacks within 30 days of my statement closing. At the same time, I sent them copies of the receipts and emails I had with the company.  My credit card company checked with the merchant, but they sided with me pretty quickly as I saw a credit on my account within two weeks.

As for my hotel dispute, it was more complicated. I contacted the hotel as soon as I noticed I was charged fees I had already paid. They claimed that all the daily balances added up on their end, so it couldn’t have been a mistake. I said that had no relevance as charging me twice did not mean their balances would be off. I asked them to check the security footage as they would see me paying cash. After two weeks, they responded that their footage gets destroyed after 30 days. I said that’s not my fault as I inquired before the 30-day window was up. They didn’t care and refused a refund.

I opened a dispute with American Express and provided them with all my evidence. They did their due diligence and contacted the hotel. In the end, American Express couldn’t definitely say the hotel was at fault, but it was clear that I wasn’t making this up. I had been an American Express customer for years with a clean record and the credit card chargeback I was making was for $50. They credit my account in good faith.

How long does a chargeback take?

Most credit card providers will say that a chargeback can take up to 4 weeks. While that may seem excessive, they say that to protect themselves. In most cases, you can likely expect a decision in a week or two. Obviously, the more evidence you have, the more likely you will be successful at your chargeback.

For example, let’s say you ordered an item, but were shipped something else. When you contact the merchant, they insist you got the right thing, You could easily take pictures of your invoice, the packaging, and the actual item you received as evidence. 

Basically, the more evidence the credit card provider has, the more likely your case will go quickly and end in your favour. As you can imagine, smaller sums typically get resolved quicker than larger ones.

Do I need to pay the balance when doing a chargeback?

Many people wonder if they need to pay the disputed charge when doing a chargeback. The answer is a hard yes and even your credit card provider will tell you that. Some people find this ridiculous and will refuse to pay for a charge they didn’t make. Here’s the thing, until your credit card provider concludes their investigation, they consider that a charge you made.

You could refuse to pay it in protest, but do you really want to potentially tank your credit score because you’re angry? If you know you’re in the right, just pay it for now. Your refund will come.

Don’t worry if you have a positive balance after the chargeback goes through. You can always request your credit card provider to send you a cheque for the balance.

What happens if your chargeback is denied?

If you don’t have enough evidence to support your claim, your chargeback could be denied. The key thing is to try and find out their reasoning. If your credit card provider sided with the merchant, then there’s not much you can do about it. However, it’s possible for their investigation to be inconclusive. You could potentially ask them to credit you the amount in good faith. 

Now let’s say your credit card chargeback has been denied, and your credit card provider won’t credit you anything. You could contact your credit card provider’s ombudsman as they review customer complaints. That said, you really need a compelling case to show that you’ve been done wrong.

Final thoughts

Knowing what is a chargeback is one thing, but knowing how to make a successful claim is totally different. Now that you know the formal steps, you can initiate a credit card chargeback when you’ve been wronged. There’s also one final thing worth mentioning. Sometimes asking for a chargeback is not worth your time. It could take hours for you to get in touch with the merchant and your credit card provider. While it sucks to lose that money, your time is likely more valuable.