Money123: Weddings on a budget, what to know about Shein, housing investors feel the heat

Planning a wedding that doesn’t break the bank

The toned-down festivities of the COVID-19 pandemic might be here to stay for those looking to get married in a wedding industry struck by high inflation.

Wedding planners who spoke to Global News say the micro-wedding trend that gained steam as a way to comply with COVID-19 gathering restrictions has caught on with couples looking to save money on their big day.

“I think, through COVID … people are understanding that micro weddings and small weddings are just as joyous and just as big of a celebration as their 200-person component on the other end,” said Shannon Kennedy, owner of Ottawa-based Petite Weddings.

Those without $50,000 to spend on a 100-person wedding are finding that paring down the guest list and removing some of the bells and whistles can help couples who have other savings goals on the horizon, says Mallory Lauder of Lasting Events.

“Weddings aren’t cheap, and given what our economy looks like right now, a lot of people are focusing on trying to save for a home or what the next steps in life are,” she says.

Read more about the latest wedding trends here.

What is Shein, the ‘fast-fast fashion’ brand?

If you’re a regular online shopper — especially if you’re under the age of 30 or so — you’ve probably seen the name Shein, and might have bought an outfit or two from the retailer.

The company is well-known on apps such as TikTok and Instagram, where generation Z shoppers will show off their #SheinHaul — a collection of clothes ordered from the online-only retailer at deeply discounted prices.

The China-founded fashion brand has generated a booming business that challenges giants in the industry such as Zara and H&M.

“Shein has become a very, very, very big deal at the very low end of fashion today,” says retail analyst Bruce Winder.

But experts tell Global News that Shein’s business model comes with “dark sides.”

Read more about the company in this online post.

Young landlords hit by high interest rates

Canadian homeowners aren’t the only ones grappling with higher mortgage payments, as the rapid rise in interest rates over the past year is pushing some residential landlords to rethink their investments.

That’s one of the findings from a Royal LePage survey published on Thursday that found nearly one in three investors is considering a sale of a property amid higher interest rates.

That impulse is especially prevalent among younger investors under the age of 35, including Ottawa’s Karim Najjar.

He tells Global News that he’s taking a loss every month on one of his properties in the nation’s capital — but the idea of selling or rapidly raising rents to offset the higher costs doesn’t sit well with him, either.

“The thought that, yes, you are able to sell it because you’re not making money makes me feel guilty or bad because I don’t want this family to be relocated to another property now that this is their home,” he says.

Read more on how Najjar and others are navigating the turn in the market.

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– THE QUESTION –

“I have two adult children aged 23 and 28 with about $1,000 in early savings each and am wondering which accounts I should point them towards: the first-home savings account (FHSA), TFSA or an RRSP? Both have plans to buy a home one day but that’s not their only goal. Which is the best place for them to start building savings, or should it be split evenly between all three? The eldest just went back to school.”

— A Money123 reader 

“The intention for the money, the time horizon and the tax situation would be the drivers of which accounts to use.

The assumptions made here are that there is TFSA, RRSP or FHSA contribution room available. If buying a home is definitely on the radar, the first-home savings account and RRSP should be considered. If income is high and taxable for the children, both of these accounts can be utilized. If income is low or not being taxed in a particular year, then the TFSA should be utilized instead.

What is high income? Net income above $50,000 per year falls into the second tax bracket, which is high enough to get a larger than minimum tax refund. Net income above $100,000 would certainly qualify. If the eldest of the children is going back to school, their income will likely be low and offset by tuition credits.

If the intention is more about saving money but it may be needed in the near future, the TFSA is the account to choose. If the motivation is not to buy a home but geared towards retirement and the time horizon is indefinite, then the TFSA or RRSP are the accounts to choose.

Lastly, if you want to have maximum flexibility or liquidity of funds because you are not sure what is needed yet, the TFSA would be the route to go.”

– Joe Barbieri, financial consultant, Joe the Investor

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