The holidays are magical, at least until January’s credit card statement shows up. Whether it’s gifts, travel or well-earned downtime, a little planning now keeps your finances merry long after the lights come down.
Check Your List (And Your Budget) Twice
A holiday budget isn’t about being a grinch, it’s about enjoying the season without stress. Here are some tips:
- Set a spending limit for gifts, traveland special meals.
- Track every swipe so many small expenses don’t turn into a big bill later.
- Prioritize needs over wants because the fun of “one more gift” is rarely worth the January regret.
Think of it like a rucksack: if you overpack, you pay the price on the march. Keeping your budget light now makes the road into 2026 a lot easier.
Remember The January Reset
Your paycheque in January may feel lighter. That’s because Canada Pension Plan (CPP) and Employment Insurance (EI) deductions reset with the new year.
Here’s how it works:
- For much of the fall, many CAF members stop CPP and EI contributions after hitting the annual maximums.
- That bump can make your autumnpaychequesfeel a little roomier.
- On January 1st, those deductions kick back in, meaning a smaller net deposit until you once again reach the annual maximum.
This is normal and predictable, but only if you plan for it. Build the January drop into your budget now so it doesn’t catch you off guard when holiday bills are still arriving.
Don’t Let “Happy Holiday” Turn Into “Debt Dread”
Credit cards are convenient, but the interest rates can be ice cold. Even a modest balance can rack up significant interest if you only pay the minimum.
If you’re already carrying debt, SISIP’s financial advisors can help you:
- Consolidate payments so that you’re not juggling multiple payments and due dates—SISIP can help determine if you qualify.
- Create a pay-down strategy to target the highest-interest balances first.
- Get a clear picture of what you owe and how quickly you can become debt-free.
These services are free, confidential, and tailored to the realities of CAF life, including things like irregular postings, deployments, and your partner’s career changes.
Free Tools That Make It Easy
The Money Mastery Portal is an eLearning centre that’s like having your very own budgeting elf on call. It’s packed with bite-size financial tips, checklists, and tools you can use anytime, anywhere—even on deployment. Enhance your financial know-how with the Money Mastery Portal, then bring your most pressing questions and budding ideas to SISIP for feedback. You can walk away with a budgeting strategy that fits your life.
Pro Moves For 2026
The holidays are also a perfect time to think beyond gifts. Before December 31st, consider key year-end moves like:
- Topping up a Registered Education Savings Plan (RESP) to help a child maximize their Canada Education Savings Grants
- Maxing out other accounts like TFSAs and RDSPs before the year-end deadline. Not sure which account type is for you? SISIP can help!
- Contributing to a First Home Savings Account (FHSA) to help make your dream home come true. Even if you can only contribute a small amount before year end, it will give you contribution room for the entire year—ready for when you can add more.
- Using paper losses to create real gains if you have non-registered investments that have declined in value. Ask SISIP about tax-loss selling before December 31st.
- Setting up automatic contributions to an investment account so you can start the year strong
Even small actions like putting an extra $25 per pay towards your long-term investments can add up quickly when you start early.
One More Thing: Recent CAF Pay Changes
You may be enjoying the recent CAF pay adjustments. A raise can feel like found money, but it’s also an opportunity. Use part of that increase to build an emergency fund, pay down high-interest debt, or lock in automatic savings so that extra cash builds lasting security instead of disappearing into everyday spending.
Enjoy the season this year and every year, but keep your future self in mind. With a quick budgeting check, smart year-end moves, and a chat with SISIP, you can start the new year confident, not cash-strapped.
