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