Mary Castillo: Don’t Donate Yourself Into Debt

Giving feels good, and whether you donate out of compassion, a sense of duty or a desire to support family, neighbours, community groups or local charities, your generosity makes a difference. But when giving is financed by credit cards , accompanied by your home equity line of credit or while skipping essentials for yourself, it can quickly create financial strain.

Wanting to help is human nature, and there are practical ways to be generous without putting your financial health at risk. To regain control of your budget, determine a realistic plan for giving, trade expensive forms of support for more sustainable ones and, if needed, get free, professional help when donations or obligations have grown into unmanageable debt.

Start with a temporary pause

If you notice that your giving is affecting your budget, it might be time to pause and evaluate your goodwill. Take one month and temporarily reduce any support you provide and pause charitable donations. If you are supporting family directly, explain what is happening and why so they understand this is about your financial stability, not a lack of care for them. Use this break to look closely at your budget, track your income and expenses and get a clearer sense of where your money is going.

Outline your overall budget

To better understand the role giving plays in your budget, start by listing how much you spend on it each month. Your support might include recurring donations to a charity, regular support for loved ones locally or abroad, community fundraising commitments, donations at your place of worship or rounding up your purchases at the grocery store check-out.

Once you have your list, add up how much you give and place the total alongside your other expenses, such as housing, utilities, groceries, transportation, debt payments, childcare, entertainment and discretionary costs.

Seeing your giving alongside the rest of your budget takes some of the emotion out of the process and highlights its impact on your monthly cash flow. If you discover that your expenses and donations together are more than your income, it is a signal to explore adjustments that will make your generosity more sustainable.

Determine what you need to do to get back on track

Creating a simple, sustainable plan is the best way to balance your essential expenses with the giving that matters most to you. This approach allows you to remain a steady supporter over the long run without putting yourself in financial jeopardy.

Start by revising your budget to protect essentials and make sure you stay up to date with minimum debt payments. Then revisit your giving list and adjust it to reflect what you can realistically afford based on your income. Incorporate that fixed amount in your budget so you can continue to give with confidence.

It is important to acknowledge that reducing financial support can be a difficult step, especially when it involves helping family members or causes close to your heart. If the numbers show you need to scale back temporarily, do not be discouraged; there are other meaningful ways to contribute. By making these adjustments now, you will put yourself in a stable position to keep supporting others well into the future.

Balancing your budget is really about securing long-term stability for yourself and your family. That might mean decreasing housing costs by moving to a more affordable place, cancelling services you do not fully use or gaining income from unused space in your property. You may also want to explore ways to bring in a little extra, such as selling items you no longer use or picking up a side hustle. Tracking discretionary spending can also help you identify small changes and opportunities for savings.

Finally, if high interest debt or multiple payments are weighing on your finances, look into options such as a debt management program at a non-profit credit counselling agency or a consolidation loan at your bank or credit union. Both can lower your payments, simplify your finances and free up space in your budget so you can get back on track.

Exchange time for financial donations and support

A tight budget does not mean you have to stop caring; it may just mean changing how you give. Many organizations value time and skills just as much as financial contributions. Offering practical help, such as assisting someone with a resume, guiding them through benefit applications or connecting them to local services, can often create longer-lasting change than a small cash donation.

Volunteering can also be rewarding for you, especially since it can double as low-cost recreation or social connection. And when financial support is truly needed, you do not have to shoulder it alone — consider organizing a group donation with friends or community members so the impact is shared.

Supporting family back home

One of the most challenging situations is if you have family in another country who depend on you for their basic living costs. As a credit counsellor, some of the most difficult conversations I have had are with people who have to balance managing their own expenses against feeling obligated to keep sending money to loved ones abroad.

This sense of responsibility often comes from appreciation for the family who helped them get to where they are today. The challenge is that the cost of living in Canada is often much higher than what family members experience back home. From their perspective, it is often hard to understand why someone earning Canadian wages cannot send more support.

If you are in this situation, try explaining your reality with concrete examples your family can relate to. Share what everyday essentials cost in Canada compared with back home. Be honest about your situation and let them know how the stress is affecting your wellbeing. Most families do not want to see their loved ones sacrificing their health in order to help.

• The pros and cons of buying versus leasing a new car
• Puzzled why your budget isn’t balancing?

Remember, temporarily reducing what you give does not mean you care any less. It means you are taking the steps needed to regain financial stability so you can continue to provide support in the future. When generosity is sustainable, it becomes a strength and ensures that your kindness lasts.

Mary Castillo is a Saskatoon-based credit counsellor at Credit Counselling Society, a non-profit organization that has helped Canadians manage debt since 1996.