Currently Browsing: Youth and Money

An open letter to high school students

Dear high school students, Congrats on graduating! Be proud of yourself and all that you have accomplished so far. It must feel good to be done with school, right? After all those final exams, essays, and assignments, you’re now enjoying the freedom of summer. But for those of you moving onto post-secondary school, there’s a lot to think about. Your parents have probably tried to talk to you about “your future,” but since it’s hard to listen to parents sometimes, maybe this letter from me might help instead. Since I was the older sister, and one of the oldest cousins in my family, I...
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Are you trying to teach your child the value of a dollar?

This is tip #5 in a series of 6: Help them understand debt. WHAT TO DO: If you buy something for your child on your credit card, show him the bill when it comes in and explain how you must pay for the item now, even if at the time you just handed a card to the store and it looked like nothing was happening. Make sure that your kids know prepaid cards such as phone cards cost money to buy upfront and need to be used wisely. Experts also advise charging interest if you loan money to your kids. It can be a low rate, but you want to remind them that borrowing costs money. Once your teens have mastered the...
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Why young people should start building their credit profile now

To young people, credit can be the gateway to the seductive goods their bank accounts can’t afford or an interest-rate trap to be avoided at all costs. But experts say establishing a solid credit rating is key to building life-long financial stability and not throwing away money on high interest payments. Later in life when you’re shopping for a new home, the latest sports car or a loan for a new boat for the cottage, your credit score will be what your lender will red circle when reviewing your application. Credit, when used responsibly, can help improve that score. Daniel Sarlo, a student at the...
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Kids and Money Sense Series: Part Four of Six

This is tip #4 in a series of 6: Encourage your kids to earn extra income WHAT TO DO: While the experts say it’s not a good idea to tie allowance to regular household chores, you can create “extra-credit” jobs to give your kids a chance to earn more money. Let them clean out the van and pay them for the time they spend on the task. As kids get older there are lots of ways for them to earn extra cash: babysitting, garage sales, cutting grass for the neighbours, etc. TIP: Help your child turn a passion into a business venture. If your daughter loves dogs, she could start a dog-walking service;...
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Kids and Money Sense Series: Part Three of Six

Kids and Money Sense Series: Part Three of Six
Teach them how to budget WHAT TO DO: Use everyday exercises to help instill budgeting basics. Your six-year-old can help you find the best price on ice cream at the grocery store. Your nine-year-old can carry around a calculator to help you add up purchases, while your 13-year-old can plan her budget for an upcoming summer trip and open and keep track of a chequing account. TIP: Kids need to understand that there simply isn’t an unlimited supply of funds to spend, so as they mature, share details of your family’s budget with them. Explain how you set aside money for savings, pay the bills and use...
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