Free financial advice is often only worth what you paid for it

Beware of free advice

Brett Millard – Jun 1, 2026 / 4:00 am | Story: 617004

Canadians are generous people. We’ll help a neighbour shovel snow, lend someone a charger at the airport and happily tell our friends exactly what they should do with their money—whether we know what we’re talking about or not.

That’s where things can get expensive. Some of the costliest financial decisions Canadians make don’t come from bad financial advisors, misleading headlines or complicated tax rules. They come from a friend over drinks, a relative at a barbecue or that one guy at work who somehow has strong opinions on mortgages, investing, real estate and cryptocurrency despite also microwaving fish in the lunchroom.

To be fair, most financial advice from friends is well-intentioned. But “well-intentioned” and “financially sound” are very different things.

Here are a few classics worth being cautious about:

• “You should buy the bigger house—you’ll grow into it”—This one has emptied many bank accounts. Usually it starts with perfectly reasonable logic—rates may come down, home prices might rise and you don’t want to outgrow the place too quickly. So instead of buying what comfortably fits your budget today, you stretch for the next level.

Sometimes that works out but often it turns a manageable housing payment into a monthly stress test. Suddenly every repair feels bigger, every property tax increase hurts more, and “house poor” becomes less of an expression and more of a lifestyle.

Buying a home can be a great financial decision. Buying more house than your cash flow can comfortably support? Less so.

• “Don’t worry about saving now—you deserve to enjoy your money.”—There’s some truth here. Life is meant to be lived, and not every dollar should be directed toward retirement. But when “enjoy today” becomes “ignore tomorrow,” it gets expensive fast.

Small delays have a way of becoming long ones. A year turns into five and five turns into, “I’ll catch up later.” Compound growth doesn’t care how good the vacation photos were.

You don’t have to save perfectly. But consistently saving something—even a smaller amount—is usually better than waiting for the mythical future when life gets cheaper and you suddenly feel financially organized.

• “My neighbour made a killing on this stock—you should buy it.”—Nothing creates financial urgency like hearing someone else made money without you.

This advice often arrives after the gains have already happened. The stock has doubled, the headlines are everywhere and your friend has become deeply confident about something they discovered three weeks ago.

Chasing hot investments is expensive not because good opportunities don’t exist but because emotional investing usually means buying high and selling low.

If you’re investing based on envy, FOMO or a tip that begins with “trust me,” it may be worth slowing down. and asking yourself, has the same advice provider told you about the stocks they bought that didn’t do so well or do they only talk about the few big wins?

• “Lease the nicer vehicle. The payment is only a little more.”—The phrase “only a little more” has done incredible damage to household budgets. A little more for the upgraded trim. A little more for the bigger SUV. A little more for premium wheels. None of it sounds unreasonable in isolation.

But layered together, “a little more” often becomes $100 or even $500 extra every month and many Canadians carry that for years. Vehicles are one of the easiest places for lifestyle inflation to sneak in disguised as practicality.

• “You don’t need a will yet.”—That may be the most expensive advice of all, just not until later.

Many Canadians assume wills and estate planning are for retirees, the wealthy, or people with complicated lives. In reality, if you own a home, have savings, children, or even specific wishes about who handles your affairs, it matters. Dying without a will doesn’t save money. It often creates more legal costs, delays, taxes, and stress for the people left behind.

So what’s the takeaway?

Listen to your friends and family but with a bit of skepticism. They may have great ideas, valuable experiences and helpful perspective but remember personal finance is deeply personal and they may not be the “expert” they portray themselves to be.

Your income isn’t theirs. Your debt isn’t theirs. Your family, retirement goals, tax situation, risk tolerance, and ability to sleep at night after making a big financial decision definitely aren’t theirs. Good financial advice should fit your life, not just sound good over appetizers on a patio.

When it comes to money, free advice is everywhere but financially sound advice is a little more rare and sometimes, it’s worth exactly what you paid for it.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.