Kids & cash

Andy Seliverstoff photo
  By Guest Blogger Sinan Terzioglu
.

Nearly half of parents say they miss opportunities to talk to their kids about money and finances, according to a survey done by T. Rowe Price. A quarter say they are very or extremely reluctant to discuss financial topics with their children.  Half the kids surveyed wish their parents taught them more about money. Introducing offspring to early financial literacy concepts can have a profound impact on their lives so by starting early and having regular discussions you’ll instill good habits that will serve them well.

Beyond the basics of earning and saving if you want your kids to learn the principles of building financial security I recommend  teaching them about investing and the power of compound growth, as this can potentially be the most impactful financial education they ever receive.  The earlier one starts, the more powerful the long term benefits.  My son, Easton, just turned 5 so it’s still too early to talk about investing but I have been slowly starting to talk about earning and saving. When he is old enough I plan to regularly show him the value of investments we have made with his earned money as this will provide opportunities to talk about compound growth and the importance of being patient.

Recently a friend of mine asked me to speak to his 15-year-old son, Sean, about investing.  Sean has been working part-time at a grocery store and saved up nearly $10,000 over the last couple of years.  My friend was also curious about what types of accounts where they could invest Sean’s savings.  In most Canadian provinces an investment account can’t be opened until the age of 18 (19 in BC) so I suggested they consider the following accounts:

1.       Registered Education Savings Plan (RESP): My friend and his wife have been contributing to one for Sean but only the amount to maximize the Canadian Education Savings Grant (CESG) which is a maximum of $500 a year.  You are able to contribute a lifetime maximum of $50,000 per beneficiary to an RESP but the education grants max with a total of $36,000 over 14 years. The investments in this account can grow tax free until withdrawn for education at which point they will be taxed in Sean’s hands.  Since there’s still $14,000 in available contribution room in the RESP investing Sean’s savings in this account would make a lot of sense.

2.       Tax Free Savings Account (TFSA): If my friend and/or his wife have any available contribution room in their TFSAs they could invest Sean’s savings in their TFSAs.  All gains would be tax free and when funds are withdrawn the contribution room would not be lost.  My friend and his wife have each other has “Successor Holders” on their accounts so if one were to pass, the other would inherit the assets in the TFSA tax free and all future growth would remain tax free.

3.       Informal Trust / In-Trust Account (ITF): An ITF account is informal because there is no deed of trust required in its creation like there is with a formal trust which I do not recommend in this circumstance because they are expensive to set up and require ongoing costs to maintain.  There is no cost to set up an ITF account but all income (dividends and interest) is attributed back to the trustee (father) for tax purposes unless he is able to prove to the CRA that all the money was earned by his son.  Since Sean is so young I would recommend low cost growth ETFs.  Also, any capital gains would not be attributed back to Sean’s father.  At the age of 18 the trust becomes Sean’s and all income and gains would then be taxable in his hands.  If Sean’s father were to pass away before he turned 18 the ITF account would stay in the estate until Sean turns 18.  There are some advantages going in this direction but the disadvantage is reduced flexibility.

4.       Parents’ Non-Registered Account: If the RESP and both parents’ TFSAs are maxed another option is to invest Sean’s savings in a joint non-registered account in the parents’ names or set up a new non-registered account in their names to keep Sean’s savings separate.  All income and gains would be attributable back to the parents but by investing primarily in growth assets the capital gains would be deferred so there would be less tax being attributable in the near term.  This account would allow more flexibility as Sean would be more easily able to access the funds but the assets would be legally in his parents’ names.

I showed Sean a graph of what his savings and investments would grow to if he were to continue saving $5,000 per year for 40 years and earn an average annual rate of 7%. His total savings of $5,000 per year for 40 years would total $200,000 but his savings and growth of his investments would total over $1 million.  Few realize that saving as little as $5,000 a year for four decades and earning a reasonable rate of return could earn an additional $800,000+ just from growth.  This is the power of compound growth that does not get nearly enough attention in our education system.

By starting early and having regular discussions about the importance of saving and investing with your kids you will significantly increase the odds of them developing a strong foundation of responsible financial habits.  With approximately 50% of Canadians only $200 away from being unable to pay all their monthly bills and debt obligations it’s clear that we must do a much better job of preparing younger generations so they have a much better chance of achieving financial security.

Sinan Terzioglu, CFA, CIM, is a financial advisor with Turner Investments, Private Client Group, Raymond James Ltd.  He served as vice-president of RBC Capital markets in New York City and VP with Credit Suisse in Toronto.

 

95 comments ↓

#1 Flop... on 09.05.21 at 12:53 pm

Well, today marks the 5 year anniversary of the passing of Roy H. Stacey, better known on this blog to the old guard as Retired Boomer WI, and then later on just Boom!

I was his number three project on here, behind getting his opinions out there on the topic of the day, and him trying to pass some wisdom down to the odd Millennial.

Each year I drop a few lines on here about him, keep a promise, give thanks for his encouragement, mentoring and online friendship, and see if I’ve matured enough to understand everything he was try to pass on to myself on others.

Failing on the last one but there’s still time.

I called him my Blog Dad for a reason, his words mattered the most.

I wonder what his thoughts would have been on my Financial Facelift I have been giving myself in my spare time this year, and would he have teased or encouraged me when I told him I had secured a b-grade government job?

Apart from his kindness and wisdom that shone through in spades, the ease that he got his message across was always intriguing to myself, and when passing information I admired his tone and his adherence to talking ‘to’ people on here, as opposed to ‘at’ them, that was always a classy touch.

First I will put up a short post from a fellow poster in 2019 writing about Boom, he didn’t really want to get into shouting matches, he just wrote how he felt and then moved on.

—————————————————–

“#68 Smartalox on 11.07.19 at 6:50 pm
@ Flop:

I can’t help but wonder how your late blog friend / mentor ‘Boom’ would have reacted to ‘Ok BOOMER’ being used by Millennials to put members of his generation down.

I like to think that he would have really leaned into the role of nominal ‘Boomer’, delivering his advice, and if it fell on deaf ears, would have taken that response in stride. But you knew him better than I did.”

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

Anyway, I’ll finish up by putting up one up one his old posts, enabling his words live on this blog for another year.

Which post to put up?

Could do one of the more financial ones, but this one has a bit more of a personal aspect to it, as he talks about where he grew up and where ultimately he passed, so I’ll go with that one.

In this one I had asked him a little question about Milwaukee, and he gave his thoughts on the overall region, mobility for employment, and in relation to other posts, only had about 25% of net worth tied up in real estate and had chosen to retire in a small town, which we later found out was Rockland, Wisconsin.

I always thought he was trying to plant seeds with his posts, especially for younger folks in the Vancouver and Toronto areas.

This post below from Roy is from Boxing Day 2015 after enjoying his last Christmas, exactly one year later to the day, we found out that he had passed after we suspected something had happened to him with an usual lengthy absence.

This blog is not about money, it’s about people.

All sorts of people, from all different walks of life, helping each other out with a leg up in life.

What a club to be a small part of.

Try and help each other out as much as possible on here, you never know when your time will come…

M47BC

M64WI

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

#145 Retired Boomer WI on 12.26.15 at 9:21 pm
#136 For Those About to Flop

Hi There, Flop,

I grew up in a wee town (1248 people) about 45 miles southwest of Milwaukee called Williams Bay, WI.
It is situated on the shore of Lake Geneva a great fishing & boating lake. The area claim to fame was, and IS the lake. These days the lake frontage at around $1,000-1700 a foot is quite pricey for frontage, but demand (lust rules). Once away from the lake prices drop, but are still high.
People then as now commute to someplace else to earn their daily bread. Be that Milwaukee, Chicago, Beloit or Janesville envisions.
I lived in Milwaukee briefly (a year) from late 69 to late 70. I found it decently fun. Today, not so much. There has been a good deal of manufacturing job loss from those days, not much high tech replacement. Some medical though, but not enough to compensate.
During my career, I traveled to the Milwaukee area regularly, the outskirts are thriving the city greatly hollowed out. They do have a great lake front, museums, Zoo, etc. to show. Nothing you wouldn’t find in Chicago.

I have not stopped in the city itself in the last few years, no reason.

If you enjoyed St. Louis, you would also enjoy Minneapolis-St. Paul, Milwaukee, Chicago, even Detroit and Cleveland. Having been to each of those cities on a regular basis over the last few decades each has similar attributes, and problems. All declining manufacturing centers, some have weathered and re-invented themselves better than others.

Today, I live about 170 miles northwest of Williams Bay near La Crosse WI in an even smaller town! (508)
That’s a choice, after having lived in big cities like Detroit , Buffalo, and Madison, WI.

I’ve found the earning potential similar, the true costs of living almost 40% less. The math made it easy to choose.”

#2 crowdedelevatorfartz on 09.05.21 at 12:53 pm

Sadly.
Its not just kids that dont have the money discussion.
Spouses, siblings, etc etc etc.

#3 Peter McLean on 09.05.21 at 1:09 pm

Those are all excellent tips, Sinan, but I have already been teaching my kid all about sure thing investing.

AMC, Blackberry, and GameStop stock, also Bitcoin. She is only three but I’ve told her all about the stocks that the guy who sits beside me at work has been pumping money into. He says he’ll be retiring soon, when AMC stock goes way way up, so I believe him because he seems so sure of himself.

#4 Wallflower on 09.05.21 at 1:42 pm

The 50%er parent:
Kiddo, you need to be learning about investing but I kinna help you.
I ain’t got no money investments because I spend all the money. I have debt.
So, kiddo, don’t do what I do.

#5 crowdedelevatorfartz on 09.05.21 at 1:43 pm

@#127 Remember…. the cows…
““Gunshot victims left waiting as horse dewormer overdoses overwhelm Oklahoma hospitals, doctor says https://rol.st/38CChjl”

I mean, how stupid would you have to be to believe this stuff?”

+++

Almost as stupid as the people that refuse Covid shots that have been distributed by the hundreds of millions with infinitesimal amounts of ill effect…. but are willing to believe some nutter on the internet recommending
Cow dewormer….?

And then there was the former loon POTUS offering “Bleach injections and Tanning beds”……my god….

Idiocracy.

#6 dosouth on 09.05.21 at 1:54 pm

Regardless of the product this young fellow invests in it is still a product and someone is getting a cut. I think that is the first big lesson for anyone, nothing comes for free. Our daughter was made to save 50% of her allowance in an envelope and the monthly trip to the bank.

Over time we explained finances and because of lack of funds she did miss out on some things her friends family would or could afford to pay for. I think these were very hard but important lessons for her.

Ironically she is in banking today managing one of our neighbouring provinces central zone branches and personnel. She and her husband work for opposing banks but agree on the same thing, financial education/literacy should be part of the curriculum in schools….at least the basics.

#7 Sheesh on 09.05.21 at 2:04 pm

#123 Horse Dewormer? on 09.05.21 at 12:12 pm
People like Sara wonder why people on the ‘right’ don’t trust the experts, and science.

Well maybe it’s because of the constant and obvious mountain of lies and fake news they have seen being promoted by ‘experts’ and media over the past 6 years.

—————-

It just goes to show you need to be selective about your news sources. Who considers Rolling Stone to be a trustworthy source in the first place? They are as unreliable as Rebel news or infowars.

#8 Nonplused on 09.05.21 at 2:17 pm

There is a lot to unpack here.

“I showed Sean a graph of what his savings and investments would grow to if he were to continue saving $5,000 per year for 40 years and earn an average annual rate of 7%.”

This is certainly true from a mathematical perspective, but $1 million dollars in 40 years probably isn’t that high of a priority for a 15 year old once discounted (you know, that NPV thing). Instead I have encouraged my 15 year old to think of financing some goals which are not for a 15 year old “short term”, but are coming up quicker. Those would be first and foremost education, and getting through post-secondary with a minimum of debt. This is a goal that seems much more pressing to him since currently that’s his major focus.

Investing savvy is important as you age, but you need some money to do it. The first thing one should focus on is getting some money. So first things first, the value of work and a paycheck, acquiring marketable skills, and saving for expensive goals.

————————————-

“Nearly half of parents say they miss opportunities to talk to their kids about money and finances, according to a survey done by T. Rowe Price.”

I find it difficult to find time to talk about near anything with the teenagers these days. Maybe it always was. The kids seem to be plugged in 24/7. And if anybody doesn’t think that screen isn’t having a major impact on their kids, they aren’t paying attention. It’s having at least as much impact as it’s having on you, only scale it up because they spend more time in front of it. You’ll be surprised how much your kid has learned about US politics, flat earth theory, cow dewormer, and the (sic) benefits of socialism from Reddit. Not all of it good. That machine owns their minds.

How to counter? Well, obviously any family activity that doesn’t involve screens is good, but most of them are expensive. Church used to provide a few hours a week with like minded individuals, but that has been waning. It seems that when God died we forgot that he was only a portion of the reason we assembled. The more important part was to discuss moral philosophy and socialize without the expense of a family ski pass.

Anyway the point is that any activity that doesn’t involve screens is good. I’d even include video games if you and your child are playing together rather than him/her playing online with Dog knows who.

Time is the key. Get them outside on their feet rather than inside on their butt.

—————————————

“A quarter say they are very or extremely reluctant to discuss financial topics with their children.”

Ya well most of them don’t know anything about it themselves. A good 40% of these parents are going to spew socialist diatribe and the “eat the rich” mantra, so chances are if anything they would do more harm than good. A defeated man speaks only of defeat.

————————

“Half the kids surveyed wish their parents taught them more about money.”

It’s always fun to blame mom & dad for their shortcomings. But sometimes they just don’t know either.

—————————

“Introducing offspring to early financial literacy concepts can have a profound impact on their lives so by starting early and having regular discussions you’ll instill good habits that will serve them well.”

But first things first. How to get out there and make some money. Getting an education or marketable skill. Living within your means. Physical and mental fitness. Maybe these things won’t make them top notch investors, but at least they won’t go hungry or show up at a BLM protest. You’ll note there are never any protests at the trade schools or STEM faculties.

If there is a hierarchy of skills necessary for success in life, long term investing is near the top. I don’t think it can be done if the foundations are not laid first. Whether the pyramids were built by slaves or aliens I guess we’ll never know, but either way my money is on that they were built from the bottom up.

————————————

“The LORD is slow to anger and filled with unfailing love, forgiving every kind of sin and rebellion. But he does not excuse the guilty. He lays the sins of the parents upon their children; the entire family is affected—even children in the third and fourth generations.” -NLT

What a mean guy! But I think the point of this verse is more “like father like son” or “the apple doesn’t fall far from the tree”.

“Train up a child in the way he should go: and when he is old, he will not depart from it.” – KJV

(Disclaimer: Nonplused is not a particularly religious person, but that doesn’t mean he hasn’t read the bible, both the good and the bad parts. Much of it is worth considering, while other parts explain why the Roman Catholic church did not want it translated for laymen to read themselves.)

#9 Sail Away on 09.05.21 at 2:22 pm

#19 KLNR on 09.04.21 at 11:29 am

the dumb just keep getting dumber.

https://www.theguardian.com/world/2021/sep/04/oklahoma-doctor-ivermectin-covid-coronavirus

——–

Agreed. Those dumb people keep sharing obvious sensationalist garbage like that article, carried by Newsweek, BBC, NY Times, Rolling Stone, The Guardian, etc. Some people just can’t think critically, and a number of news outlets obviously have a serious issue with factual reporting.

Here’s the debunk:

“UPDATE:

Northeastern Hospital System Sequoyah has since issued the following statement:

Although Dr. Jason McElyea is not an employee of NHS Sequoyah, he is affiliated with a medical staffing group that provides coverage for our emergency room. With that said, Dr. McElyea has not worked at our Sallisaw location in over 2 months. NHS Sequoyah has not treated any patients due to complications related to taking ivermectin. This includes not treating any patients for ivermectin overdose. All patients who have visited our emergency room have received medical attention as appropriate. Our hospital has not had to turn away any patients seeking emergency care. We want to reassure our community that our staff is working hard to provide quality healthcare to all patients. We appreciate the opportunity to clarify this issue and as always, we value our community’s support.”

#10 FriedEggs on 09.05.21 at 2:24 pm

6uild 6ack 6etter

#11 Lolo on 09.05.21 at 2:29 pm

So what did Sean decide?

I started by teaching my then 6 yo about saving. We put her money into a savings account, and at the end of the month, I showed her the interest it earned. She said, ‘That’s it?!?’. That’s when i decided to she needed to learn about investing, though it was a much simplified lesson.

#12 Joseph R. on 09.05.21 at 2:36 pm

#5 crowdedelevatorfartz on 09.05.21 at 1:43 pm
@#127 Remember…. the cows…
““Gunshot victims left waiting as horse dewormer overdoses overwhelm Oklahoma hospitals, doctor says https://rol.st/38CChjl”

I mean, how stupid would you have to be to believe this stuff?”

+++

Almost as stupid as the people that refuse Covid shots that have been distributed by the hundreds of millions with infinitesimal amounts of ill effect…. but are willing to believe some nutter on the internet recommending
Cow dewormer….?

And then there was the former loon POTUS offering “Bleach injections and Tanning beds”……my god….

Idiocracy.

————————————————

What the MSM does not tell you is that Ivermectin can also be used in sheeps too!

Wake up Sheeples!

The irony of them accusing society-at-large to be good sheeps for getting the vaccine are the same who takes pride at advocating sheep dewormer as a COVID-19 cure for themselves.

Thanks Facebook.

#13 Bye Bye on 09.05.21 at 2:43 pm

DELETED (Anti-vax)

#14 Sparrow on 09.05.21 at 2:53 pm

Every Monday in my house is payday for my two kids. They are 13 & 10. They each get a dollar for every year. We do a savings plan. If they save 20% of their earnings, I match it dollar for dollar every week. That goes into long term savings. We have been doing it for 6 years now. Recently, we started DoorDashing in our small city. I am doing the same thing. Whoever Dashes with me earns the money and tips minus fuel and maintenance costs for my Honda Fit. I am planning on doing the 20% savings plan with this as well. I talk to them about money, savings, investments and our mortgage too. You have to have a bit of money to learn about it. It’s great to watch them save some cash, have an idea about what they will spend it on and realize that they maybe they don’t want it whatever it is that much because all of their cash will be gone.

#15 db on 09.05.21 at 2:57 pm

Hello Sinan,
Excellent and informative post. I would add that each conversation should be continuous, consistent and age appropriate as children age. The worst conversations are fear driven (“you’d better or else..”) the best give kids the chance and the tools to experiment and learn from mistakes, with plenty of opportunity for enjoyment pride and satisfaction. It helps if the extended family are all on the same page (I know wishful thinking).
At the young ages of 5 through 8 finances are a great way to teach children arithmetic in a practical manner and to introduce the notion of delayed gratification and planning. Monthly accounting of accumulated coins in a coin jar and planning ‘medium’ term goals can be a good multi-faceted activity.
From 9 through 15 is a good time to involve kids in budgeting and planning and introducing the notion of long and medium term goals and planning.
This is a good time to learn the basics of spreadsheets as a tool for creating and managing budgets and again only requires a sit-down once or twice a month.
By about age 15 basic concepts like the rule of 72 and the mechanics of compounding and some of the reasons for diversification can be introduced.
The most important skill for financial planning is I think the single most critical skill. Teach them how to shop critically and carefully – and above all – teach them how to cook.
You can’t invest what you don’t save. You won’t save if you lack the skills to make informed spending decisions.
Lastly, avoid presenting education to kids (whether consciously or unconsciously) as a hard choice between getting an education or getting skills. It’s extremely difficult to develop skills without a strong foundational education and an education isn’t a shortcut to obtaining skills, it’s just a helpful compliment. It’s our skills that generate the income; it’s our financial literacy that help us put that income to its best use. Both skills and education, like financial planning, take time, diligence and patience.
…Apologies for the long winded post and again thanks for the informative and timely reminder about kids and money

#16 crowdedelevatorfartz on 09.05.21 at 3:00 pm

Ponzie’s pee pot potion

“I’m a beer snob, though.
Budweiser is “piss beer”.”

++++

I’m horrified as to how you came upon that observation comparison.

As for the original Budweiser.
Was it not created in Czechoslovakia many many MANY years ago?

#17 Bye Bye on 09.05.21 at 3:05 pm

DELETED (Anti-vax)

#18 CHERRY BLOSSOM on 09.05.21 at 3:08 pm

MIKE MALONEY “HIDDEN SECRETS OF MONEY” 10 You Tube videos he made with his own money to teach anyone about money. I tell the young folk to save 10 % of their earnings. That’s step # one. I sell it as “safety” Then they could buy one ounce of silver every paycheck. I sell this as “insurance” Once they have enough to invest I teach them about compounding.

Doug Casey says, “Don’t go to university, it’s too expensive and they fill your hear with what they want you to know. Instead join a circus and learn how the real world works from con men, liars, cheats, thieves and back stabbers.

#19 TurnerNation on 09.05.21 at 3:11 pm

The Permanent Economic and Social Lockdowns. Did ya notice as time goes on more and more freedoms get taken away?

1. https://twitter.com/CTVWindsor/status/1433793070273896449
CTV Windsor @CTVWindsor
BREAKING: Effective Sept. 20 @TheWECHU announcing:
-Indoor dancing at weddings will be prohibited except for the bride and groom
-Wedding and funerals limited to 100 people max
-Proof of vaccine must be provided by all attendees

2. Alberta..this is until the Digital ID is ready. Herding the sheep – into the Blockchain.
No fun allowed in Kanada. Businesses must be forced closed. The State just gave you a curfew. Plus limited house arrest.

https://westernstandardonline.com/2021/09/what-you-need-to-know-about-new-alberta-government-restrictions/
“Early “Last call” – Also on the same date, restaurants, cafes, bares, pubs, night clubs, and other licensed establishments are required to end alcohol service at 10 pm MST. ”

“In-person work: The province is also recommending that plans for in-person return to work be paused and that employers revert to work-from-home where possible. ”

————-
————-
3. Comrade how is your social credit score? The next lockdown will be Digital. And Global.

York Region residents who host gatherings, private parties will have keep contact lists (barrie.ctvnews.ca)

— New System: Social Credit Score.
The devil is in the details: what is “recent”? Ask the pharma sales reps.
Test zones appear to be Israel, Australia and Italy.

“By Euronews/AP • Updated: 02/09/2021 – 14:59
Passengers are only be allowed to use certain public transport if they show a Green Pass, which proves recent vaccination, a negative COVID test in the past 48 hours or recovery from the disease in the last six months.”
https://www.euronews.com/travel/2021/09/01/italy-braces-for-protests-over-new-covid-rules-for-domestic-travel

#20 willworkforpickles on 09.05.21 at 3:15 pm

For Sinan and all other guest bloggers, commenters, and interested readers…my advice to all of you is to fashion your financial futures within a 6 year time frame and no further than from this point in time. Cash it all out in 5 years time from now if you want to have any time with it benefiting from the returns. All while there is a system that still exists to benefit within.

#21 Ustabe on 09.05.21 at 3:19 pm

On the topic of Ivermectin. There are tablets approved by the FDA to treat people with intestinal strongyloidiasis and onchocerciasis among other conditions. These are not the horse paste although they are the same base medicine. The additives in horse paste contain a protein binder.

In the absence of worms to bind with, the horse paste will bind with the lining of your lower intestine, strip it away from you and let you look at it in the bowl of your toilet. If you make it to the toilet.

Source: my wife is a (retired) veterinarian who worked in the field for over 30 years. This is the kind of stuff they teach you if you bother to learn.

#22 Quintilian on 09.05.21 at 3:20 pm

“With approximately 50% of Canadians only $200 away from being unable to pay all their monthly bills and debt obligations it’s clear that we must do a much better job of preparing younger generations so they have a much better chance of achieving financial security.”

How about preparing children to be better human beings above all?

Within my extended family, (aunts and uncles) who placed much emphasis on financial security, turned out adult children who are a complete mess.

And yes, it does not have to be an either, or, but the correlation is strongly linked.

#23 AACI Homedog on 09.05.21 at 3:38 pm

Yeah, but what about the Great Dane ?

#24 UmiouiuS on 09.05.21 at 3:45 pm

An excellent post, Sinan, thanks ..!!

I think the reason that most parents don’t talk the money-topic with their children is b/c they don’t know very much at all on the topic themselves.

Which for the life of me is why, I don’t understand why they don’t teach it in schools ..!!

BUT, as someone will point out (correctly so) is that generally, teachers do not manage their own monies very effectively either.

An Ont neighbour friend of mine had a recent discussion with another neighbour who’s a retired Ont teacher, whereby the the r/t mentioned he had contributed huge to his own pension fund throughout his long career.

In response, my neighbour-friend was quick to point out that the tax-payers not only pay their wages, but also contribute in large measure, to the OSSTF pension fund.

(I never asked how that discussion had ended.)

#25 Fake news on top of fake news on 09.05.21 at 3:47 pm

DELETED (Anti-vax)

#26 Sinan Terzioglu on 09.05.21 at 4:05 pm

#11 Lolo – Sean decided to invest the money in his RESP and bought some growth ETFs. Good job teaching your child about saving and investing! – Sinan

#27 Planetgoofy on 09.05.21 at 4:09 pm

#19 TurnerNation on 09.05.21 at 3:11 pm
————————————————-
I have intel….your righter than you know.
Good bye freedoms and your writes.
Everyone will see likely by 1st Q 2022.
I can’t even write what I know.

I said before Biden would be a joke if he makes it into power… While it ain’t no joke its beyond a disaster and they actually don’t care.
There is a hidden agenda and T2 is apart of it.
Too bad people believe these guys.
Good luk to you Comrade.

#28 Sinan Terzioglu on 09.05.21 at 4:11 pm

#15 db – Thank you for your comments. I completely agree especially that the conversation should be continuous, consistent and age appropriate as children age. – Sinan

#29 Shawn Allen on 09.05.21 at 4:12 pm

ANTI- Government Worker Much?

#24 UmiouiuS on 09.05.21 at 3:45 pm said:

An Ont neighbour friend of mine had a recent discussion with another neighbour who’s a retired Ont teacher, whereby the the r/t mentioned he had contributed huge to his own pension fund throughout his long career.

In response, my neighbour-friend was quick to point out that the tax-payers not only pay their wages, but also contribute in large measure, to the OSSTF pension fund.

***************************
That’s a garbage and divisive comment. Teachers and other government workers exchange their time and expertise and efforts for wages just like other workers. Teachers earn their wages just like other workers. Teachers pay taxes and yes contribute to their pensions.

If you think teachers are over-paid (including their benefits such as the employer portion of their pension contributions) by the government that the people elect, that is not the teaches fault. Nor is it necessarily even true. But take it up with the government not teachers.

Any notion that all money comes from the private sector simply confirms that the person making that claim does not understand that our “money” is an intangible electronic creation with no true intrinsic value but is just a way of keeping score of who owns or can buy the real physical and intangible products of services that the economy creates.

What nonsense to imply that government workers did not earn a share of the economy through their work and to imply they sort of receive a gift from private sector taxpayers.

The above comment displayed a common view but one that is borne of a lack of understanding of how the economy functions and the nature of money.

#30 Sara on 09.05.21 at 4:17 pm

The COVIDIOTS are out in full force today I see.

#31 Pro vaccine news on 09.05.21 at 4:18 pm

DELETED (Anti-vax)

#32 Joseph R. on 09.05.21 at 4:18 pm

#9 Sail Away on 09.05.21 at 2:22 pm
#19 KLNR on 09.04.21 at 11:29 am

the dumb just keep getting dumber.

https://www.theguardian.com/world/2021/sep/04/oklahoma-doctor-ivermectin-covid-coronavirus

——–

Agreed. Those dumb people keep sharing obvious sensationalist garbage like that article, carried by Newsweek, BBC, NY Times, Rolling Stone, The Guardian, etc. Some people just can’t think critically, and a number of news outlets obviously have a serious issue with factual reporting.

Here’s the debunk:

“UPDATE:

Northeastern Hospital System Sequoyah has since issued the following statement:

Although Dr. Jason McElyea is not an employee of NHS Sequoyah, he is affiliated with a medical staffing group that provides coverage for our emergency room. With that said, Dr. McElyea has not worked at our Sallisaw location in over 2 months. NHS Sequoyah has not treated any patients due to complications related to taking ivermectin. This includes not treating any patients for ivermectin overdose. All patients who have visited our emergency room have received medical attention as appropriate. Our hospital has not had to turn away any patients seeking emergency care. We want to reassure our community that our staff is working hard to provide quality healthcare to all patients. We appreciate the opportunity to clarify this issue and as always, we value our community’s support.”

————————————————————-

Indeed:

Dr. Jason McElyea, a rural emergency room physician, had a gunshot victim in his facility whom for hours he was unable to transfer to a higher level of care because no one had space. One of McElyea’s colleagues had to send a severely ill COVID patient all the way to South Dakota.

“They had sat in a small hospital needing to be in an ICU for several days and that was the closest ICU that was available,” McElyea said.

https://tulsaworld.com/news/state-and-regional/watch-now-this-is-not-just-covid-domino-effect-backs-up-oklahoma-hospitals-with-no/article_20c0d850-0a62-11ec-a376-e7df03dd09bf.amp.html?__twitter_impression=true

You are right. Tulsa is part of Eastern OK, not Southern OK. Not sure why the Rolling Stone implied Southern OK.

The Libs are Owned. You can feel safe with the horse/sheep paste.

#factsoverfeelings
#leftwingdestroyed

#33 Sinan Terzioglu on 09.05.21 at 4:23 pm

#24 UmiouiuS – Thank you for your comments. Financial skills are foundational and we use them every day throughout our lives. It would make a big difference for most if these skills were taught in our education system! – Sinan

#34 Bezengy on 09.05.21 at 4:32 pm

I’d like to see the banks offer a credit card that would put cash back rewards directly into a RSP. I know it’s not much but it would be a good start for many that fall through cracks and never start saving.

#35 Linda on 09.05.21 at 4:55 pm

I agree that parents ‘should’ teach their children financial skills, but what if those parents don’t have any themselves? Given the stats quoted in today’s blog – some 50%! of households living ‘on the edge’ – could be that the kids would be better served learning how to take care of their finances from someone with a better track record. Though grim example is its own teacher.

What I long wondered, given how frequently school curriculums are adjusted why is it that financial how to isn’t automatically a part of the mathematics being taught during grade or high school? So they understand how to negotiate a loan, or the perils of interest on debt or even – gasp! – how to save/invest to ensure their finances are as robust as possible? I swear, its like there is a conspiracy to make the masses dependent on government handouts. Can’t have them take care of themselves – what would they need us for? How could we buy their votes if they don’t ‘need’ the $? Imagine that.

#36 Sara on 09.05.21 at 5:01 pm

Speaking of COVIDIOTS, there’s a subcategory of individuals who are intelligent enough to get the science but have selfish, political reasons for ignoring it.

” Florida will start issuing US$5,000 fines to businesses, schools and government agencies that require people to show proof of a COVID-19 vaccination.

Republican Gov. Ron DeSantis signed a bill earlier this year that banned vaccine passports. The fines will start Sept. 16 if people are asked to show proof of a vaccine.

“Promises made, promises kept,” DeSantis spokesperson Taryn Fenske said Wednesday. ”

https://www.ctvnews.ca/health/coronavirus/ask-for-covid-19-vaccine-proof-face-a-us-5-000-fine-in-florida-1.5571103

#37 Barb on 09.05.21 at 5:15 pm

Great post, Sinan.

Sending it off to our daughter and SIL. Their 7 year old son, entering grade 2, exclaims how he’s making money “every day” when he checks the driveway “box” and collects $6/dozen for free range eggs from their 5 acre farm.

He stubbornly resisted learning that’s not NET, as he must pay for chicken food and bedding for the coop from the income (he wanted Mom to pay for the food).

Learned to multiply by 6 too.

Easton will be a financial whiz with your lessons!

#38 BillyBob on 09.05.21 at 5:19 pm

#16 crowdedelevatorfartz on 09.05.21 at 3:00 pm
Ponzie’s pee pot potion

“I’m a beer snob, though.
Budweiser is “piss beer”.”

++++

I’m horrified as to how you came upon that observation comparison.

As for the original Budweiser.
Was it not created in Czechoslovakia many many MANY years ago?

=========================================

Oh! OH! OH !Pick me! I know this one!!

The original Budweiser Budvar pale lager indeed came from the the former Czechoslovakia, from the town of České Budějovice and dates back to some time in the 1200’s. Official brewery of the Holy Roman Empire for some time.

Then a German by the name of Busch immigrated to the US and co-opted the name Budweiser for his product.

When WWII and the Cold War hit the Czechoslovakian company couldn’t compete with what was Anheuser-Busch by then and didn’t come to an agreement over territorial licensing. So A-B sued and lost in 2010 in the EU Court of Justice. The Czech Budweiser company ran a small series of ads at the time poking fun at the much bigger American company for this loss.

And that’s the very shortened story as to why to this day the delicious Czech Budvar product is sold overseas as “Czechvar”, and the hideous pee that Ponzi refers to is required to be sold as “Bud” in the EU.

But they are two totally, completely different products. When you drink Czech beer you hear angels singing, when you drink Bud you question your life decisions.

Now don’t get me started on the origins of Pilsner…basically the Czech brewing process perfected in the town of Pilzen is the father of all modern lagers.

#39 Entrepreneur on 09.05.21 at 5:30 pm

Knowlegable, and free information, thanks. Always helpful, a printout.

But I am troubled by why PPC, Max Bernier, is not in the Federal Elections debates? Several polls are saying he is ahead of the Bloc and Greens.

Information is important from all avenues, agree or disagree. But people have the right to know what is available.

Max is not elected, not an MP and does not lead a party with any seats in Parliament. He does not qualify to stand on the same stage. – Garth

#40 R on 09.05.21 at 5:32 pm

If Trump stays out of jail and runs in the 2024 presidential elections, I think there is a better than even odds he would win. Not because he has improved his outlook , but because normal people are turning away from the progressive woke attitudes of the left.

#41 Sail Away on 09.05.21 at 5:41 pm

#32 Joseph R. on 09.05.21 at 4:18 pm
#9 Sail Away on 09.05.21 at 2:22 pm
#19 KLNR on 09.04.21 at 11:29 am

the dumb just keep getting dumber.

https://www.theguardian.com/world/2021/sep/04/oklahoma-doctor-ivermectin-covid-coronavirus

——–

Agreed. Those dumb people keep sharing obvious sensationalist garbage like that article, carried by Newsweek, BBC, NY Times, Rolling Stone, The Guardian, etc. Some people just can’t think critically, and a number of news outlets obviously have a serious issue with factual reporting.

Here’s the debunk:

“UPDATE:

Northeastern Hospital System Sequoyah has since issued the following statement:

Although Dr. Jason McElyea is not an employee of NHS Sequoyah, he is affiliated with a medical staffing group that provides coverage for our emergency room. With that said, Dr. McElyea has not worked at our Sallisaw location in over 2 months. NHS Sequoyah has not treated any patients due to complications related to taking ivermectin. This includes not treating any patients for ivermectin overdose. All patients who have visited our emergency room have received medical attention as appropriate. Our hospital has not had to turn away any patients seeking emergency care. We want to reassure our community that our staff is working hard to provide quality healthcare to all patients. We appreciate the opportunity to clarify this issue and as always, we value our community’s support.”

——–

Indeed:

Dr. Jason McElyea, a rural emergency room physician, had a gunshot victim in his facility whom for hours he was unable to transfer to a higher level of care because no one had space. One of McElyea’s colleagues had to send a severely ill COVID patient all the way to South Dakota.

“They had sat in a small hospital needing to be in an ICU for several days and that was the closest ICU that was available,” McElyea said.

https://tulsaworld.com/news/state-and-regional/watch-now-this-is-not-just-covid-domino-effect-backs-up-oklahoma-hospitals-with-no/article_20c0d850-0a62-11ec-a376-e7df03dd09bf.amp.html?__twitter_impression=true

You are right. Tulsa is part of Eastern OK, not Southern OK. Not sure why the Rolling Stone implied Southern OK.

——–

Oh my goodness.

If you re-read the article you posted, you can see it very carefully avoids any mention of the bed shortage being due to Covid, although it is heavily implied, and it does not mention Ivermectin anywhere.

This is misleading reporting, nothing more. Their story has been debunked and they’re trying to save face without making any other false claims.

#42 When Will They Raise Rates? on 09.05.21 at 5:47 pm

DELETED (Anti-vax)

#43 jimmy zhao on 09.05.21 at 5:51 pm

Be sure to have the kids set aside a bit of money to pay taxes. They will be paying for the current orgy of spending curtesy of the Justin Trudeau Liberals.

#44 BlogDog123 on 09.05.21 at 6:49 pm

Teach your kids to pay their bills on time and pay their credit cards in full, not just minimum payments.

Messy book-keeping, invoices lost, forgotten. These mistakes can ruin credit ratings for “oops, forgot to pay the credit card bill again!” Simple discipline like this will help them later in life when they need to apply for credit.

Oh, and teach them to sign up for company RSP matching. I’ve worked with grown adults who should know better who don’t sign up for this valuable company benefit.

#45 Nonplused on 09.05.21 at 7:16 pm

#33 Sinan Terzioglu on 09.05.21 at 4:23 pm
#24 UmiouiuS – Thank you for your comments. Financial skills are foundational and we use them every day throughout our lives. It would make a big difference for most if these skills were taught in our education system! – Sinan

——————————

Why? They tried to teach them about condoms and look how that worked out.

Read something once examining why university students were having such trouble with money. Then the article pointed out one of the students was buying $40 bottles of shampoo. Turns out she was just mimicking what her mom had in the house while she was growing up.

So far as I can tell, other than a rudimentary understanding of reading, writing and arithmetic, most kids don’t pick up much at school. Maybe they learn to play the trombone or change the front brake pads on a car, but that’s about it. Oh and how to avoid bullies in the playground.

It is never a good idea to assign anything to the government, at least not if you want it done.

#46 Penny Henny on 09.05.21 at 7:17 pm

Todays blog title “Kids & Cash”

There is an inverse relationship between the two.

BTW Faron I hope you don’t have kids, not for the sake of saving the planet and all just because they might turn out like you.

#47 Mr Canada on 09.05.21 at 7:25 pm

Unfortunately, the school system did away with most business courses years ago. I remember learning about Mortgages, the stock market (we picked a group of stocks and invested /competed in groups with play money over 2-3 months), the magic of compounding interest, real estate, types of banking accounts and even common vs preferred stock etc, this was in grade 9! I ended up investing in stocks at an early age. We need to get back to basics.

#48 Nonplused on 09.05.21 at 7:29 pm

#14 Sparrow on 09.05.21 at 2:53 pm
Every Monday in my house is payday for my two kids. They are 13 & 10. They each get a dollar for every year. We do a savings plan.

——————————

My kid doesn’t get allowance, but he does get $15/hour to mow the lawn, trim bushes, and do house work. He charges the neighbors $25/hour for such services.

It is an interesting question, allowance. On the one hand it is thought to teach kids about handling money, but on the other hand it is a sort of CERB where the income is detached from labor.

Critics of what I am doing will point out that since he lives in the house, he should do chores without compensation just like everyone else that lives there (particularly the adults). I see that point as well.

I remain uncertain as to which is the better approach.

#49 Ponzius Pilatus on 09.05.21 at 7:34 pm

Regarding cheque beers.
Original Pilsner: Glorious.
Budweisser: Piss Beer.
Would go perfectly with the Big Mac, if legal.

#50 Brunett43 on 09.05.21 at 7:48 pm

There were two things I had serious discussions with my boys. 1. Personal Finance, I put together a booklet with charts on how finances work such as savings, loans, credit cards and mortgages. I drilled them about debt and how it could ruin their lives if they over extended themselves. Both, now good savers with TFSA’s and no CC debt.

2. Getting a girl pregnant, like debt, will also ruin your life and be a lifetime commitment!

#51 Elon Fanboy on 09.05.21 at 7:49 pm

Yep my 21 yr old son already has his self invested TFSA maxed out.

Rather annoying though to have to wait until he was 19 to open it in BC. He could vote in a Federal election at 18, but not open a TFSA, nuts! Same with my 18 yr old daughter who has a substantial amount saved, earning a massive 0.02% in her ‘savings’ account. Can’t wait to get that moved to a self invested TFSA next year.

#52 ImGonnaBeSick on 09.05.21 at 7:51 pm

#22 Quintilian on 09.05.21 at 3:20 pm
“With approximately 50% of Canadians only $200 away from being unable to pay all their monthly bills and debt obligations it’s clear that we must do a much better job of preparing younger generations so they have a much better chance of achieving financial security.”

How about preparing children to be better human beings above all?

Within my extended family, (aunts and uncles) who placed much emphasis on financial security, turned out adult children who are a complete mess.

And yes, it does not have to be an either, or, but the correlation is strongly linked.

—-

Maybe you just come from a line of idiots…

#53 Faron on 09.05.21 at 7:57 pm

#41 Sail Away on 09.05.21 at 5:41 pm
#32 Joseph R. on 09.05.21 at 4:18 pm
#9 Sail Away on 09.05.21 at 2:22 pm
#19 KLNR on 09.04.21 at 11:29 am

LOL. I think this one is too complicated for you clippy. Maybe you got some prions mixed in with your tostitos+offal special last time you were deep in the backcountry? I can ELY5 for you if you remain confused. Gold star for being the smartest of the COVIDiits tho! #sailosSundayWinning.

#54 UmiouiuS on 09.05.21 at 8:04 pm

#33 Sinan Terzioglu on 09.05.21 at 4:23 pm

#24 UmiouiuS – Thank you for your comments. Financial skills are foundational and we use them every day throughout our lives. It would make a big difference for most if these skills were taught in our education system! – Sinan

*********************
Sinan, sir. Hence, do we both see a lovely opportunity here for a new division within ‘Turner Investments’?

#55 Smartalox on 09.05.21 at 8:13 pm

@Flop #1:

Just stopped into the comments section today, for the first time in months, and was surprised to see my post quoted in #1. I’m glad that I could play a small part in your remembrance of your friendship with Boom.

I hope that you are keeping well, Flop. I must admit that I have not been keeping up with the blog very much lately – I still read the front page with regularity, seeking pearls of Garth’s wisdom and perspective, but I’ve given up on the comments section for the most part – and many of the commenters entirely.

Stopping in like this feels a bit like visiting an old work place and seeing the colleagues that I used to sit around with at lunch. The past is remembered fondly, and maybe personal updates are exchanged, but after a few minutes, you leave feeling satisfied that you’ve moved on.

I’ll see you around,

Alex
M47AB (was BC)

#56 crowdedelevatorfartz on 09.05.21 at 8:31 pm

@#38 BillyB

“Then a German by the name of Busch immigrated to the US and co-opted the name Budweiser for his product.”

++++
Are you sure it wasn’t a plagiarizing Austrian?

#57 I’m stupid on 09.05.21 at 8:35 pm

You can lead a horse to water but you can’t force it to drink.

That’s the same with kids. There is a reason the ad industry pays big bucks for ads that get to the 13-25 segment. That’s the stupid crowd.

I agree it’s important to teach them about finance but very few will listen.

#58 crowdedelevatorfartz on 09.05.21 at 8:36 pm

@#49 Ponzies Perfect Pairing
“Would go perfectly with the Big Mac, if legal.”

++++
I havent eaten at McDonald’s in about 10 years (since my last hangover and I wasnt worried about losing my lunch…)

I’m quite sure you are allowed to buy a Big Mac as Take Out and drive home
There you can eat it as you drink a cold Budweiser…

Problem solved.

#59 Sydneysider on 09.05.21 at 8:37 pm

Compound growth, i.e. exponential growth, is pushing the limits of high school mathematics in Canada.

I very much doubt that even half of the population could do simple calculations of this kind, even with a calculator. On the contrary, many who have received a maths education will be put off the subject for life, even when (as here) they could improve their lives through it.

#60 cuke and tomato picker on 09.05.21 at 8:49 pm

Our children are all good with money but our grandson
did us proud when a class field trip to the B.C. Legislature
was cancelled because of covid. The teacher planned a virtually trip to be presented to the class. For lunch he
ordered a basic meal at a restaurant and to drink he ordered water. His teacher said you are even frugal
at a virtually meal.

#61 Ponzius Pilatus on 09.05.21 at 8:56 pm

#44 BlogDog123 on 09.05.21 at 6:49 pm
Teach your kids to pay their bills on time and pay their credit cards in full, not just minimum payments.
Messy book-keeping, invoices lost, forgotten. These mistakes can ruin credit ratings for “oops, forgot to pay the credit card bill again!” Simple discipline like this will help them later in life when they need to apply for credit.
Oh, and teach them to sign up for company RSP matching.
————————
Completely agree.
But I also like Crosby, Stills and Young’s take on it.
Kids need to follow their dreams, which may not necessarily their fathers dreams.

Teach your children well
Their father’s hell did slowly go by
And feed them on your dreams
The one they pick’s the one you’ll know by
Don’t you ever ask them, “Why?”
If they told you, you would cry
So just look at them and sigh
And know they love you

#62 Sail Away on 09.05.21 at 9:03 pm

#53 Faron on 09.05.21 at 7:57 pm

LOL. I think this one is too complicated for you clippy. Maybe you got some prions mixed in with your tostitos+offal special last time you were deep in the backcountry? I can ELY5 for you if you remain confused. Gold star for being the smartest of the COVIDiits tho! #sailosSundayWinning.

———-

You are indeed a strange one, bro. I have no idea why you think throwing personal insults my way is a smart idea.

#63 The Difference on 09.05.21 at 9:06 pm

Good column; it is worth a read by anyone who needs to understand why it is so important to develop good saving habits and to invest early.

As Charles Dickens noted in his novel David Copperfield,

“Annual income twenty pounds, annual expenditure nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.”

That small difference that you reference in your column of many Canadians being 200 dollars a month away from ruin versus a $5000.00 annual investment over 40 years works out to about 216 dollars per month. For the sum of 416.66 dollars a month, one could have the substantial base for retirement that you so clearly illustrate above.

My education in managing money began quite early when my father explained that if I wanted an allowance, start moving the grass. In subsequent negotiations for a pay increase, more duties were added. My dad also liked to proclaim that money does not grow on trees and by serendipity, while helping me understand with my math homework, on the subject of simple and compound interests that the only way money really grew was through compound interest. Most importantly, when my ten year old brain figured out that I could live off of interest versus having to work, then that set the tone for my future.

#64 Ballingsford on 09.05.21 at 9:11 pm

The kids are getting the financial education where my son goes to school. It’s good. Questioning things about the mortgage and stuff we took out. Length, rate, etc.

Going in grade 9 this year. His school seems to be on top of it.

He has a couple grand in the bank and not because we are rich and grandparents are deceased. 5 cents interest a month. He doesn’t think much of that, sucks! He saved that money himself.

Almost $60,000 in RESP’s though. That doesn’t count as his finances though. It’s his schooling. Wish I had it when I was young.

Wish like other posters he could open an investment account at age 13-14.

#65 Joe on 09.05.21 at 9:26 pm

Interesting article, unfortunately the Rules do not make any sense. There are many articles such as this one talking about educating young individuals about investing etc but then on the other hand they cannot open an investing account until they are 18, what sense does that make.

What is wrong with a say a 14 year old opening up an investment account with the co sign of a parent.

#66 Ballingsford on 09.05.21 at 9:28 pm

#46 Penny Henny on 09.05.21 at 7:17 pm
Todays blog title “Kids & Cash”

There is an inverse relationship between the two.

BTW Faron I hope you don’t have kids, not for the sake of saving the planet and all just because they might turn out like you.

*****
Faron got a Gov’t job so it’s responsibility to try to help all of us.

#67 Ballingsford on 09.05.21 at 9:47 pm

To any of you thinking about opening an RESP, do it when the kid is 1 or as long as it takes to get a SIN. $2500 a year plus 500 from govt it adds up. I went the [email protected] route, but might have more if I went QT.

So far almost $60,000, and about 4 years to go. Budgeted $$12,000 per year for tuition if he goes for engineering and now some left over for living expenses.

I would like him to start his own summer business though cutting grass. I’ll help buy the lawn tractor and whipper snipper. It’s a nice gig to have.

#68 Slawomir Hubicki on 09.05.21 at 9:49 pm

ElGatoNerodeYVR on 09.02.21 at 2:51 pm
“…I said this before this is like saying Vancouver is defined by Hastings at Cordova …”

Hastings run parallel to Cordova.

#69 Ponzius Pilatus on 09.05.21 at 10:07 pm

Fiduciary Bank
From Wikipedia, the free encyclopedia
“Fidelity Fiduciary Bank” is a song from Walt Disney’s 1964 film Mary Poppins, and it is composed by Richard M. Sherman and Robert B. Sherman.[1]
The song sung by the stodgy old bankers at the Dawes, Tomes, Mousely, Grubbs Fidelity Fiduciary Bank, led by the “Elder Mr. Dawes” (Navckid Keyd), to George Banks’s two children, Jane and Michael, in an attempt to get Michael Banks to invest his tuppence in the bank.
——————
Mary Poppins.
That’s what I showed my kids to teach them about money.
Always invest your allowance “tuppence” in the bank.
Much better than flying “high as a kite”.

#70 Anne in NV on 09.05.21 at 10:26 pm

Keep in mind:

If your outgo is more than your income,
Then, Your upkeep will be your downfall.

quote by David Mains

#71 Gordon Shreck on 09.05.21 at 11:34 pm

My question would be: What is $800,000 in 40 years after inflation? Answer: It ain’t what you thought it would be. Unless you’re a reigning board member with a fat salary from a “Foundation” with hundreds of millions in it, kinda like Justin, $ 800 thousand is chump change after 40 years have passed. Ex: 40 years ago that $800K would have bought you 6 houses in Vancouver, today, you’re looking at a tiny concrete cat box.

Don’t get me wrong, saving is good, but investing is better. With the Trudeau-Inflation running in double digits every year , you need a plan to invest that pays more than the Trudeau-Tax Inflation Train.

And, be very cognizant if the fees you pay over 40 years. Yowzers, they add up to a significant chunk of your cheese. Sure, save, but put the money where it can grow. If you’re a working guy put all thoughts of spending big behind you.

You don’t need new cars, cabins etc etc etc. Consumerism will kill your investment plan. Vote for politicians who don’t buy votes and have to raise your taxes to pay for their promises and gladhanding. Living within your means is fun while you’re young, living below the poverty line really sucks when you’re old.

#72 Grunt on 09.06.21 at 12:45 am

Freie Deutsche Jugend.
https://youtu.be/P1CyPjQQTAM

Another example of capitalism adopting communist practices. The minds of children.

#73 I dont get it on 09.06.21 at 1:52 am

Population of North Carolina over 10M.

Almost 9k new cases per day.

https://covid19.ncdhhs.gov/dashboard

Attendance at Clemson-Georgia football game.

71000.

Are they nuts? Or are we wooses?

#74 Faron on 09.06.21 at 4:27 am

#62 Sail Away on 09.05.21 at 9:03 pm

Insulting who now? I thought I was razzing an anonymous troll who takes pleasure in pushing buttons? An avatar who has been relaying COVID nonsense that has had nightmarish repercussions on several friends and family members working in healthcare (not to mention the millions of medical personnell currently being crushed because a bunch of Joe Rogan acolytes can’t be bothered to get a vax)? Like many, I’m tired of this BS and hearing it from a rich, aloof ahole who has downplayed a pandemic that has killed millions is a bit much. As far as I can tell, I’m insulting a joke of a ghost of a persona who has managed to parrot the worst of the alt- and far-right. I couldn’t care less if it’s smart or not to unload on whatever this Sail Away is. If you are threatening me IRL by asking, that’s further evidence of your smallness. You have been spewing snarky, teasing, baiting trash since my day 1 here. I just don’t see how you think that is any smarter.

#75 Steven Rowlandson on 09.06.21 at 8:26 am

Saving $5,000 is not an easy thing unless you have decent income and low expenses.

#76 Brett in Calgary on 09.06.21 at 8:53 am

I have often wondered that too Linda, but have come to the conclusion that up until now (i.e. end of long debt cycle) there has been a lot of money made off of ignorance. A conflict of interest if you will, between a financially educated populace and a financial industry wanting easy money.

My father in-law refers to Canadians as milking cows because its better to have them dumb and producing (i.e. mortgage payments) than informing them that milk has value.

It always cracked me up how easy it was to apply for a mortgage, but how difficult it is to find a [email protected] that even knows what a brokerage account is! 5 years ago when we started my wife’s, we went through 4 people at the branch before we found someone who knew.

I hope with the cows now fully milked there will be a mutual benefit to all, to understand a bit more about how money works.

————–
#35 Linda on 09.05.21 at 4:55 pm
What I long wondered, given how frequently school curriculums are adjusted why is it that financial how to isn’t automatically a part of the mathematics being taught during grade or high school?

#77 Sail Away on 09.06.21 at 8:59 am

#69 Ponzius Pilatus on 09.05.21 at 10:07 pm

Mary Poppins.
That’s what I showed my kids to teach them about money.
Always invest your allowance “tuppence” in the bank.
Much better than flying “high as a kite”.

———

I understand Mary Poppins is exceptionally popular in Austria since it involves that icon of Edelweiss: Julie Andrews.

A truly traditional national hero, civilizing Austrian kinders for the last 60 years.

#78 The joy of steerage on 09.06.21 at 9:08 am

#39 Entrepreneur on 09.05.21 at 5:30 pm

Knowlegable, and free information, thanks. Always helpful, a printout.

But I am troubled by why PPC, Max Bernier, is not in the Federal Elections debates? Several polls are saying he is ahead of the Bloc and Greens.

Information is important from all avenues, agree or disagree. But people have the right to know what is available.

Max is not elected, not an MP and does not lead a party with any seats in Parliament. He does not qualify to stand on the same stage. – Garth

…..

But they have the craziest candidates!

https://twitter.com/kinsellawarren/status/1434808784552173570

#79 Cici on 09.06.21 at 9:28 am

#1 Flop

Nice work Flop, thanks.

It would be nice if we had more Boom! types on this blog, and less internal squabbling.

Starting now ;-)

#80 Sail Away on 09.06.21 at 9:33 am

#73 Faron on 09.06.21 at 4:27 am

…not to mention the millions of medical personnell currently being…

———–

‘personnel’

#81 Penny Henny on 09.06.21 at 9:42 am

#73 Faron on 09.06.21 at 4:27 am
??????????????

Posting comments in the middle of the night?
Odd.

#82 I don't get it either on 09.06.21 at 9:44 am

DELETED

#83 Dharma Bum on 09.06.21 at 9:48 am

When teaching the youngun’s about financial stuff, it’s best to keep it really simple early on.
90% of success in wealth building (assuming you’re an average schmoe earning a basic salary) is based on developing the discipline – the habit – of saving money.
Spend less. Save more. Curb your emotional desire to buy crap and save your money instead. Wax on. Wax off.
Kids need to learn this early and start practicing early.
Make a buck, save 75 cents. Make 2 bucks, save a buck fifty. Do it. Over and over and over and over. Wax on. Wax off. Until it is second nature. Until there is no other way.
Then, start simply. Read up on it. A good beginning is The Wealthy Barber (David Chilton). Then, why not get into some of Garth’s great books? (Worked for me!) Books like
The Little Book of Financial Wisdom, and After The Boom: How to Prosper Through the Coming Retirement Crisis.
Once the foundation of disciplined habitual saving is established, and some basic old school style book learnin’ is done, a young person can drift through the sludge available online in endless blogs and articles about “investing”. Read Garth’s Greater Fool, Jim Collins’s The Simple Path to Wealth, and Mr. Money Mustache, etc. Open a direct investment account online. Start slowly. Buy broad based ETFs and the like. Learn about asset allocation, diversification, balance, sectors, and asset classes. Keep at it. By 25 years old, the kid will be more financially astute and wealthier that most of the suckers in this country. However, if they are not properly guided by a responsible parent, they will likely just sink into the mire of the indebted, poverty stricken, self deluded, consumer, spendaholic ignorant masses.

#84 Cici on 09.06.21 at 10:12 am

#14 Sparrow

Great idea, thanks!

#85 Sara on 09.06.21 at 10:24 am

#74 Faron

“… relaying COVID nonsense that has had nightmarish repercussions on several friends and family members working in healthcare (not to mention the millions of medical personnell currently being crushed because a bunch of Joe Rogan acolytes can’t be bothered to get a vax)? Like many, I’m tired of this BS and hearing it from a rich, aloof ahole who has downplayed a pandemic that has killed millions is a bit much. ”

Some people sure could use an injection of empathy along with their vaccinations.

The following article gives an eye opening look at what it is like to end up sick in hospital due to COVID and how much expertise, resources and round the clock care are required to treat the patient: https://www.vox.com/2021/2/20/22280817/covid-19-deaths-us-nursing-home-icu-ventilator

#86 Sara on 09.06.21 at 10:27 am

#81 Penny Henny on 09.06.21 at 9:42 am
#73 Faron on 09.06.21 at 4:27 am
??????????????

Posting comments in the middle of the night?
Odd.
====================

Canada has different time zones.
Odd eh?

#87 Sara on 09.06.21 at 10:30 am

#46 Penny Henny on 09.05.21 at 7:17 pm

“BTW Faron I hope you don’t have kids, not for the sake of saving the planet and all just because they might turn out like you.”

You have no idea what an ugly persona you are presenting do you? If you think you are making Faron look bad but your ignorant comment, you’d be wrong.

#88 Sara on 09.06.21 at 10:31 am

“by” not “but”

#89 Left GTA on 09.06.21 at 10:45 am

I am finding teaching these skills to teenagers very challenging. I wrote a little book on investing and saving for my kids and neither of my kids read it. The one that chose to go her own way to work as a dog trainer is working really hard and I am proud of her but she is spending her hard earned money like its paper . We opened her a tfsa and helped set up auto payments into it. I invested it in Vbal and she has no interest in it at all. She is annoyed that we insisted that she follow this strategy. She hears all this nonsense about crypto from her friends and she thinks the stock markets is how you lose your money. It is best to teach kids while they are young and show them how compound interest works. Once they become teenagers they have a mind of their own. Wish I had started this earlier.

#90 Ponzius Pilatus on 09.06.21 at 10:51 am

#77 Sailo
A truly traditional national hero, civilizing Austrian kinders for the last 60 years.
—————————
Spelling: Das Kind, Die Kinder.

#91 VicPaul on 09.06.21 at 11:12 am

#74 Faron on 09.06.21 at 4:27 am

You have been spewing snarky, teasing, baiting trash since my day 1 here. (directed at Sail Away).

*********

And you, you pathetic loudmouth, have shared little more than your whiny, identity politic shaming mantra –
too many years listening to marxist professors – and you fully swallowed all that crud.

You and your sycophantic sweetie Sara, share nothing but insults and failing dogma. But, you’re young, (what 40ish?) – you might grow-up one day, when you realize you are not the smartest guy in the room.

* Full disclosure – I harbour ill feelings toward faron – what kind of piece of sh*t disparages his mother in public discourse?!

M57BC

#92 Ed the editor on 09.06.21 at 11:13 am

#3 Peter McLean on 09.05.21 at 1:09 pm

Those are all excellent tips, Sinan, but I have already been teaching my kid all about sure thing investing.

AMC, Blackberry, and GameStop stock, also Bitcoin. She is only three but I’ve told her all about the stocks that the guy who sits beside me at work has been pumping money into. He says he’ll be retiring soon, when AMC stock goes way way up, so I believe him because he seems so sure of himself.

_____________________________________
More like….

He says he’ll be reNTing soon, when AMC stock goes way way DOWN, so I believe him because he seems so FULL of himself.

#93 ImGonnaBeSick on 09.06.21 at 11:45 am

#71 Gordon Shreck on 09.05.21 at 11:34 pm
My question would be: What is $800,000 in 40 years after inflation? Answer: It ain’t what you thought it would be.

—–

You’re correct. $800,000 in 40 years would have the purchasing power of $350,000 – $250,000 depending on an inflation rate of 2% or 3% respectively…

Keeping in mind that you only had to put away $5,000/yr (which is also affected by inflation; $2200 – $1500 in today’s dollars by year 40)… So that $5000/yr “should” get easier and easier and can always be adjusted for inflation.

Yes, using today’s dollars is a bit more impressive than showing inflation adjusted purchasing power, but the point is teaching responsibility and self-sufficiency. Still, it’s enough to give them $1000/month extra (today’s dollars) for 25 – 36 years .. that’s enough to cover groceries for their retirement, so at least they won’t go hungry.

As well as financials, I think parents should also teach their kids how to use basic tools and how to do manual labour, how to play an instrument, play team and individual sport, how to make a meal, how to camp and appreciate the outdoors, and a martial art.

#94 ImGonnaBeSick on 09.06.21 at 11:55 am

#87 Sara on 09.06.21 at 10:30 am
#46 Penny Henny on 09.05.21 at 7:17 pm

“BTW Faron I hope you don’t have kids, not for the sake of saving the planet and all just because they might turn out like you.”

You have no idea what an ugly persona you are presenting do you? If you think you are making Faron look bad but your ignorant comment, you’d be wrong.

—-

I don’t know why I have to explain this, but;

If you think Sail is being anything other than friendly or big brotherly, you and your buddy Foron grew up without friends. Maybe that’s why you two glom onto eachother.

It’s important to have the piss taken out of you when you’re going off the deep end. If Sail didn’t like him, he wouldn’t interact with him. Sail comes off as a pretty charitable, good natured person.

You two come off as whining little babies that likely nursed until you were 8…

#95 Sail Away on 09.06.21 at 12:45 pm

#85 Sara on 09.06.21 at 10:24 am

Some people sure could use an injection of empathy along with their vaccinations.

———-

Agreed. Kick us off with that, Sara.

Remember when you were gleefully posting as BlackDog about sneaking out to your extramarital ‘side piece’ during the early days of the pandemic?

I understand that lying and cheating is seen as empowering for a certain vocally strident subset… but I, for one, felt empathy for the poor fella. Well, both of them, actually.