The Canadian economy is expected to outperform the European Union and Japan, but grow at a slower pace than the U.S. and the U.K.  The sharp drop in oil prices is having an impact on the economy in Alberta resulting in reduced income and spending.

The Bank of Canada is expected to keep interest rates at current levels until the end of 2016, which should keep the Canadian housing market stable. However, home prices in Alberta and Saskatchewan are expected to decline by 3-7% over the course of 2015.

The lower Canadian dollar should help the tourism industry, with Americans finding it cheaper to travel to Canada.

In terms of personal and household finances, individuals should consider contributing to a Tax Free Savings Account (or TFSA). The annual contribution limit for TFSAs is now $10,000. Families should also consider taking advantage of programs such as a Registered Retirement Savings Plans (or RRSP), and those with young children should consider a Registered Education Savings Plans (or RESP).  Even starting with contributions as small as $10 or $25 per month will result in meaningful savings over a longer period of time through utilizing this very favorable incentive available to families.

For private investment opportunities, make sure you ask for a document detailing the company or investment. It is very important to perform proper due diligence and to have written agreements to reduce possible misunderstanding or conflict. Lastly, understand your investment risk tolerance based on your age, financial goals, and personal comfort level.

Economists are predicting interest rates will rise over the next few years. Therefore, it is important that your personal and household finances can stand up to a change in circumstances, particularly if you have a mortgage or loans. Calculate how much more it will cost if interest rates rise or what will happen if your household income drops. Take a long-term view. If you need assistance, seek the help of an expert or a trusted advisor.

Whatever your stage of life or income, give serious consideration to working towards a savings mindset rather than a borrowing mindset. This means spending wisely.  Those who are younger, have the benefit of time, which has a compounding effect on savings, and should start saving as soon as they can, even if it’s a small amount initially.  Do not take on unnecessary or extensive commitments if your situation does not permit it.