| The fact is that when it comes to finances, I | | | | All I wanted to know was how best to get |
| have nothing to hide. My lack of financial | | | | where I want to be from where I am now. I |
| knowledge had really hit me for the first | | | | figured my parents were no financial genius', |
| time a few years ago, shortly after the birth | | | | but they must have learned a few things in |
| of my daughter. I realized I was responsible | | | | their 64 years and they have retired quite |
| for another life. It wasn't like I wasn't | | | | wealthy. It seemed a good place to start. |
| given good role models - my parents have done | | | | |
| well! I felt I was doing ok. It was only | | | | I can't believe that my parents and I never |
| until I was reading a business publication | | | | "really" talked about money before. The only |
| when I stumbled across "Self-Analysis | | | | thing I was told was "cash was king" and to |
| Financial Planning Test." No sweat I | | | | never borrow money. My parents were very |
| thought. Confidently, I picked up my pencil | | | | frugal with their money, and I was always |
| and set about responding to questions such | | | | told to work for things and save, save, save. |
| as: | | | | My mother had taken responsibility for |
| | | | educating herself financially because she was |
| - Have you selected the proper amortization | | | | never taught about investing or financial |
| period for your mortgage? | | | | planning by my grandparents. But here I was |
| | | | 35 and felt like I was uneducated and blamed |
| - Is you will up-to-date? | | | | the education system in part for my |
| | | | ignorance. How could I know calculus and not |
| - Could your dependents live comfortably in | | | | know how to do my own taxes. |
| the event of your death? | | | | |
| | | | It is inconceivable that our government has |
| - If you plan to retire early, have you set | | | | not altered the school curriculum to include |
| up a suitable savings program? | | | | a basic family finance course. All high |
| | | | school graduates should know how to fill out |
| - How do you plan to pay for your children's | | | | an income tax form properly. They should |
| education? | | | | know how to select their mortgage, how to |
| | | | finance their child's education, and how to |
| - Fifty percent of Canadians retire in | | | | save and plan for retirement. We now live in |
| financial hardship. What are you doing to | | | | a society that demands instant gratification, |
| guarantee you won't be one of them? | | | | which is part of the problem. |
| | | | |
| - Are you debts structured properly? | | | | I am not sure that politicians understand the |
| | | | tremendous benefits the economy would enjoy |
| Not only could I not give a satisfactory | | | | if the average family knew how to handle |
| answer to many of the questions, but also I | | | | their money properly. Most North Americans |
| didn't even understand some of them. I | | | | are financially illiterate. There is no |
| caught an ominous glimpse of my husband and | | | | excuse for our possessing the little |
| daughter living on the streets. | | | | financial knowledge we do. When a university |
| | | | educated person like me is embarrassed by an |
| I dropped my pencil, an unnerved woman. It's | | | | elementary financial test, something is |
| not that I want to be a multimillionaire, | | | | wrong. |
| though like everyone else, I do. I'll settle | | | | |
| for comfortable - very comfortable. I enjoy | | | | So I embarked on a journey of discovery. Most |
| living in a nice home, owing a yacht (our | | | | financial books concentrate on investment |
| floating cottage), driving nice vehicles and | | | | alternatives, not on mundane topics such as |
| contributing annually to an RESP and RRSP for | | | | saving, buying a house, and insurance - the |
| my daughter and myself, respectively. | | | | common person's concerns. They all showed |
| However also recognized that I would probably | | | | you what to do with money once you had it, |
| be one of the millions of people who would be | | | | but they didn't tell you how to accumulate |
| forced to work into their 70's. I wanted the | | | | it. I was assured that a 7 year university |
| ability to have all of those luxuries, but | | | | career and full time permanent job with |
| not compromise my thoughts of an early | | | | benefits was the way to go and to save a |
| retirement. I think these are goals that are | | | | percentage of my earnings for RRSP's. But.... |
| shared by most North Americans. Are they | | | | |
| realistic? Can they be realized on an | | | | The best advice that I ever received was "if |
| average salary? If so, how? | | | | you want to learn to do something right, |
| | | | watch someone who does it successfully. It |
| Within an hour of reading that article, I was | | | | is also true for financial planning. Now we |
| committed to learning the basics of financial | | | | have more financial education available for |
| planning. I had no desire to learn the | | | | people, as a direct response to the economic |
| intricacies of the stock market, nor was it | | | | difficulties many are facing. Those who |
| my goal to be able to recite the mortgage | | | | educate themselves are the ones who will |
| tables from memory. | | | | retire sooner than later and will have |
| | | | achieved their financial goals. |