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n THE BRANDON SUN TUESDAY, FEBRUARY 3, 2026
Financial Planning 2026
Tax season: A financial reality check BY ABIOLA ODUTOLA
For many Canadians, tax season is more than a paperwork exercise — it’s the one time of year when they are forced to look closely at their en- tire financial picture. Income slips, receipts, investment state- ments and debt balance all land on the table at once, often revealing habits and gaps that stayed hidden the rest of the year. The process itself is what triggers the reck- oning, Westoba Financial Solutions financial planning director Rhonda Oakden told the Sun. “Tax season is a time when people tend to collect all their financial information at once,” Oakden said in an email. “It is a process that naturally brings their financial situation into focus. Gathering, preparing and reporting ev- erything for your tax return identifies gaps or missed opportunities, often prompting reflec- tion and conversations that may be overdue.” That same pattern is seen at credit unions and banks across the region. Many clients are surprised by what that snapshot reveals, Sunrise Credit Union Minne- dosa branch office supervisor Gaylene Johnson told the Sun. “It brings together income, expenses, invest- ments and outstanding debts, creating a com- prehensive snapshot of their financial situation that they may not regularly review throughout the year,” Johnson said. When financial professionals review clients’ finances during tax season, several warning signs tend to appear repeatedly. Oakden said inconsistent or insufficient sav- ings is one of the most common. “People discover that they haven’t contribut- ed the appropriate amount to meet their goals until it’s too late,” she said. Unmanaged credit balances and missing re- ceipts or documentation also frequently derail what should be a smooth filing process, she said. Johnson agreed with those concerns. “The most common flags that we see is peo- ple spending more than they earn, taking on too much debt such as credit card debt, and people not having enough tax-deferred invest- ments in place,” she said. Both agree that these problems rarely appear overnight. Instead, they are the result of deci- sions made in isolation throughout the year, without a clear plan tying them together. One of the most familiar tax-season be- haviours is the last-minute RRSP contribution, often made in February with the sole aim of re- ducing taxable income. Oakden said those decisions still happen reg- ularly, but they can come with long-term con- sequences. “This can often lead to contributions that don’t align with long-term goals or cash-flow capacity,” she said. “Westoba encourages cli- ents to invest early, invest often to build confi- dence and consistency.” Johnson said about 40 per cent of people make last-minute RRSP contributions primar- ily for the deduction. While helpful in the short term, she said, waiting can reduce the bene- fits of compound growth and create cash-flow pressure later if the funds are needed. For young families and first-time tax filers, tax season can be especially overwhelming — and costly if opportunities are missed. “Filing taxes can be a complex process,” Oak- den said. “It’s important they are optimizing key credit and deduction opportunities that
Westoba Financial Solutions financial planning director Rhonda Oakden says gathering, preparing and reporting everything for tax return identi- fies gaps or missed opportunities, often prompting reflection and conversations that may be overdue. (Supplied photos)
Receiving a large tax refund can feel like a financial victory, but both experts caution against seeing it as proof of good planning. “A large tax refund isn’t necessarily a sign of strong financial planning,” Oakden said. “It could be that there are overpaid taxes made throughout the year.” Johnson agreed and said refund money could often have been better used earlier. “This extra money could have been used instead to reduce debt, invest or cover day-to- day expenses,” she said. Oakden said tax planning is just one part of a broader picture that also includes investments, insurance, retirement planning, and estate and legal affairs. Rather than a stressful scramble, the experts encourage Canadians to view tax season as a reset point, a chance to make small changes that carry through the year. “Discussing finances can be difficult for people,” Oakden said. “They may feel embar- rassed, or unsure of their financial position so they avoid thinking about it.” Engaging with a financial planner or tax ad- viser, she said, can help set up a simple, year- round system for tracking contributions, re- ceipts and deadlines. Johnson’s advice is similarly practical. “Invest in registered accounts and make reg- ular contributions throughout the year to re- duce your taxable income,” she said. » aodutola@brandonsun.com » X: @AbiolaOdutola
Sunrise Credit Union Minnedosa branch office supervisor Gaylene Johnson says tax season brings together income, expenses, investments and outstanding debts, creating a comprehensive snapshot of the financial situation that Canadians may not regularly review throughout the year.
apply to their personal situation, such as child care expenses, education credits and family benefits.” Johnson said the biggest issues she sees are
a lack of budgeting, little to no savings and missed tax credits. Both recommend working with a financial planner or tax adviser to help navigate those early years and set strong habits.
You can negotiate more expenses than you think BY NINA DRAGICEVIC
they can’t be negotiated, but re- ally, it might just look different than a traditional negotiation. Groceries, for instance. In Canada, there’s a price and we pay that, Dubey pointed out. Other cultures may still hag- gle over food prices, and you may have a shot at farmers’ markets, but more formally, we have price-matching pro- grams. “That is a form of negotia- tion essentially,” Dubey said. “It absolutely is.” It’s not just food. A quick online search calls up oth- er Canadian companies with price-matching programs — electronics, home improve- ment, furniture, sporting
have a limited market.” If one company sends you a flyer or approaches you with a deal, why not get that same deal from your current com- pany? Telecoms know it’s ex- pensive to try to lure you back — it’s much easier to keep you. Lam agreed: “When I see people’s cash flow, I say, ‘You’re paying, like, $120 or $100 for your cellphone? Get that down.’” The last strategy for negoti- ation, according to Dubey: be friendly and collaborative. Ask for help. Asking for help triggers a psychological response in peo- ple, said Dubey, who teaches courses in negotiation and conflict management, and also coaches at the executive level. “When you ask people for help, when you ask people for advice, you’re hitting the psy- chological ego interest that people have to be seen as be- ing competent,” he said. If it’s on the phone, you might also be talking to some- one who has just had 10 angry calls in a row. Surprise them with politeness. “Say, ‘Listen, I know this is not your problem. I was just wondering if you could help me,’” Dubey said. “You will see a 180-degree change in that in- dividual. When I’ve done that, I’ve actually had people say to me, ‘Thank you for being so nice.’” » The Canadian Press
goods. Some will even beat prices by an additional five or 10 per cent, and others will refund you even if you see the lower price after purchase, within 30 days. When Amazon dominated the market, media speculated that Best Buy would collapse, Dubey said. And at first, con- sumers would check out the product at Best Buy stores, and then buy it online for cheaper. “Well, Best Buy got pretty smart, and they said if you find a better price, even online, tell us and we’ll match it,” he said. “That’s negotiation.” Interest rates, mortgages, credit cards — you can nego- tiate your banking life as well,
said Thuy Lam, a certified fi- nancial planner and money coach with Objective Financial Partners, a fee-only financial planning firm. Before her current role, Lam was an investment adviser who had relationships with bank branches and branch managers, and she learned negotiations were common — non-sufficient funds fees, foreign exchange rates, mort- gages, GICs. “Banks, internally, actually have a profitability calculator for clients,” Lam said. “So at the branch level, they know what each client’s profitability is. That gives you room to ne- gotiate.” If you have several balances, and are a young professional with good earning potential — you have leverage. “The key to that is doing your homework, right?” she said. “What is a competitive rate? And how can I position myself? Lots of times I’ve seen clients negotiate. You’d think that GIC rates are just a given, but no, you can negotiate them and they can be approved by the branch manager.” Lam personally hasn’t nego- tiated credit card rates because she never keeps a balance on her card. But she has family members who are dedicated “bargain hunters” — frequent- ly tracking down promotions from competitors, and then negotiating with their credit
card company for retention bonuses, including cash back or extra points. Researching competitive of- fers is not the only strategy in negotiation. You have to po- sition yourself as a profitable customer, Lam pointed out. Good credit score, long history, multiple products, paying bills on time — the person on the other end of the negotiation should want to keep you. You also have leverage based on market conditions. During the pandemic, it was hard to get a contractor, and prices were high, Lam said. Now, you might be able to negotiate for contractor projects. Similarly, if your area is now a renter’s market, or a buyer’s market, you might have sway with your landlord, or a home seller, Dubey said. Telecom companies should work hard for your loyalty. A customer might have only one concern: how much is my monthly bill? But telecom companies are looking at a dif- ferent figure, Dubey said. “The biggest problem these telecom companies have is churn,” he said, referring to the key industry metric that mea- sures customer turnover. “They have to fight for a customer every time — they’re going to have to give them a discount to get them from somebody else. There’s only 40 million peo- ple living in this country. We
There are discounts out there that you aren’t getting because you aren’t asking. In an era of corporate re- tailers and online shopping, it might feel as if negotiation between seller and buyer has receded into the past. But that’s wrong, said Shai Dubey, lecturer at Queen’s University’s Smith School of Business. Dubey tells his students there’s only one thing in life that is non-negotiable. “Death,” he said. “You can negotiate taxes. You just have to move to places that don’t have taxes.” Many life expenses seem like
... Slow Your future isn’t a sprint
Financial wellbeing is about steady progress. Whether it’s a little or a lot, every contribution to an RRSP makes a difference.
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