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