I’ve always had a tendency to live within my means, but it took me into my 30s to get organized with saving and investing.
Some people are naturals at personal finance and investing, though. One example is a young investor named William who we talked to in a episode of the Stress Test personal finance podcast for Gen Z and millennials. Another might be a teen who just started his final year of high school and is looking to revive the now-defunct finance club.
This kid’s dad recently asked for advice on what the finance club should talk about. “Most advice for leading this sort of club consists of starting a practice investment portfolio and sharing your results with the club,” he wrote. “But I’m thinking that a finance club could be so much more interesting and useful. What age and knowledge appropriate topics/projects would you recommend for high school kids with an interest in finance?”
I’d like your help in offering some thoughts for this finance club. E-mail me at rcarrick@globeandmail.com with your suggestions and I’ll share them later. Essentially, what I’m asking for is what teens need to know about money for their stage of life. Here are some of my own thoughts, which go well beyond investing:
- the cost of university or college, and the extra dollars required to study out of town
- the cost of rent and whether it makes sense to live at home after graduation or get your own place
- investing versus saving, or short-term versus long-term financial goals
- why exchange-traded funds are the best vehicle for young investors, even if stocks are more fun
- what it takes to buy a home, both in down payment and income to support a mortgage and, eventually, a family
- why emergency funds are essential, even for young people
- why Gen Z and millennials should never pay fees to bank, or carry a credit card
- credit card management tips, with a special emphasis on the personal finance rule of striving to never carrying a balance
- the importance of career-building in personal finance – put yourself on track for promotions, raises, bonuses etc.
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Rob’s personal finance reading list
Rankings of the cheapest and most expensive countries for travel, with Canada ranked as 35th most expensive. Average daily budgets are provided for 136 countries.
The point of this list is to get you thinking about what matters in your life – people or things, money and status?
Driving up the cost of driving
Speed cameras on Ottawa roads generated $14.3-million in fines last year. In Toronto, improper stops and blocking an intersection when the lights change can now cost as much as $500. There are legitimate traffic management benefits to these fines, but they also represent a tax on driving inattentively the way we all do from time to time. With cities struggling to find revenues to meet expenses, even with big property tax hikes, expect more of these fines.
Best places to stash U.S. cash
A survey of U.S.-dollar accounts, including the interest rates they pay.
Podcast fans
Subscribe to Stress Test on Apple podcasts or Spotify.
Ask Rob
Q: I have set up recurring ETF purchases on Wealthsimple. Am I getting a good price?
A: I reached out to Wealthsimple to ask how they handle orders from clients making recurring purchases of an exchange-traded fund or stock. Here’s the response…
“As a regulated securities dealer, we’re held to best execution obligations for our clients and take into account many factors when executing orders: Price, speed of execution, certainty of execution, order size, cost, reliability of quotes, liquidity, and market impact. We actively review the orders transacted by our executing dealers to monitor the quality of execution our clients receive.
Recurring investment orders are placed in the afternoon. Depending on how a client designs their recurring investment will decide how our systems handle the execution of that order. For example, let’s say a client wanted to buy $10 of AAPL weekly on a Monday funded by a bank transfer. Every Monday our system will trigger a bank deposit of $10 into this user’s account and then queue the fractional order for AAPL.”
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 and guides
All about advanced care directives, also sometimes known as power of attorney for personal care.
We want to hear from you
Globe reporter Salmaan Farooqui is writing about whether you should ditch your brick-and-mortar bank. He’s looking to hear from people who no longer have an account with one of the Big Six banks and exclusively bank online. Reach out to him at sfarooqui@globeandmail.com
In the social sphere
Social Media: I asked mortgage professionals on LinkedIn what their #1 tip is for people renewing a mortgage this year or next.
Watch: A fresh spin on the buy versus rent debate.
Money-Free Zone: The Isley Brothers were masters of soulful covers of popular songs like It’s Too Late by Carol King. Ms. King’s original seems a perfect four-minute gem, but the Isleys add layers that keep things cooking for much longer than that.
More PF from The Globe
- Ontario man, 34, earning $62,000 plans to steer clear of mortgage debt and buy a condo outright with family money
- A mortgage broker on new borrowing rules, lower rates and the renewed excitement in Toronto real estate
- I surrendered charging decisions to my EV, and then worried about something else
- As universities warn of financial challenges, hitting your education savings goal requires aggressive investing and saving
