[nns]

Maybe you should just skip young adulthood — it could be the worst time of your financial life.

B.C.’s 20-to-35-year-olds are in crisis, reeling from a uniquely vicious financial assault, new studies show.

They’re staggering under debts, fighting to get a toehold in the Lower Mainland housing market and watching their household incomes shrink.

The Human Early Learning Partnership at the University of B.C. calls young adults “Generation Squeeze,” reflecting the pressures that mount as their living standard slumps.

“There is a silent generational crisis occurring in homes across Canada,” the partnership says in a recent study. “We are talking about a massive social and economic change — one akin to a silent but no less damaging earthquake in our environment.”

Experts in personal finance pin the blame for young adults’ plight on an unholy trinity: poor role modelling by parents, lavish spending, and the economic pressures of out-of-reach house prices, dwindling real income and daunting student loans.

Many of young people’s poor financial habits and attitudes can be traced back to their free-spending parents, observers say.

“Eighteen to 34-year-olds are getting strangled by their unrealistic expectations,” Kwantlen Polytechnic University educator Robert Ironside says. “This generation has grown up watching parents use credit extremely liberally. The result is a culture of debt in which people feel entitled to spend.”

Others say it’s the fault of young people’s live-for-today philosophy.

The Wealthy Barber Returns author David Chilton, who has two children in university, says it’s understandable that many young people finish college with debts. But young adults often do themselves no favours with their spending, he says.

“When you sit down and look at their math, a lot of them got themselves into some of this difficulty,” Chilton says. “A lot of their lifestyle decisions are absolutely crazy.”

The learning partnership says young adults’ housing costs and incomes are going in opposite directions. House prices in B.C. have risen 149 per cent since 1976 while young couples’ household income fell six per cent in this period.

“No other province in Canada reports a decrease in the average young couple’s household income,” the partnership’s study says. “Nor does any other province report as large an increase in the cost of housing as does B.C.

“These trends reveal that the standard of living for the generation raising kids has deteriorated more in B.C. than any other part of the country.”

As well as grappling with tougher financial challenges than any other age group, young adults have the worst financial literacy of all adults in B.C.,
a poll conducted by Ipsos Reid for
The Province shows.

Half of 18-to-34-year-olds call their knowledge of personal financial management fair, poor or very poor.

Their ability to apply what they do know is also dismal. Sixty-seven per cent rate their personal financial performance as fair, poor or very poor.

Far too many young adults know too little to handle daily money matters — let alone the longer-term planning they should be doing, Ironside says.

“We’re putting our entire future at risk because of this lack of financial literacy,” he says.

Richmond resident Josie Hung, 22, works diligently to manage the financial side of her life. From her $13-an-hour job as a pastry chef, Hung makes mortgage payments, handles household expenses, sets aside money for property taxes and saves for travel.

She and her mom pooled $200,000 to buy a condo two years ago and have a $30,000 mortgage.

Hung describes herself as the financially responsible member of this mother-daughter duo.

She lives frugally, taking public transit and avoiding expensive clothes.

She never leaves an unpaid balance on her credit card.

“I’m a careful spender,” she says. “I’m always aware of how much money I have and where it’s going.”

She criticizes parents who finance their adult children’s spending, warning these misguided subsidies prevent young people from learning financial management skills, keeping them in a state of perpetual childhood. “It’s mind-boggling,” she says of parent-dependent youth. “They have very expensive lifestyles but don’t have the money to afford them. “They will get hit very hard.”

Hung, who long knew that cooking was her passion, fast-tracked into a 10-month pastry program at Vancouver Community College during her final year of high school. That let her come out of Grade 12 with a college diploma in hand. The Vancouver school board paid most of the program’s costs.

Hung, who as able to draw on savings from a high-school job, graduated without debt.

She was fortunate. The average B.C. post-secondary student graduates with $27,000 in debt, according to the Canadian Federation of Students.

Twenty-five per cent of post-secondary students will have trouble repaying their loans, Credit Counselling Society CEO Scott Hannah says.

“People are not looking at how to minimize their student loans. They’re thinking ‘How much can I get?’ — when they should be doing the exact opposite,” Hannah says.

If careful spenders like Hung are potential role models for young adults, a young and high-income Calgary realtor whom Ironside met a few years ago is the dark side of the spending force.

“He told me ‘My generation is never going to start saving money. We’re happy the way we are now.’”

“He said: ‘We’re going to make a lot of money, we’re going to spend a lot of money. We’re going to use money to the fullest extent we can,’” Ironside recalls.

Ironside’s reaction?

“That’s OK when things are going well but the second conditions change and you’re not making that kind of money, problems surface.”

© Copyright (c) The Province
Young adults 'feeling the squeeze' (http://www.theprovince.com/business/Young+adults+feeling+squeeze/5702369/story.html)

[MindBomber]

Richmond resident Josie Hung, 22, works diligently to manage the financial side of her life. From her $13-an-hour job as a pastry chef, Hung makes mortgage payments, handles household expenses, sets aside money for property taxes and saves for travel.

She and her mom pooled $200,000 to buy a condo two years ago and have a $30,000 mortgage.
...
she criticizes parents who finance their adult children’s spending

The girls mom gave her a minimum of a $150,000 to put towards a condo, and she's criticizing parents who financially support their children.

:seriously:

[nsmb]

what a horrible example for this article

brb 13$ hr job
brb 200k from mom
brb 30k mortgage for a richmond condo



http://gifsforum.com/images/gif/wtf/grand/06402767-wtf.gif


:fulloffuck:

[AAnthony]

-----

[twitchyzero]

let's see this $13 dolla balla put a down payment for her condo by herself
she had the school board pay for her schooling as well

[Excelsis]

http://t2.gstatic.com/images?q=tbn:ANd9GcQABelxk7XMzHOjh5cdawHsa1nTbqArk 1gpQPO9VZZAeI151DdpxIa0KhjMxw

[Teh Doucher]

im one of those idiots. so bloody hard to save :(

[JKam]

The girls mom gave her a minimum of a $150,000 to put towards a condo, and she's criticizing parents who financially support their children.

:seriously:

They probably live together (single mom + daughter). I doubt her mom just gave her money to buy her own place.

[DsZ24]

I would have thought pastry chef's make more than that.

[nns]

I think some of you guys are hung up on the wrong details of the article.

[Lomac]

It's an article written by The Province. Don't expect it to be a good example of how a new story should be...

[DsZ24]

They probably live together (single mom + daughter). I doubt her mom just gave her money to buy her own place.

I was thinking that too when I first read it. That's enough to turn alot of people off from buying their own place lol. You can have this condo but your mom has to live with you for the next 20 years, yah no thanks.

[MindBomber]

I think some of you guys are hung up on the wrong details of the article.

Okay, I'll focus on the intent of the article.

Having learned poor financial management skills from the previous generation, many young people now have equally poor financial management skills. All my friends smartened up before hitting their mid twenties, paid off their cards and began tucking away money every month for a down payment. They also all chose careers that will provide a reasonable income over the long term, not thirteen dollars an hour. The ones who do have student loans, look at them as investments into a career that will pay well, and have real degrees, no ten month course bull shit.

The article was dumb, thanks for posting.

[bloodmack]

I like how they attempt to point the blame on the "young adults" when they state before that it was the older generations fault because of their "liberal" spending. :failed:

And mindbomber what do you mean by 10 month course bull shit? Trades go up to 4 years in apprentiships that's a very legitimate way of learning, in fact its an older way of learning then college it self.. so if anything college is 4 year load of BS.

[nns]

Sorry if the article upsets you. That wasn't what I was going for. Your friends sound pretty level-headed. Too bad they seem to be a part of the minority.

I think it's a bit underhanded to put down someones profession like that. I don't know the lady, but she seems to enjoy her career choice, despite the low income it offers. Some people, like myself, are sort of the opposite. When looking at professions, I put money first, and happiness second. It's definitely not unique to myself - it's just kind of sad, that's all.

[MindBomber]

And mindbomber what do you mean by 10 month course bull shit? Trades go up to 4 years in apprentiships that's a very legitimate way of learning, in fact its an older way of learning then college it self.. so if anything college is 4 year load of BS.

The article praises her like a saint for having completed a ten month course without debt, then criticizes the average of $27k in debt, when that number is based primarily on people with bachelors degrees or higher. It's just another layer of illogic based in using that girl as an example. That's what I intended to criticize.

A four year apprenticeship is a totally legitimate way of learning, and not much different from a university degree, the environment where you learn is just different. I'm a tradesmen, in addition to being a university student.

[taylor192]

A couple things from this article stood out to me:

Many of young people’s poor financial habits and attitudes can be traced back to their free-spending parents, observers say.

“Eighteen to 34-year-olds are getting strangled by their unrealistic expectations,” Kwantlen Polytechnic University educator Robert Ironside says. “This generation has grown up watching parents use credit extremely liberally. The result is a culture of debt in which people feel entitled to spend.”
I have pointed out that children of the 70s/80s are heavily influenced by how much our parents spent during the financial bubble of the 80s - yet they did NOT do this on credit. Canada Savings Bonds paid 19% (while they pay 1% now) at one point, money was making money hand over fist thus why people spent it so freely.

Now our parents are retiring and we're seeing how ill-prepared they are, yet are we adjusting to that? No, we're spending like the economy is roaring along and digging an even bigger hole for ourselves.

The Wealthy Barber Returns author David Chilton, who has two children in university, says it’s understandable that many young people finish college with debts.
I don't think it is understandable at all. We push more people into higher education with higher price tags and less return on value.

[taylor192]

The article was dumb, thanks for posting.
This article is only dumb for your small circle of friends then. It is dumb for me too, yet I think it has tons of merit for the majority. I also agree the example is friggin dumb, how does a $13/hr pastry chef save $2000K with her mom... oh ya she doesn't, its mostly mom's money.

There's a reason for stats like how mnay Canadians live paycheque-to-paycheque with no savings, why debt ratios are at all time highs, ...

[ilvtofu]

lol if you were really "feeling the squeeze" maybe you shouldn't be going into a pastry program... Someone needs to slap some sense into josie hung

[MindBomber]

This article is only dumb for your small circle of friends then. It is dumb for me too, yet I think it has tons of merit for the majority. I also agree the example is friggin dumb, how does a $13/hr pastry chef save $2000K with her mom... oh ya she doesn't, its mostly mom's money.

There's a reason for stats like how mnay Canadians live paycheque-to-paycheque with no savings, why debt ratios are at all time highs, ...

I'm aware that debt ratios are at an all time high, and that many Canadians live one pay cheque to the next with no savings; the prior generation passing on abysmal financial management skills to the current is a legitimate issue that the public and government should embrace. The issue isn't dumb, the article is though. It doesn't leave me feeling compelled to curtail my spending and save more, because it uses a ridiculous example and poll figures that could hardly be called scientific. I want this article to quote stats can figures, interview a recent graduate overwhelmed by debt now regretting those frequent trips to starbucks, use an example of an individual who had to declare bankruptcy, or someone who lost their job and is in crisis because they have no savings.

[Meowjin]

you miss the fact that she's a girl too. probably some dude paying for everything.

[dinosaur]

Everything I am thinking has pretty much been said, but fuck dude, this article pisses me off!

Really!? she is feeling the squeeze? should we all applaud her for keeping her spending in-line when she really has no fucking bills? Where would she be without the money her mom gave her for the fucking condo? Fuck, at $13/hr that bitch would barely be able to rent a basement suite in Richmond...and yay! good for her!! she got a post-secondary education for free but have fun making $13/hr for the long-haul!

She makes 13/hr. Lives with her mom in a condo she didn't really pay for. Most likely drives a car her mom paid for or is "sharing" it, split the groceries (which lets face it, you know her mom buys and cooks), and gets to "share" all the utilities. Gee, sucks she can't go out and buy that new Channel bag she really wanted!

Do you think the reporter was interviewing her and then was like "oh, fuck"..."whatever, print it anyway."

[trip]

haven't felt the squeeze in a long time

:alone:

[twitchyzero]

haven't felt the squeeze in a long time

:alone:

:haha:

[Nightwalker]

Living paycheque to paycheque and having a balance of zero is far BETTER off than a lot of people my age. Carrying debt places you below zero.

I'm finally going to be debt free for the first time since my first loan 7 years ago (except for my mortgage, aiming to sell soon though). Getting rich enough to have zero money is something I'm extremely excited about. A lot of opportunities open back up for me like changing jobs or career, moving, going back to school. The pressures of 5 digit unsecured debts and car loans really held me in a middle class rut.

My parents are spenders and it's something that's been extremely difficult for me to break, it's taken a lot of self development and scary realizations.

I hope there's more articles and media like this, it might help someone else that was in my position change their life around.

[nns]

^That's what I was kind of hoping for when I posted this article. Maybe it'll snap some people back to reality.

If you don't mind, could you describe in more detail how you became indebt in the first place? Did it have to do with a young adult mentality and poor financial planning?

I want this article to quote stats can figures, interview a recent graduate overwhelmed by debt now regretting those frequent trips to starbucks, use an example of an individual who had to declare bankruptcy, or someone who lost their job and is in crisis because they have no savings.

I would've liked to see this as well in the article. However, it wasn't featured. But that doesn't stop members here from reading the article and posting their own stories about how they fell in a hole and how they got out.

[Carl Johnson]

The girls mom gave her a minimum of a $150,000 to put towards a condo, and she's criticizing parents who financially support their children.

:seriously:

She is talking about kids using their parents as an ATM to do discretionary spending. Helping kids to buy property and other investable assets like shares is a good way for parents to help their kids take on more financial responsibility.

[EvoFire]

Everyone's pretty much summed it all up already, good topic, serious issue, dumb article.

There are a lot of people who know what they are doing with their money, there is often much bickering about on RS about who doesn't know about their money, who's being stupid, but a lot of the people here have a clue. Every few weeks we see a thread of some guy selling their car to go back to school. There are many on here who live on their own and pay for their own schooling. But sadly, many more who have no clue whatsoever.

I am in school right now and still manage to scrape together enough every month to put some aside to save for a downpayment much later down the road, and some more for an emergency fund in case an accident happens I have to live without a job temporarily. This is while paying my way through school. Thankfully my parents didn't kick me out of the house.

There are friends of mine who decided school is not for them and worked since highschool, makes approx 3 times as much as I do right now and have less savings than me. These are the people that this article should be reaching out to, but don't. Not to be biased, but most of these lavish spenders don't read the news anyways and won't come across an article like this. Not to mention they think their way of life is completely fine and there is no point to change it. This friend of mine has made something to the tune of $250,000 in the last few years and yet has less than 5k in savings. Nothing we said to him has managed to make him change his habits.

[no_clue]

how many losers I see in downtown/metrotown trying to look baller in their true religion,ed hardy whatever and then I see them take the skytrain or drive a 1995 civic/leased 323i.

Although I too, love cars I've seen people spending 60-70% of their paychecks on monthly payments and car modifications !
I think the concept, value of a dollar is disappearing with our generation

[BeefCake4000]

Maybe because most people in my generation are content with having balances of zero. Everybody is so concerned about "looking rich" (flashy cars,clothes,bottle service, etc, etc). I blame all the rap music videos we watched growing up :fullofwin: . The ones currently doing well are doing well because they thought about their future, and didn't piss away all their cash on "lifestyle".

As harsh as it sounds, this statement is very true.

[BaoTurbo]

I did the math when I was in first year. The cost of living is rising too rapidly for the wages to increase and level out. Buying a car or a house/shelter is going to be pretty hard to come by sooner or later. I've planned on not staying in Vancouver after I have finished school, but I mean that's only my projected plan, I'm not set on it yet. Probably move to Asia countries and settle down there.

[SFUguy]

I did the math when I was in first year. The cost of living is rising too rapidly for the wages to increase and level out. Buying a car or a house/shelter is going to be pretty hard to come by sooner or later. I've planned on not staying in Vancouver after I have finished school, but I mean that's only my projected plan, I'm not set on it yet. Probably move to Asia countries and settle down there.

you'll feel the squeeze there too

inflation
medical bills
money not going as far as canadian dollar
daily pressures from work and society

[46_valentinor]

I'm currently getting my pilots license and I know for certain that I will be coming out with huge debt (aprox. 20-40k). However, if worst comes to worst ill just go get a job in alberta for a season or so and come back debt free.
Posted via RS Mobile (http://www.revscene.net/forums/announcement.php?a=228)

[MindBomber]

She is talking about kids using their parents as an ATM to do discretionary spending. Helping kids to buy property and other investable assets like shares is a good way for parents to help their kids take on more financial responsibility.

I understand the difference, but the Mother literally bought the daughter a condo. In my eyes that doesn't teach financial responsibility, other than perhaps how to set aside money each month for property taxes, and that's done at the expense of the daughter learning how to save long term, through the experience of setting money aside each month for a down payment. Of course, without significant financial support, it would be impossible to save long term making $13 an hour and living alone in Richmond, but I digress. A condo that's not being rented out or renovated is hardly an investment, because it will see very minimal growth over the long term.

Giving a child $10k worth of seed money to invest in shares and guiding them through their first purchases as they set up a portfolio is an entirely valid and valuable learning experience, the scenario in the article couldn't be farther from that imo.

[Mr.HappySilp]

I do beleive that a lot of us do have our proities wrong. We get mix up from "Needs: and "Wants" and digging a hold for ourselves.

Do we need to pay $700 for an Iphone 4s when we just had the iphone4 last year? Or do we need a new laptop when we got one last year? Or even just we need need another pair of shoes when we already own 30 pairs of shoes? A lot of people will say We need it, but really we don't...........

Is just not happening to us but also to high school kids. I think we really have the media to blame for this. You seen on TV and ads is like people with all these net technologya nd is living the life carefree pushing us thinking into that way.

We also spend a lot of stuff we don't need! Do we need to have a $5 starbucks coffee every morning even though the office have coffee?

If people manage thier money well they can live just fine even making min wages. Well your life won't be in good shape but you can surive. But it is getting tougher everything is increasing in prices while wages don't increase so much.

[Ludepower]

How much does one have to make an hour to pay monthly bills, buy food and own a 1 bedroom condo in the GVRD?

atleast $25/hr?

[Mr.HappySilp]

How much does one have to make an hour to pay monthly bills, buy food and own a 1 bedroom condo in the GVRD?

atleast $25/hr?

Well first you have to have a downpayent say if the apartment is 320k I would say a good downpayment is 10% so your mortage is less and you could get a better interest rate. Then you need to have some money for move in (furniture........). I would say is a bet to say you need around 50k around to be on the safe side.

Then you have to pay bills and save and also put aside some money for RRSP, life insurance and energemcy funds in case you get fire or something major happens and you need money.

[LiquidTurbo]

Again, like I've said before in the past, too much 'entitlement' floating around young people. They feel it's their right to have a home, but aren't willing to do much about it, let alone save.....

It really irritates me. Like someone said before, these are the same people who will go and blow $700 on a iPhone when they have a perfectly good phone.

:fulloffuck:

[Jermyzy]

I'm curious, how many of you guys are actively saving towards retirement already (not just general savings for a rainy day)? I'm 28 and my wife is 30, and she's already concerned with making sure we will have enough to retire on. So far we've been maxing out our RRSP and TFSA contributions every year.

[Mr.HappySilp]

^^ maxing it everyday as well. I am pretty sure it won't last though.......
All the money we make towards CCP now I am pretty by the time we retire the gov won't give it back.

[taylor192]

But it is getting tougher everything is increasing in prices while wages don't increase so much.

This is the great lie that people like to tell. Here's a fun fact:
If you strip away the impact of rising prices, the years between 1980 and 2005 turn out to be a dead zone for middle-class prosperity. During this period, in terms of inflation-adjusted dollars, the median annual salary for a full-time worker rose all of $53 — that’s right, $53 a year — to $41,401, according to Statistics Canada.

Our money today buys as much as it did 30 years ago - now someone tell me why this is a bad thing, and how the middle class is disappearing cause of it? It seems to me the middle class is exactly were they were 30 years ago, and will be 30 years from now: in the middle.

The problem is just housing. In the last decade housing inflation has been retarded, yet its the middle class that has been driving that via speculation trying to get rich quick. So we only have ourselves to blame.

[taylor192]

How much does one have to make an hour to pay monthly bills, buy food and own a 1 bedroom condo in the GVRD?

atleast $25/hr?
$250K for a cheap 1bdrm, 10% down, $225K mortgage @ 4% ~= $1K/mn + 50% of $150 condo fee + $150 taxes ~= $1225 / 44% TDS ~= $2800/mn income after taxes ~= $40K/yr or ~$20/hr

That's the bare minimum, no other debts/payments (ie no car payment) and you'd have to live off $1500/mn to pay car/gas/cell/internet/cable/... and try to save some $$$.

Yet I argue if you're stretching it that thin, there's no reason you should own. Keep yourself mobile so you can find a better jobs that pays more.

[JHatta]

Again, like I've said before in the past, too much 'entitlement' floating around young people. They feel it's their right to have a home, but aren't willing to do much about it, let alone save.....

It really irritates me. Like someone said before, these are the same people who will go and blow $700 on a iPhone when they have a perfectly good phone.

:fulloffuck:

I couldn't have said it better myself.

Too many people I know don't understand saving for the future, they blow everything on new technology or car parts, then turn around and cry when they can't pay their phone bill at the end of the month.

Some people's idea of "saving" is to put money into a savings account until they reach enough to go to vegas/mexico or buy a "new" car. They don't know about TFSA, RSPs, or any long term investments that are set up to help them in the future.

It irritates me because a lot of these people are friends I know. They come ask me to help them budget for them, then turn around and call me a cheap-ass for setting up a budget that allows for them to save for the future, at the expense of drinking/eating out/clubbing.

Then they whine when their car won't start and they haven't put any money away for emergencies, and I'm like :pokerface:

[tiger_handheld]

have not read the article in full detail - but this guy was my Finance Instructor at Kwantlen. Awesome dude!

He explained options using puppy dogs - VERY EPIC!

[taylor192]

Then they whine when their car won't start and they haven't put any money away for emergencies, and I'm like :pokerface:
and I bet they are mad at you then too :(

This is why I think Disney's The Ant and The Grasshopper did a disservice to society. In the original printed version the grasshopper dies, teaching a lesson that if you fuck around and don't plan ahead, you suffer the consequences. Instead people learned that they could fuck around and someone will always bail them out. :(

[JHatta]

I think the mentality of saving for the future has a lot to do with your upbringing. If your parents set aside money for you at a young age (i.e. trust fund, RESP, etc) they will most likely emulate these types of habits onto you. They wouldn't go through all the trouble of saving their own money for you just for you to grow up to be a reckless spender.

These are the type of people who look at RSPs and go :heckno: when they hear that they money the put in there will be penalized if taken out at the wrong time. When the TFSA got initiated, most people were :alonehappy: because this removed some restrictions that deterred young people from saving.

still....most people i know either don't know about TFSAs or are :fuckthatshit:

[belka]

So glad I never went to a civy college.

Debt? :fuckthatshit:

[iEatClams]

how many losers I see in downtown/metrotown trying to look baller in their true religion,ed hardy whatever and then I see them take the skytrain or drive a 1995 civic/leased 323i.

Although I too, love cars I've seen people spending 60-70% of their paychecks on monthly payments and car modifications !
I think the concept, value of a dollar is disappearing with our generation

I still don't know how kids can spend 80% of their paycheck buying $200 + jeans, or $200 designer bags. Boggles my mind.

It's been long while since I was in highschool, but I remember at one time in grade 10 or 11?? We had some sort of career course? I remember one week we did had a lesson on financial management.

We had to make budgets based on income, expenses etc etc. and how much you make/spend etc. how you should have at least 2 months income savings for emergency.

I thought this was a valuable course, do they still teach kids this stuff in highschool? Or are the kids not paying attention anymore?

If they don't they should.

[bloodmack]

how many losers I see in downtown/metrotown trying to look baller in their true religion,ed hardy whatever and then I see them take the skytrain or drive a 1995 civic/leased 323i.

Although I too, love cars I've seen people spending 60-70% of their paychecks on monthly payments and car modifications !
I think the concept, value of a dollar is disappearing with our generation

just cause they don't have a flashy ride doesn't mean they aren't rich. I know a few very rich people who drive f150's but, wear high end clothing and accessories. The value of a dollar is an outdated term IMO it should be more like the value of 10 dollars cause nothing costs a dollar these days :lol.

But yeah there are the majority who are like that tho.

[Mr.HappySilp]

just cause they don't have a flashy ride doesn't mean they aren't rich. I know a few very rich people who drive f150's but, wear high end clothing and accessories. The value of a dollar is an outdated term IMO it should be more like the value of 10 dollars cause nothing costs a dollar these days :lol.

But yeah there are the majority who are like that tho.

No way $1 still get u tons of stuff in the dollar store lol. If you haven't notice most vending machines sell a can of pop for $1.25 or 1.50 but if u go to dollar store it is sitll $1 :alone: even a pack of batteries is $1 lol.

But I know what you mean everyone have different vaule. I just upgraded my video card and a PSU and looking for a new computer case :pokerface: I guess is fine since I haven't purhcase anything in the last few months.

[AstulzerRZD]

I still don't know how kids can spend 80% of their paycheck buying $200 + jeans, or $200 designer bags. Boggles my mind.

It's been long while since I was in highschool, but I remember at one time in grade 10 or 11?? We had some sort of career course? I remember one week we did had a lesson on financial management.

We had to make budgets based on income, expenses etc etc. and how much you make/spend etc. how you should have at least 2 months income savings for emergency.

I thought this was a valuable course, do they still teach kids this stuff in highschool? Or are the kids not paying attention anymore?

If they don't they should.

As a current grade 10 student, I was assigned a budgeting project in Business Education 8 as well as Planning 10. I'm in the enriched program at my school and work rather hard to achieve my 89% average. I have noticed that many don't even try to pay attention in class. On several occasions, some have asked me why I try hard in school instead of going out and enjoying myself. It is clear that the value of hard work and education does not apply to many in today's society. Some see the need to spend 80% of their paycheck buying said clothing accessories because of the following reasons.

1 : They want them. Some of their friends are wearing them, some rather popular people in the school are wearing them. They believe that it can cause them to feel secure about themselves. 2 : Bad parenting, I was at a cadet function once where I won a hat from the free raffle. I then overheard a parent telling their child to not win a hat but something better. At the time, I thought it was absurd as the hat was a bonus for attending the event. 3: Spending the maintain appearances and give other the impression that they are rather wealthy

But those kinds of habits will only lead to an unsustainable lifestyle. As mentioned in this thread several times, the majority of us are facing pressure to complete our education to a high standard and attain a good paying job. In science, we were learning about Natural Selection which favors those who adapt well to surviving and reproducing. This can be applied to an individual's financial situation in the way that those who manage money will eventually have the money to get married and create the future generation. In conclusion, it is the social factors and environment around us which cause some of us teenagers to irresponsibly spend 80% of our paychecks on Trues/Yoga Pants, etc.

[iEatClams]

In conclusion, it is the social factors and environment around us which cause some of us teenagers to irresponsibly spend 80% of our paychecks on Trues/Yoga Pants, etc.

That's a nicely written piece for a grade 10 student, and I agree completely with your conclusion.

This Planning 10 class, is every student required to take it?

[bloodmack]

No way $1 still get u tons of stuff in the dollar store lol. If you haven't notice most vending machines sell a can of pop for $1.25 or 1.50 but if u go to dollar store it is sitll $1 :alone: even a pack of batteries is $1 lol.

But I know what you mean everyone have different vaule. I just upgraded my video card and a PSU and looking for a new computer case :pokerface: I guess is fine since I haven't purhcase anything in the last few months.

:lol i think in the "digital era" we live in, having an up to date computer it a must. Sure it still falls under the "want" category but without one you wont get very in the world today.

[hotjoint]

I do beleive that a lot of us do have our proities wrong. We get mix up from "Needs: and "Wants" and digging a hold for ourselves.

Do we need to pay $700 for an Iphone 4s when we just had the iphone4 last year? Or do we need a new laptop when we got one last year? Or even just we need need another pair of shoes when we already own 30 pairs of shoes? A lot of people will say We need it, but really we don't...........

Is just not happening to us but also to high school kids. I think we really have the media to blame for this. You seen on TV and ads is like people with all these net technologya nd is living the life carefree pushing us thinking into that way.

We also spend a lot of stuff we don't need! Do we need to have a $5 starbucks coffee every morning even though the office have coffee?

If people manage thier money well they can live just fine even making min wages. Well your life won't be in good shape but you can surive. But it is getting tougher everything is increasing in prices while wages don't increase so much.

This. I'm one of the few people in of my group of friends that really has any savings, I'm not talking about 1000+, I'm talking about 100,000+. The rest are too concerned with having the latest electronics, clothing etc.... It's amazing how the media has brainwashed everyone into thinking that they "need" certain things. It's sad seeing all these people who make good money struggle because they live a lifestyle beyond their means.

[Great68]

Some sort of financial planning/management course should be worked into the high school curriculum. I realize that there are plenty of resources out there for self education, but not enough people do that.

My parents were very responsible with their money, but they never sat down and explained how it all worked to me.

I have savings and no debts (I'm debtphobic) but I think that if I had known more about investing etc back when I was a teenager, that I'd have an even bigger leg up today.

[tiger_handheld]

As a current grade 10 student, I was assigned a budgeting project in Business Education 8 as well as Planning 10. I'm in the enriched program at my school and work rather hard to achieve my 89% average. I have noticed that many don't even try to pay attention in class. On several occasions, some have asked me why I try hard in school instead of going out and enjoying myself. It is clear that the value of hard work and education does not apply to many in today's society. Some see the need to spend 80% of their paycheck buying said clothing accessories because of the following reasons.

1 : They want them. Some of their friends are wearing them, some rather popular people in the school are wearing them. They believe that it can cause them to feel secure about themselves. 2 : Bad parenting, I was at a cadet function once where I won a hat from the free raffle. I then overheard a parent telling their child to not win a hat but something better. At the time, I thought it was absurd as the hat was a bonus for attending the event. 3: Spending the maintain appearances and give other the impression that they are rather wealthy

But those kinds of habits will only lead to an unsustainable lifestyle. As mentioned in this thread several times, the majority of us are facing pressure to complete our education to a high standard and attain a good paying job. In science, we were learning about Natural Selection which favors those who adapt well to surviving and reproducing. This can be applied to an individual's financial situation in the way that those who manage money will eventually have the money to get married and create the future generation. In conclusion, it is the social factors and environment around us which cause some of us teenagers to irresponsibly spend 80% of our paychecks on Trues/Yoga Pants, etc.


Very well written response; I see how you get 89% now. Like how you applied a concept from Science 10 to the "real world" - well done!

[drunkrussian]

never had debt in my life and dont plan on having any and im 25 so just within this range. i live by myself fairly comfortably (knock on wood) and put aside decent savings but still enjoy life. however, realistically i would need to marry and move away from this province if i ever want to own a house or condo. it is just not possible to own and live comfortably as i am when renting in this province. and renting is overpriced as hell so thats saying something.



1 : They want them. Some of their friends are wearing them, some rather popular people in the school are wearing them. They believe that it can cause them to feel secure about themselves. 2 : Bad parenting, I was at a cadet function once where I won a hat from the free raffle. I then overheard a parent telling their child to not win a hat but something better. At the time, I thought it was absurd as the hat was a bonus for attending the event. 3: Spending the maintain appearances and give other the impression that they are rather wealthy


worst part is how a 15-22 year old sees someone with overpriced jeans on and this for them means theyre rich. they dont realize that most of us could easily afford 100 pairs of these jeans and choose not to buy them because we're not idiots. pretty much relates to both your points #1 and 3. fools spend their paychecks to come off as cool and rich when in reality the guy with the levis is buying a condo
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[Mr.C]

How much does one have to make an hour to pay monthly bills, buy food and own a 1 bedroom condo in the GVRD?

atleast $25/hr?

I am making less that that, and I pay a Mortgage, have a car, and pay all my bills on time. Perfectly possible.

[604nguyen]

it all really depends on how you live your 'lifestyle'....

In not trying to brag, but giving you guys an example,

Im 27, moved out at 22, never received a dime from my parents since high shcool......own a 380k townhouse, a 5 series and an rx7, no debts other than my mortgage. I vacation at least once a year.
No I don't buy fancy clothes, eat out everyday, or party 3 times a week, some people call me cheap, but hey.... im comfortable

an acquaintance of mine, same age, makin the same amount of flow, if not more...
still lives at home with mom, cant afford a car, or pay off his credit card debts, but hes flashy as hell, buying $400 jeans, spending $100s on drinks trying to pick up LG's every weekend blowing paycheque to paycheque, like money aint a thaaaang...
On top of that he complains how hard financially life is.


:yuno: :seriously:



Alot of times its these people who 'feel the squeeze'

[CorneringArtist]

That's a nicely written piece for a grade 10 student, and I agree completely with your conclusion.

This Planning 10 class, is every student required to take it?

Planning 10 has been mandatory since they changed the graduation requirements in 2005 I believe. Before I started Grade 8 that year in the fall, they dropped Planning 10 on the Grade 10 students that year.

Personally, I intend on being able to move out by the time I'm 22 or 23, but I'm making manageable payments on my newly financed car, with enough money left to save for my level 2,3, and 4 apprenticeship courses, saving for the down payment on a home, and I've started a TFSA and RRSP (although, I started both rather late since I didn't have much money).

Despite living at home for now and choosing not to spend my cash on hookers, blow, and LGs, I understand the value of money since I started working full-time, and with the way things are going, my goal seems realistic barring unexpected expenses (knock on wood).

[xyz123]

Like wise, article is pretty bias, but at least they put it out there as an eye opener for young adults who read the newspaper.

I think we're heading into something rough for our generation. I mean if you think about how the world economy is going, we may find ourselves a lost generation. Now when i say this, i'm not saying everyone in our generation is going to be without jobs but majority will globally. Also i'm talking about the people who have the potential to obtain a comfortable job but can not due to the economy being pretty bad.

[1exotic]

an acquaintance of mine, same age, makin the same amount of flow, if not more...
still lives at home with mom, cant afford a car, or pay off his credit card debts, but hes flashy as hell, buying $400 jeans, spending $100s on drinks trying to pick up LG's every weekend blowing paycheque to paycheque, like money aint a thaaaang... On top of that he complains how hard financially life is.



You just described every wannabe baller faggot in Vancouver

lol

[dark0821]

I am currently 23 and Being Asian I get to live at home with my parents but honestly speaking moving out is not even possible with my current situation. It's sad but it's true

Because of the lack of living expenses I am able to put something like 700 a month into savings (after spending the rest of my income on phone/Internet bills, car insurance and gas, tuition) but honestly even at 700 that will still take me a good 6 years to save up 50,000.

I don't think there is any old studio/ 1 bedroom apartment that sells for 150,000 but even at that. Taking a 100,000 25 year mortgage from the bank yields something like 650 a month which is close enough of what I am putting aside every month right now... Ya I am feeling the squeeze alright...

Lol end rant/

I know I am better off than a lot people who had to fend for themselves since high school but come on, living in Vancouver is ridiculous

[drunkrussian]

^agree. on the upside when u save enough in five years and buy a place ull. e making more than what you are now. so the entire 700 will NOT go towards the mortgage. some will go towards car payment and strata fees and bills as well :-p
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[Jassanova]

I have to say kudos to all who work hard and save money and pay for everything themselves. You guys are few and far between and if there were more of you in the lower mainland it would be a great place to live.

I'm lucky enough to be in a profession where my starting pay after being called to the bar, even in a smaller center like Kelowna, was a lot more than most people my age make. I'm moving back to Vancouver soon and while I'll get a significant pay raise, bills are also going to be raised significantly and my wife and I will be feeling the squeeze, albeit a bit more comfortably than the 30k millionaires do.

I'll never understand why people would pay $1500 / mo to rent downtown when they bring home $2000 a month.

[rslater]

I am currently 23 and Being Asian I get to live at home with my parents but honestly speaking moving out is not even possible with my current situation. It's sad but it's true

Because of the lack of living expenses I am able to put something like 700 a month into savings (after spending the rest of my income on phone/Internet bills, car insurance and gas, tuition) but honestly even at 700 that will still take me a good 6 years to save up 50,000.

I don't think there is any old studio/ 1 bedroom apartment that sells for 150,000 but even at that. Taking a 100,000 25 year mortgage from the bank yields something like 650 a month which is close enough of what I am putting aside every month right now... Ya I am feeling the squeeze alright...

Lol end rant/

I know I am better off than a lot people who had to fend for themselves since high school but come on, living in Vancouver is ridiculous

I presume you have to look at the fact that your living wage should be a fair bit more in 5 years. So while it may take 6 years to save, I don't think you'll be feeling the financial squeeze the same as your feeling now.

[AstulzerRZD]

That's a nicely written piece for a grade 10 student, and I agree completely with your conclusion.

This Planning 10 class, is every student required to take it?

Hi azndude, and sorry for the late reply.

Yes, all students today are required to take Planning 10 before attaining eligibility to graduate. However, Planning is geared towards discovering more about the adult workplace and post secondary opportunities.

We are also required to do Graduation Transitions which forces us to think about our current lives, and write out exactly what we plan to do with it after we graduate.

There isn't really a course which focuses upon getting "prepped" for financial responsibility or "running your own life" in high school. Not even Business 10.

I personally keep track of all my purchases and expenses through an online service called the Birdy and manage most of my own money.

[Mr.HappySilp]

sigh... Got an ipad2 around Chirstmas and still refund it in the end..........

It was fun to have around I have to be honest. I spend nights just watching netflix, pps play games on it...... but for $700 I could have saved it......

I guess is the right thing to do though.....

[LiquidTurbo]

If there's something you want, ask your self. In 10 years, am I going to look back and regret that I bought this thing?

[z-33]

YOLO.

[flagella]

Well... she's a fucking pastry chef. That explains. :fuckthatshit:

[Gerbs]

I was just wondering, at the age of 15 what would be a reasonable amount to throw into rrsp every month?
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[NLY]

Start with a small amount (ie. $50/paycheck biweekly) and then as you make more income, increase the amount you contribute!

You have to remember you cannot spend that money (put away for long-term) and if you do there's a penalty so manage your finances wisely

Props for thinking about retirement at 15 years old.

[q0192837465]

I was just wondering, at the age of 15 what would be a reasonable amount to throw into rrsp every month?
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There's not really a point in throwing money in RRSP if u aren't paying taxes. I don't know how much u make but it's unlikely that u need to pay any income taxes from ur part time job at age 15. Save ur room till ur in a full time position.
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[melloman]

Honestly thinking retirement @ 15 years old..?

I would start to consider retirement once I have purchased my first apartment/condo/home. Unless your going to use the RRSP for a down payment in a "Home Buyers' Plan" yet even then, that's only $25,000/year you can withdraw for it.. It'd put it in a TFSA or Mutual Funds, let it grow and withdraw when ready for the big purchase.. (Or atleast the TFSA/MF is what I'm currently doing while saving for a down payment for property.)

[taylor192]

I was just wondering, at the age of 15 what would be a reasonable amount to throw into rrsp every month?
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At the age of 15 you should be using a TFSA as you won't have much RRSP room, or income to deduct.

Anything helps, yet $100/mn would be a great start. Your challenge would be what to invest in as you'd want something with low fees so it doesn't eat away what little you have.

My friend started investing early in RRSPs yet then banks were taking yearly fees on investment management, so she was losing $50/yr. For a few years she didn't contribute or manage her investments, only to find out later he balance has actually declined due to all the fees.

[taylor192]

Honestly thinking retirement @ 15 years old..?

I would start to consider retirement once I have purchased my first apartment/condo/home.
By then its too late as most people have been taking on too much mortgage leaving no extra $$$ for retirement savings.

I started saving for retirement when I was 22yo and saved aggressively. At 30yo I had enough saved for retirement that if I didn't save another penny (ie have kids, buy a house, ... things that suck your bank account dry for 20 years) I'd still have enough to get by in retirement.

[Slifer]

Pretty sure you must be 19 before you start accumulating room for TFSA but I could be wrong.

[7seven]

Pretty sure you must be 19 before you start accumulating room for TFSA but I could be wrong.

It's actually 18, you can start accumulating and open a TFSA at 18.

The catch here however in BC, the age of majority is 19, so any document signed by a 18 year old as a minor is not a valid contract to open an account. The parents or guardian and minor will need to sign a declaration and indemnity form to open a TFSA or RSP for a minor child.

[will068]

I'm curious, how many of you guys are actively saving towards retirement already (not just general savings for a rainy day)? I'm 28 and my wife is 30, and she's already concerned with making sure we will have enough to retire on. So far we've been maxing out our RRSP and TFSA contributions every year.

Hell I worried about that + my future kid's college tuition when I was 21.

A lot of the replies here stated the right answers. A lot of the young adults buy things they "want" additional to the things they "need".

Not only that, spending wisely. You really want that pair of jeans, wait for the damn sale, or go black friday /boxing day shopping.

As for me, I save to invest. Whether pouring money to your business, stocks & options, real estate, whatever that will make you money. Then use residual money from these ventures to buy your houses, cars etc.

[Cartier Wearer.]

I'm no financial planner but I know young people are stupid with their money.
All young teens want xbox, ps3, clothes, cars and I'm the same except for one thing. I make sure to save and make sound investments. I've made a substantial amount from just doing research and now running online business ventures. I make sure to save and even my favorite tv show is till debt do us part. The good thing is I'll never have to worry about going broke. I could retire now if I really wanted to but probably not practical. I drive a E63AMG and live downtown coal harbor high rise condo. Heck I just went to commuiinity college and don't have any fancy degree. Got bankrolled from parents to start small business and have been steadily building my career. I never spend things that I can't afford or on dumb frivalous shit. Probabably will take a vacation to mexico in a couple weeks to get away from this shitty weather. Its all how much you want it and you have to have some street smarts too.

[ForbiddenX]

I've been pretty stupid with my money ever since I got out of high school. I used to be really good though back when I had my first job (I was 15. I'm 20 right now). I saved a lot and my only expense was for my WoW subscription and the odd time I'd want to go eat outside. Bought my first DSLR with the money I had saved and started doing photography which I ended up loving and I still do it. The rest of the money went into a GIC. I only worked during summer so I had to make enough to last me until the next summer. I then bought a Macbook to use for gr12 and university and I still had some money left over.

But in gr12 my lifestyle started to change. I didn't really play as much video games anymore and I started dating my girlfriend. I had someone to go out with and now I was going out a lot more than I used to and I spent a lot more as opposed to not going out at all. I started to become more social and started to hang out with a lot more people and spent a lot of time with the gf.

This continued for the next few years while I was going to BCIT. I only worked 1-2 shifts a week at minimum wage so I ended up making around 100-200 per paycheck. I started to view it as "throw away" money. As in, it's only so little that it won't really matter since once I started working full time in the summer it would cover for it. Really bad mentality. This resulted in me going paycheck to paycheck all the time 200 in the bank then 0 in the next few days. Also got my first car during this time so I was paying for gas too now. I also got a credit card which wasn't the best decision ever. It was a pretty bad cycle, spend money, max credit card, pay credit card, spent the same amount I just paid.

I thought I was fine with the way I was living until recently. I started my career a few months ago and have been working full time with decent pay. I also had to start taking on a few more responsibilities and need to work on budgeting my money more. I took on a loan for a new car (have to travel about 60km a day and my old car was giving out) and now I'm making monthly payments and also paying for insurance and gas. I look back and think about all that money I spent as "throw away" buying new gadgets, food, clothes that I didn't really need and I would've been able to put down a decent down payment for the car and would've been paying less or even putting that into a bigger investment. The car's supposed to be paid off in 4 years but I'm looking at getting that all paid of by the end of this year.

I'm also finally really close to paying off my credit card and I haven't been spending the way I used to anymore. I've been trying to put my money into a savings account that I opened.

Looking into getting an RRSP now and started using Mint to help me budget my money a little bit.

[too_slow]

I'm no financial planner but I know young people are stupid with their money.
All young teens want xbox, ps3, clothes, cars and I'm the same except for one thing. I make sure to save and make sound investments. I've made a substantial amount from just doing research and now running online business ventures. I make sure to save and even my favorite tv show is till debt do us part. The good thing is I'll never have to worry about going broke. I could retire now if I really wanted to but probably not practical. I drive a E63AMG and live downtown coal harbor high rise condo. Heck I just went to commuiinity college and don't have any fancy degree. Got bankrolled from parents to start small business and have been steadily building my career. I never spend things that I can't afford or on dumb frivalous shit. Probabably will take a vacation to mexico in a couple weeks to get away from this shitty weather. Its all how much you want it and you have to have some street smarts too.

Bitch please, you dropped out of SFU, and live in your parent's basement.

[too_slow]

I'm also finally really close to paying off my credit card and I haven't been spending the way I used to anymore. I've been trying to put my money into a savings account that I opened.

Looking into getting an RRSP now and started using Mint to help me budget my money a little bit.

Props! Like many others, I've started making contributions to my RRSP since I was 16. Why? You can use it for LIRA (life-long learning) and First time home buyers as mentioned multiple times. So far, I've already depleted the latter, and will be exercising the former to pay for grad school. I have zero tolerance for risk, so I've always held the $ in 5 year RRSP-GICs.

(ING Direct has been pretty generous with their 5year rates up until 2008 when the market imploded).

Also, I like to set quarterly milestones for my savings; if I achieve my desired savings target, then I get to splurge a little (I end up combining them for one major trip every year).

[Phil@rise]

Live within your means dont be ashamed by those means and learn to say "I can afford that" and problems solved. Then you can work on getting ahead and building a future.
Secondly you dont need credit to get by. I own a couple late model cars and run my own business all without resorting to credit

[TjAlmeida]

I'm no financial planner but I know young people are stupid with their money.
All young teens want xbox, ps3, clothes, cars and I'm the same except for one thing. I make sure to save and make sound investments. I've made a substantial amount from just doing research and now running online business ventures. I make sure to save and even my favorite tv show is till debt do us part. The good thing is I'll never have to worry about going broke. I could retire now if I really wanted to but probably not practical. I drive a E63AMG and live downtown coal harbor high rise condo. Heck I just went to commuiinity college and don't have any fancy degree. Got bankrolled from parents to start small business and have been steadily building my career. I never spend things that I can't afford or on dumb frivalous shit. Probabably will take a vacation to mexico in a couple weeks to get away from this shitty weather. Its all how much you want it and you have to have some street smarts too.

Haha. Good joke.
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[CorneringArtist]

I'm no financial planner but I know young people are stupid with their money.
All young teens want xbox, ps3, clothes, cars and I'm the same except for one thing. I make sure to save and make sound investments. I've made a substantial amount from just doing research and now running online business ventures. I make sure to save and even my favorite tv show is till debt do us part. The good thing is I'll never have to worry about going broke. I could retire now if I really wanted to but probably not practical. I drive a E63AMG and live downtown coal harbor high rise condo. Heck I just went to commuiinity college and don't have any fancy degree. Got bankrolled from parents to start small business and have been steadily building my career. I never spend things that I can't afford or on dumb frivalous shit. Probabably will take a vacation to mexico in a couple weeks to get away from this shitty weather. Its all how much you want it and you have to have some street smarts too.

Hyde: Lower Mainland edition right here...

[belka]

I'm no financial planner but I know young people are stupid with their money.
All young teens want xbox, ps3, clothes, cars and I'm the same except for one thing. I make sure to save and make sound investments. I've made a substantial amount from just doing research and now running online business ventures. I make sure to save and even my favorite tv show is till debt do us part. The good thing is I'll never have to worry about going broke. I could retire now if I really wanted to but probably not practical. I drive a E63AMG and live downtown coal harbor high rise condo. Heck I just went to commuiinity college and don't have any fancy degree. Got bankrolled from parents to start small business and have been steadily building my career. I never spend things that I can't afford or on dumb frivalous shit. Probabably will take a vacation to mexico in a couple weeks to get away from this shitty weather. Its all how much you want it and you have to have some street smarts too.

http://i226.photobucket.com/albums/dd151/pushok85/diaf.gif

[cressydrift]

I'm no financial planner but I know young people are stupid with their money.
All young teens want xbox, ps3, clothes, cars and I'm the same except for one thing. I make sure to save and make sound investments. I've made a substantial amount from just doing research and now running online business ventures. I make sure to save and even my favorite tv show is till debt do us part. The good thing is I'll never have to worry about going broke. I could retire now if I really wanted to but probably not practical. I drive a E63AMG and live downtown coal harbor high rise condo. Heck I just went to commuiinity college and don't have any fancy degree. Got bankrolled from parents to start small business and have been steadily building my career. I never spend things that I can't afford or on dumb frivalous shit. Probabably will take a vacation to mexico in a couple weeks to get away from this shitty weather. Its all how much you want it and you have to have some street smarts too.

:troll: