Credit Canada

A peace plan for the financial war of the sexes

The artillery sounds from the shores of the Atlantic to the beaches of the Pacific. But it is not the boom of cannons that can be heard across the continent; it is instead cries of frustration and anger between couples – married and unmarried alike – who are at war with each another over issues of money.

It’s an age-old thing. The financial war of the sexes has been going on since the dawn of the dollar, or I believe it was called a shekel in ancient Sumerian times. Back then, hubby doubtlessly got a berating from his spouse for imbibing too much wine with the boys late into the evening. There were mouths to feed in the hut, after all. But hubby had his own beef. Why was the wife shelling out so much for the overpriced pottery? Trying to impress the neighbours no doubt. 

From here, it’s easy to imagine the argument taking a turn for the worse – getting personal and ugly. It’s no different today. At Credit Canada, we are deluged with stories about troubled or ruined relationships between couples who want for skills in money management and who fail to understand the important role psychology plays in financial literacy. Burdened with debt, anxiety, and often depression, they reach out to us for counselling and guidance. (more…)

Your golden years should be just that.

Last week John McCrank of Reuters provided an interesting report about what it’s like to retire in Canada. If it’s any solace in these tough times, McCrank tells us we are considerably less stressed out about retirement than Americans. In fact, he says the reality of retirement is far closer to expectations in Canada than it is to expectations in the United States.

McCrank is not just cranking out a general observation. His findings are based solidly on a recent TD Bank Financial Group survey, which showed that, “In Canada, 70 per cent of retirees say their post-working life is exactly, or mostly, what they thought it would be … In the United States, that number falls to under 50 per cent.”

Frank McKenna, Deputy Chairman at TD and former Canadian Ambassador to the United States, tells McCrank tough times have not hit Canada with the same brute force they have hit America. The recession, unemployment and stresses on housing markets have been much less severe here at home. (more…)

Words to the wise on personal money management.

To everyone out there who is anxious about money and credit, let me say this: invest in a little knowledge and you will be surprised by how quickly you can leave your worries behind.

A first big step in this process is to do a little reading – or a lot of reading, as the case may be. There are plenty of great books you can buy to help you on the road to sound personal money management. Here, largely from a Canadian perspective, I provide an overview of just a few books of interest, not necessarily in order of importance.

• Findepedendence Day. By Jonathan Chevreau. Publisher: Power Publishers.

One of the best books you will find about financial self help is Findependence Day by Jonathan Chevreau, who writes for Canada’s Financial Post. It’s a beautifully written work that combines fiction with fact, resulting in a terrific story that educates even as it entertains. Here is a tale about a couple who are trying to dig themselves out of a financial hole. The story is about how they do it, with a lifetime of common sense lessons thrown in about how to smartly manage, save and invest money. I cannot recommend this book highly enough. (more…)

On Tuesday, January 19th at noon ET, I will be participating in an online discussion on how to tackle holiday bills and dig your way out of the holiday debt.  Join me in the discussion at globeandmail.com at noon.

It’s not the money, it’s the mindset. Just ask some unlucky lottery winners.

Over time I’ve landed on some strange shores while surfing the Internet. What I’ve found is sometimes appalling. Like stories about big lottery winners who end up being big losers simply because they have no clue about what to do with their winnings.

Well, it actually goes deeper than that. It’s not just that these people lack money management skills, it’s that their attitude towards money is deeply flawed. These are people who by and large believe that money in and of itself solves all of life’s problems. The notion that money is just a tool, and that the (more…)