Just one more day until the “You and Your Money” seminar series with Gail Vaz- Oxlade! The host of Princess and Til Debt Do Us Part will be in town for one day only and sharing her valuable insight on personal finances. The seminar will concentrate on debt and the problems associated with carrying debt. As well, Vaz-Oxlade will share some of her most effective and well-tested technique on managing finances and taking back control. Listen to this short interview of Gail on CJOB for a quick preview of what’s to come – http://www.creditaid.ca/en/resources/on-the-air.
The seminar series will be taking place Thursday, February 9th at the CanadInns Polo Park. Information sessions are being held from 2:00 – 5:00pm by financial professionals including Brian Denysuik from CreditAid. Come and get advice from the professionals. Gail’s presentation will take place from 7:30 – 9:00pm. Tickets are available at the door, or by phone 204-254-2595.
Money-Smart Kids
Where are the Money-Smart Kids?
If basic, yet essential, information on budgeting, borrowing, saving and investing isn’t learned early in life, most young people will have a huge deficit in this very important life skill when they leave home to live on their own.
Kids need to know the meaning of credit and debt before they get out into the “real” world and begin signing contracts on cellphones and credit cards without knowing the trouble they could be getting into. Too often they find themselves with an overdue bill and no money to cover it.
Parents and schools need to band together to teach our young people the basics (at least) of money management. According to comedian James Cunningham, who has set up a national financial literacy program that is sponsored by the IEF and the Investment Industry Regulatory Organization, young people need to know how to save, invest and spend their money.
Cunningham uses humor in his program “Funny Money” to give young people the following three tips regarding money management:
1) Know how much money you have and the sources of your income and write it down. Keeping track of your money allows you to see how much money you make, what you can afford and how long it will take you to pay back a loan based on this income.
2) Take control of your money; don’t let your money control you! This means that before you get a credit card and charge a bunch of purchases, make sure you have some income so you can pay that bill off in full every month.
3) Save some money with every paycheck. You will be surprised at how quickly your money grows and you will love the feeling of taking the money you have saved and buying something outright, rather than making payments on it for the next several months.
Consumer Obsession Leads Us to Over-spending
The desire to “keep up with the Jones’s” has become more than a social status issue for many people. Also, it is very easy to get caught up in this during the holiday season. It has become a catalyst for overspending that has consumers running to banks and other lenders looking for ways to finance their purchases. This issue also has countless consumers loaded up with credit card debt so steep it may take them a lifetime to get out of it.
Give your financial literacy a good double-check, and if you are not already practicing the following financial practices, now is a great time to start today:
- Pay bills on time and balance your check book each month. You can’t know how much you can afford to spend if you don’t know how much you currently have to spend.
- Stop buying on impulse. If you want something, rather than charging it on your credit card and paying interest, save for the next few month and buy it when you have the money.
- Always pay more than your minimum balance on credit cards: Get rid of them as soon as possible. You will save money on interest and have more to save for the future.
- Vow to maintain only “good” debt. This is the type of debt that will increase your net worth: A mortgage on an affordable home, a car loan, or college debt. These will either increase your creditworthiness or make you more employable so you are able to earn more and keep debt to a minimum.
- Always include some savings in your budget. Many short-sighted people are unable to see their needs after retirement and don’t save. This results in financial difficulty during their declining years.
- Find out what you don’t know about finances—and learn it. Despite the flood of information on financial management, people don’t take the time to learn.
Finally, in order to put a stop to this financial madness keep in mind the media pull for spending and don’t be drawn into the hype. By being savvy shoppers and savers, the overspending and debt can stop.
Christmas Shopping on a Budget
With Christmas just a few weeks away, we have abruptly entered the “shopping season” that special time when you look at all the people on your Christmas list and compare them to the amount of money you have available. It’s time to create a budget and stick to it. The following ideas will help:
Comparison shop: Check prices at different stores, and don’t forget the online stores. Many online stores have great prices, but be sure to figure in any shipping costs in the total price of your gifts.
Making a list, checking it twice: Christmas shop in the same way that you grocery shop: create a list and stick to it. If you shop without a list it’s too easy to get caught up in the hype and you’ll buy items you hadn’t planned for compromising your budget. Download our handy holiday gift budget planner to help you get organized.
Plan a “homemade” Christmas: instead of buying the fancy cookies this year, buy the ingredients and make your own. Homemade goodies generally taste better and are less expensive than store-bought varieties. But, don’t stop with just baking. There are hundreds of things that you can make to give as gifts that won’t break your budget.
Time: Elderly persons would love to receive a gift card stating you will clean their house for them once a month (or once a week), while a young couple with children would consider free baby-sitting services for an evening (or weekend!) away, to be an extra special treat.
Bartering: Basically, you offer a product or service to someone who offers a product or service that a person on your gift list would enjoy. For example, your mother gets her hair done on a weekly basis. You could barter a certain number of up-do’s for a couple oil-changes.
With careful planning, you will be able to provide gifts for everyone on your list this year without breaking your budget.
Holiday Gift Budget Planner
Knowing how much money you have for shopping is one thing, being able to allocate where that money goes, when contemplating your holiday shopping is something else. That’s where a planner can help.
Start with a general statement of how much money you will spend. Or rather your limit, such as: “I will spend NO MORE than _____________ amount of money on Christmas.” Then you may want to allot different amounts of money for different categories such as gifts, food, decorations, other entertainment, etc.
Once you’ve decided how much you will spend on gifts you can create a list of gift recipients.
This can be tricky; do you give a gift to each person in your sister’s family or do you give a “family” gift? Or, maybe you give a “group” gift just to the kids and individual gifts to the adults. Whatever you decide, while taking your budget into consideration, it’s a good idea to write it down so you don’t get side-tracked while shopping.
Once you’ve decided the “who” on your gift list, you need to decide the “what.” Here’s where you pull out that hidden wish list you’ve written on every time you’ve heard someone say they “like” something or “want” something—right? The ongoing list notwithstanding, you’ll need to brainstorm ideas and maybe come right out and ask your gift recipients what they would like.
Then it’s on to the “where” can these items be found. List stores and their locations; don’t forget online options and the actual shopping begins.
You might also want to include on your Planner a space to write where the items you have bought are “hidden.” This is especially important if you tend to shop for gifts all year. You don’t want to forget where that special gift is stored and buy duplicate items in December.
Feel free to download and use our Holiday Gift Budget Planner. Keeping lists of recipients and ideas together will make your Christmas shopping easier, fun and budget “friendly.”
Finance Minister kicks off Financial Literacy Week
Canada’s Finance Minister was in Toronto last week to kick off the Financial Literacy Week. This initiative is a nationwide campaign aimed at helping Canadians increase their financial knowledge so that they can make more informed decisions when it comes to their personal finances.
Many Canadians have taken advantage of the low interest rates since the recession and the government warns of the dangers of piling on too much debt, and especially at this time. With a clearer understanding of financial matters and stronger financial literacy, Canadians will have greater control over their own finances and collectively build a more stable economy.
Financial Literacy Week was started in 2009 with that aim in mind. Many resources are now available online, and events are being held across the country.
Credit Card Offers Are Sexy
Back-to-school for many post secondary students means the onslaught of credit card offers that entice with low interest rates and perks – Free Trip Anyone?
Before you apply for that new credit card, ensure you educate yourself on how to handle credit and manage debt. Student debt is such an important thing to understand. It is the begining of establishing a solid financial start as an education is pursued.
5 Reasons Why You Should Pay More Than the Minimum
Credit card companies all provide you with at least two amounts on your monthly statement, the total balance due and the minimum payment due. The minimum payment will always be the lower amount. Those who have found themselves deep in credit card debt have often gotten there by choosing to pay only the minimum payment due. Here are five very good reasons why you should always pay more than the minimum.
1. Saves you money. How can paying more each month save you money? Easy! It’s called interest. The more you pay each month, the less interest you have to pay in the long run.
2. Get out of debt faster. Less interest means that you get the debt paid off faster.
3. Improved credit rating. Decreasing your debt will also improve your credit rating, which affects interest rates on loans and even your car insurance rates.
4. New charges. If you are continuing to use your card and only making the minimum payments, eventually you will reach your card limit and not no longer have a credit card available for items that require it for purchase, such as hotel rooms.
5. Better spending habits. Developing good spending habits will lower stress and improve your overall lifestyle. Paying off your credit card balance monthly is one of the best spending habits you can have.
If you have a balance on your credit card that you are making minimum payments toward, now is the time make a change. Quit using your card and find every means possible to increase your payments each month. You’ll be amazed how fast that balance can disappear.
Top 5 Ways to Save On A Wedding
Weddings can be expensive, but that doesn’t mean you need to break the bank to have a beautiful and meaningful event. There are several ways to save money without losing the beauty and charm that you expect for this special occasion.
Here are the top five ways to keep your costs in line with your budget.
1. Limit your guest list. Determine the amount of guests you can afford to feed at the reception and set your guest list accordingly. Take into consideration, how many people you can actually greet personally in the time you will have available. If you won’t have time to say hello to each one, maybe your list is too long.
2. Keep it light. Since the catering bill can be the largest cost for many weddings, this is the ideal place to look for options. Many wedding couples are opting for a dessert reception or finger foods after an evening wedding.
3. Shop locations. There are many locations that offer package discounts that combine honeymoon accommodations with their reception hall rental. Take the time to find the place that fits your budget and your seating needs as well.
4. Uncover the talent. Rather than paying large amounts of money for unknown professionals, seek out the talents of friends and family for areas like music, photography and catering.
5. Custom invitations. Instead of buying expensive printed invitations, many couples are saving money and also creating very customized invitations by putting their computer skills to work.
Set a budget and then work to fit your dreams into it. When you look back, you’ll be glad you did.
Staycation This Summer
With the high cost of fuel prices, traveling any distance can become quite costly. However, that doesn’t mean your family needs to forego your vacation time. Often times, we overlook options that are close at hand when planning vacations.
Plan your week out just as you would if you were traveling to a vacation destination. Take in some local attractions as a family, that you might not otherwise. Take a tour of a historical museum and then eat dinner out at a landmark restaurant or hotel in town. You might plan one day as a nature adventure and go on a hike and pack a picnic lunch. You could end the day with a campout in the backyard. In reality, you don’t even need to leave the house. You could have a vacation from cooking, chores, and laundry for a week and spend the time playing games, hanging out at the pool and eating pizza delivered to your door.
Vacation is about how far you go or how much money you spend. It’s about spending time together, relaxing and having fun. You can accomplish those things at home by simply putting yourself in the ‘vacation mode’.