Getting financially fit in 2026

Patience and planning at the heart of good money management

As a first-year university student on a tight budget, Braiden Howes says one of the biggest challenges he faces is turning down the small daily expenses that quietly chip away at his bank balance.

On the surface, a coffee run or a meal at a restaurant with friends doesn’t cost much, but the totals add up fast, he said. Keeping those small purchases to a minimum has become one of his top financial priorities.

“Learning to say no to small daily expenses to protect larger goals is both the hardest and most important part of my financial discipline right now,” Howes told The Advocate.

“Especially being in school, everybody always wants to go get food and I don’t want to miss out. But I try to buy groceries and make my own food as often as I can.”

With the new year ahead, Howes, a 19-year-old from Kawartha Lakes who is attending York University with ambitions to become a lawyer, is determined to track every dollar and build financial habits that will set him up for loftier goals, including saving for a first home in the years ahead.

Howes said he started thinking about budgeting before starting university. He had already saved some money to help him get through his first year. His budget included a $150-per-week allowance for food, money for rent – he lives on campus – and the occasional night out with friends.

But after settling into university life, he found it harder to keep track of day-to-day expenses than he expected.

“I didn’t feel a need to track my expenses once I got to school to ensure I stuck to my budgets, but I wish I did,” Howes said.

While students often face challenges balancing their spending, Jenn Mabee, executive financial consultant at IG Private Wealth Management in Kawartha Lakes, said there are several options they can explore to improve their financial situation.

Some of the suggestions she offers include taking advantage of the Canadian Education Savings Grant (CESG) in a Registered Education Savings Plan (RESP), which she said “is very worthwhile,” as well as tax-free savings accounts.

Looking ahead to 2026, Howes said he is resolving to improve his financial habits by making some small changes. In the short term, his plan is to rigidly stick to his budget and increase his savings rate by building steadier income streams so he’s less dependent on hourly work and can focus on his studies.

“Longer-term, I’m aiming to save enough for a down payment on my first property within the next few years, ideally something that can be owner-occupied or rented,” he said.

“Real estate and investing are major long-term focuses for me, and I’m trying to build the foundation early rather than waiting until after graduation.”

Howes said he plans to start working towards his financial goals by cutting small expenses, starting with those daily $5 and $10 purchases “that add up invisibly,” as he puts it.

“Even a five- to 10-per-cent reduction in those categories can have a noticeable impact on my monthly savings,” he said.

“I’m also planning to automate investment contributions to my RRSP rather than setting aside money manually. A small change repeated long enough becomes a habit, and I believe that’s where most financial progress is built.”

Whatever a person’s financial goals are, Mabee said the best first step is doing what Howes is doing – being clear about what those objectives are. Once people know what they’re aiming for, they can start to create strategies that work best for them.

“As with all goals, they need to be tangible – what will it cost, what is the time horizon to accomplish it and what will you give up to get there,” Mabee said.

“Everyone is at different stages of the life cycle and everyone’s needs and wants are different. Being clear on what matters to you is the first step to improving your financial health.”

Another Kawartha Lakes resident focusing on finances in 2026 is Sue, a 39-year-old wife and mother who works in health care. Sue and her husband are homeowners with a mortgage and have two vehicles, one of which has two years left on financing. They are also working towards saving for their daughter’s post-secondary education.

Sue is also a part-time student completing an online course offered by the University of Toronto.

Like Howes, Sue said she’s noticed how small expenses, particularly ones she doesn’t need, add up fast, and she plans to focus on cutting those costs in 2026.

“Whether that be getting rid of monthly subscriptions I don’t really need or cutting any unnecessary costs,” she said.

“I will also look for ways to save money on everyday purchases like gas and groceries by using loyalty cards or student discounts where possible.”

Mabee said this is an “excellent plan.”

“It is very important to take a step back and be aware of where your money is going,” she said. “Most often, there are easy things we can do like this. I would take it a step further and say, ‘what are you going to do with your savings from these unnecessary expenses?’ If you have a clear goal, then you can create an appropriate investment plan to get you there.”

When it comes to day-to-day money management, Sue said the greatest challenge for her and her husband is “balancing everything.”

This includes saving for retirement and their daughter’s education while still covering monthly bills and having spending money left over.

“We live very comfortably, but our home is about 15 years old, so we’re mindful about saving for future repairs like a roof or furnace, which can be very costly,” she said.

Fortunately, Sue said her bank has online tools that make budgeting easy. Each month, she can see exactly where money is going by looking at a simple pie chart.

She has also set up alerts that send instant notifications if her balance drops below a certain amount or if a large transaction goes through.

“This really helps me manage my spending,” Sue said.

Two other important habits Sue said she has learned are to always pay off credit cards at the end of the month to avoid interest charges and to keep a minimum of $1,000 in an account that doesn’t get touched.

“That way, I always have a cushion of liquid cash for emergencies,” she said.

One common challenge many face is trying to save money while also paying off debt. Mabee advises finding a balance.

“If solely focused on paying down debt and something goes wrong or breaks down and you don’t have an emergency fund, you just go back into debt again and the circle continues,” she said.

“It is important to have both short-term and long-term investment strategies while paying down debt. The numbers and interest rates all need to be taken into consideration for each individual situation to know how to prioritize. Being self-aware enough to never let oneself live beyond their means can help keep that balance possible.”

Asked if there are any specific budgeting tricks or approaches that work well, Mabee said there is no one-size-fits-all advice she can recommend, but she noted that people should try different approaches until they find the best one for them.

“It sounds cliché, but the one that works is the one that works for you,” she said. “Everyone’s styles and habits are different, so you have to find the right fit. Try different ways to decide what is the easiest or most rewarding method for you – only then will you have success. … The main objective is to stay focused and hold oneself accountable regardless of the method.”