Spring in Ottawa, where I live, lasts about a week. That how it seems, anyway. From frost warnings just a week or two ago, we’ve gone to a weather outlook with daily highs in the area of 30 degrees C.
Our air conditioner has already had a workout, and I’ve heard some neighbours running theirs. We’re only at the beginning of June and already it’s time to resume that most difficult of marital discussions – what temperature to set the thermostat. Couples do argue over temps, and I wonder if these disagreements will be more heated this year as a result of inflationary pressure on household budgets.
A U.S. heating and cooling company called Sealed recently commissioned a survey on thermostat settings, and the results are an eye opener. Almost 60 per cent of men said they believe they’re overpaying their electricity bill because of their partner, compared to 49 per cent of women. Forty-five per cent of survey participants overall said they have gotten into a fight with their partner about setting the temperature. Seventeen per cent said they have tried to block their partner from being able to adjust the temperature using thermostats like Nest.
Here’s what my wife and I do to control the cost of air conditioning. We have a programmable thermostat that goes down at night for sleeping and allows the temp to rise during the day. If one of us wants to adjust the temp lower for the moment or open the windows to catch a breeze, we do it. Sometimes, just clicking the temp down half a degree can make a difference. The underlying idea in our thermostat management plan is compromise and recognition that you can’t control everything.
If you’re irked by your partner’s temperature preferences, log into your hydro utility account and see how much more you’re paying in the summer months versus the winter. That’s the cost of marital harmony.
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Rob’s personal finance reading list
‘A massive machine called the wedding industry’
A look at how the cost of weddings has increased, and the role of the wedding industry in encouraging people to spend. Also, tips for managing wedding costs.
A deep dive on the FHSA
A detailed look at who can contribute to a tax-free First Home Savings Account, and what the rules are for withdrawals. FHSAs, available since April, are an ideal way for anyone 18 and older to start saving for a first home.
Valuable vintage items
Household items that can look like junk, even while having surprising value. Examples include vintage Pyrex and Beanie Babies.
If your life insurance company goes under
If you have a life insurance policy, disability and critical illness coverage or an annuity, take a look at this summary of improvements in protections for policyholders if a life insurer goes bankrupt.
Ask Rob
Q: Why are financial institutions dragging their feet in starting up First Home Savings Accounts?
A: The FHSA was introduced in April. Companies now offering this account include the digital broker Questrade, Royal Bank of Canada, Fidelity Investments and National Bank of Canada. Others in the financial industry have clearly not put much emphasis on preparing to launch FHSAs, possibly because the dollar amount going into these accounts will be modest. The annual contribution limit is $8,000, with a lifetime maximum of $40,000. Expect pretty much a majority of investment companies and banks to have FHSAs by fall.
Do you have a question for me? Send it my way. Sorry I can't answer every one personally. Questions and answers are edited for length and clarity.
Tools, Explainers and Guides
Every so often, I hear someone say they want to buy an RRSP. Here’s a helpful rundown on what registered retirement savings plans are – a type of account and not a specific investment – as well as the investment products you can put in your RRSP.
The money-free zone
For sheer inventive loopiness, nothing compares to The Far Side cartoon series by Gary Larson. Here’s a list of 10 underrated Far Side cartoons. Now for Stephen King’s favourite Far Side.
Watch this
An instalment of a Tik Tok series called Canadian Real Estate vs. Literal European Castles. Featured is a beautiful Swedish castle and a modest – no, make that gross – house in Kitchener, Ont., going for $1.8-million.
From LinkedIn
A financial planner on why people are better about holding onto real estate investments compared to stocks.
ICYMI
- Why living with your parents in your 20s is becoming common financial advice
- The case of the $51 airport lunch: When travelling, should you pay in Canadian currency or the local one?
- Why Leon, 80, and Melanie, 70, need to communicate more about finances
More Rob Carrick and money coverage
Subscribe to Stress Test on Apple podcasts or Spotify. For more money stories, follow me on Instagram and Twitter, and join the discussion on my Facebook page. Millennial readers, join our Gen Y Money Facebook group.
Even more coverage from Rob Carrick:
- 🎧 Catch up on Stress Test: Why millennials and Gen Z are Alberta-bound for a more affordable life • Rising interest rates brought pain for new homeowners – and opportunity for house hunters • Why more Canadians are choosing to be child-free or delay parenthood • Love in the time of inflation: How to manage rising costs when dating • You're not bad at money – you're suffering from money shame • Retirement might look different for Gen Z and millennials. Here's how to plan for it • Recession-beating tips for the job market, housing, investing and the cost of life • Is the middle class dead for millennials and Gen Z?
- ✔️ The housing file: A house isn’t special. Get your head straight about the reality of home ownership • The good, the sad and the unaffordable: Saving for a home down payment in Canada’s big cities • Property taxes are popping in some cities – how worried should you be about other tax hikes? • Our other real-estate problem – people have too much wealth tied up in houses • Borrowers and savers, here’s how to time the eventual rollback of interest rates
- 📈 Investing: Canada's top digital broker is TD Direct Investing, with an assist from the TD Easy Trade app • 2023 Globe and Mail ETF buyer's guide part one: Canadian equity ETFs • For the ultimate in cheap investing, check out the Freedom .08 ETF Portfolio • Yes, there is risk in Canadian bank deposits for the unwary and complacent • CDIC covers bank deposits, but who protects your investments if your broker goes bust? • Answers to your questions about the low-risk ETF paying almost 5% • Happy fifth birthday to one of the all-time best investing products for everyday people • An investing strategy that wins cleanly over the long term by outperforming in bad years like 2022
- 💰 Your money: Mortgage holders, savers and GIC investors, it’s time to change your thinking on interest rates • How much debt is each generation of Canadians carrying, and how do you compare? • For the sake of their financial futures, young people should leave Toronto and Vancouver • This practical new spin on a savings account might just peel you away from your big bank • Rental fraud grows amid rise in fake, falsified tenant applications • Are Canadians worse off financially now than in the 1980s? • From groceries to auto loans, here’s how much more it costs to live right now • When saving for retirement, should you change your asset mix over the course of your career? • Do retirement income needs always rise alongside inflation? Not necessarily • When the bank suggests you lock in your variable rate mortgage, it has an angle
