5 money moves to make before the end of the year

1. Revisit your budget

Budgets are a great tool to help you stay on track with your spending and savings goals, but they need regular updates to maximize their effectiveness. Hopefully, you’ve recorded any changes to your income, expenses, or money objectives throughout the year. If not, now is the time to do a deep update and analyze your progress. 

If you find evidence of impulse spending, it’s time to make some adjustments. For example, rather than keeping all of your income in an instant-access chequing or savings account, you could tuck some away in an account like EQ Bank’s high-interest no-fee Notice Savings Account. In exchange for giving advance notice of a withdrawal (10 or 30 days), you get a higher interest rate. It’s a win-win for spur-of-the-moment shoppers who want to hold some of their money at arm’s length.

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EQ Bank Notice Savings Account

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Monthly fee: $0

Interest rates: 2.60% for 10-day notice, 2.75% for 30-day notice. Read full details on the EQ Bank website.

Minimum balance: n/a

Eligible for CDIC coverage: Yes

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2. Simplify your money management

If you think managing your own spending and saving is a challenge, try doing it with others! For some people—like couples, family members, or even roommates—budgeting can be complicated by shared expenses or joint savings goals. That’s where a joint bank account can make a huge difference. 

When you open a joint account, all account holders (you and up to three other people) can deposit, withdraw, and save in the same account. Rather than trying to bookkeep separately, everything is in one place. Make easier money management part of your financial resolutions. Pro-tip: Consider a no-monthly-fee, high-interest bank account like EQ Bank’s Joint Account to keep your money growing. 

3. Top-up your retirement funds and get a tax break

Registered retirement savings plans (RRSPs) let you save for retirement in a tax-advantaged account, meaning that every dollar you put away can reduce your taxable income for the following year. Every year, you have a certain amount of contribution room for your RRSP and unused room rolls over into subsequent years. 

Taxes on your RRSP savings are only due once you withdraw. The idea is that you will be retired at that point, so your tax rate will be lower than during your working years. 

Although the last day to contribute to your RRSP is in March, many Canadians strive to top up earlier. Not only does this give your savings more time to accumulate interest, but it also ensures that your retirement savings don’t end up inadvertently going to holiday expenses.  

4. If you need it, consider making a withdrawal from your tax-free savings account (TFSA) before Dec. 31

Similar to the RRSP, a tax-free savings account (TFSA) is a tax-advantaged registered savings account with a certain amount of contribution room added annually. The difference is that when you put money into a TFSA, you don’t get a tax-break on your income tax. Instead, any gains you earn are yours, tax-free. 

The annual deadline for TFSA deposits is December 31, and on January 1, you get your new contribution room. What you may not know is that when you withdraw funds from your TFSA, the amount you withdraw is added back to your contribution room the following calendar year. 

So, if you anticipate needing money soon but still want to make use of your full contribution room next year, making a withdrawal before December 31 is a good time to do it because you’ll get that room back quickly. 

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EQ Bank TFSA Savings Account

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Interest rate: Earn 1.50% on your cash savings. Read full details on the EQ Bank website.

Minimum balance: n/a

Fees: n/a

Eligible for CDIC coverage: Yes, for deposits

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5. Capitalize on saving for a home

A first home savings account (FHSA) is a tax-advantaged investment that works in a similar way to an RRSP in that the money you deposit can reduce the amount of your taxable income. And, similar to a TFSA, the money you withdraw is tax-free. Each year’s unused contribution room rolls over to the next year, so if you’ve never contributed but open one now, you could deposit up to $16,000 per person (or double that, for a couple) in 2026. 

Unlike a TFSA or RRSP, you won’t begin accumulating contribution room until you open the FHSA. So, if you don’t have an FHSA but intend to open one, doing so before Dec. 31 can give you an extra year of contribution room in 2025. 

On the other hand, if you have some extra cash (perhaps a year-end bonus!) to allocate to savings, contributing to your existing account by the December 31 deadline can reduce your taxable income for 2025.

Get started on a new year’s financial plan

Year-end is a great time to review your financial health. By choosing the right banking products and making smart investment decisions, you can build momentum toward lasting security and success.

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About Keph Senett

Keph Senett writes about personal finance through a community-building lens. She seeks to make clear and actionable knowledge available to everyone.