You are advising a newly married couple, Ben (30, income $60,000) and Chloe (32, income $80,000). They have no significant savings yet but want to buy a home in 5 years, start a family soon, and save for retirement. What is the best initial integrated financial planning step?

Question: You are advising a newly married couple, Ben (30, income $60,000) and Chloe (32, income $80,000). They have no significant savings yet but want to buy a home in 5 years, start a family soon, and save for retirement. What is the best initial integrated financial planning step?

Answer options:

• They should each open a FHSA and contribute as much as possible, as this addresses their immediate housing goal with significant tax benefits.
• They should focus on maximizing their RRSP contributions to generate tax refunds, which can then be saved for their down payment. ✅ They should prioritize establishing a separate emergency fund of 3-6 months' living expenses in a high-interest savings account.
• They should purchase life insurance and critical illness policies immediately to protect against unforeseen events while their family is growing.

Correct answer: They should prioritize establishing a separate emergency fund of 3-6 months' living expenses in a high-interest savings account.

Explanation: Before embarking on long-term savings goals or significant investments, establishing a robust emergency fund is foundational. This provides financial stability to handle unexpected expenses or income disruptions, preventing them from derailing other financial plans or incurring high-interest debt.