<p>Turns out, love does have a price—and it&#8217;s $61,821.60, according to the fourth annual Cost of Love study from <a href="https://www.ratesupermarket.ca/" >RateSupermarket.ca</a>.</p>
<p>Why $61,821.60? To come up with this rather precise number, the mortgage rate comparison site tallied up all the financial outlays associated with a one-year courtship period, one-year engagement and the average Canadian wedding. Baked into their calculations are various assumptions: Among other things, a prosperous and successful romance<em> must</em> include one beach vacation (with an average cost of $3,523), two weekend getaways (with an average cost of $625.75 ) and exactly 12 fancy dates (with an average cost of $277.54).</p>
<p>Want an easy way to shave $9,092.21 to $10,889.42 off of this formidable expense? Skip your fancy plans for Valentine&#8217;s Day and invest that money in a tax-sheltered savings vehicle like a TFSA or RESP.</p>
<p>Keep on reading, I&#8217;ll show you how it all works.</p>
<h3>Putting a price on romance</h3>
<p>RateSupermarket defines a &#8220;fancy&#8221; $277.54 date as the cost of a nice dinner and a pair of theatre tickets. Forgoing such a cost this Valentine&#8217;s Day (and for the next dozen years or more) would save you a hefty chunk of change. Now, if you were to invest that money in accounts that allow you to take advantage of tax-free, compound interest growth, well you&#8217;d really start building a lovely nest egg.</p>
<p><a href="http://www.moneysense.ca/save/financial-planning/the-moneysense-guide-to-love-money/" >How to stop fighting over money <span class="s1">»</span></a></p>
<h3>Tax-free savings solutions</h3>
<p>For instance, let&#8217;s say you&#8217;re expectant parents. Putting that $277.54 Valentine&#8217;s Day expense into a Registered Education Savings Plan (RESP) every year until your child turns 18 would give you a total balance of $10,889.42. Over that time period, your personal RESP contributions would add up to about $4,986, the Canada Education Savings Grant (CESG) the government chips in would account for $997.20, and your projected earnings (assuming a 6% rate of return) would be $4,906.22. (This scenario assumes net household income is $89,401 or more.)</p>
<p>Not bad for skipping an overhyped evening associated with poor restaurant service thanks to subpar prix-fixe menus and increased head counts, right?</p>
<p>But what if you don&#8217;t have kids and have no use for an RESP? A Tax-Free Savings Account (TFSA) is another great tool that can make your investments work harder for you. Using the same savings timeline as the previous scenario (18 years), $277.54 invested annually into a TFSA would earn you $9,092.21 (assuming the same 6% rate of return). And, of course, the longer you do this, the better: $277.54 invested annually into a TFSA for 25 years, with a 6% interest rate, would grow to $16,140.72.</p>
<p><a href="http://www.moneysense.ca/save/financial-planning/should-couples-combine-finances/" >Should couples combine finances? <span class="s1">»</span></a></p>
<h3>The rising cost of love</h3>
<p>Still not convinced that you should do away with Valentine&#8217;s Day all together? This might influence you: The costs of coupledom are rapidly ascending. According to RateSupermarket, the cost of love has increased 22.8% from last year and a budget-busting 41% since the study&#8217;s 2013 debut.</p>
<p>Penelope Graham, Editor at RateSupermarket, attributes these spikes to the increasing costs of travel and dining out, which have only been exacerbated by the diminished strength of our loonie.</p>
<p>Now, just because I&#8217;m espousing you ignore all the overblown fanfare surrounding Feb. 14, please don&#8217;t think me some hard-hearted type. Imagine that you do opt to put that annual $277.84 Valentine&#8217;s Day expense into your TFSA for 25 years and grow it to more than $16,000. That&#8217;s going to provide one hell of a budget for you and your partner to jet off to some far-flung romantic destination for the trip of a lifetime. (I hear Paris is nice.)</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>The post <a rel="nofollow" href="http://www.moneysense.ca/save/financial-planning/save-money-on-valentines-day/">Shave $9,092.21 off the cost of love</a> appeared first on <a rel="nofollow" href="http://www.moneysense.ca/">MoneySense</a>.</p>
