Receiving a lump sum of money can be overwhelming to some people. Careful planning can help you make the most of your money. Here are some ways to financially prepare for your compensation in the First Nations Child and Family Services and Jordan’s Principle Settlement.
Consider your goals
When thinking about what to do with your compensation, it may help to reflect on:
- Short-term needs such as debt repayment or rent
- Medium-term needs such as saving for upcoming expenses
- Long-term goals such as future financial security
Your goals should reflect your values and traditions, so take your time thinking them through.
Watch the video: Planning to receive your compensation money.
Learn more about financial planning.
Get guidance
You may want to speak with someone you trust who has experience with finances.
This could include:
- A trusted family member or friend
- A professional at a bank or credit union
They can help you understand your options and make informed decisions that support your goals.
AFOA Canada offers financial wellness resources designed for Indigenous audiences, including a new webinar series with:
- Preparing for Your Compensation Payment
- A Two-Eyed Seeing Path to Budgeting
Learn more about AFOA Canada.
Open a chequing, savings or other financial account
To receive the full amount of your compensation without being charged high fees or interest rates, consider:
- Using a low or no-fee chequing or savings account at a bank or credit union
- Avoiding cheque-cashing or payday loan companies that may charge high fees
Banks and credit unions also offer other accounts and products that may support your longer-term goals, such as:
- Retirement savings plans
- Tax-free savings accounts
Learn more about the types of financial accounts.
Monthly payments using GICs
Guaranteed Investment Certificates, or GICs, can help provide financial security and steady income from your compensation. They work by:
- Locking in your money at a fixed interest rate for a set term
- Providing regular income, usually monthly, throughout the term
- Receiving the full amount of your compensation plus interest by the end of the term
GICs are:
- Offered by most banks and credit unions
- Insured, which means your money stays protected even if something happens to the financial institution
Learn more about monthly payments.
We hope these resources help you feel supported as you think about what works best for you and your family.