Our financial system has shown a lot of resilience in the pandemic, but not nearly enough to keep a lot of people working and earning like they did in pre-COVID days.
It’s easy to lose sight of the financial victims in the pandemic when the housing market keeps generating gee whiz headlines with its price gains, when the stock market keeps rising and when the unemployment rate has been improving. But people are suffering.
Last week in this newsletter, we looked at pandemic splurging. Many people have been able to save money in the pandemic as a result of social distancing, and they’ve been treating themselves to all kinds of things – puppies, kayaks, new decks and a lot more.
Now, let’s look at how people have been financially hurt in the pandemic, and what sacrifices and cutbacks they’ve had to make. If you’re in this group, please help us understand your predicament by taking this poll:
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Rob’s personal finance reading list
How the Aeroplan relaunch affects travel reward credit cards
Air Canada’s Aeroplan customer loyalty program has just been relaunched, and that means changes for the credit cards that offer Aeroplan points as rewards. Here’s a summary of changes both in Aeroplan and its linked credit cards.
Test your mortgage knowledge
Compare your mortgage literacy against the people who participated in a financial website’s survey (and didn’t do so great).
A comic book king’s sad demise
A story of elder abuse starring Stan Lee, a giant in comic books through the Marvel name and then an endless series of movies based on those comics. A great read, but so depressing.
Pre-paid credit cards vs. secured cards
A thorough rundown on what both of these types of cards can do for you. If you want to build or rebuild your credit score, you want a secured card. Pre-paid cards offer a way to use plastic without risk of going into debt. You can only spend the amount that has been loaded onto the card.
Ask Rob
Q: I’m trying to help my 16-year-old child get involved in investing money she has earned from her part-time job. We have looked at opening a high-interest savings account, as well as opening an account at an online brokerage. However, each one requires you to be at least 18 years old. Can you suggest something for minors to do with their extra cash instead of it sitting in a chequing account?
A: My sense is that parents are working more with their teens on smart saving and investing because I’m getting more queries like this than ever before. Let’s crowd-source some ideas for teens younger than 18 to earn a competitive rate on savings and invest. Parents, tell me what you’re doing in an e-mail to rcarrick@globeandmail.com. Investing-wise, one option for parents is to set up an in-trust account at an online brokerage. Here are some thoughts on that.
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.
Globe subscriber investing event
Join me and my guest, Naheed Gilani, founder of Founder of Conscious Wealth, this Friday at 12 p.m. ET (9 a.m. PT) for a live webcast where we will discuss strategies, tactics, and what to be mindful of when investing in a volatile market. This is a subscriber-exclusive webcast. Subscribers can register here.
Today’s financial tool
A province-by-province comparison of the cost of power. Ontario…sigh.
The money-free zone
For my birthday last weekend, my son Will made us this Detroit-style pizza. Something so exceptional deserves a wider audience.
Behold Will Carrick's Detroit-style pizza.Rob Carrick/Supplied
ICYMI
In case you missed these Globe and Mail personal finance-related stories
- Can this 41-year-old leave her job and ‘retire’ without the worry of running out of money?
- Buying or selling a cottage? Be aware of the tax implications
- An inflection point reached? Record low five-year fixed mortgage rates suddenly in danger of rising (for Globe Unlimited subscribers)
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: How to survive the gig economy • How to get out of debt • Is now the right time to buy a house? • Crisis-proof your finances • Does investing change during a pandemic? • Can you afford to live downtown? • The cost of kids • Should you move back in with your parents?
- ✔️ A 10-point pandemic personal finance checklist: Create a "wartime" family budget; stop worrying about bank deposits; clean out your big-bank savings account; get relief on car payments; get preapproved for a mortgage; WFH? Save $1,000 a month; save, save, save; build resilience by not anxiety-buying; consider the cost of mortgage deferrals; get ready for the second wave of financial distress.
- 📈 Investing: The case for a tight portfolio of big blue chips dividend stocks; robo-advisers beat human advisors (and they’re thriving), why online banks that are better than the branch; is it time to invest your 2020 TFSA; don’t get your mortgage at a bank; why it’s so hard to invest in preferred shares; stock up on stocks to retire early; and are you following the 10-year rule with your investments?
- 💰 Saving: Food waste is wasted money; why you might regret that SUV and find out if CAA is worth it; juice your PC Optimum points; how an ex-Bay Street lawyer got out of debt; blindly easy tweak to your retirement investments to survive economic downturn; should you buy that latte?
Are you reading this newsletter on the web or did someone forward the e-mail version to you? If so, you can sign up for Carrick on Money here.
