Comments on: Not All Financial Educations are Created Equal http://gailvazoxlade.com/blog/archives/536 Thu, 09 Feb 2012 11:17:54 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: winkwink http://gailvazoxlade.com/blog/archives/536/comment-page-1#comment-9412 winkwink Thu, 16 Apr 2009 22:27:01 +0000 http://gailvazoxlade.com/blog/?p=536#comment-9412 In 2000/2001 I had been able to have free interact transactions as long as my balance remained over $1000 in my chequing account. I had managed to maintain that. The bank sent me a letter informing me that in order to maintain that service with my student account, I would need to maintain a balance of $5,000 in my chequing account. Who keeps that much in their chequing? And what university student has that much money? I was at the bank the next day withdrawing all my money. In 2000/2001 I had been able to have free interact transactions as long as my balance remained over $1000 in my chequing account. I had managed to maintain that. The bank sent me a letter informing me that in order to maintain that service with my student account, I would need to maintain a balance of $5,000 in my chequing account. Who keeps that much in their chequing? And what university student has that much money? I was at the bank the next day withdrawing all my money.

]]> By: Geoff http://gailvazoxlade.com/blog/archives/536/comment-page-1#comment-9408 Geoff Thu, 16 Apr 2009 21:19:50 +0000 http://gailvazoxlade.com/blog/?p=536#comment-9408 Sally I get what you're saying. But you could withhold a certain amount of their allowance and when it meets that $25 threshold, invest it on their behalf. My position is that if kids can understand why interest exists, they should be able to understand investing. In other words, I won't be teaching that interest is 'magic money' but rather that this is what the bank pays you for the right to take your money and use it to give to money to others. It's a tricky concept but if you're going to do it.... ;) I also agree most bankers aren't evil they're just people. Lest we forget that banking is a for profit business and at least way if my son complains I can encourage him to buy bank stock and benefit from their 'evilness' rather than just whining. Sally I get what you’re saying. But you could withhold a certain amount of their allowance and when it meets that $25 threshold, invest it on their behalf. My position is that if kids can understand why interest exists, they should be able to understand investing. In other words, I won’t be teaching that interest is ‘magic money’ but rather that this is what the bank pays you for the right to take your money and use it to give to money to others. It’s a tricky concept but if you’re going to do it…. ;) I also agree most bankers aren’t evil they’re just people. Lest we forget that banking is a for profit business and at least way if my son complains I can encourage him to buy bank stock and benefit from their ‘evilness’ rather than just whining.

]]> By: Ann http://gailvazoxlade.com/blog/archives/536/comment-page-1#comment-9401 Ann Thu, 16 Apr 2009 17:58:24 +0000 http://gailvazoxlade.com/blog/?p=536#comment-9401 Sally, your children are only earning $0.1208 a month on $100. And in a "regualr" bank high interest savings account they would earn approximately $0.1041, and yes there is a difference, but the "evil" banks aren't that far off, and they provide jobs to thousands of Canadians, which is also an important lesson for children. Sally, your children are only earning $0.1208 a month on $100. And in a “regualr” bank high interest savings account they would earn approximately $0.1041, and yes there is a difference, but the “evil” banks aren’t that far off, and they provide jobs to thousands of Canadians, which is also an important lesson for children.

]]> By: Natalie http://gailvazoxlade.com/blog/archives/536/comment-page-1#comment-9397 Natalie Thu, 16 Apr 2009 17:21:25 +0000 http://gailvazoxlade.com/blog/?p=536#comment-9397 There's a great new resource available from the Manitoba Securities Commission called Make it Count, designed to help parents teach their children about money. Read more here: www.makeitcountonline.ca There’s a great new resource available from the Manitoba Securities Commission called Make it Count, designed to help parents teach their children about money.
Read more here:
http://www.makeitcountonline.ca

]]> By: Sally http://gailvazoxlade.com/blog/archives/536/comment-page-1#comment-9389 Sally Thu, 16 Apr 2009 14:48:28 +0000 http://gailvazoxlade.com/blog/?p=536#comment-9389 Thanks Geoff - that is a little more complicated then I was looking for. I want the kids to be able to go in each month to a real live bank and add $10 to their bank account which sits around $100. It would be nice if after they put their money in they could see that they made $1.45 (President's Choice rate) last month instead of $0.01 (TD's rate). To them $1.45 is a lot of money! Especially if they did nothing but leave their money in the bank to get it. My understanding is that most institutions require a minimum of $25/month for investing. Either way taxes on dividends are not an issue. Any larger amounts of money go to their RESPs. Thanks Geoff – that is a little more complicated then I was looking for. I want the kids to be able to go in each month to a real live bank and add $10 to their bank account which sits around $100. It would be nice if after they put their money in they could see that they made $1.45 (President’s Choice rate) last month instead of $0.01 (TD’s rate). To them $1.45 is a lot of money! Especially if they did nothing but leave their money in the bank to get it. My understanding is that most institutions require a minimum of $25/month for investing. Either way taxes on dividends are not an issue. Any larger amounts of money go to their RESPs.

]]> By: Geoff http://gailvazoxlade.com/blog/archives/536/comment-page-1#comment-9382 Geoff Thu, 16 Apr 2009 13:16:40 +0000 http://gailvazoxlade.com/blog/?p=536#comment-9382 You know there is an option besides a savings account for children; consider getting them going on investing. You could do a 50% / 50% split for savings and equities to start (just invest their money in your name, it's pretty easy to setup an account just for them) plus dividends are taxed at a much lower rate than interest. Just a thought. You know there is an option besides a savings account for children; consider getting them going on investing. You could do a 50% / 50% split for savings and equities to start (just invest their money in your name, it’s pretty easy to setup an account just for them) plus dividends are taxed at a much lower rate than interest. Just a thought.

]]> By: Melanie Reformed Spender http://gailvazoxlade.com/blog/archives/536/comment-page-1#comment-9361 Melanie Reformed Spender Thu, 16 Apr 2009 02:08:51 +0000 http://gailvazoxlade.com/blog/?p=536#comment-9361 Thanks for the tip on the JA resources. I'll look into that. Thanks for the tip on the JA resources. I’ll look into that.

]]> By: Sally http://gailvazoxlade.com/blog/archives/536/comment-page-1#comment-9358 Sally Thu, 16 Apr 2009 00:55:31 +0000 http://gailvazoxlade.com/blog/?p=536#comment-9358 Thanks Yvonne - I can tell by your comments that you like your work and I know that makes all the difference to your customers. I spent a few years bank hopping and I know I am very picky. Thanks Yvonne – I can tell by your comments that you like your work and I know that makes all the difference to your customers. I spent a few years bank hopping and I know I am very picky.

]]> By: Yvonne http://gailvazoxlade.com/blog/archives/536/comment-page-1#comment-9356 Yvonne Wed, 15 Apr 2009 23:59:53 +0000 http://gailvazoxlade.com/blog/?p=536#comment-9356 Sally, it really is unfortunate you had such a poor customer experience with your branch...it is shameful that one employee would make such a comment about their co-worker...I wish I could get you in my office!:)..at the very least you would have a pleasant, informative customer experience! Sally, it really is unfortunate you had such a poor customer experience with your branch…it is shameful that one employee would make such a comment about their co-worker…I wish I could get you in my office!:)..at the very least you would have a pleasant, informative customer experience!

]]> By: Brenda http://gailvazoxlade.com/blog/archives/536/comment-page-1#comment-9355 Brenda Wed, 15 Apr 2009 23:23:18 +0000 http://gailvazoxlade.com/blog/?p=536#comment-9355 I went to CIBC's website to see about their Kid's Accounts, and I was actually impressed with what they have on there for Kids and Students (cibc.ca/ca/student-life/kidsandstudents.html). They have an Allowance Game to show kids how much money to save, and a budget for students. Not a bad resource (for a bank). :-) I went to CIBC’s website to see about their Kid’s Accounts, and I was actually impressed with what they have on there for Kids and Students (cibc.ca/ca/student-life/kidsandstudents.html). They have an Allowance Game to show kids how much money to save, and a budget for students. Not a bad resource (for a bank). :-)

]]> By: winkwink http://gailvazoxlade.com/blog/archives/536/comment-page-1#comment-9354 winkwink Wed, 15 Apr 2009 23:16:35 +0000 http://gailvazoxlade.com/blog/?p=536#comment-9354 Sally - I'm a fan of PC banking for day-to-day stuff. The downside is only when I need extra assistance (RRSPs, loans, getting drafts quickly for a downpayment on a house) but for kids chequing and savings accounts I would go with PC. Why pay bank fees on simple banking like that? Kate - I tried it and noticed a huge discrepancy between CMHC and TD when I did their simple mortgage calculations on their websites... my favourite though is the Scotia site bedause they have the best pictures ;) Sally – I’m a fan of PC banking for day-to-day stuff. The downside is only when I need extra assistance (RRSPs, loans, getting drafts quickly for a downpayment on a house) but for kids chequing and savings accounts I would go with PC. Why pay bank fees on simple banking like that?

Kate – I tried it and noticed a huge discrepancy between CMHC and TD when I did their simple mortgage calculations on their websites… my favourite though is the Scotia site bedause they have the best pictures ;)

]]> By: Sally http://gailvazoxlade.com/blog/archives/536/comment-page-1#comment-9351 Sally Wed, 15 Apr 2009 22:38:49 +0000 http://gailvazoxlade.com/blog/?p=536#comment-9351 Yvonne - I know I can't compare online banks with bricks and mortar banks because online ones will always win in my books. To have a bank employee say "that was a dumb idea" (direct quote) when I told her I bought what the previous employee suggested - that certainly sounds like she was disagreeing! I am there at least every 6-8 weeks and have dealt with over 10 different "advisors" in the last 2 years. It is obviously time to move the RESPs. I am just trying to find a savings account for the kids that pays interest and I am gone. Yvonne – I know I can’t compare online banks with bricks and mortar banks because online ones will always win in my books.

To have a bank employee say “that was a dumb idea” (direct quote) when I told her I bought what the previous employee suggested – that certainly sounds like she was disagreeing! I am there at least every 6-8 weeks and have dealt with over 10 different “advisors” in the last 2 years. It is obviously time to move the RESPs. I am just trying to find a savings account for the kids that pays interest and I am gone.

]]> By: Kate http://gailvazoxlade.com/blog/archives/536/comment-page-1#comment-9347 Kate Wed, 15 Apr 2009 21:57:15 +0000 http://gailvazoxlade.com/blog/?p=536#comment-9347 I re-ran the numbers, just in case, and I'm still getting the same result. There's a big difference between 40% gross and 35% net, at least in our tax bracket (I would assume the others as well). If I use the CMHC numbers, 40% gross would make us eligible for a 700k house, 600k of which would be mortgage. 35% net would make us eligible for a 400k house, 300k of which would be mortgage. That's a huge difference! I re-ran the numbers, just in case, and I’m still getting the same result.

There’s a big difference between 40% gross and 35% net, at least in our tax bracket (I would assume the others as well).

If I use the CMHC numbers, 40% gross would make us eligible for a 700k house, 600k of which would be mortgage. 35% net would make us eligible for a 400k house, 300k of which would be mortgage. That’s a huge difference!

]]> By: Yvonne http://gailvazoxlade.com/blog/archives/536/comment-page-1#comment-9346 Yvonne Wed, 15 Apr 2009 21:50:20 +0000 http://gailvazoxlade.com/blog/?p=536#comment-9346 President's Choice is an electronic bank...you can compare them with other electronic banks and you have a fair comparision...compare them with "regular" banks and you have apples and oranges... we actually aren't sales people at all but rather we are advice people, and, as the markets, rates etc are changing daily our advice is changing too...we don't necessarily disagree with what you did last time you were in but, rather, we are advising you on that day in accordance with the current markets so changes can make sense...that's why it's a great idea to visit your bank every quarter or half year...to update your portfolio and make sure you are getting the best you can get for your investments!...:) President’s Choice is an electronic bank…you can compare them with other electronic banks and you have a fair comparision…compare them with “regular” banks and you have apples and oranges… we actually aren’t sales people at all but rather we are advice people, and, as the markets, rates etc are changing daily our advice is changing too…we don’t necessarily disagree with what you did last time you were in but, rather, we are advising you on that day in accordance with the current markets so changes can make sense…that’s why it’s a great idea to visit your bank every quarter or half year…to update your portfolio and make sure you are getting the best you can get for your investments!…:)

]]> By: winkwink http://gailvazoxlade.com/blog/archives/536/comment-page-1#comment-9343 winkwink Wed, 15 Apr 2009 20:32:59 +0000 http://gailvazoxlade.com/blog/?p=536#comment-9343 I was under the impression that credit and mortgages were hard to come by these days, but I was astounded at what my boyfriend and I were pre-approved for recently. I still get credit card offers all the time. The car dealership had no problem offering me anything on their lot. @Adam - congratulations on your book! I think we have a mutual friend (the photographer at your book launch). I was under the impression that credit and mortgages were hard to come by these days, but I was astounded at what my boyfriend and I were pre-approved for recently. I still get credit card offers all the time. The car dealership had no problem offering me anything on their lot.

@Adam – congratulations on your book! I think we have a mutual friend (the photographer at your book launch).

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