In Toronto, a single mother we’ll call Carol, 42, is raising her two children, ages 10 and 13. She nets $3,500 per month after tax from her home-based business and $1,300 in child support for total monthly after-tax income of $4,800.

When actors make a movie, they spend a lot of time rehearsing the next scene. Life is like that – think about how your financial plan is a rehearsal for what’s to come. With a good financial plan, you’ll be prepared for whatever your next scene brings. Without one, you might find your “happily ever after” ending lying on the cutting room floor.

When it’s time to decide which mix of savings vehicles is right for you, your options can start looking like a hearty bowl of alphabet soup. There are Registered Retirement Savings Plans (RRSPs), Tax-Free Savings Accounts (TFSAs) and Registered Education Savings Plans (RESPs). Determining which savings plan, or combination of savings plans, is best depends on your personal situation and your objectives.