Blog U.

Allow me to generalize.

Teachers are decent people doing valued work. But they suck at money. They spend everything they earn. Savings are microscopic. Any disposable income is shoved at a mortgage. They like nice shoes and cars with stick shifts. Plus, children. And travel. Lots of travel.

Some of this hedonism might be the result of enjoying far more time off than most working grunts in this northern paradise. In Ontario for example, the school year is comprised of just 194 days. In other words, there are 171 days of no school. Also free are two weeks at Christmas, a week in March, six other school stat holidays and (naturally) every other Friday for ‘professional development.’ (In fairness, teachers – the good ones, anyway – put in a lot of hours preparing for and recovering from classes.)

But, mostly it’s the pension. Having a DB plan (defined benefit, in which retirement income is pre-determined and assured) really messes with your head. Teachers all seem to believe RRSPs are bad, since they might increase retirement taxes, and that they need not save nor invest due to hefty paycheque deductions. A teacher’s pension has turned into a pass for financial responsibility. In other words, is it any wonder few people in the educational system teach money skills or that it’s less important than, say, gender self-identification?

Enough generalizing. Here’s Chris from Chilliwack, a blog dog and educator who seems intent on changing things. He needs your help.

I’m a business teacher and would like to teach my students more about personal finance and am looking for accessible resources.  I am offering a new course for grade 9/10 students and so far my topics will include (in no particular order)

1.  Basic math review (percent, fractions, time, and money)
2. Payroll and calculating gross pay, deductions and net pay
3. Calculating and filing Income tax
4. Basic economics – supply & demand, needs vs wants
5. Entrepreneurship – Marketing mix, B/E analysis, presenting basic business ideas in a Dragons Den style format using community business owners as guest speakers, judges and mentors
6. Accounting
7. Personal budgeting – budgeting, interest rates (simple and compound) getting a loan and mortgage, and choosing a bank /bank account.
8. Online stock market simulator (Investopedia)

Chris is better suited than most of his scholastic profligates to attempt this. His background is banking, and he’s already tried this once before, throwing books like ‘Poor Dad’ and ‘Wealthy Barber’ at the kids. Mixed results, he reports. So…

“Do you have any suggestions?   I can get funding for a class set of the right paper resource, or on line access is a possibility as well. I am thinking of renaming the course – “Things I wish I learned when I was that age”!  Any questions, comments or concerns are appreciated!”

About the same time he was communicating with me, the latest borrowing numbers came out. Brutal. We’re so pooched.

Household debt has hit a new record at 178.5% of what people earn. The truly scary part is that while real estate values tumble, monthly debt payments are up 4.5% but wages have grown just 2.5%. Yes, that’s right – disposable income is going down at the same time net worth declines. And did I even mention the carbon tax? The fact we overbought and overleveraged houses is coming back to bite us in the rump.

Canada vs US household debt. Oh, my.

So maybe we should teach kids how, and where, to buy properties. Or that renting is perfectly okay. Or what amortization means and how [email protected] is actually a wily seductress. And what about ‘investing’ in education, racking up giant gobs of debt to achieve degrees with no commercial use. Is that smart? After all, it’s the apprentice plumber tooling around in a C-class coupe while the Ph.D. barrista lobbies for $15 an hour. Or GICs? When 80% of the money in TFSAs sits in vehicles generating less interest than inflation, don’t we need some serious schooling? Taxes? Nah, don’t get me started.

Anyway, this guy wants your help. Chilliwack is calling. Children are going ignorant.

What do you wish you’d learned when you were a snippy little hormone?

201 comments ↓

#1 NotLegalAdvice on 05.22.19 at 4:52 pm

First!!

CMHC says that debt levels hitting historical highs in Canada:

https://business.financialpost.com/news/fp-street/cmhc-says-canadians-debt-levels-hit-record-highs-at-end-of-last-year

Crash??

#2 TurnerNation on 05.22.19 at 4:55 pm

Teach should have Smoking man as a guest speaker on trading, finance, gender issues.
He’ll kill it.

#3 Andrewski on 05.22.19 at 4:56 pm

And those teachers (& many others) with poor financial acumen get taken to the cleaners by:

Investors are frequently targeted by fraudsters, whether through investment scams or wider financially-motivated frauds such as phishing attacks.

But when considering Canada’s largest frauds, do fraudsters fit a typical profile?

Yes, according to a new report from advisory and accounting firm MNP which has analyzed details from hundreds of prosecuted fraud cases involving at least $5,000.

Between 2012 and 2018, the largest frauds in Canada were committed by those aged 65 and older, often those holding trusted positions near the top of the corporate ladder.

Men were twice as likely as women to be named fraudsters and stole four times as much as female counterparts.

Perhaps most surprising is that 16% of those fraudsters in a position of trust had done it before, something a simple background check could have revealed.

“Organizations that fail to properly screen company leaders could be bilked out of millions of dollars,” warns Greg Draper, Vice President of Valuations, Forensics and Litigation Support at MNP LLP and former RCMP investigator.

Draper added that many organizations may be operating with a false sense of security.

“They may assume that employees in leadership positions or who have been around a long time are safeguarding the interests of the company when, in fact, these individuals are the most capable of committing fraud with the greatest potential loss,” he said.

What are their crimes?
The analysis shows that 73% per cent of Ponzi schemes were orchestrated by individuals aged 50 to 69.

Those over 50 almost committed half of cases involving fraudulent billing and inventory misappropriation, and 57% of cases of cash misappropriation were committed by this age group.

Payroll fraud, the theft of cash from a business via the payroll processing system, was the exception. This type of fraud was committed by individuals at every level of the organization with the number of cases split evenly within each age group.

“In a lot of cases the fraud has been committed by someone who is very well-liked and respected within the organization,” said Jeff Thomson, Acting Sergeant for the RCMP at the Canadian Anti-Fraud Centre (CAFC).

Thomson says organizations should not put total trust in just one person and he warns that the cost of fraudulent behaviour can be more than just a financial one.

“The crime is not only a financial burden for the organization, but there is a loss of workplace morale as well,” he said. “What’s worse is that it can be a very laborious effort to investigate and expensive to prosecute so businesses might try to sweep it under the rug and move on without much recourse.”

Trusted people get away with it longer
People in trusted positions appear to be able to continue their crimes undetected for longer, with most of the frauds analyzed for the study lasting around 3 years.

Older fraudsters also tend to steal larger amounts with a median of $400,000 across Canada taken by people in their 50s; and just under $800,000 stolen by those in their 70s.

“Where many companies fail is continued screening and scrutiny. Once trust is established, it’s common for certain internal controls to become more relaxed. Organizations need to establish a long-term and consistent commitment to frahhud prevention at every level of the organization – including board members since they are the ones managing the most senior people,” advised Draper.

#4 I wish... on 05.22.19 at 4:57 pm

…that I had learned to ignore obvious troll attempts like this garbage post. Shame on you, Garth.

Actually I am enjoying the comments today. There is much wisdom here, so go play with your toes. – Garth

#5 Re-Cowtown on 05.22.19 at 4:59 pm

Carbon is life. Prove me wrong. Taxing carbon is taxing life.

#6 Red falcon on 05.22.19 at 4:59 pm

Financial ignorance is no excuse! Do financial independence instead!!!!

And… first!!!!

#7 bguy1 on 05.22.19 at 5:00 pm

A useful skill to teach would be informing students on where to get credible sources of information (ie: Globe and Mail & Bloomberg Businessweek…and this blog, but only this blog. Not the zero guy.)

#8 DavidW2 on 05.22.19 at 5:02 pm

Teach them hard work, ethics and to be humble.

On another note, teach them how to actually purchase an ETF or stock. It’s one thing to know investing theory, it’s another to know how to act on it.

#9 Larry B on 05.22.19 at 5:03 pm

Irronically, in high school I took a grade 13 course called “Mathematics of Business Finance”. Tough course but I learned much that I have applied in my life. I also took a few economics courses. One thing lacking today is the understanding of “opportunity cost”. People want everything, right now and if the [email protected] will grant them their desires like a fairy grandmother, who is to say no to yourself? Imagine life as on a roller coaster. Interest payments are the up-slope with higher debt causing a steeper slope. If you ever make it to the top, (debt free) then the ride down the other side is much more exciting and far less stressful. Most, sacrifice their future for instant gratification and will never reach the summit with an ever steeper hill to climb. Many unfortunately end up going back down the hill only to start again. Like Sisyphus, an eternal struggle that will last for eternity.

#10 MF on 05.22.19 at 5:07 pm

“Enough generalizing. Here’s Chris from Chilliwack, ”

-Probably a good move, since you neglected to mention all the UNpaid work teachers do:

-lesson plans
-after school programs
-phone calls to idiot parents about idiot children
-meetings
-report cards

And most important and time consuming is the endless marking. Marking on weekends. Marking at night. Marking during holidays.

It never ends is all unpaid.

MF

#11 Swanson on 05.22.19 at 5:07 pm

Maybe a little history about the rise and ultimate failure of communism and what lives were actually like in communist regimes. Then we would have less educated fools claiming to be Marxists, or voters who think that creating socialist paradise by electing Sanders/AOC/Horgan is a good idea.

#12 Andrewski on 05.22.19 at 5:08 pm

Great resource for Chris:

https://www.jacanada.org/programs

#13 Eyeguy on 05.22.19 at 5:08 pm

These are all great ideas that we shared with our kids and it worked. It took a lot of reinforcement. Would our teacher be able to offer two week refresher courses annually through high school to the original students to help them retain the concepts?

#14 crdt on 05.22.19 at 5:08 pm

First..yeah!

#15 Samuel on 05.22.19 at 5:10 pm

A teacher I know in BC, third year in, had under $1,000 last year in earned RRSP room, after the pension adjustment. So the RRSP is not much help even if used.

178% debt to income doesn’t seem so bad ($200k income, $360,000 mortgage). What am I missing? That it is an average and many people are way above?

#16 Dave on 05.22.19 at 5:18 pm

Virtually all career paths can lead to living a comfortab

#17 Parksville Prankster on 05.22.19 at 5:19 pm

Junior Achievement has some great Mentors that will gladly come in and chat with the students for free. A wonderful program for those that have any type of interest in learning more about finances or participating in businesses in their communities.

https://jabc.ca/

After they graduate, there are numerous worthy groups that offer not for profit business mentoring programs and resources:

https://www.micromentor.org/

or

https://www.futurpreneur.ca/en/

are just two that I volunteer with as a Mentor.

#18 PeterfromCalgary on 05.22.19 at 5:19 pm

Teaching kids about money is hard because a lot of basic stuff you think they would know the don’t.

#19 Rob on 05.22.19 at 5:19 pm

All great ideas. Something like this should be put together and provided in schools as an elective. However, their will always be people who simply wont get it but at least the opportunity is provided. The bigger challenge would be to find a teacher who actually understands finance and can teach it.

#20 Freedom First on 05.22.19 at 5:23 pm

Teachers. Sadly, they are teaching your kids.
Enough said for the density of the public.

#21 Alberta Redneck on 05.22.19 at 5:24 pm

What I wish I’d known then: the world isn’t going to end. So, start saving now.

What I wish young people knew now: yes, the big, bad corporations are hoovering up the money and avoiding taxes, but it’s never been easier for us common schmucks to own a piece of them. So, stop whining about it and get in there.

#22 Kelowna on 05.22.19 at 5:25 pm

Great reminder Garth. What I don’t think has sunk in yet with many people is that all of this debt will need to be re-paid one day, if not by themselves, by their kids. Nice legacy!

#23 Leo Trollstoy on 05.22.19 at 5:25 pm

#122 Lost…but not leased on 05.22.19 at 12:44 pm
Huh ?

How does an oversupply of condos result in higher prices?

Easy

The article doesn’t point to an oversupply problem. It points to a lack of supply problem

#24 Bytor the Snow Dog on 05.22.19 at 5:26 pm

The example of Chris notwithstanding, most teachers don’t go into the profession for the gratification of teaching kids, but for the perks of the job as you’ve suggested. In other words, the profession attracts people with the wrong motivations.

Anecdotal but true: The year my daughter graduated with Honours with her double major from the U of W, she was one of two that got that certain degree. The list for the commencement ceremony for “Bachelor of Ed” was well over 4 pages.

All in it for the good of the children, of course.

#25 Dolce Vita on 05.22.19 at 5:33 pm

Chris:

The pedagogy you listed comprises many sub-departments of a modern day Business School. You have a snow balls hope in hell of accomplishing that with 15 to 16-year-olds in a 15 week course let alone an academic year long course. BUT there is hope.

FIRST you may want to start by asking them what they would like to learn or think is important to them for your course. Good way to assess the level of competence of your audience.

SECOND, and as this is in all likelihood there 1st exposure to the topics of such a course, you should try and make it REAL to them and that it matters. SEE the FINALLY point. You have scant time, make a stand on what will matter to them in life.

There are many online real world CASES (e.g., Harvard) that are simple to understand, are not CEO level and pose either a problem, decision, analysis and/or rules based TRUE story that needs a solution and/or viable alternatives.

Students like real world stories they can learn from. Let them discuss the case in class – allowing other students to rebut ideas. This helps make them think before they speak and sharpens their ability to sell and idea amongst peers.

All you need do in the class before, in a lecture, is give them the basic skills to attack the case. Then at least, they know that the theory they are learning has a purpose: to help solve a real world dilemma of sorts.

GUEST SPEAKERS be they entrepreneurs, bankers, WELL KNOWN BLOG AUTHORS, investors, government officials, etc. Let them tell the students about one of your topics and how things and life ACTUALLY WORK.

As a suggestion, especially for Entrepreneurship (which should be you last teaching topic as it will use all the other skills in your list) have the good sense to give them 2 cases, 1 that was successful and 1 that failed but never tell the students, let them slug it out in class discussion. Optimally, have the Entrepreneur present and at the end of the case discussion have he or she tell the students what happened (did they sell the family ranch and the did the business go well or not).

Never theorize the dung out of them. Minimal theory then a real world case to show how the theory is applied and to effect (assume they want to learn and will do more research on their own as is necessary to solve the case).

Minimum Theory —> Real World Cases —> Living, breathing individuals that live/d that story day in, day out and want to impart their knowledge, wisdom onto the next generation.

ALSO, do not over kill with too many topics, recall many will go on to Post Secondary institutions on their own. You cannot cram 2 to 4 years of learning in your 1 course.

Finally, PICK KEY LIFE DECISIONS they will have to make that require the skills from your course (e.g., retirement, buying a home). And of course, FIND A WAY TO MAKE IT FUN FOR THEM.

Make them want to come to your classes and not oblige them to.

What I did in over 20 years Post Secondary in Engineering and Business Schools. Keep it real, trust them will do work on their own to learn more, make a stand on something of importance not minutiae and of course, the fun part.

#26 PastThePeak on 05.22.19 at 5:33 pm

Household debt has hit a new record at 178.5% of what people earn. The truly scary part is that while real estate values tumble, monthly debt payments are up 4.5% but wages have grown just 2.5%.
++++++++++++++++++++++++++++++++++++

And there go Trudeau, Morneau all talking about how great things are, and Poloz talking about what he will do once this “soft patch” is done. Completely clueless. Outside of headline unemployment, economic figures do not look good.

I have said this MANY times on this blog – Canada is about to enter a very bad recession that is entirely of our own making, even if the global economy doesn’t also crater.

#27 Leftover on 05.22.19 at 5:35 pm

How about, “The Road to Serfdom” by Friedrich Hayek.

That would be a treat but would probably get the teacher fired.

#28 Dave on 05.22.19 at 5:38 pm

Have the class comeup withup with a business idea and bring it to life i.e. selling cupcakes
Then thru out the year develop the business:
-Cost and sell of product
– online presence
– local presence
– creating partnerships ie school board, churches, local events
Divide the class into two companies for competitive idea stimulation.

Real life experience is the only way

#29 Lesson on 05.22.19 at 5:43 pm

The world is bigger than Canada. Get a job in the United Arab Emirates and pay zero taxes, for example – then retire early, in a warm climate with much lower cost of livung than Canada. Etc.

#30 Dolce Vita on 05.22.19 at 5:45 pm

Chris:

Forgot, when you pick a case, pick something of familiarity to them, short and to the point (recall their age). For example I have used cases about:

Zara
Apple i-phone
Otis Elevator

You know, stuff people know something about before even picking up the damn case (or viewing the PDF).

Use the abridged versions usually 2 to 4 pages long. There will be many more contemporary real world cases since the above (got off the bus here in mid-2010’s), find them online at good US and CDN business schools.

Also, many cases provide some theory themselves as the protagonists in the case discuss the issue – lessens your lecture hours and makes it more interesting for the students, as in, golly gee wow, they actually use the shit my teacher taught me.

Believe me when I say this, it works like a hot damn.

After all, it’s human nature.

#31 Keith on 05.22.19 at 5:49 pm

I took a course back in the seventies called “Law 11” in high school, it had some consumer education piggybacked into it – I remember learning how much interest you paid on a 25 year amortization, and the teacher shared experiences from belonging to an investment club.

All high school students should be taking a consumer education course that includes how to save and at least exposure to investment options. The one thing I didn’t learn about was saving and investing money over time, with compound interest. I didn’t start saving for retirement until the age of 26, it cost me a small fortune. If people learn to save 15 – 20 of their income starting in their teenage years, we will avoid much of the retirement crisis that we are now facing.

#32 Dazed and CONfused on 05.22.19 at 5:51 pm

Actually, back in the 70’s, during a time when Ontario still had ‘Grade 13’, all of the items 1-8 above (minus item 5) were regularly taught as ‘Consumer Math’ to those high school students who were unable to master the intricate, but entirely useless ‘higher math’ subjects such as Calculus, Algebra, Statistics, Relations, and Functions.

Having mastered them all, I was near personal financial bankruptcy later in life, only to be rescued by my future vocational wife, who showed me the many errors of my ways.

Street smarts are often more valuable than book smarts.

#33 Young Boomer on 05.22.19 at 5:51 pm

I would emphasize the responsible use of credit cards – that credit cards are a ‘method of payment’ and not to be used as extra funding – that it’s a way to pay for something that you had the cash for.

Credit cards should be paid off every month and should not carry a balance. If everyone learned that you wouldn’t need the thousands of ‘how to pay off your credit cards in ___ stories!’

#34 Bob Dog on 05.22.19 at 5:51 pm

I have always assumed that finance is not taught in public schools because the banks want it that way. As we all know now, our politicians are puppets.

As the great Gordon Downie explained in his lyrics..

♩ ♪ ♫ ♬
“It’d be better for us if you don’t understand..
It’d be better for me if you don’t understand”
♩ ♪ ♫ ♬

Should be the slogan for The Royal Bank of Canada.

#35 Dan the Man on 05.22.19 at 5:54 pm

Easy.

Time value of money and compounding.

Truly understanding and appreciating both (related) concepts allows wealth accumulation to become a simple process. Make boring great again and follow a process that allows compounding and time value of money to work in your favor. That means understanding and implementing at a young age…

#36 yorkville renter on 05.22.19 at 5:55 pm

things to teach:

– how interest works (time, paying debt, growing savings)
– why paying yourself first matters
– how inflation messes with assets
– basic tax efficiency
– savings products available in Canada

#37 old dinosaur on 05.22.19 at 5:56 pm

#10 Swanson
Maybe a little history about the rise and ultimate failure of communism and what lives were actually like in communist regimes. Then we would have less educated fools claiming to be Marxists, or voters who think that creating socialist paradise by electing Sanders/AOC/Horgan is a good idea.
_______________________________________

There are no capitalists in education at any level. They are all on some part of the communist spectrum thus your kids start adult life as socialists because that is what they are taught then fully re-inforced at University.

Then they become teachers

#38 crowdedelevatorfartz on 05.22.19 at 5:59 pm

A realistic fiscal course for kids.
Excellent idea.
Some kids will get it . Most wont.
Just like their parents.

I had a social studies teacher in Grade 9 that had us learn to budget, pay bills , etc by having each of us draw “jobs”.
We then had to figure out based on our “salaries” where we were to live (rent) by checking newspapers for vacancy ads, shared accommodation, etc.
How much we could afford to spend on transportation( we checked news papers for cars for sale or ride shares, bus tickets,etc),
Food ( shopping flyers,sales, etc), Clothes, haircuts, doctor, dentist, entertainment, on and on and on etc.

And when we were feeling pretty smug…
THEN he threw income tax at us….

It took most of one term to study and complete our (Living Report) assignment.
It was quite an eye opener for most of us.

It should be mandatory for the last three years of public high school.

#39 @careeraftschool on 05.22.19 at 5:59 pm

Teaching adults about basic finance/investments is tough but I find it is easier with kids.

The first thing I start with is stocks of companies they would know and consume products of. My kids like BCE (TSN, CraveTV, Raptors, Leafs), Cineplex, McDonalds, Nike, and Apple. I recommend buying companies that pay dividends.

Kids get interested then we buy shares. Buy only one share of each company. This is a learning exercise. Let them watch the share prices go up and down for awhile. Hopefully they build a tolerance for price swings. Key is to communicate this info regularly with kids.

Next show them dividend payments/increases and start reading over the quarterly reports. Keep it simple: Market Cap? Revenue? Costs? Profits? Where are they headed?

Important thing is to give the kids the first dividend payment to spend. $5, $15 or $100. Whatever it is put the cash in their hand. Hopefully there is a spark and then they will be willing to learn more about personal finance.

Please let me know if anyone wants to discuss further.

#40 yorkville renter on 05.22.19 at 6:01 pm

#14 – some things you’re missing

– home ownership in Canada is around 70%, so 30% have no mortgage
– of those who own a home, assume 40% have no mortgage = 28% woth no mortgage

= 58% with no mortgage and the math (I believe) is a straight division of debt/income

#41 Dwilly on 05.22.19 at 6:02 pm

Teach them about fiduciary responsibility, and in general incentives and how to tell when someone is compensated at act on your behalf vs their own.

Everyone knows a car salesman is a salesman, not someone with you best interests in mind. But the guy at Edward Jones has most tricked.

I wish I knew this 10 years earlier. I eventually figured it out when. I was 30, still plenty of time for me. If I had figured it out 10yrs earlier, I’d be that much further ahead today.

#42 Smoking Man on 05.22.19 at 6:03 pm

Why would kids even care about finance.
Since JK everyone gets trophy.
And when they group up, they organize like the good little activist they are and vote in communists so they can steal one from someone else.

Problem is. No one left to steal from. They left dodge.

#43 JWD on 05.22.19 at 6:04 pm

My do-over advice:

Once you’ve invested in a career path and are debt free; Save and invest – aggressively if possible and COMMIT to it every single month. No exceptions. Throughout all of life’s challenges and market gyrations it’s a massive advantage to start young. Less than 30 ideally. Let it build with ETFs with balance. 60 equity 40 bonds. ( Otherwise you’ll be panic selling if another 2008 happens )

Stay married or stay single.

#44 Dolce Vita on 05.22.19 at 6:09 pm

Chris and my final nagging:

The pedagogy you have is fine except Entrepreneurship at the end. Again, pick 1 key thing you want them to learn from each topic, illustrate with a real world case, let them discuss it (called ownership) and supplement, even at a later date, with a person from the craft…hits home what they learned mattered.

Fun, familiarity and key life decisions they will have to make come first.

If so, your snowball may indeed have a hope in Hades over 15 weeks.

———————————

#26 Leftover

I’m a Hayek fan by the way but to a bunch of 15 to 16-year-olds that only recently learned what to do with their private parts, you have got to be from Planet Claire (the one with “pink” air).

#45 Burnaby on 05.22.19 at 6:09 pm

CPA (Chartered Professional Accountants) offer Free financial literacy sessions.

https://www.cpacanada.ca/en/the-cpa-profession/financial-literacy/financial-literacy-education

#46 Vision on 05.22.19 at 6:10 pm

Probably a good move, since you neglected to mention all the UNpaid work teachers do:

-lesson plans
-after school programs
-phone calls to idiot parents about idiot children
-meetings
-report cards

And most important and time consuming is the endless marking. Marking on weekends. Marking at night. Marking during holidays.

It never ends is all unpaid.
……………………….
Lesson plans.. many teachers use the same plans year after year
After school programs… most teachers go home, a few stay
Phone calls… usually during school hours , not after hours
Meetings.. come on. Twice a year? PA days?
Report cards.. I believe you use computer programs. I am sure lots of it is done during school hours
Marking.. I recall a teacher friend marking in the back of a bus on a road trip. Very thorough and thoughtful.
Plus, there are computerized programs that mark multiple choice. I also remember teachers having students mark by passing it back. Perhaps they don’t do that anymore.

I am a medical professional and to keep up to date, I have to attend courses after hours and to read journals regularly in my own time.
I have medical legal responsibilities to ensure competence. I have to answer to my medical college.
Teachers just answer to their unions.
Respect for teachers? Our education system is way behind other countries in terms of standards.
Yet in Canada they are probably the highest paid in the world.

#47 Cto on 05.22.19 at 6:10 pm

“After all, it’s the apprentice plumber tooling around in a C-class coupe while the Ph.D. barrista lobbies for $15 an hour. ”

Ahhh Garth…. I think you mean to say the plumber is driving a $50,000 F150 and the barista is driving a 10 year old used C-Class Coupe that she financed off her credit card.

#48 Re-Cowtown on 05.22.19 at 6:14 pm

It looks like Trump is about to declassify everything to do with Russiagate. Perhaps Hillary should have taken the hint when after the election Trump said that Bill and Hillary were fine people and that he had no interest in pursuing them. She should have taken the out and slipped quietly into a lucrative speaking career.

But no…. she had to keep stirring the septic tank with an outboard motor and now the shyte is about to spill all over her and Bill. And Barack. And Michelle. And the Democratic party.

When someone gives you an out that saves your reputation, career, legacy and avoids jail time you should just say thank you. Now Trump will be the Pardon Nazi; “No pardons for you!”

Fools. The Greatest of Fools.

#49 ALFRED E. NEUMAN on 05.22.19 at 6:14 pm

Looking back, we were very lucky to receive a free-CD with our first PC in 1997, .. that took us from doing ‘manual-money-tracking’ to using Microsoft’s terrific ‘money-management-software’ .. which all these years later, we STILL utilize, religiously.

Thus, I SURE WISH somebody .. highly respected and credible in the financial services industry (hint, hint, Mr. Garth), would get behind developing / distributing software to schools / online courses, .. similar to what Microsoft did with theirs, that boo, ended with a last ‘2010 Sunset Edition’ available download (link): https://www.thebalance.com/microsoft-money-plus-sunset-deluxe-software-4051835

#50 Grantmi on 05.22.19 at 6:17 pm

#5 Red falcon on 05.22.19 at 4:59 pm
Financial ignorance is no excuse! Do financial independence instead!!!!

And… first!!!!

I agree with first statement!

and no! You’re fifth!!!!!

#51 AK on 05.22.19 at 6:17 pm

“What do you wish you’d learned when you were a snippy little hormone?”
=====================================

I wish I paid myself first, from day 1 of my working career.

#52 Toronto_CA on 05.22.19 at 6:20 pm

For me, you’d want to teach kids in highschool about two things:

1) Student Loan debt
2) Credit Cards

Basically everything there is to know about both those topics and how to use the debt responsibly. I didn’t understand about basic things – how credit card interest accrues the minute you take cash out, how not paying the balance in full causes interest, how ridiculously high credit card interest is relative to other forms of debt etc.

And student loans? OSAP? deferrals? Repayment terms? How to use the tax credits on interest? All I knew was my money went to the school first and then what was left went to my bank account to use as I wanted (not wisely!). If I had known how long it would take for me to pay all that back I would have only borrowed what I needed.

Mortgages and HELOCS are interesting and causing all kinds of damage to Canada, but too far removed from a highschool student’s future for them to retain.

Probably basic income tax knowledge and car loan debt would be next on my list (I can’t believe people can take out 8 or 9 year car loans now!). Both of those are likely to be things a kid would need to know.

Investing wise…a TFSA and RRSP crash course couldn’t hurt, but like mortgages and HELOCs, I think too far away from practical real life use to be retained. Not many kids jump out of highschool ready to save and invest for retirement. But telling kids that a TFSA is NOT just for high interest savings accounts but a place to put long term ETFs and low cost mutual funds is something that should be mandatory.

#53 Dolce Vita on 05.22.19 at 6:26 pm

“In fairness, teachers – the good ones, anyway – put in a lot of hours preparing for and recovering from classes.”

Tell me about it. At the end of the academic year, it would take a good month before you would come back to the land of the living. If you are a serious educator, 8 months of teaching is mentally draining to say the least.

I’d spend another 1 month before classes start to revise (usually from student feedback) and freshen up courses I taught to make them more relevant. That involved a lost of research and revising. I had about 5 published books, not fun I can assure you and very time consuming (and mentally draining).

So in effect you have 2 months of holidays and ya, all those juicy Stat Holidays to enjoy life. No bitching here about that.

And yes, I traveled a lot (still do here in the EU). You need that to just get away and cut loose from the drudgery that can be Academia.

I loved teaching night time also, didn’t need to, but did it since you were teaching people in industry and when they say your stuff is good and they’re going to apply next day at work, well it makes it all worth while and tells you that what you teach in your course matters in the real world and is useful.

In the many years I taught, the best thing was when a student would drop you a note and say you know, I should of paid more attention in your course.

Those singular instances of thanks made my altruistic part of my career (20 yrs. each in academia and industry typically upper management for others and entrepreneurship) worthwhile.

Having said all that, there were also “cheque cashers” teaching, not many, but enough to irritate those of us like me that cared.

Neat Blog today Garth, brought back fond memories of indentured academic servitude for HALF THE CASH I GOT WHEN IN INDUSTRY. I take note Garth you forgot to mention that fact.

Buonanotte e Ciao d'[*]Italia.

* Thank God for the peace, tranquility and quiet of retirement and a DB pension.

#54 Westcoast Conspiracy Theorist on 05.22.19 at 6:28 pm

Chilliwack.

Turn off your car air when passing by.

I heard the ground water is polluted with agri-chemical running into the drinking water.

You might want to fix that first.

Let’s start with the basics in math.

You Vancouver home appreciated 100%.

Then it depreciated in value by 51%.

You are now at a lower value than when you first started.

Most Vancouverites think they are still ahead given their delusional comprehension of math.

Now let’s apply the current situation to W.Vancouver.

Up 320% in price since early 2000s
Now down 40% in price.

Where are we at using a 500k starting point:

You peaked out at 2.1M

Now you are at 1.2M

Still 700K above the original amount invested, but only another 30% from erasing that. And that is considering no inflation. Factor in inflation and you are pretty much back to the starting point.

Problem is, this downturn is just getting started. Expext a bottom around the year 2022.

800 billion in lost equity coming to BC over the next few years.

BC has already lost 90 billion in home equity value in the past year and a half.

#55 Lost..but not leased on 05.22.19 at 6:29 pm

Education re: finances?

Don’t even waste the students time unless they understand the whole game is rigged aka study the Federal Reserve etc.

#56 Suede on 05.22.19 at 6:31 pm

It’s the things you won’t learn in school

Sadly, kids won’t pay attention until they need to know it or want to know it.

Not even adults in their 20’s and 30’s know this stuff that pay rent or even have a mortgage.

But most of these people have BMW leases. Go figure.

Currently BMW stock pays a 5% dividend. Eat that realtors (R).

It’s better than a cap rate on a YVR/YYZ house

#57 SmarterSquirrel on 05.22.19 at 6:34 pm

Garth,

I wrote down my 11 life lessons on how I got to be financially secure with a $100k+ passive income, a while back. Since then some folks have written to tell me it’s been helpful for them. Maybe it’ll be helpful for Chris and his students. https://smartersquirrel.com/how-i-built-a-six-figure-passive-income-by-age-47

It’s basic stuff, spend below your means, save and invest, invest in yourself to increase earning power, don’t be so thrifty that you don’t enjoy life… you only get one go around so you gotta enjoy it but you only get one go around so you also gotta make sure you don’t live in poverty in your senior years. Have to find that balance.

#58 Out Of Work CEO, Will Travel on 05.22.19 at 6:34 pm

Credit card debt will bury you and you might not even notice till it’s too late. The smartest and the wealthiest and the healthiest are aware of the heavy financial burden of credit card debt. A staple of our Canadian retail landscape are the “pay-day loan shops” located at major intersections in towns and cities across the country waiting to snare the innocent into modern day “debtor’s prison”….if every kid in grade 7 could be given a pamphlet showing the math and the misery of pay-day loans with the family going to the “foodbank” and Goodwill as a result of “pay-day loans” helping kids succeed by “not failing”.

#59 2cents on 05.22.19 at 6:35 pm

It would help them to learn about student loans, as it’ll be more relevant to them then payroll taxes (initially). Student tax credits should be labeled as ‘free money’ that most kids (and graduates) 100% don’t understand (or take advantage of).

#60 Calling BC Assessment on 05.22.19 at 6:36 pm

Hello BC Assessment.

Your home values are down 20% in the province. Likely to fall more. My take is a 20,15, 10 drop over 3 years (45% total).

Are you going to reflect this on your upcoming roll for 2020?

Are you going to be notifying the media about abnormally high devaluations like you did when broadcasting “sharp rises” in property values?

My bet is probably not considering who funds the payroll.

I am curious how they will spin this to sustain elevated levels of property values for the benefit of municipalities collecting on the property tax.

In a fair system this would go down and your property taxes would adjust down accordingly.

But we know the capital province of corruption is far from fair.

He is for hoping BCAA is part of the political inquiry into corruption – false assessed values.

#61 Kenny H on 05.22.19 at 6:39 pm

Before even Hayek (which is brilliant), how about Adam Smith’s “An Inquiry into the Nature and Causes of the Wealth of Nations”.

#62 BlogDog123 on 05.22.19 at 6:40 pm

A section of the course can be about the scammers, cheats, liars, confidence schemes the young ones may encounter such as:
1. Life insurance for your pets.
2. Baby Vultures, scholarship RESP plans.
3. Telephone con games.
4. [email protected] and her high fee investment accounts.
5. Whole life insurance policies (show me the fees).
6. Free software that’s actually malware.
7. Paying too much for technology that’ll be obsolete or orphaned (eg. remember Windows Mobile phones).
8. Realtors(TM) with their one-sided BRA contracts.
9. Religious zealots recruiting on university campuses.
10. Cutco/Vector marketing scam jobs on campus.
11. Extended warranties at BestBuy for $50 items.
12. Onerous cellphone contracts.
13. Eight or nine year auto leases.
14. Hey you won a cruise or timeshare. Timeshares in general…
15. Primerica

You get the idea…

#63 HanMan3000 on 05.22.19 at 6:43 pm

Most of the stuff my parents taught me about money was implicit in their lifestyle and came via lifelong example. Being courteous, humble and not having a sense of entitlement were good ones. Living within your means and not worrying about what others are doing was a great lesson too. The most important explicit lesson was that my father taught me about compound interest when I was in third grade. Life changing.

#64 crossbordershopper on 05.22.19 at 6:44 pm

my 13 year old daughter calls money , fun coupons, yes they are. fun coupons.
i know she will never save because well she doesnt have too. what people should talk about is the inter generational wealth issue,
with people having one or two or three kids, having kids go to school then they start of working get a mortgage etc.
when what i see is one child from a one child, so like its a funnel of millions flowing to a kid who doesnt care or know anything about anything, its kinda sad in some way since my grandmother sacraficed, and her great grand child doesnt know anything, like anything, when your mad when you cant download a movie immediately, you wonder what real patience and sacrafice when they really did without in the 30’s.
its about kids all about the kids. and well most of them are stupid. i partially blame the teachers

#65 Smithereen on 05.22.19 at 6:46 pm

One thing I taught my 16 year old was to read and understand their paystub. Employers make a lot of mistakes. this has saved my son from working for free several times. Many small employers expect their bookkeeper to catch mistakes but rack employee should be their own advocate.

#66 Jay on 05.22.19 at 6:46 pm

Start saving ASAP
Pay yourself first, always!
Power of compound interest!!!!
Avoid credit like the plague
Avoid student loans like the plague
How to actually invest – keep it simple
How to negotiate a salary / pay raise
Find a financial mentor
Goal setting
Budgeting & how to pay bills
How to get a mortgage
Teach how easy it is to get ahead, IF they avoid all the common pitfalls early
FIRE mentality = Freedom earlier, rather than later

#67 Smartalox on 05.22.19 at 6:50 pm

I recall an ‘Introduction to Business’ class in my public High School in the 80s’.

We learnt to calculate present value, future value, payment periods, APR, Net Worth, long hand.

Nowadays, you can easily teach kids how to do this stuff on a computer spreadsheet:

Review the Excel functions; Check and see if Google Sheets has something similar and open source.

PV: present value of an investment, the total amount that a series of future payments is worth now. Use this to figure out what financing purchases (cars, homes, phones) cost versus paying cash, and to compare financing deals at different interest rates.

FV: future value of an investment based on periodic constant payments and a constant interest rate. Use this to figure out how much you can earn if you’re making regular contributions to a TFSA, RRSP, or RESP with an estimated return (2% P/A or 6% P/a).

PMT: figure out what a monthly payment will work out to be

PPMT: figure out the portion of a payment that pays down the principal on a loan

IPMT: the portion of a monthly payment that goes to interest on a loan or mortgage.

Note that the proportions of principal and interest payments vary for every period (monthly, bi-weekly) that elapses. Use Copy / Paste and formula fill to show how this changes over multiple rows / periods; see how much of the principal of a mortgage is paid off after 5 years, or after 10.

Teach them how to budget, and how to use apps to track their spending. Show how a latte a day keeps financial independence away. Teach them the costs of debt.

Once you teach the basics (the functions and how to use them) get them to bring in examples of ‘deals’ for cars or homes or phones or sports equipment that they might want to buy, or credit cards that they use.

Teach them to decode the terms in the fine print of the ads, and how to enter them into their spreadsheets, to figure out how ‘good’ the deal is. How payments change with the size of the down payment.

Have them call the providers, i.e.: the dealerships, give their credentials, (16 or 17, no job, etc.) and see what kind of rates they’d REALLY get.

Go online to Canada.ca and find the rates for income taxes, federal and provincial. It’s a bit tricky, but get them to figure out what their taxes might be, based on the income bands and the prevailing tax rates.

Teach them about nominal and effective tax rates.

Teach them about deductions (CPP and EI, and how these only apply to the first $55000 of salary, but are doubled for self-employed people). Visit the websites of professional associations that publish salary tables, to get some values for incomes. The engineering societies are good for this.

Make it clear that these are recommendations and averages, not limitations. That it is up to them to get the best deal that they can, but should not settle for less than they’re worth, for a job at a specified skill level, regardless of who they are (M/F, LGBTQ, etc.). That in an organization, the higher the salary, the fewer the number of workers.

Tie all this together by having them work in groups to draw up realistic budgets, for different scenarios that you assign: Family of 4 with one tradesperson working; A doctor making $300k/yr, but paying taxes and with $150k in student loans. A small business owner, with inventory costs, a mortgage, a business lease, family and 3 employees. Have them do it over 5 years. Force them to make choices between things like paying bills nad taking vacations. Have them present their findings at the end of the term.

Teach them about how payroll is made, and the ‘hidden costs’ of MSP, and other payroll taxes. Definitely ask a small business owner to come in and talk to the class, especially if they have more than 10 employees.

That’s a good start. None of this is beyond grade 10 maths, and I am sure that it will open a few eyes. Get them talking to their parents about money, even if their analysis reveals that maybe their parents aren’t so good at it after all.

My parents were horrible with money. Even after I learnt how to do all that I have described above, I still didn’t get it, until I put it into practice.

#68 Ustabe on 05.22.19 at 6:50 pm

Maybe a little history about the rise and ultimate failure of communism and what lives were actually like in communist regimes. Then we would have less educated fools claiming to be Marxists, or voters who think that creating socialist paradise by electing Sanders/AOC/Horgan is a good idea.

Maybe slip in a module or two so they gain the knowledge of the difference between socialism and communism too.

Save the difference between democratic socialism and socialism for after they have figured out what neo-liberalism actually means.

Sigh.

#69 Dolce Vita on 05.22.19 at 6:52 pm

Probably the 1st to say it here but those DB pensions rock but unfair.

To get what I get net after say 15 years of Academia would take the average person without a pension, over and above CPP and OAS, a whack of cash to set aside each month for a lifetime.

This article (link below) assumes 6% return on average per year to get $1.5 MM by age 67, here are the amounts you would have to save and invest YEAR IN AND YEAR OUT at 6% (starting age and investment amount):

20: $479 per month
30: $920 per month
40: $1,860 per month
50: $4,247 per month

In light of what you say about debt load, RE values tumbling, wages not keeping pace with expenses, etc., basically:

Like getting blood from a stone, Second Coming stuff for the average Canadian that will not have a DB pension.

What am I saying, DB pensions are unfair to those that do not get them. Why many live it up in the mean time that have them.

https://www.cnbc.com/2018/10/03/how-much-you-have-to-save-every-month-to-retire-with-1-point-5-million.html

———————————-

The above a reason I love your Blog so much. You try to teach people the reality of retirement and the money to set aside and invest to live comfortably, within reason, upon retiring (w/o a DB Pension).

#70 Linda on 05.22.19 at 6:54 pm

Things are different now. People rarely carry cash, let alone write a cheque. ETF’s didn’t exist way back when, let alone TFSA’s. Still, things I wish I’d known about in no particular order:

How to negotiate a loan; understanding that the asset you are purchasing can be used as collateral for said loan.

I took marketing in high school & it was the most useful course (other than basic math) as it taught me how to compare pricing & how to read a label so I’d know what I was purchasing. However it would have been extremely useful to know how items are priced in the marketplace; markups to merchandise & how to determine whether an item/service is worth the money/effort to acquire it.

The vital importance of paying yourself first as well as budgeting.

I never had an issue with understanding credit cards were a good servant but a bad master. However any class on finances should emphasize the contractual obligations when borrowing money & especially should emphasize how easy it is to get into a debt trap via marketing. How one should always check all transactions & what one can do to protect oneself from identity theft. Financially that one thing alone can ruin your financial life for literal years.

#71 Eaglebay on 05.22.19 at 6:54 pm

#4 Re-Cowtown on 05.22.19 at 4:59 pm

You’re right. We are made of carbon.

#72 Bobs ur uncle on 05.22.19 at 6:55 pm

What changed the game for me in my early twenties was the wealthy barber explaining the magic of compound interest. Comparison of how far a couple hundred per month set aside monthly gets you in 30 years vs how much you’d have to save to get the same pile starting at age 40 or 50. Been doing it ever since.

Also, realization that stock market is not gambling, especially with vanilla ETFs. EG, if s&p 500 goes to zero, we’re all screwed, and you’ll be using liquor bottles for money. So unless civilization itself is going up in flames, you’re probably gonna make some money in a boring balanced portfolio.

#73 Mean Gene on 05.22.19 at 7:00 pm

Some kind of investment club at school would probably work, they wouldn’t use real money but setup a virtual portfolios with $100,000.00 in each; self directed TFSA, self directed RRSP and a plain jane investment account.

Having a guest speakers who are fee based financial advisors like Garth’s crew come in and talk generally about what they do, not selling anything and pissing off the school board.

What will happen though, Johnny will go home and tell his parents what he learned about finances and will be shutdown by the pair bond because the adults know better.

#74 crowdedelevatorfartz on 05.22.19 at 7:02 pm

Probably a good move, since you neglected to mention all the UNpaid work teachers do:

-lesson plans
-after school programs
-phone calls to idiot parents about idiot children
-meetings
-report cards

And most important and time consuming is the endless marking. Marking on weekends. Marking at night. Marking during holidays.

It never ends is all unpaid.

******
Ok.
Just like most salesmen or supervisors with cellphones and email.

Customers or employees calling/texting after hours/ weekends.
Suppliers or employees calling / texting after hours/ weekends.
Calls to idiot customers, idiot suppliers, idiot employees.

Meetings.
Reports.
It never ends…

Sound familiar?

And all that is done in the private sector without a defined pension waiting in the wings.
Cry me a river or change your job.

#75 Sydneysider on 05.22.19 at 7:04 pm

Stocks and ETFs are disturbing because their values fluctuate by 1-10% over short periods of time. I find the best way to deal with this emotion is to recognize that many of the items that we buy with our returns also fluctuate over a similar range.

For example, I “saved” 57% off the normal price of goods at the supermarket last week, and a similar amount for a bike. The conclusion is that impulsive shopping habits are an even bigger threat to our living standards than stock market fluctuations.

#76 not 1st on 05.22.19 at 7:20 pm

Teacher may suck at math just like doctors and lawyers too, but they are socialists and have no idea how to teach investing, business or basic finance.

Chris should get a paper route or something and let the school bring in a actual business person who has had make payroll.

We do need a dedicated course on the evils of socialism though. That would be a winner.

#77 reynolds531 on 05.22.19 at 7:25 pm

In a world awash in layoffs, redundancy, and offshoring 95k is a fortune to pay a teacher. A lot of people out there slugging it out in the private sector at 20/hr.

The unions have pulled off nothing short of a miracle. As a former university employee it made me sick to watch the public sector from the inside.

#78 NoName on 05.22.19 at 7:26 pm

Now that plummer is mentioned.

https://www.youtube.com/watch?v=AiJKL4XinUQ

#79 Reximus on 05.22.19 at 7:28 pm

#4 put your mouth on your exhaust and see how you do

#80 mark on 05.22.19 at 7:35 pm

Understanding how much your emotions and early environmental factors will contribute.

#81 mark on 05.22.19 at 7:37 pm

Oh and highlight the importance of investing because you have a goal, not because of self-expression or ego.

#82 What they should have taught on 05.22.19 at 7:37 pm

In one word: entrepreneurship. It’s a mindset, but if you are never told about what it entails in your younger years, let slone exposed to it, you may never discover you may actually have a talent for it. The problem is that teachers are among the least likely profession on the planet to have any experience with entrepreneurship, and I can hardly think of anything worse than a teacher reading a few books on entrepreneurship and relaying that to students – we need accomplished entrepreneurs to step in, anything from tech company founders to cleaning company owners and depanneurs.

#83 Dolce Vita on 05.22.19 at 7:39 pm

Promise to shut up after this.

Retail Trade report out by Gov. today for March 2019. Looks good. Seems that Canadian job hiring for this period was not without merit.

Chart I created for Retail Trade* from Feb. 2015 to Mar. 2019 link below. Nice spike, as usual for this time of year when Canucks, feeling lust in their loins, begin to spend money after loveless February:

https://i.imgur.com/yM85Dm6.jpg

Unadjusted Mar. 2018 vs. Mar. 2019 growth rate was 1.6%.

Only 0% Retail Trade growth or less industries:

-New car dealers, 0%
-Furniture stores, -1.2%
-Specialty food stores, -0.4%
-Gasoline stations, -0.7%
-Sporting goods, hobby, book and music stores, -1.5%

Only 0% Retail Trade growth or less cities or regions:

-Vancouver, -1.2%
-Northwest Territories, -1.7%

——————————————

Maybe the March 2019 GDP Report (due May 31) may not be as bad after all, then again, the above is 60% of the economy…so who knows what happened with the other 40%?

*Those wondering the industries covered by the Retail Trade report go here:

https://www150.statcan.gc.ca/n1/daily-quotidien/190522/t002b-eng.htm

#84 Long-Time Lurker on 05.22.19 at 7:42 pm

>Keep your students awake by playing a game. (Hee hee. High school.)

https://www.businessnewsdaily.com/10717-best-business-simulation-games.html

Best Business Simulation Games 2019
By Saige Driver, Social Media Strategist December 7, 2018 02:35 pm EST

Capitalism Lab

When the original Capitalism was released in 1995, it was considered an accurate business simulator that both Harvard and Stanford used it for educational purposes at the time.

Capitalism Lab is the most recent entry in the series.

Unlike most business simulators, you are not locked to a single industry: You can expand into marketing, real estate, manufacturing, purchasing, importing and retail. Players will lose themselves in the depth of the business world portrayed here and ignore any graphical complaints. This is not the game for someone looking to have a little fun with a business simulator; this is billed as hardcore business simulation and is best played by those looking to really learn something about running a business.

https://www.capitalismlab.com

#85 SimplyPut7 on 05.22.19 at 7:55 pm

9. Paying back your student loans before the age of 40 (before the age of 27 if you live with your parents after school to save for a home and pay off debt).

10. The true cost of owning a car (car payments, maintenance/repairs, gas, paid parking and toll costs e.g. monthly 407 toll bill can be more than gas and car payment combined).

11. Make them research how much it will cost to go to university/college/apprenticeship (tuition plus textbooks), cost of living on campus/off campus and the cost of food, the likelihood of getting a job in their chosen field after school and the median salary for those professions in year 1, 2, 3 after school. They should also research a plan B career to see the likelihood of getting a job in that field and the median salary for the first 3 years. Everyone isn’t going to be a doctor or lawyer, we don’t need that many teachers in the near future – we have too many graduates as it is as well as getting an MBA or Masters of Everything or even a PhD doesn’t mean you won’t start off as the file clerk at a big firm, you have no experience no one cares about your degree(s), we are all just as smart as you.

12. Learn how to read a Fund Fact for ETF and mutual fund investing. They should know how to calculate the total return net of fees e.g. MER, TER and other fees that may have to be paid prior to the investor getting paid.

13. Learn the difference between RRSP, TFSA, RRIF, RESP and the differences between a beneficiary and successor holder.

14. Understand if their employer offers a defined pension plan, defined contribution plan or neither. How to read their employer’s insurance coverage and determine what is covered and is not and what percentage is covered.

15. Insurance: life, disability, supplementary (health care, dental benefits, drug, vision and hospital), car, property, home and out-of-country and out-of-province insurance, what to look for in each coverage. Let them get online quotes to show how their insurance coverage changes as their postal code, car, property and age changes – a tool they should use prior to buying a car.

16. Wills, Power of Attorney and ageing parents: make sure everyone knows how to create a will that can avoid probate, what to do with property that needs to be kept in the family (e.g. family cottage or summer home in the US). Let them know it’s okay to choose someone as their power of attorney that is not their closest relative or friend. Provide an overview of how to care for older adults, without worrying them too much about the thought of their parents getting older and needing more care (https://www.aginginplace.org/caring-for-aging-parents-in-todays-busy-society/)

#86 Stan Brooks on 05.22.19 at 7:56 pm

#145 Shawn Allen on 05.22.19 at 3:57 pm
The Nature of Money and the Blind Leading the Blind

If being stupid hurts, you would be dead by now.

How is money created?

According to Bank of England/not Stan: from commercial banks through loans:

https://www.bankofengland.co.uk/knowledgebank/how-is-money-created

If banks were the pillars of the economy, the most prudent, etc. as you state, why do we need to ensure their uber subprime mortgages?

You are a representative of the perfect breed of idiots who are proud to be idiots and announce it under their own name.

Why it bugs me? Living among brainwashed idiots without being impacted by their idiocy s not possible.

All you perceive as ‘economy’ is a debt driven sweat shop, giant labour camp created for the profit of a few oligopolies, including the banks by importing cheap qualified labour from abroad that is now drying out.
The above statement is from a friend of mine from Hong Kong from 20 years ago. Now this is reaching extremes due to lack of quality labour supply.

It is imperative for the new sheeple to be bred as stupid and brainwashed, so we have you.

True there is government backing in the form of deposit insurance and also CMHC. Both of those however have been to date entirely self-funded and cost the tax payers nothing.

Of course. For now. If it was profitable, and self funded in long run, it would have been privatized by now.

Your understanding of price of risk is laughable. And you lack of intelligence and outright refusal to recognize basic aspects of it/the price of risk is frankly scary.

Your type, the half-intelligent is the most dangerous of all as it has it all ‘figured out’.

It Ain’t What You Don’t Know That Gets You Into Trouble. It’s What You Know for Sure That Just Ain’t So.

Take your head out from you behind and think for yourself, stop repeating what you have been told without even processing it with all 2 neurons of your brain.

#87 Dolce Vita on 05.22.19 at 7:57 pm

Promise to shut up after this, again and MY BAD:

Error.

Retail Trade = 35% of the economy (2018 Unadjusted Retail Trade was $605,934,029 and 2018 Cdn. GDP was $1,711,390,000). Not sure GDP in $CDN, still, close enough for Government work.

Thus Errata:

Maybe the March 2019 GDP Report (due May 31) may not be as bad after all, then again, the above is 35% of the economy…so who knows what happened with the other 65%?

—————————————–

And, I’ve taught Calculus and Differential Equations, etc.

Hanging my head in shame. Red face.

#88 Lisa on 05.22.19 at 7:59 pm

Hmmm you are channeling Dave Ramsey today, Garth! Actually Dave Ramsey has a high school curriculum in the U.S. that might be useful, although I have never seen it. The main thing I was thinking that hasn’t been covered yet by other commenters is budgeting for food for a week. Most kids have no clue. Plus the schools don’t have home ec anymore, so this stuff isn’t being covered.

#89 crowdedelevatorfartz on 05.22.19 at 8:03 pm

@#56 Smarter Squirrel

https://smartersquirrel.com/how-i-built-a-six-figure-passive-income-by-age-47

Excellent blog!

I will be passing it along to some co workers who may…or may not….see the light…

#90 Slim on 05.22.19 at 8:06 pm

Good luck trying to teach grade 9 & 10 students about financial responsibility. Especially, when most parents are themselves being poor examples, in this area. As it appears by the debt level statistics.

I think it’s a discipline that should be taught in the home, firstly. Not just about the numbers.

#91 will on 05.22.19 at 8:06 pm

Price and Value.

I designed a course 15 years ago about how to think about investing hoping to offer it at the local college. Ben Graham stuff. They told me no one would be interested. I became cynical, saying things like the poor get poorer because they are stupid. Well anyway, price and value. That would be my wish.

Regarding the picture, yup. Get a haircut and get a job.

#92 Flop... on 05.22.19 at 8:10 pm

#85 Stan Brooks on 05.22.19 at 7:56 pm
#145 Shawn Allen on 05.22.19 at 3:57 pm
The Nature of Money and the Blind Leading the Blind

If being stupid hurts, you would be dead.

//////////////////////

I smell a blossoming bromance…

M44BC

#93 Habbit on 05.22.19 at 8:10 pm

The information is easily accessible now. This blog is a good example. It takes a bit of effort to learn about this. That is the problem. I recall telling a sibling they could not afford to ignore their economic well being. Too much work. Besides if everyone knows what will become of all the people making a livelihood off the dummies. The sibling never did learn. Both she and partner laid off in the Alberta bloodbath taking place now. Yep they still have a mortgage. You can lead em to water but….. you get the idea….

#94 Stan Brooks on 05.22.19 at 8:13 pm

How bank loans are not backed by deposits for dummies (like Shawn Allen).

https://www.quora.com/If-commercial-banks-dont-need-deposits-to-make-loans-then-where-does-the-money-come-from


Commercial banks create loans by expanding their balance sheet for 100% of the loan amount. If you get a $1000 loan, the bank simply marks up your account by $1000 (the bank’s liability), and your promissory note becomes a bank asset, worth $1000 plus interest, assuming you pay it off. No pre-existing money is needed to fund the loan. M1 (cash + bank account balances) increases by $1000, while MB (cash + reserves) remains unchanged.

Which part of it is unclear to your (supposedly CFA) brain?

Read everything from the link above and you will understand why debt need to keep rising/at any cost/including ‘insurance’ of bad debt, or else the whole Ponzi scheme collapses.

Our banks do not have even mandated minimum reserve deposits, those are zero as BoC (created to serve the banks, not you) will jump in at the first sign of stress.

https://en.wikipedia.org/wiki/Reserve_requirement


Canada abolished its reserve requirement in 1992.

The statement that deposits are backed by capital is sheer idiocy, assumption of a dysfunctional brain.

#95 Re-Cowtown on 05.22.19 at 8:18 pm

To the fool who thinks that breathing in car exhaust proves your point on carbon. No it doesn’t. It does however beautifully prove my point that science illiterates have successfully tied carbon to actual pollution. CO2 is life. Your breath exhales 4300ppm of CO2 or 11 times that in the atmosphere.

Without CO2 you die. As do we all. As does every living thing on the planet. Please explain to me why a world without CO2 is a good thing?

#96 yvr_lurker on 05.22.19 at 8:18 pm

I do believe that there should be a high school course about life skills; balancing budgets, basic personal finance, setting expectations and goals. They are trying to do a little of this in my kid’s school with these student advisory programs, but more is needed.

However, there is lots of complete ignorance here tonight about what the job of an educator entails. Seems like many seem to think that people are only in it for the cushy lifestyle, union protection, and to do the minimal amount possible all the while collecting huge DB pension plans. I am sure there are a few that have this mindset, but many are very motivated and try to innovate ways to inspire kids and get the most out of them. My kid is in grade 9 and I follow carefully what he is being taught and try to supplement it a bit, as I work in a similar field. He has had only a handful of bad apples in 9 years.

I have no idea what it is like firsthand to run a small business making a particular widget or gadget, or providing some service etc. No need for me to shoot my mouth off on that topic based on my ignorance, or babling on about how they are pedalling stuff that nobody really needs etc… For those with disparaging biased remarks about the education system, with zero first-hand knowledge, I suggest you can use some discretion and do likewise.

#97 Michael Bruce Chase on 05.22.19 at 8:21 pm

Many years ago when I was in High School, grade 10 I took a “business” course as one of my electives. It was basic but it taught a little bit about loans, mortgages, stock markets, shorts selling, margin buying etc. While it would be a long time b4 I actually would need to use this information, it made re-learning a lot easier. Now I’m old and retired and reading this blog. Quelle Vie!!!!

#98 acdel on 05.22.19 at 8:25 pm

#4 Re-Cowtown

I kid you not; your (our hard earned money) carbon tax just paid almost 1.2 million for a shipment to the Philippines and back to Canada. Our P.M. is an ex teacher; McKenna has our back; god help us!

https://www.cbc.ca/news/politics/philippines-duterte-orders-garbage-shipped-canada-1.5144537

#99 Nonplused on 05.22.19 at 8:26 pm

What do I wish I had learned? Or at least somebody would have told me? Oh boy I could go on and on as I usually do but I’ll use bullet points so it doesn’t take all night:

– Romantic love does not last.
– If you choose to marry, choose a reliable partner and friend.
– Beauty is skin deep, but nasty goes right to the bone.
– Women lie.
– Men lie.
– Divorce is nasty and expensive.
– The social constructs we were raised with are in decay, don’t rely on them.
– Your income is not guaranteed beyond the end of the current pay period. It can go up, but it can also go to zero.
– The common link in all your failed relationships is you.
– Nothing that happens to you is somebody else’s fault (except accidents and crimes). You have to own the outcome. If somebody screwed you over, you have to own that you didn’t see it coming and change the game.
– When asked, loan small amounts of money to friends and family. Then only associate with those who paid it back without prompting. It’s money well spent.
– Never do business with family. It makes Christmas dinner awkward.
– Most everything you do will fail. Don’t get too invested. But keep trying because eventually something will work.
– Be flexible and open to new ideas or careers. In this day and age, the degree you get might already be obsolete by the time you get it.
– You don’t owe your mother or the world children. Only have them if you really want them.
– Motorcycles rock!
– Everything ends, usually badly or it wouldn’t end.
– Whether your kid’s team wins the championship or loses every game actually changes nothing.
– Professional sports can be interesting but it actually means nothing other than the money.
– Facebook is a waste of time.
– If it’s free, you are the product that is being sold.
– What one man builds, another will enjoy.
– The universe does not have a reason, other than what we make of it.
– Nobody likes your tattoo.
– Socialism cannot work except in lawless poverty, where everyone has an equal share of nothing.
– Don’t worry about what other people think of you, whatever it is they are thinking it isn’t about you. They couldn’t care less.
– Always be a gentleman.
– Never make a promise and then fail to deliver. There is no need to invite wrath.
– Avoid making promises.
– A dog is a man’s best friend. There is sadness to that as well as joy.
– If you have mice in the house get a cat.
– Tomorrow comes every morning, until it doesn’t for you.
– A tree does not grow to the sky.
– You can’t change the world, but you can change your small part of the world, and that’s a start.

Oh and then there is all the finance stuff but I think Garth has covered that.

#100 Dolce Vita on 05.22.19 at 8:28 pm

#83 Long-Time Lurker

Ya, fine idea. Let’s give a bunch of 15 and 16-year-olds a Business Simulator when they don’t even know the difference between Simple and Compound Interest, let alone how to calculate it. Or the difference between a debit and credit, an asset or a liability, a preferred share or dividend, etc.

You’d have a tough time with 2nd year Business students understanding WTF they’re doing in Simulators like that.

Try teaching a Computer Lab some time. Or lecturing about 1 of those Business Simulator’s beforehand – enjoy the questions you’ll get and the time to get them to sign up for accounts, get them up and running, etc., ad nauseum.

AND THEN THE ACTUAL COMPUTER LAB (“I pressed this key and this is what happened, what did I do wrong?”, “How come my PC is hanging?”, “It won’t let me log on.”, “Why do we have to do this stupid lab?”, “I don’t get it?”, “Why can’t you just tell us what happens instead of making us play your stupid game?”, “Why is this taking so long?”, “Is there a book that tells you how to do this or Wiki article or YouTube Video to save time?”, “What page are we on?”, “John is cheating.”, “Can I do this at home instead?”, “I can’t win, what kind of a stupid game is this?”).

Let alone grading their performance and giving feedback.

You have no concept do you?

Did Simulators. A lot of up time spent just to teach them the objective of the game and give them the skills to play. The Law of Diminishing Returns.

If you give kids a game like that, they’ll get bored as they won’t understand WTF they’re doing and will play their own online games instead, do Social Networking, etc., anything but your Simulator – and that’s the Post Secondary students.

#101 IHCTD9 on 05.22.19 at 8:33 pm

IMHO, philosophy and finances go hand in hand. Most of the debt accumulation is due to “wants”. Some things are acceptable for taking on debt, other things like cars, entertainment, and vacations are not. A little stoic philosophy woven into the class might help stem the covetousness and insecurity that creates the worst kinds of debt.

The class should have a heavy focus on the pitfalls of racking up debts of any kind.

#102 Stan Brooks on 05.22.19 at 8:37 pm

#86 Dolce Vita on 05.22.19 at 7:57 pm

Components of the GDP:
https://en.wikipedia.org/wiki/Economy_of_Canada

#103 Mohammad on 05.22.19 at 8:42 pm

With that many days of I would get an extra jobs. Two cheques always better than one. I am trying to get 3 jobs and make three cheques lol. God I love this country!

#104 Been There on 05.22.19 at 8:48 pm

Right on #27 – Dave
Did a similar course back in the 1970’s. Don’t remember anything else from high school. But what a shock to find out merchants have to pay Credit card fees too. Skip the Dragon Den crap – this is a course on finance, not drama.

Our course consisted of designing and implementing our own small business. We didn’t get to pick our “business partner” when designing our business, we were assigned partners. Good lesson in working with others in business too.

I’ve now run my own business for 40 years. Supported our family. This course turned me onto a career that was never presented as an option to a 15 year old girl in 1973.

#105 NoName on 05.22.19 at 9:03 pm

There are some bussines courses in a HS, i remember my dotor doing homework on it last year.

Funny enough i was so impressed with her notes that i actually took picture of each one she left laying on a dining room table…

notes
https://imgur.com/a/vWsBVgH

and here it is just for you pozi plywood (at the bottom of the page)
https://imgur.com/wqDoqJR

#106 Lost...but not leased on 05.22.19 at 9:08 pm

A few points:

—-Re DB….dream on these won’t go the way of other extinct entities…they are UNsustainable, seriously underfunded and the tax slaves won’t have any sympathy. aka sayanora DB !

In BC…..our town for some reason sent out the utilities bill (ie garbage, sewer etc)about 2 months late…and within a week or 2 the dreaded property tax bill will arrive and rest assured many will concurrently cringe and cry in outrage.

#107 lack of vision on 05.22.19 at 9:09 pm

@#45 Vision on 05.22.19 at 6:10 pm
Probably a good move, since you neglected to mention all the UNpaid work teachers do:

-lesson plans
-after school programs
-phone calls to idiot parents about idiot children
-meetings
-report cards

And most important and time consuming is the endless marking. Marking on weekends. Marking at night. Marking during holidays.

It never ends is all unpaid.
……………………….
Lesson plans.. many teachers use the same plans year after year
After school programs… most teachers go home, a few stay
Phone calls… usually during school hours , not after hours
Meetings.. come on. Twice a year? PA days?
Report cards.. I believe you use computer programs. I am sure lots of it is done during school hours
Marking.. I recall a teacher friend marking in the back of a bus on a road trip. Very thorough and thoughtful.
Plus, there are computerized programs that mark multiple choice. I also remember teachers having students mark by passing it back. Perhaps they don’t do that anymore.

I am a medical professional and to keep up to date, I have to attend courses after hours and to read journals regularly in my own time.
I have medical legal responsibilities to ensure competence. I have to answer to my medical college.
Teachers just answer to their unions.
Respect for teachers? Our education system is way behind other countries in terms of standards.
Yet in Canada they are probably the highest paid in the world.
_____________________

hey mister smartie pants, Canada consistently ranks near the top of the list for education. Whats wrong with you people? Constantly taring down your fellow man/woman/person to build yourself up.

#108 Stoph on 05.22.19 at 9:11 pm

#9 MF on 05.22.19 at 5:07 pm

“Enough generalizing. Here’s Chris from Chilliwack, ”

-Probably a good move, since you neglected to mention all the UNpaid work teachers do:

-lesson plans
-after school programs
-phone calls to idiot parents about idiot children
-meetings
-report cards

And most important and time consuming is the endless marking. Marking on weekends. Marking at night. Marking during holidays.

It never ends is all unpaid.

MF

—————————————–

High schools in Chilliwack typically start at ~8:30 and dismissal is at ~2:45 with a 45 minute lunch. Sounds like a good gig if you ask me – even after considering the extras that teachers put in.

https://www.sd33.bc.ca/school-assembly-and-dismissal-times-2018-2019

#109 crowdedelevatorfartz on 05.22.19 at 9:19 pm

Times are tough for alleged drug dealers in Burnaby.

The largest drug bust in Australia’s history ( $1.2 BILLION dollars worth of meth amphetamines) is linked to a man living in Govt subsidised housing in Burnaby….

When police raided his rental home they seized over $3 million in cash….
He was observed by various police agencies purchasing containers in California, flying to and fro for thousands of dollars, and loading the containers bound for Australia…..

BC Govt Housing has no comment and respects the privacy of its tenants.

https://www.cbc.ca/news/canada/british-columbia/drugs-guajardo-forfeiture-australia-1.5139484

#110 MF on 05.22.19 at 9:29 pm

#75 not 1st on 05.22.19 at 7:20 pm

Yeah, and all Albertans are a bunch a whiny crybabies.

See how that whole generalization thing works?

“All teachers are socialist”….wow.

I don’t even think you have ever spoken to a teacher outside of work..or even know what a socialist is anymore tbh.

MF

#111 MF on 05.22.19 at 9:34 pm

#76 reynolds531 on 05.22.19 at 7:25 pm

Yeah and they deserve it.

The private sector is about risk and reward. Take a risk, become a business owner, and if it goes well and you work hard, you can make more than 95k/year.

Work for someone else in the private sector as an employee and of course you will be making 20/hour. That’s the whole point.

MF

#112 Eyeguy (again, comment #12) on 05.22.19 at 9:38 pm

I’d encourage your class to read the appropriate Robert Kiyosaki books: “Rich Dad, Poor Dad and Cashflow Quadrant” among others and play his board game “Cashflow” so that the students learn money management skills. The board game could be an in- class, after school or lunch hour interest group. Through this game, our three children learned the difference between good debt (investing for eventual positive cash flow) and bad debt (consumer consumption) and have successfully applied the concepts to their adult lives. As others have stated today, encouraging teens to invest early and reduce unnecessary debt creates a bulletproof future nest egg that expands lifestyle and retirement opportunities.

#113 MF on 05.22.19 at 9:40 pm

#73 crowdedelevatorfartz on 05.22.19 at 7:02 pm

It does sound familiar….except the salesman basically has the sky as the limit for income and is (usually) not on salary. That’s the entire point of the private sector: profit seeking.

Remember?

Or did you forget that salary =/commission?

MF

#114 TurnerNation on 05.22.19 at 9:51 pm

The only people defending teachers and “unpaid” hours are the non-teachers. Virtue signaling? Cough, MF.

Why are they not praising ER docs putting in 60-80 hours a week and keeping only 50 cents of their next dollar earned. Pensions? Where be ya,

#115 Randy Matheson on 05.22.19 at 9:53 pm

This was similar to my request a few years ago.

Little Fools – Response

Great feedback. I went through the comments twice and tried to broadly categorize what I thought were the key issues/concepts to fiscal literacy. The most gratifying aspect of this exercise was the links to other resources or ideas that students might relate to. To present a concept that is engaging is half the battle. When you are able to show relevance at a personal level and some humor, you have a winning formula.
So this is what I have come up with.

1. Live Within Your Means
• Wants and needs
• Budget

To live within your means is the key concept in fiscal literacy. The student’s ability to learn to differentiate a want from a need is fulfilled by creating a budget to balance those two.

Activity – Save to buy a dog

Rationale: Can they afford it? Purchase a fictitious pet for say $500 or from the SPCA, and have the students do the research into the costs (see Murray the Vet) regarding shots, food, and Fido not having any more kids. I would think that the students would be all over this. Short activity with discussion and you don’t get bogged down in a project that loses steam because it goes on too long.

2. Money
• What is it? Function? Fiat money.
• Interest Rates/ Monetary Policy (See link below)

Rationale: Primary importance is to understand the four functions of a currency. Some good video clips on You tube. Plenty of interest in the Bit coin craze and how it is being used illegally, but many see it as a window on the future as to what and how a future currency could look like.

Activity

Counterfeiting fascinates students and a few good examples are always in the news, such as Frank Bourassa, who has been allowed to go free after turning over a huge quantity of fake U.S. $20 bills. Students try to pick out the fake.

The two links let students view and then act as the U.S. Fed Chairman. (No Canadian version exists to my knowledge).

http://www.econedlink.org/interactives/index.php?iid=206&type=student

http://sffed-education.org/chairman/
3. Investment Basics
• Stocks, bonds, ETF, mutual funds, segregated funds
• Retirement (DC or DB)
• RRSP, TFSA, RESP, CPP, OAS

Rationale: Understanding investment basics allow a person to begin earlier long term financial planning. Teach them about investment basics – stock/bond. How is mom and dad’s retirement accomplished? DB/DC What is the difference? What vehicles help me to retire early?

Activity

What would your future look like in a perfect world 30 years from now? What would it cost? How much money do you need? Do the math. This is a segue to the next concept dealing with compound interest.

Two activities here. First I give them 1 million dollars and they must select a minimum of six stocks and play the stock market. There are a number of interactive sites that allow transactions in real time. They also must select a stock and present/sell it to the class. Best as selected by the class gets a treat. The second is to bring in a portfolio advisor who talks about going to university, what to study, what the DC/DB is again, what is a bond/yield, and generally compound interest. Kids are motivated because they want to get into business/finance/marketing.

4. Debt

Rationale: Understanding credit, benefits if it is paid on time. For example, a $200 pair of blue jeans is $276 if purchased with a Hudson Bay MasterCard @ 29.9 % with $10.00 min. payment (28 payments or 2.3 years) vs. $206 at the end of the month, plus reward points.

The power of compound interest, time value of money, money made over a lifetime. This was one of the clear themes/topics for the blog. I think that today with low interest rates and the threat of deflation that reducing debt is a concept that is very important. The visual of the debt clock for Canada/U.S. is excellent. There is an interactive game where students get the opportunity to manage the U.S. debt crisis by being put in charge. This lets them see the magnitude of the issue. As well a discussion around the pitfalls around student debt would another great topic. If you have debt issues in the future where can you turn? Awareness of moneyproblems.ca and credit counseling are helpful sources.

Activity

I like two activities that focus on a pack of cigarettes/latte. Do without one each week X 52 X 30 compounded; a real world example students understand. However, discipline is the key. The second activity is called Budget Hero. It is interactive and the link is provided.

http://budgethero.publicradio.org/widget/widget.php

5. House – Own or Rent
• (House) amortization, condo fees, strata, depreciation, taxes, upkeep, neighbors, profit/foreclosure on sale of house, lawyer/notary, deed itself
• (Rent) responsibilities, fine print, parties, neighbors, damage deposit,
• Value of money used for mortgage vs. rent

Rationale: As I have rented, owned, and been a landlord I have a variety of viewpoints on this issue. In the not too distant future they will go off to university or work up north and most likely rent. As they move into their late twenties/thirties the ownership question will be a hot topic and as this blog has pointed out many times, there is a lack of understanding at so many levels.

Activity

The link provided was an excellent resource I had not seen before and I think students would enjoy it immensely.

Is it better to rent or buy? NY Times Interactive

http://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html

Also mentioned in the blog was the idea of getting the students to furnish an apartment within a budget using KIJIJI. Given a list of basic items to measure their frugality, as well as a list of items they could buy if they saved X amount of dollars would definitely appeal to students. Once again it fits the criteria of engaging and relevant.

6. Taxes

Rationale: Students need an understanding of the functions of government at various levels, and the services that each supplies. They then see why taxes are collected. At this point students should be made aware of a variety of taxes and where the $$ go. Students can then debate the value of a tax (or where do the $$ go?). Do corporations pay their fair share?

Activity

Provide the students with a couple of profiles (gross/net, CPP, OAS, union dues etc.) and a blank T-4. Complete it. Short activity but to the point.

7. The Bank
• Savings/chequing/line of credit/services
• Credit cards VISA/M.C./store credit cards
• Difference between a debit card and a credit card
• Function of banks, how are banks, credit unions, and insurance companies different?
• What is the Bank of Canada and how is it different from the domestic banks?

Rationale: Everyone uses a bank, yet many consumers do not shop around and compare fees and service charges to their benefit. I am a valued customer; what can you do to reduce my interest rate to show your appreciation for my continued patronage?

Activity

I think the best solution here is to bring in an expert to talk to the students about what services are provided by a bank since they are ubiquitous. However this would provide a great opportunity for the students to research various rates/services and compare.

8. Risk

Rationale: There were a number of references to either risk, gambling, psychology, herd mentality, peer pressure, or emotions in financial decision-making. So I grouped them together under this heading. Much of this is dependent upon knowing who you are, cultural background, age, etc. This would be a great entry point for an introduction to whole/term insurance.

Activity

Start by taking this quiz to get an idea of your risk tolerance–one of the fundamental issues to consider when planning your investment strategy, either alone or in consultation with a professional. Two personal finance professors developed this quiz.

http://njaes.rutgers.edu/money/riskquiz/

9. The Purchase (car, smartphone, laptop)
• Hidden fees, term, added features
• Negotiation
• Budget

Rationale: I like the art of the negotiation. There is nothing like sitting on a carpet in Afghanistan and bartering with a 12 year old. The youth in many countries acquire this skill early in life. I polled a number of students in my class. About 50/50 as to those that had bargained vs. those that had not. Those that had (Asia and Mexico) were comfortable with the process. I suggested going to Safeway and trying it out again on the produce manager, but found no takers.

Activity

A number of choices here. First, bring in an expert. A car salesman or a student that works at a phone kiosk could provide background. Second, have the students do a comparison of smartphones looking at a selection of features that they find appealing. Third, a contest to find the cheapest rate for a smartphone with this set of features (2G vs. 3G) etc., but with a set monthly budget.

10. Advertising/Marketing/Scams

Rationale: I remember my brother being a great salesman (in his twenties) and buying a regional franchise from his boss. He was excited about his new office and the opportunity to sell his wares in this community. Sales were really slow. He found out that before the transfer of the region, the boss had phoned virtually every resident flogging the product my brother was to sell. He had assured him that would not happen. Lesson learned.

Students love social media and advertising. Sports, clothing, music, the list is endless as to how they are a fixture for marketing. Plenty of activities exist to bring home this concept and how they view wants and needs, also that others want to separate them from their wealth. Caveat Emptor.

Activity

Role-play a salesperson on commission. What are their motivations? I have done this to illustrate union and management negotiations. It is very effective when the girls are the bosses and the boys are labour.

11. CEO of Self
• Educate Thy Self (read)
• Ask questions (be an informed consumer)
• Understand Geo-political Events (Ukraine and markets)
• Travel (customs, markets, language)

Here are some ideas that I have used over the years.

Randy

#116 Karla Germaine on 05.22.19 at 10:02 pm

I’ll say what I usually say when anyone tells me my job is such a breeze and so well compensated: “You’re right. You should be a teacher. Go on. It will only take you another two to four years of schooling. You, too, could have a cushy job with great benefits and a wonderful pension.”

There are A LOT of reasons why teaching is not for everyone, and many days I ask myself if it is still for me.

I’ve taught units on financial literacy as part of my English 11 class on topics such as credit card basics and pitfalls, the power of compound interest, choosing university programs wisely (so you are not university educated and unable to get a job), the basics of investing, and what we really need to be happy (not ‘stuff’). How is this English? Well, English can be taught while also teaching life skills such as financial literacy. Financial literacy can be learned while also learning to read, write, speak, listen, view, and present. The unit also covers the BC curricular core competencies of critical and creative thinking, personal and social responsibility, and communication.

#117 Paul on 05.22.19 at 10:05 pm

A useful resource for introducing Accounting:
https://support.waveapps.com/hc/en-us/articles/360000412386-Fearless-accounting-with-Wave

#118 raisemyrent on 05.22.19 at 10:09 pm

Working up to doing well on this test as a final for the class would be a good guideline:
https://ousurvey.qualtrics.com/jfe/form/SV_1XMoRYdGvZ7GdlH

#119 DON on 05.22.19 at 10:14 pm

Chris,

Each section/topic should be accompanied by multiple case studies and group analysis/discussions. An endless supply of case studies will be in the media shortly, if not already.

Class Name: “Learn from the mistakes of others.”

#120 MF on 05.22.19 at 10:14 pm

107 Stoph on 05.22.19 at 9:11 pm

Yeah I’m sure they are home at 3:00 then.

/sarcasm

MF

#121 Cici on 05.22.19 at 10:15 pm

My advice for Chris: start simple.

As it stands, I think your proposed curriculum is too complex as a starting point for today’s kids who’ve been force-fed Star Academy and other knock-off “talent” variety shows, Facebook, Twitter and the Kardashians.

So, you’ve got to help them expand their split-second attention spans progressively. Too much too soon…you’ll probably lose them.

Start with the things they like (spending money and shopping). Give them tips on being smarter, more vigilant consumers (teach them about loss leaders, credit card interest charges, 12-month no-money-down payment plans, payday loans etc.) Then talk to them about budgeting, saving and consumer debt, and SHOW THEM the power of compound interest (both in terms of debt and savings).

Make it fun, interesting and empowering. And give them hands-on assignments where they can put the concepts into practice (give everyone the same “budget” for the purchase of a car or groceries and see how resourceful they can get by comparison shopping, searching for rebates, couponing, etc.)

If they’re keeners and catch on to the basics fast, you can adjust and start diving deeper into the more complex topics.

#122 not 1st on 05.22.19 at 10:17 pm

MF wait until you hear about the other socialists in our health care system, military, police, city councils, media, university, first nations etc.

It endemic in this country and we have a tiny number of entrepreneurs and business types to counter them.

#123 Vampre Studies (doctoral thesis) on 05.22.19 at 10:26 pm

59 BC – you must be new here. this topic has been beat to death. Ever heard of the “mil rate”?

#124 Nothing Surprises on 05.22.19 at 10:27 pm

Teach Them:

– How to write a cheque.
– Negotiate a lease.
– What a mortgage term means.
– Write a receipt.
– What an offer to purchase represents.
– Ontario rental laws – including the Tribunal.

#125 Thankful One on 05.22.19 at 10:35 pm

I write today because I care about education even though I am not a teacher myself.
Let us get this out of the way. The ‘Rich Dad Poor Dad’ is a fraud book. I read that book because I saw my PhD roommate reading it. I read it once and did not understand anything. Rather there wasn’t any point to note down, no conclusion to make and certainly no insights to be had from this book.
Actually, I think the book will do more harm than help the students. Simply, it is not an educational book.

Let us go through the list of the topics listed by the good teacher.
Topics: 1, 2, 3 and 6 are heavy on the maths side. That is a danger. If you are teaching at middle/high school, safe to assume that they know enough math for this course. Use of spreadsheets, personal stories and anecdotes will help.
Last Christmas vacation, I made a spreadsheet of how just 5k (or max tfsa limit) added to TFSA account from the age of 18 to age of say 50 with a modest 5% annual gain would accumulate to. Explained it to my then 15 year old daughter which motivated her to get a job and start saving so that she has money to put in the TFSA on her 18th birthday (She already hates Trudeau for reducing the TFSA limit down from 10k). The point is she could do the math, but couldn’t see the application of the math until shown – how it changes/affects one’s life.
So, you need to make interesting stories from the math of money that will give the “aha” moments to the students which will then motivate, hopefully, them to learn the necessary math behind it if they don’t know it already.

Topic 4: You may use, Ray Dalio’s youtube video – https://www.youtube.com/watch?v=PHe0bXAIuk0
Topic 7: Again please cover the effects of debt on a person’s life, use of credit cards.
https://www.thebalance.com/personal-finance-4074057
Topic 8: https://www.tmxmoney.com/en/individual.html – Create Portfolio, Basic Stock screening, Stock market terms, Sectors
Reference: Not free but Public Library should have the copy of Random Walk Down Wall Street 4th Edition by Burton G Malkiel | Jun 4 1985.

Hopefully this helps.

Thank you.

#126 Nero on 05.22.19 at 10:38 pm

#4 & #70 We Humans are 18.5 % Carbon. https://en.wikipedia.org/wiki/Composition_of_the_human_body.
Your lifted F350 dually with nuts will pump out its weight in carbon every year if driven 20k miles. That’s enough to make alot of rednecks.

Pass me my fiddle….

#127 Exurban on 05.22.19 at 10:41 pm

#14 Samuel

I pay into BC Pensions also, and yes there is very little RRSP room after I pay 7% of my gross income ans my employer matches that. Theoretically that’s 14/18ths of the total pension room used, but it seems after the pension adjustment there’s even less left. Another reason I hated Justin cutting the TFSA amount.

#128 DISCLOSURE on 05.22.19 at 10:42 pm

It’s coming…

https://www.foxnews.com/science/pentagon-finally-admits-it-investigates-ufos

#129 MF on 05.22.19 at 10:43 pm

#113 TurnerNation on 05.22.19 at 9

One of my parents was a teacher. Saw them work endless hours marking, planning etc. They wanted to give everything to their students, many of whom have kept in touch and have moved on to successful careers.

All the while our family was supported. All my siblings are doing well and now giving back in the private sector (me included).

What’s wrong with that? How dare someone give to the next generation and raise a family while doing it. We need to bring them down. How dare they.

Advice: Stick to complaining about phantom “elites” and look up what virtue signalling actually is.

MF

#130 Re-Cowtown on 05.22.19 at 10:59 pm

The fact that young voters buy into the carbon tax tells you all you need to know about whether it will work or not.

Young voters have yet to realize how common it is for elites to lie to them and to try to exploit them. We all started off like them but grew out of it after seeing every scam from global cooling to Bre-X to Y2K to MWDs in Iraq to fast ferries.

Carbon taxes are just another meaningless useless waste of taxpayer dollars that could go to schools hospitals and roads.

Rule of thumb: if you believe the moonshot was faked and that Teslas are less polluting than a conventional car you shouldn’t be allowed to sign your life away to buy a house.

#131 Smoking Man on 05.22.19 at 11:11 pm

Their getting you prepared for disclosure.

https://www.zerohedge.com/news/2019-05-22/pentagon-finally-admits-ufo-investigations-secret-program

#132 Smoking Man on 05.23.19 at 1:32 am

Down here in the land of white picket fences. Paying 70 bucks a month for two phones unlimited text, talk and data.

In the USA, Canada , or Mexico. Dosent matter were I’m at.

What are Canadians paying for that.

Monopolies and lack of competition lead to the greatest debt to income ratio ever.

That’s. Why I left Canada.

Even in commie California the left over after tax income is huge.

Buy Canada banks and telecom. Monopolies with no resistance from over schooled freak shows.

#133 Stank Finger on 05.23.19 at 2:51 am

Right, teachers are among the entire class of civil servants who don’t save because of the DB Pension backstop. Not only that but they know that by striking they get more benefits without added productivity. Being a civil servant also grant the magic of double dipping. A teacher and almost all other civil servants can retire early on a full pension with ongoing lifetime benefits and start collecting. Then they immediately use thier unions bully authority to contract back into thier same job at higher contractors salary with full benefits and second pension contributions by the employee for an additional fat pension. It’s criminal, at least it should be. It’s certainly unethical and immoral. If anything makes you a bad citizen it’s double dipping. Whether you’re a new grad teacher, geologist, civil engineer, lawyer etc etc etc who hoped to work in the civil service you’re getting screwed out of a job by the “Dippers”, because they have no intention of taking a comfortable pension and moving aside for the next generation. The civil servants instead are by and large the ones who’ve moved up to more expensive homes and whine about the second home tax because they have bought multiple homes to rent for extra income and they own cabins and cottages for recreation , all because of low rates and mortgages that are guaranteed by civil servants double pensions. The civil service mafia likes to keep this quiet but the young new grads especially, who want to get a start should be outraged.

Just as outrageous is today’s rant by Chinese president Xie that he’s going on a second Long March and expects China’s people to follow him back into the mud and feces of poverty that came of the Long March in 1934. Me Xie, that’s political suicide to think that China in 2019 wants to hunker down in the rice paddies and eat bugs. Chines people now are not the starving ignorant masses of 1934.

https://nationalpost.com/news/world/scientists-discover-china-has-been-secretly-emitting-banned-ozone-depleting-gas

#134 Stan Brooks on 05.23.19 at 3:09 am

Thew new GTA ‘Culture’:

https://ca.sports.yahoo.com/news/drake-has-milwaukee-in-their-feelings-when-its-all-just-fun-and-games-174248254.html

and he is getting a jacket worth of 750 k from Raptors, money that average retirees will never ever have.

https://ca.sports.yahoo.com/news/raptors-gift-drake-760000-diamondencrusted-jacket-150747751.html

bleat sheeple.

#135 Steve French on 05.23.19 at 4:16 am

Teacher here.

So… uhh…

I’ve socked away $400,000 in the last 7 years.

$240 K of that is in a Garth-Approved (TM) fully liquid, balanced, and globally diversified ETF investment portfolio. The rest in retirement savings.

I’m up 10% since December on that.

Getting married next month. Wife-to-be is pleased as punch.

If any of you blog dog chumps are doing better than me, well, hats off to you then, ’cause you’re doing pretty well.

#136 Evangeline on 05.23.19 at 4:19 am

One word he doesn’t mention in his list is the “R” word, “retirement”. What the financial needs will be at that time and the different ways his students can prepare for it. When to start preparing for it, how much they’ll need, how much/little they should expect from government, how they should seek jobs that offer good pensions and what to do alternatively. He should also cover the financial consequences of marriage/divorce.

#137 Evangeline on 05.23.19 at 4:28 am

#128

I’ve also read about how teachers often use their own money to pay for supplies for special projects, etc.
——————————-

Another topic for the wannabe financial course: he should get each student to “interview” their parents to learn what they did/are doing to sustain the family finances.

#138 Headhunter on 05.23.19 at 5:59 am

Oh my goodness! The world is a different place now. “obviously” My ex father in law bless his soul I think 6 years gone now. Retired a school principle in 1990 age 55. He was honest and always said how LUCKY he was to fall into that gig. Grandma teacher also.

Forget the school courses as everything is already on the internet. Schools as we know them are a thing of the past. Cant keep up with the rate of tech.

People on this blog that state that Canada has one of the best education systems and health systems in the world are beyond hope. Nowhere near best. Expensive top of the list.

Class warfare. Jig is up. Common man on the street now is too well versed on what civil servent’s make vs private sector. Teachers & Firemen at top of the list. We just have waaaaay too many of both.

#139 Glen on 05.23.19 at 7:34 am

I can’t resist commenting on this one. I have taught for 16 years, mainly high school History but also English. I am not of the social justice persuasion and really believe that students should learn the “nation building” basics before they start wallowing in despair about oppression and victimization. I also try to incorparate financial literacy. Mortgage interest, savings, rent vs owning, real cost of ownership, car depreciation etc. Guess what? They don’t care. Ever. Completely indifferent. They want to be rich but they aren’t interested in “how” . They want to be youtubers because it beats working. Remember, when you are rich, and you know you will be, why trouble yourself with interest and payments? Who cares if life is expensive? It won’t be for me, and, really, it’s not my problem if other people can’t YouTube. Btw: I’m 41, married, two little girls, a dog, 1000 sq foot home and I have about 8 years left on my mortgage. But, yes, most teachers are addicted to hgtv porn and they should not be providing a financial education to anyone.

#140 Captain Uppa on 05.23.19 at 7:40 am

Don’t short Canadian banks.

EVER!

#141 crowdedelevatorfartz on 05.23.19 at 8:10 am

@#106 lack of Spellcheck
“Constantly taring down your fellow man/woman/person to build yourself up.”

*****

Would that constant tariff be a fee for political correctness for every man , woman and person?
I’m going to tear my shirt in frustration and then shed a tear.

#142 Tater on 05.23.19 at 8:15 am

Discounted cash flow as the basis for business valuation. Understanding that this is what ultimately drives all investments would be very useful.

#143 the Jaguar on 05.23.19 at 8:21 am

Teachers. They often marry other teachers in the same way policeman marry nurses, etc. A surprising high number of them don’t have children, which is fine for anyone who makes that choice, but still an observation given who they encounter everyday in their profession. They suffer a bit from the ‘know better’ syndrome, but pale in comparison to engineers who are top of the heap in this regard.
There is another group that is worse when it comes to money matters: social workers. They are the worst. Oh mi madre. Yes, another generalization but where there is smoke one often locates fire.
Who is good with money? The self employed types of a certain generation who are in it for the love of the game.
Notes from the mangia-cake fringe.

#144 maxx on 05.23.19 at 8:25 am

People need to be taught respect for money by having rates rise. Permanently.

CB’s screwed things up right royally with practically free money and now all of the poor little lemmings are stuck with tarnishing trophies and deep red balance sheets.

178.5% debt to income. Putzes. I have zero sympathy.

When I was a snippy little hormone of 15 years I got my first job. I saved. With better jobs I saved more.

In the 70’s TSHTF, as with the 80’s and crazy interest rates, so we paid off the mortgage in 4 years to trash that high interest millstone.

In the 90’s I got the worst feeling that the world was in flux, and not for the better. So we doubled and tripled down on saving. Government and good private sector jobs were being chopped and interest rates continued their melt.

Alan “I made a mistake” Greenspan became a rock star and equities, .coms and housing for the masses became de rigueur.

https://www.youtube.com/watch?v=XQFq97ljy3k

Enter the new millennium and housing goes through the roof. People lost their minds. Morons with laptops in cafés shouted all manner of investment bs. Save me.

Come the GFC, the lemmings paused for a bit and then lost what few remaining brain cells they had by bidding re up again even more. The only winners were those who got in and out on the backs of the stupid.

Today, most of those silly posers have ziltch. Or less. We bought and sold a few properties and sold off to crystallize the profit. All while saving, saving and more saving.

Max the RSP, fill the TFSA with the tax refund and spill the rest into non-reg. Rinse and repeat and keep saving.

Houses, cottages and 100K kitchens. All on cheap money. Here’s a good course title: debt repayment for idiots.

CB’s are riding a train to nowhere. One of their own making.

#145 crowdedelevatorfartz on 05.23.19 at 8:34 am

@#112 MF
“It does sound familiar….except the salesman basically has the sky as the limit for income and is (usually) not on salary. ”
++++
I was replying to the usual , typical, well worn complaint that teachers spend endless hours slaving after the bell rings and the kiddies scurry home.
“We have to do extra work after the kids leave!”
The horror.
Martyring themselves on the Cross of Teaching as it were.
Yawn.
As if they are the only ones working after hours.
Supervisors, business owners, etc. all have the same after hours work loads some make more than teachers, some make less.
Newsflash.
Its part of the job….. actually, most jobs these days.

Go back on strike and tell everyone “Its for the kids” and not about class size ( always getting smaller) and more teachers aids as our national test rankings get worse and worse and private schools thrive.

If you dont like it or cant hack it.
Quit and find something else easier for less pay.
Or just stop moaning about how tough it is because the non union, unpensioned masses out there ( the vast majority of the working population)……have no sympathy for you.
Life is tough. Deal with it.

#146 Dale Nugent on 05.23.19 at 8:37 am

I agree with #2. Smoking Man as guest speaker.

#147 not 1st on 05.23.19 at 8:45 am

Trudeau hires Unifor reps to dole out tax payer subsidy cash to friendly media. Another group created and legislation to censor the rest. A page taken right out of the old USSR playbook. And we aren’t socialist? Probably something worse.

#148 James on 05.23.19 at 9:02 am

#131 Smoking Man on 05.23.19 at 1:32 am

Down here in the land of white picket fences. Paying 70 bucks a month for two phones unlimited text, talk and data.

In the USA, Canada , or Mexico. Dosent matter were I’m at.

What are Canadians paying for that.

Monopolies and lack of competition lead to the greatest debt to income ratio ever.

That’s. Why I left Canada.

Even in commie California the left over after tax income is huge.

Buy Canada banks and telecom. Monopolies with no resistance from over schooled freak shows.
________________________________________
You left Canada because you lost your home and needed a job! Stop the bullshit Old Man its all here in print.

#149 n1tro on 05.23.19 at 9:07 am

#9 MF on 05.22.19 at 5:07 pm
“Enough generalizing. Here’s Chris from Chilliwack, ”

-Probably a good move, since you neglected to mention all the UNpaid work teachers do:

-lesson plans
-after school programs
-phone calls to idiot parents about idiot children
-meetings
-report cards

And most important and time consuming is the endless marking. Marking on weekends. Marking at night. Marking during holidays.

It never ends is all unpaid.

MF
————————–
I know you are a big “gov’t workers add value” probably because your parents are either a teacher or gov’t worker but are you serious about the list above??

All the items you list are part of the job. You shouldn’t get paid extra for it as you are choosing to go into the profession that pays you quite well for working what amounts to half the year.

It’s like firefighters complaining that they have to go to stupid accident scenes, block traffic just to stand around NOT fighting fires until the other first responders do their thing .

#150 Steve on 05.23.19 at 9:07 am

Chris, it might already be buried in the above somewhere, but if not: teach them the difference between living on cash flow – which is essentially spending all income, and living with attention to net worth too.

When people are young, they tend to learn to live and make choices by cash flow only. (Let’s leave poor credit choices out of it for now). If they never break that habit, they will likely end up retired, maybe with a house, but with no other significant financial assets.

When you are young, ‘only spend what you make’ is good advice to not accumulate debt, but that seems to frequently morph info ‘spend all that you make’.

That does not end well.

#151 CHERRY BLOSSOM on 05.23.19 at 9:08 am

GOLD I think I would have liked to have known that Gold is a store of value and to buy a little gold every year.

GLOBALISM The function of the IMF and why they should mind their own business. And why do we subsidize them?

SHOPPING Kids should be taught how to shop and how to cook from scratch. This is a big money saver.

BLOCKCHAIN AND BITCOIN Couldn’t help knowing a bit about this. It is the future.

#152 Tater on 05.23.19 at 9:15 am

#85 Stan Brooks on 05.22.19 at 7:56 pm
#145 Shawn Allen on 05.22.19 at 3:57 pm
The Nature of Money and the Blind Leading the Blind

If being stupid hurts, you would be dead by now.

How is money created?

According to Bank of England/not Stan: from commercial banks through loans:

https://www.bankofengland.co.uk/knowledgebank/how-is-money-created

If banks were the pillars of the economy, the most prudent, etc. as you state, why do we need to ensure their uber subprime mortgages?

You are a representative of the perfect breed of idiots who are proud to be idiots and announce it under their own name.

Why it bugs me? Living among brainwashed idiots without being impacted by their idiocy s not possible.

All you perceive as ‘economy’ is a debt driven sweat shop, giant labour camp created for the profit of a few oligopolies, including the banks by importing cheap qualified labour from abroad that is now drying out.
The above statement is from a friend of mine from Hong Kong from 20 years ago. Now this is reaching extremes due to lack of quality labour supply.

It is imperative for the new sheeple to be bred as stupid and brainwashed, so we have you.

True there is government backing in the form of deposit insurance and also CMHC. Both of those however have been to date entirely self-funded and cost the tax payers nothing.

Of course. For now. If it was profitable, and self funded in long run, it would have been privatized by now.

Your understanding of price of risk is laughable. And you lack of intelligence and outright refusal to recognize basic aspects of it/the price of risk is frankly scary.

Your type, the half-intelligent is the most dangerous of all as it has it all ‘figured out’.

It Ain’t What You Don’t Know That Gets You Into Trouble. It’s What You Know for Sure That Just Ain’t So.

Take your head out from you behind and think for yourself, stop repeating what you have been told without even processing it with all 2 neurons of your brain.

—————————————————————

Kids, this is why it’s important to work hard. You don’t want to end up a broke, bitter, old man like Stan here.

Raving about inflation stealing his meager wealth rather than admitting he just didn’t produce enough in life to be any better off.

You’re a loser Stan. You may not have started out that way, but it’s where you ended up.

#153 baloney Sandwitch on 05.23.19 at 9:20 am

Understanding of the stock market as well as balanced portfolio is critical.

#154 Lang on 05.23.19 at 9:24 am

The teacher should read Iwillteachyoutoberich by Ramit Sethi.

#155 The real Kip on 05.23.19 at 9:28 am

The DB pensions teachers receive are negotiated by a strong union. I’m retired at 60 with a DB pension negotiated by another strong union in the construction industry. Did I have some brilliant financial plan or invest wisely? Nope. I got out of bed every day and went to work, that’s it.

Be strong, work union!

#156 IHCTD9 on 05.23.19 at 9:32 am

At the end of the day, there surely is a financial gene that you might be born with at play. Some folks are so stupid with money that it defies explanation. Others display financial inclination from a young age with no effort at teaching them.

IMHO it’s no different than something like mechanical inclination. The only mechanical education I ever got was grade 9 Auto, but I have done engine swaps, transmission swaps, rear axle swaps, and these days I work on ancient heavy equipment that has been out of production for 62 years, and where there are no replacement parts, or even a parts/owners manual to help you along. I have the inclination, and self learn by actually doing the work, I have never needed (or desired) formal training on this stuff.

Maybe part of the course could deal with the simple fact that some kids in the class are essentially doomed to fail at managing money/debt. When Ms. IHCTD9 took the training course to get her motorcycle license, one of the things they learned was “some people do not belong on motorcycles”.

Indeed – maybe lessons on money should include “some people have no business trying to manage their own finances”.

#157 Ponzius Pilatus on 05.23.19 at 9:39 am

The kids will be all right.
Let them learn from their own mistakes.
Not everyone wants or can be a Warren Buffet.
Travel, explore the world, that would be my advice.
And learn a musical instrument.

#158 Guelph renter on 05.23.19 at 10:01 am

I am a parent of 2 teenage daughters and I am glad Chris is considering this initiative.

I have tried teaching financial literacy to the teen agers, but I’m not getting anywhere. It appears that the school has brainwashed them into believing that monetary literacy is not a necessary life skill and anyone trying to say otherwise is a complete moron.

I wish Chris good luck and hope he can make financial literacy a cool thing.

#159 dharma bum on 05.23.19 at 10:04 am

Kids (students, children, punks, tweens, pupils – whatever you want to refer to them as) need to have it beaten (figuratively) into their undisciplined minds very early on, that the world is a mean and scary place that owes them nothing, and that it will chew them up and spit them out if they are unprepared to handle it.

Instead, educators today have this stupid, politically driven notion that we live in some sort of utopian society, where we are all equal, and everybody can do and have everything thy want, and we can all get along just fine.

WRONG.

The little brats need to be warned that if they don’t learn the practical realities of life, they are doomed. They need to be shown what type of life they are in for if they are poor. If they don’t understand how to make money, keep money, invest money, and grow money, they are in for a lifelong ordeal of hardship, pain, misery and anxiety.

Instead of wasting countless hours on the benefits of gender equality, diversity, inclusiveness, sharing, politeness, religion, climate change, and other fringe issues, the elementary school curriculum should consist 80% of practical math skills, English writing skills, proper grammar, civics, law, basic finance, practical vocational skills (carpentry, plumbing, electrical, household repair and maintenance), banking, home economics (how to shop, how to operate the stuff in your house like all appliances, furnaces, etc.), budgeting, personal organization (most people grow up to be hopelessly messy, hoarding, clutter ridden, disorganized slobs), nutrition, and health.

20% of the curriculum can be spent on the soft-knowledge subjects like history, social studies, current events, and that kind of stuff.

The lesson from day one to these kids must be:

“You Need To Learn These Things Now In Order To Be Able To Survive In Life.”

But, I guess teaching to the EQAO is easier, and our SJW infested governments think it’s better to give the kids at least a passing grade no matter what, and keep them moving through the system regardless of whether they’ve learnt anything useful, or not.

Look how that’s turned out:

https://www.macleans.ca/news/canada/why-are-schools-brainwashing-our-children/

#160 Angela on 05.23.19 at 10:22 am

Maybe a class where everyone is assigned and adult identity i.e. the plumber, the over-educated barista, the left-over jock delivering pizza, the entrepreneur, the plant worker, the teacher etc. Give them a financial statement of their fictional earnings, debts, cost of children etc. and let them do lessons and research on how to make better choices with the ‘adult’ they have been assigned.

#161 dharma bum on 05.23.19 at 10:28 am

#101 IHCTD9

A little stoic philosophy woven into the class might help stem the covetousness and insecurity that creates the worst kinds of debt.
——————————————————————–

Wise words.

Excellent advice.

#162 Capt. Serious on 05.23.19 at 10:31 am

Basics of debt (amortized vs simple interest) and the types of ways you can incur it (loans for education, credit card debt, mortgage, loans for business, loans for investing). Knowing how to borrow money responsibly seems the most important thing to understand coming out of high school. The rest you can learn in your 20s.

#163 Glengarry Girl on 05.23.19 at 10:38 am

I would have to agree with Garth’s analysis of Teachers and their fiscal responsibility and general lack of knowledge of Real World work environments and Financial planning. Many are very unprepared to teach the next generation these skills, as are many of my Peers. I realize that there exceptions and that the new Teachers are facing a much different environment. The reality is that for decades, being a Teacher, just like many Factory jobs and other careers (Government) were like winning the lottery. Guaranteed job security and retirement under any circumstances completely protected by powerful Unions. This work environment does not exist anymore for most and to prepare for the Future you need to live in Reality. My Mother was a school teacher in Ontario, had a University Degree, and had zero money management knowledge. She lived completely in Debt and spent extravagantly beyond her very generous income. She always claimed how hard done by Teachers were and how much they worked outside of school hours, however, I know the Truth. If I followed her leed and didn’t have common sense and learned and planned on my own, I’d be broke.

As far as teaching this next Generation fiscal responsibility and life skills, most Parents my age have done a terrible job. Data backs this up, their own Debt levels are unsustainable. I can not have a money conversation with very many people and it not be very clear that they literally do not understand Math or that they are in complete denial. This is scary and makes me confident that we are in for a huge reckoning. We raised our three Girls with old school skills. They all get it and are doing well. We talk, as a Family very openly and often about how everything in Life really works and how to flourish and be happy. We use every single experience as a lesson to give them the skills they need to survive and thrive. The sad truth is, during this time a lot of people have been critical, like we are too harsh. Of coarse, we don’t care too much about all of that, our job is clear, raise our own three. For instance, we gave each of our eldest daughters a loan for 10,000 for a car while they attended College. A great way to teach about Debt, depreciation, maintenance budgeting and responsibility. Both Girls graduated while living hand to mouth through College. Paid their tuition, living costs, while working PT. They both paid off OSAP within months of getting good jobs. Middle Daughter moved to TO for job and her partner is from there. She sold used car, paid us back in full. Eldest, has paid us back the depreciated amount of the car. She uses it for work, paid mileage and has a budget to pay us in full over the coming months. Youngest does not want the car loan money, gets along on public transit. She understands completely about budgeting and decided that she doesnt want to pay insurance and maintenance even with an interest free loan from Mom and Dad. These skills are not discussed and practiced enough in real life scenarios. If we got down to doing this, it would be a teaching moment. The entire five years my kids were doing their thing, I constantly heard from others that it can’t be done. I’m not bragging, I am generally really concerned for the Future under these circumstances.

#164 Canuckystan on 05.23.19 at 10:52 am

Best basic advice I ever heard:

“1 house, 1 car, one spouse”

Those are the top 3 things that can lead to financial ruin. Buying and selling a principle residence chews up transaction costs. New car payments or leases are just a drain on finances for years, forever for some. Divorce kills finances. If a person can stick that advice, you can avoid some devastating financial circumstances.

#165 YULYYZ on 05.23.19 at 10:52 am

Before tackling investments, I would want them to understand that life can be costly depending where you work/live. Especially for the ones that are at risk of failing a year or dropping out.
Have them fill in a budget. Provide the line items that a small household would have and have them fill in what they think it costs monthly. Then discuss and plug in real numbers.
Too many kids of this age are neglecting school, spending too much time on their play stations and phones and getting crappy grades when they are capable of more.
A budget is a wake up call showing the importance of finishing school in order to hopefully get a diploma , degree or trade diploma and then a job so they can make their own cash and their own way in life with as little help as possible.

#166 Brett in Calgary on 05.23.19 at 10:55 am

I feel you. My sister bought an acreage she couldn’t really afford this spring. She is teacher (Garth describes them well in terms of finance knowledge) and her husband is a few cuss words from losing his job. I tried to lead her to water many times…
==================================
#93 Habbit on 05.22.19 at 8:10 pm
The information is easily accessible now. This blog is a good example. It takes a bit of effort to learn about this. That is the problem. I recall telling a sibling they could not afford to ignore their economic well being. Too much work. Besides if everyone knows what will become of all the people making a livelihood off the dummies. The sibling never did learn. Both she and partner laid off in the Alberta bloodbath taking place now. Yep they still have a mortgage. You can lead em to water but….. you get the idea….

#167 dosouth on 05.23.19 at 10:56 am

One of our family members volunteers with their job at ATB to teach these classes on financial literacy, this family member was educated by us from the start.

Put half your allowance in an envelope and half to spend each week. Down to the bank every month with the envelope. Somehow in the end, it along with watching how we did ours, has worked. Others, not so lucky it appears

…the information is out there, but just not mainstream yet.

ATB’s innovative financial literacy programs

#168 dosouth on 05.23.19 at 10:59 am

Sorry Alberta Treasury Branch link here

ATB’s innovative financial literacy programs

#169 Mattl on 05.23.19 at 11:57 am

#77 reynolds531 on 05.22.19 at 7:25 pm
In a world awash in layoffs, redundancy, and offshoring 95k is a fortune to pay a teacher. A lot of people out there slugging it out in the private sector at 20/hr.

The unions have pulled off nothing short of a miracle. As a former university employee it made me sick to watch the public sector from the inside.

————————————————————–

The overall teaching package, when you include time off, DB, etc is very strong. But in BC, at least, most districts the range is 45-85K You would need to be an admin to get near and into 6 figures. I have family member that has 7 years school, volunteers a ton of hours in after school programs, and doesn’t make 6 figures. And increases the past 10-15 years have not come close to even meeting inflation. Suspect that will change with NDP in power.

Not sure where you got 95K – I think you pulled the highest number from Ontario, for teachers with 10+ years and post grad degrees? – but I suspect the Canadian average is significantly lower. Based on the grids I’ve looked at I’m guessing median is somewhere around 65-70k.

I find the envy for teachers strange – 4-6 years in school + practicum + early career contracts, spend your full day with kids in a classroom, to make 70-90K. You trade a lifetime of guaranteed income for any sort of upside. Basically guaranteed to be middle class – 80-100K for life. No thanks.

#170 Mattl on 05.23.19 at 12:03 pm

#135 Steve French on 05.23.19 at 4:16 am
Teacher here.

So… uhh…

I’ve socked away $400,000 in the last 7 years.

$240 K of that is in a Garth-Approved (TM) fully liquid, balanced, and globally diversified ETF investment portfolio. The rest in retirement savings.

I’m up 10% since December on that.

Getting married next month. Wife-to-be is pleased as punch.

If any of you blog dog chumps are doing better than me, well, hats off to you then, ’cause you’re doing pretty well.

————————————————————-

Would love to see the details on that Steve. That’s 60K per year, which would be almost or all of your post tax earnings. Sure there wasn’t an inheritance in there? Lucrative summer job? Living with the parents? Sold a house maybe (this is my guess)?

Not knocking you, this is awesome, but I see these posts all the time where someone is able to save more then their take home and no one ever shares the actual details.

Help me understand how a teacher making 60-95K pre tax, pre DB contributions, can save 55K a year.

#171 Blacksheep on 05.23.19 at 12:36 pm

Steve # 135,

“Teacher here.”

“I’ve socked away $400,000”

“Wife-to-be is pleased as punch.”
———————————————
That right there, is some funny stuff : )

#172 Smoking Man on 05.23.19 at 12:41 pm

148 James on 05.23.19 at 9:02 am
#131 Smoking Man on 05.23.19 at 1:32 am

Down here in the land of white picket fences. Paying 70 bucks a month for two phones unlimited text, talk and data.

In the USA, Canada , or Mexico. Dosent matter were I’m at.

What are Canadians paying for that.

Monopolies and lack of competition lead to the greatest debt to income ratio ever.

That’s. Why I left Canada.

Even in commie California the left over after tax income is huge.

Buy Canada banks and telecom. Monopolies with no resistance from over schooled freak shows.
________________________________________
You left Canada because you lost your home and needed a job! Stop the bullshit Old Man its all here in print.
….

Multi national vampires are sucking every last drop of blood. They own T2.

Anyone with drop of entrepreneur blood is fool for not trying to come here to help make America great again.

The American Dream is alive and well with Trump running the show.

#173 Damifino on 05.23.19 at 12:56 pm

#156 IHCTD9

Excellent post. I’ve long suspected a genetic basis behind financial acumen.

My wife has become far better at managing money over the last twenty years. She attributes the change mostly to my influence. She now looks at money in a much different way. She even reads this blog occasionally, but not fanatically, like some of us. (She likes dog pics)

She says she and most of her contemporaries were completely ignorant of investment, compound interest, tax advantages, opportunity costs, living within one’s means and the peril of debt.

She claims I was ‘always responsible’ and ‘good with money’ and says she has no idea how I became that way. No one in her youth gave a moment’s thought to their financial futures beyond the next paycheck which, for robust, healthy people would arrive forever and grow indefinitely.

For me, it was not genetics. I learned from my father through osmosis the same way I learned watching him use tools to create and repair things. The man hated debt. I learned to do the same. Thanks Dad!

I was also ‘educated by layoff’. It happened often in the late sixties and early seventies when work was spotty for those with a mere high school education. I was a better, more reliable worker than the union hacks with seniority but when work grew thin (as it often did) I was the first one out the door.

It happened again and again and again. I came to realize nobody owed me anything and much less did they care about my employment prospects or next source of income. I came to see money as a measure of sweat and realized I must amass enough to insulate myself from the anxiety caused by it’s fleeting nature. (Ebeneezer Scrooge would have approved).

My next revelation was discovering I lived in a capitalist country. (I know many on this blog might disagree, but that’s a separate argument). When a farmer discovers his hay begins spontaneously making some hay of its own, he tends to spend less time in production and more time financing someone else’s production. He’ll probably also find others hate him for that. Maybe even some of the people who got constantly laid off in their youth and failed to learn from the experience.

#174 Sask to AB on 05.23.19 at 1:17 pm

RE#115 Randy Matheson on 05.22.19 at 9:53 pm

EXCELLENT POST! Thank you for this!
A great synopsis.

#175 Y. Knott on 05.23.19 at 1:56 pm

#166 IHCTD9 on 05.17.19 at 10:40 am

I was thinking an old school 1 Ton 4 door 4×4 long box with a 6V-71 Detroit swap (to keep the mosquitoes away!) would be a very reliable and practical vehicle.

I think it was King of Obsolete where I got this; truck drivers said of the Detroit Diesels that if you were assigned one to for the day, the thing to do as you climbed into your truck in the morning was to slam your hand in the truck door with all your might – because nothing worse would happen to you that day.

#65 Asterix1 on 05.19.19 at 8:22 am

The oath as it stands: …

Somehow, I’ve always really liked the Catalan Oath of Allegiance:

“We, who are as good as you, swear to you, who are no better than us, to accept you as our king and sovereign lord, provided you observe all our liberties and laws–but if not, not.”

#25 Dolce Vita on 05.22.19 at 5:33 pm

– Oh so very well put, Sir – both for understanding the topic, and understanding how to impart it to your students! Where were courses like this when I was in school, and where were you when I was back there hating all my teachers?

#43 JWD on 05.22.19 at 6:04 pm

Stay married or stay single.

– Or as my long-ago fellow sufferers in the military used to put it, “cheaper to keep ‘er…”

#176 Old gringo on 05.23.19 at 2:01 pm

Nice opportunity to pick up some oil stocks and blue chips.
Gotta love these opportunities when they knock.
Long term home rubs!
Too the

#177 Howard on 05.23.19 at 2:05 pm

Not really sure how kindergarten teachers can justify their $100K salaries for playing duck-duck-goose and reading nursery rhymes all day.

All-day kindergarten was a leftist sop to the teachers unions. An (lower-paid) educational assistant or daycare worker can do everything a kindergarten teacher can do.

#178 Shawn Allen on 05.23.19 at 2:21 pm

Stan Brooks and Irony defined

Stan rants on again at 86 and 94 and admonishes me

“It Ain’t What You Don’t Know That Gets You Into Trouble. It’s What You Know for Sure That Just Ain’t So.”

Well Stan certainly knows a great deal for sure. Irony defined.

#179 not 1st on 05.23.19 at 2:28 pm

My first roommate studied to be an elementary teacher. I took civil engineering. I was in classed from 8:00-12:00 pm every day then 4 hr labs every afternoon. Homework until 11pm most nights. 6 class load. Summer work terms.

My roommate was done classes every day by 11:30, no afternoon work, some semesters Wednesdays off. His homework was cutting little shapes out of colored paper. Nights weekends and summers spend partying.

Our salary differential was about $15k different upon graduation but his quickly caught up to be probably in the 80-90% range of mine. He still had summers and weekends off. I had weekly travel to projects all over NA and a blackberry going off all hours of the day.

#180 Editrix on 05.23.19 at 2:35 pm

Yup. Teachers figure that lovely pension will be there for them, but I have an example of why they should be more careful with their money.

I have a house for rent. A teacher couple (she’s full time, he’s a substitute) with kids. Lived at their previous rental for 5 years but are being booted so the owner can move back in. So on the surface, they sound like a good fit. Well, both (not just one) have poor credit and couldn’t come up with first and last for 5 weeks. I said thanks, but no thanks. Hopefully they will find a landlord to whom their credit rating doesn’t matter.

#181 Shawn Allen on 05.23.19 at 2:37 pm

Stan asks me rhetorical question… but I answer anyhow

Commercial banks create loans by expanding their balance sheet for 100% of the loan amount. If you get a $1000 loan, the bank simply marks up your account by $1000 (the bank’s liability), and your promissory note becomes a bank asset, worth $1000 plus interest, assuming you pay it off. No pre-existing money is needed to fund the loan. M1 (cash + bank account balances) increases by $1000, while MB (cash + reserves) remains unchanged.

Which part of it is unclear to your (supposedly CFA) brain?

************************************
Well Stan, yes Money is created that way by a bank and by the banking system.

But why do you conclude that it is a bad thing or that there are no limits to bank lending?

Consider too that when a money deposit created that way is spent (that’s why they got the loan) it will usually end up as a deposit in a different bank and so the lending bank has to compete to get a new deposit back to replace the one that just left.

I read bank balance sheets (every year for 25 years and counting) and I own bank shares and I do my own thinking and analysis. I know that banks need minimum equity capital to grow their balance sheets. I also know that they need a certain amount of cash on hand even if there is no legal minimum cash reserve in Canada.

I know that “a little knowledge is a dangerous thing”.

It seems to me that most people in the western world are living very well indeed. And far better than 50 years ago when I was in grade school. Whether that is in spite of or in fact because of debt and banking is debatable. If you are suffering and not getting ahead in our economy, I don’t think it is banks that are holding you back. Nor it is third world labour who are also humans and deserve a chance at a good and improving standard of living every bit as much as western people.

If you don’t like a system where debt exists I do think you would really hate a system where debt did not exist. Standards of living would be FAR lower.

Again, tell us of your life and what has prevented you from doing well in our economy. Could it be perhaps your poor attitude? Why did you apparently not buy bank shares?

#182 Shawn Allen on 05.23.19 at 3:28 pm

If Stan wants to learn a bit more about how a bank’s balance sheet works he can look me up and I will send him some information.

#183 Shawn Allen on 05.23.19 at 3:38 pm

If Banks are licenses to print money at no risk…

How to explain Canadian Western Bank, which has not had a single loss in any quarter in around the last 30 years is trading at just about exactly book value and under 10 times trailing earnings and 8 times estimated forward earnings and is earning over 10% on book value.

https://ca.finance.yahoo.com/quote/CWB.TO/key-statistics?p=CWB.TO

The market apparently perceives a good deal of risk that earnings will decline?

This bank was started about 35 years ago and has grown mightily. People can buy in at book value and few are doing so.

#184 Jen on 05.23.19 at 3:52 pm

Hi – I would add credit cards and how interest works to the curriculum. If the students head to university/college they’ll be inundated with credit card applications/pop-up stands and most won’t know how their debt will truly cost them.

#185 Richard Gibbons on 05.23.19 at 3:57 pm

The most important thing to learn about finances early is the importance of minimizing fees. Other than diversification, I think it’s the most important early lesson to learn.

For instance, suppose at the age of 20, you inherit $200K. You decide to save that money for retirement.

If you get a 7% return, but are paying the 2.25% fees that some banks charge on their mutual funds, then when you retire at 65, you have about $1.6 million.

If instead you only pay 0.25% in fees (buying ETFs), you end up with about $3.8 million. So, a 2 percentage point difference in fees has cost you about $2.2 million. The bank’s fees have taken away about 58% of the money you could have had.

This result is extremely non-intuitive, so it’s important to learn it early.

#186 Joe Bloggs on 05.23.19 at 4:14 pm

#107 lack of vision on 05.22.19 at 9:09 pm

“hey mister smartie pants, Canada consistently ranks near the top of the list for education. Whats wrong with you people? Constantly taring down your fellow man/woman/person to build yourself up.”

– LOL!!! Here comes a teacher. Show me a list mister. I bet it’s a product of your imagination.

#187 Pfft on 05.23.19 at 4:18 pm

@#163 Glengarry Girl on 05.23.19 at 10:38 am
I would have to agree with Garth’s analysis of Teachers

____________________________________________

You mean his “generalization” of teachers.
Which fits in well with all the generalizations in this comments section.

#188 oh bouy on 05.23.19 at 4:23 pm

@#110 MF on 05.22.19 at 9:29 pm
#75 not 1st on 05.22.19 at 7:20 pm

Yeah, and all Albertans are a bunch a whiny crybabies.

See how that whole generalization thing works?

“All teachers are socialist”….wow.

I don’t even think you have ever spoken to a teacher outside of work..or even know what a socialist is anymore tbh.

MF
_________________________________________

good luck reasoning with these dinosaurs.

#189 NotLegalAdvice on 05.23.19 at 4:31 pm

#170 Mattl on 05.23.19 at 12:03 pm
#135 Steve French on 05.23.19 at 4:16 am
Teacher here.

So… uhh…

I’ve socked away $400,000 in the last 7 years.

$240 K of that is in a Garth-Approved (TM) fully liquid, balanced, and globally diversified ETF investment portfolio. The rest in retirement savings.

I’m up 10% since December on that.

Getting married next month. Wife-to-be is pleased as punch.

If any of you blog dog chumps are doing better than me, well, hats off to you then, ’cause you’re doing pretty well.

————————————————————-

Would love to see the details on that Steve. That’s 60K per year, which would be almost or all of your post tax earnings. Sure there wasn’t an inheritance in there? Lucrative summer job? Living with the parents? Sold a house maybe (this is my guess)?

Not knocking you, this is awesome, but I see these posts all the time where someone is able to save more then their take home and no one ever shares the actual details.

Help me understand how a teacher making 60-95K pre tax, pre DB contributions, can save 55K a year.

____________________

This dude makes a good point. How in the heck did this teacher save more than he makes? Real Estate investment for sure.

Or maybe his math skills are off….. back to basics!

#190 No to Bitcoin and Blockchain on 05.23.19 at 4:41 pm

To all those commenters who suggested adding an intro to Bitcoin and Blockchai, and how these are “the future”, I do agree with the first part, but the objective would be to explain to students why to stay away from them at all costs. Neither holds any promise for the future, let alone for the now. Don’t buy into all the hype that has been generated by scammers, do your homework and read up on what cryptography and security experts have to say about it. A good start is to google for articles by Bruce Schneier and Nicholas Weaver. If you want more, just ask me here – I am a cryptographer.

#191 Gravy Train on 05.23.19 at 5:21 pm

Anyway, this guy wants your help. Chilliwack is calling. Children are going ignorant. – Garth

Here are two ideas that haven’t been mentioned yet:
• having the kids read biographies (and autobiographies) of successful men and women. A different reading list can be tailored to each student’s interests and aptitudes.
• letting the kids explore various career paths, explaining the hidden job market, and showing them how to target employers they’d like to work for. An excellent classroom resource is Dick Bolles’s book What Color is Your Parachute?

(A separate course may be required to teach these ideas.)

#192 Not So New guy on 05.23.19 at 5:23 pm

I’d keep the lesson simple (after all, it’s a teacher’s job to stimulate a student’s desire to learn more, not just to teach them facts). Teach them how much more they pay for an item if they buy with debt (especially credit cards) and pay it off over time (this works best with big-ticket items) as opposed to how much they will pay if they apply delayed gratification and buy with cash (or use the cash back feature on that same credit card but pay it off within the month)

And building and keeping an emergency fund is lesson two so they can start paying cash for everything.

Those two lessons should create a 10% to 20% after tax cash flow savings on everything they buy every year. That will put them well ahead of their peers

#193 Guy in Calgary on 05.23.19 at 5:26 pm

#9 MF on 05.22.19 at 5:07 pm
“Enough generalizing. Here’s Chris from Chilliwack, ”

-Probably a good move, since you neglected to mention all the UNpaid work teachers do:

-lesson plans
-after school programs
-phone calls to idiot parents about idiot children
-meetings
-report cards

And most important and time consuming is the endless marking. Marking on weekends. Marking at night. Marking during holidays.

It never ends is all unpaid.

MF
—————————————————————-

How is a teacher completing a requisite task for their job not being paid? They are paid a salary just like private sector and that comes with certain responsibilities and expectations. They are not paid hourly. You cannot tell me that a new teacher complains about marking and report cards! They knew that was part of the gig and they get summers off to de-stress. My uncle is a teacher and gets to travel on his summers off.

Sure they work hard and put in some extra time… we all do and it comes with the territory. Perhaps the teachers that complain about that are the one’s that are in it for a nice cheque and the DB pension.

They have the best benefits, great salaries, big pension and more time off then anyone. Reading you say that completing tasks that are obvious requirements of the jobs “unpaid” is ludicrous.

Zero sympathy here.

#194 Barb on 05.23.19 at 6:13 pm

Chris, good for you for attempting to instill some financial savvy in kids. Grade 9/10 might be too late.

In my small business, I regularly get kids using their debit card for a $1.50 soda, and then 10 minutes later, coming back for a bag of chips and chocolate bar, paid for–yes–with their debit card. (I have no minimum charge posted).

When I suggest they “plan” their debit card use (once), I’m often told “the bank doesn’t charge me”. I ask him–and all his friends–to listen and I tell them the following:

“Banks are crooks, they give you it without transaction charges because they know you’ll soon ‘become hooked’ on using it 4, 5, 6 times a day. But then you’ll reach a certain age/period of time when the debit card transaction fees ‘kick in’.”

I conclude with: “Remember that banks are crooks”

On concluding, I’m usually met with blank stares, and a muffled “whatever”.

Good luck, Chris…

#195 Sask to AB on 05.23.19 at 6:23 pm

Things I wish I had learned……
1. Do you need it or do you want it–
Wait 24 hours before you make any impulse purchase. You may find you can do without it.
2. Be prudent. Be sensible. Look for it on Kijiji, ebay, at a garage sale, etc.
3. Get a student no fee account at the bank.
4. Try to volunteer or job shadow if possible a career you are thinking of. Our oldest daughter worked for a day in a professors research lab, and while it was interesting, realized she did not want to prepare and analyze samples every day for the rest of her life (best 8 hours she ever spent, in my opinion….)
5. Do Myers Brigg and career testing, often offered thru the guidance counsellor at school. Might turn up some careers you never thought of.
6. That being said, do research and investigate types of careers that have jobs currently, or are expected to have in the future. (Healthcare versus art historian–both are valued professions, just one has a lot more chance to get a job after all the time and effort you spend in university for 4 years.)
7. Save till you have the money and pay in cash.
8. Get a box and keep all your receipts or take pictures with your phone. Then you can see what you spend on and where you can save in your budget.
9. Shop around for cellphone deals and deals on insurance. Both are expensive.
10. Start your TFSA at 18. Same with RRSP. Time is your friend.
11. Get a summer job. When you see how hard it is to save money on minimum wage, it will inspire you to look at university in a new light. Try and take a program that has SOME chance to be employed at the end of it. All degrees are valuable to you as a person, but try and find one you enjoy and that will pay you well in your profession.

#196 google is your friend on 05.23.19 at 7:20 pm

@#186 Joe Bloggs on 05.23.19 at 4:14 pm
#107 lack of vision on 05.22.19 at 9:09 pm

“hey mister smartie pants, Canada consistently ranks near the top of the list for education. Whats wrong with you people? Constantly taring down your fellow man/woman/person to build yourself up.”

– LOL!!! Here comes a teacher. Show me a list mister. I bet it’s a product of your imagination.
____________________________________

stating facts doesn’t make me a teacher LOL!!
Do your own search or do you not know how? LMAO!!

#197 oh bouy on 05.23.19 at 7:24 pm

@#179 not 1st on 05.23.19 at 2:28 pm
My first roommate studied to be an elementary teacher. I took civil engineering. I was in classed from 8:00-12:00 pm every day then 4 hr labs every afternoon. Homework until 11pm most nights. 6 class load. Summer work terms.

My roommate was done classes every day by 11:30, no afternoon work, some semesters Wednesdays off. His homework was cutting little shapes out of colored paper. Nights weekends and summers spend partying.

Our salary differential was about $15k different upon graduation but his quickly caught up to be probably in the 80-90% range of mine. He still had summers and weekends off. I had weekly travel to projects all over NA and a blackberry going off all hours of the day.
____________________________________

for an alleged engineer you’re awfully obtuse.

#198 Cavity Snatch on 05.23.19 at 10:37 pm

The double dipping scandal might put teachers and civil servants down there on par morally and ethically with pond scum and child molestors along with Liberals and the Unifor Resistance, but the worst investors by far are dentists ! They rip people off so egregiously with unnessecary procedures that they have become stupid to enormous losses. Dentists by far are the joke of the investment community.

#199 Kelvin on 05.24.19 at 7:07 am

My parents – teachers – honestly believed that min wage paid $3k a month. When I told them I needed help for groceries, they told me it was my fault for being irresponsible with my money. Teach kids what min wage pays, teach them what rent and food and tuition cost. Don’t let them be hoodwinked by “you’re going to move out and get a job and be fiiiiiine”.

Teach them the usual ways that min wage student workers get stiffed. Unpaid extra work at the beginning and end of shift. Working 30 hours a week because 35 means “full time”, which comes with better EI. The constant competition to outperform everyone else on the floor, because you are so easily replaceable.

Teach them that they are going to work harder than the baby boomers ever did, and have less to show for it. Teach them about the gig economy and how to start their own small business, because freelance consulting pays better than fast food with the same stress levels. Teach them how to present as “responsible young adult” to the baby boomers who are hiring them. Baby boomers care about things like piercings, visible tattoos, and speaking in full sentences. Things their parents think are cute and acceptable will get them eviscerated in the workplace.

#200 Gruff403 (Semi retired at 56) on 05.24.19 at 10:39 am

Semi retired from teaching after 28 years – loved it. Didn’t even know there was a pension when I started. Nice bonus. Got into teaching because I loved young people and wanted to make a difference. Stayed in teaching because I still love young people, job security, good salary, pension, time off with family, and I realized that I was making a difference. Retired to try something new and to make room for next batch of teachers.
Financial literacy curriculum already exists in most Provinces. Kids are not that interested. All they need to know: When you die if you leave more debt than assets you screwed up. If you have more assets than debt and you leave a huge legacy you might have missed living. If you have more assets than debt and leave a small inheritance- you done good.
Teach work ethic, responsibility for actions and that people are more important than things.

#201 Fitnessmenz on 05.26.19 at 1:40 pm

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