Home » Family » Preparing Your Family For the Next Recession

Preparing Your Family For the Next Recession

Canadians are comparatively fortunate to live in today’s market. According to Global News Canada, borrowers have been able to weather three Bank of Canada interest hikes and consumer delinquency rates – – the percent of non-mortgage loan payments more than 90 days late – – are at a two-year low. Canada is actually on track to record its longest period of economic expansion. In the midst of a prolonged economic expansion; however, the risk for a recession becomes more likely.

Preparing Your Family For the Next RecessionPin
Financial crisis/recession

So how can you prepare your family for the next recession?

Here on Ottawa Mommy Club we have written before about how saving money is good practice. From taking advantage of cash back reward programs to paying more attention to your spending habits. In the event of an economic downturn, however, mothers and their families may be forced to get more creative.

In Hamilton Spectator’s article on preparing for a recession, readers are made to understand that any recession will entail a period of job loss and tightened credit requirements. Thus, one tip is implementing a 50/20/30 budget: putting away 50% of your after-tax income for must-have expenses and allocating 30% towards wants and 20% towards debt payment and savings. Giving yourself a certain spending limit is a good way to protect yourself against reduced hours or even job loss.

increase your financial flexibility

Another good pre-caution would be to increase your financial flexibility. This can be done by giving yourself means for additional credit. Homeowners can do this by setting up a home equity line of credit or switching to one with a higher limit. For non-homeowners, you can do this by having a number of credit cards and keeping multiple credit lines open and unused. It is also advisable that you prioritize paying off credit card debt, as this can save you money on interest and free up credit for you to use later on.

Preparing Your Family For the Next RecessionPin
Preparing Your Family For the Next Recession

Invest in Gold

Of course, investing is always a good option. While this may typically mean buying stocks, Christina Gayton’s article notes how safe haven assets like gold may be a better choice. Gold is a commodity and despite tougher economic times people will still want gold jewelry and decorations, which most of us already have.

Additionally, unlike stocks, investing in gold has historically been touted as a safe haven as it offers stability for traders and investors. In this regard, the gold price chart on FXCM shows how the price of gold has remained strong in 2019, after dropping to as low as $1171 ($CAN 1159.25) in August last year. Much of this increase has been due to the threat of the US/China trade war and the anticipated havoc it could wreak on the world’s two largest economies – the ripple effects of which will no doubt reach Canada. Although gold has its detractors, the precious metal has historically experienced booms in times of economic recession, meaning its best to buy it low during times of economic expansion and sell it off later for a quick profit.

Preparing Your Family For the Next RecessionPin
Gold bars

Regardless of what happens with the economy, taking precautions always makes sense. Heeding these steps now could make all the difference tomorrow in preparing your family for the next recession.

Lyne Proulx
Lyne Proulxhttps://ottawamommyclub.ca/
Lyne Proulx is a Certified WEBB Bodywork Pet Practitioner, Certified Infant Massage Instructor (CIMI), Certified Professional Wedding Consultant, and an Event Planner. She loves all things Disney and is an avid teaholic and chocoholic. She coordinated the Annual Infant Information Day/Early Years Expo for the City of Ottawa for 8 years. She was the Queen B of the BConnected Conference, Canada's Digital Influencer and social media Conference in Ottawa and Toronto. She was also the co-chair of the Navan for Kraft Hockeyville 2009-2011 committee that organized five community events within 6 months, and helped Navan reach the top 10 finalists in Canada. In April 2011, she received the City of Ottawa Mayor's City Builder Award.

Join the Ottawa Mommy Club Newsletter

* indicates required

Related Posts


  1. A recession would definitely blindside my family. I never really thought about preparing for one. Thank you for all the information.

  2. I am just going through my expenses trying to cut my bills. Currently checking on insurance. Something you should do every 3-5 years. You may just realize you are paying far too much.

  3. I’ve always been a bit afraid and nervous about investing, but I am sure that is partly because I am pretty clueless about it and need to educate myself more. It would be nice to be able to put away a nest egg for the future.

  4. Saving money is always a good plan, but also watch your credit card debt. Years ago my cc debt was out of control–you know borrow from one to pay another. Final got them all paid off and vowed to never have a balance again, and I haven’.t Pay it off each month……

  5. Quite the insight, always good to be prepared.. never put your eggs all in one basket. I think that there are many new ways to invest today. It’s never too late to start. Little by little goes a long way.

  6. This information is so important to make your children aware of. I always tell my two sons and their families to have a Slush Fund in case of an emergency. We did and it sure helped tie us over till we able to get back on our feet. My sons are aware of this.

  7. I believe that it’s very important to save money so that you have a safety net in case of a recession or some other disaster. Another good rule to go by is always, always pay off your credit card every month. The interest rates are exorbitant and paying off them actually saves you a whole lot of money over a year.

  8. This was an important and informative article which gave me food for thought. We started investing a few years ago and so far we’ve been lucky. I have to admit I was nervous in the beginning but now I look forward to the quarterly reports we receive.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Stay Connected


Recent Stories

Share to...