The latest from our Heart and Soul
You are standing in the check out line at the grocery store dreading the nagging you are sure to get from the kids about buying another pack of gum. All the stuff at the check out line is a total temptation for the kids, and a total irritation for you. Sounds like it is time to start giving your children an allowance so they can start spending their own money. 
It can be a difficult thing to start, there are so many questions about how to do it and how much to give.
Some parents even feel they can’t afford to give their children an allowance every month but as Sheila Walkington, CFP, Money Coach and CFO of Money Coaches Canada says “giving your child an allowance is an opportunity to teach your child how to manage money from a very early age.” She also says in the end an allowance will end up saving parents money by eliminating the constant asking and nagging for money by your kids. They will have their own money to spend and that will set the stage for your child’s financial future.
But there are a few things to consider before you start dishing out the money. When to start? How much allowance will you give? When will you give it, once a week, every two weeks or one a month? How will you help your kids decide how to handle the money they have?
It is great to start children young when it comes to allowance, especially if your kids are asking you to buy things at the check out line. Andrea Ramsay Speers, psychotherapist and parenting coach (www.homeimprovementforparents.com) says you can start as early as three years old with a small amount of money, like a quarter. Teach them to put it in a safe place and then make them responsible for paying for something small, like a gum ball at the store. “At three, they might not understand the way money works and the value of a quarter in relation to a dollar, but they can enjoy the feeling of responsibility and independence that comes from making their own small purchases”, says Speers. Walkington says at about age five or six, as soon as kids can start to grasp money values, is the perfect time to start an allowance and help them learn about how to spend, save and share money.
One key to allowance is that it shouldn’t be tied to chores. As money expert, television host and author Gail Vaz-Oxlade, http://www.gailvazoxlade.com, says no one pays you to do chores. “Chores are part of being in a family. The allowance is to help kids learn about money. Don't make the money into a power play” says Vaz-Oxlade. Speers agrees that allowance and chores should be separate. “I believe firmly that kids should participate in the running of the house by doing chores, and I believe they should get an allowance, I just don’t think it’s the best system to tie the two together on a direct correlation”, says Speers.
Top 5 tips for giving Allowance
- Determine Allowance Amount. Vaz-Oxlade says you have to give kids enough money so they can actually work with it, incorporating the lessons you want to teach. “I suggest one dollar per year of age, so a 7-year-old would get $7 a week. 10% or 70¢ goes to sharing. 5% goes to saving... that's a buck .05, leaving 5.95 for whatever the child is trying to accomplish. Let's say $2 a week for mad money and the rest towards a planned purchase (planned spending).”
- Be Consistant. Walkington says the money has to be given on a consistent basis. Parents need to have a regular schedule for the allowance and stick to it. It could be once a week, every two weeks on payday or once a month, whatever works for you as long as it consistent. If the allowance is not consistent it teaches children that they can’t count on you or on their allowance to plan and save (our money beliefs are learned at a very early age and can set the stage for our financial future).
- Save, Spend, Give. Walkington says when it comes to dividing the money into save, spend and give categories try to use piggy banks, jars, separate wallets, or bank accounts to physically allocate the money to each category. It will help children to see where the money is going and how much they have.
- Follow the Spending Rules. Make sure you make your child pays for the things you agreed on and not beg you to buy them a Slurpee or toy with your money if they are supposed to pay for these types of things out of their allowance. Walkington says some kids hate to spend their own money, they would rather save their money and spend yours. So be strict and stick to the rules.
- Involve the Kids. Talk about the money and keep the kids involved. Vaz-Oxlade says it becomes more important as children gets older. “When my daughter was about 10 she decided she wanted her money once a month. It was easier to plan. When she was 12 I upped her allowance to include money for clothing and later she negotiated a raise.”
Family meetings are a great way to make sure everyone is on the same page and it gives everyone a forum to say what they need to say. Speers is a big believer in family meetings. “You can use your family meeting to discuss what the expectations are for everyone, but also, when your children are a bit older and would like an allowance increase, you can use the family meeting to discuss what the options or concerns might be and come to an agreement.” Walkington says parents shouldn’t be afraid to talk to children about money. She believes it is better to include children in the family decisions on how to spend money, rather than saying “We can’t afford that” or “No I am not buying that for you”.
There are lots of resources out their for parents. Vaz-Oxlade has a new ebook coming out this fall www.gailvazoxlade.com it is called MoneySmart Kids. The purpose of giving children allowance is really to teach them how to deal with money, to learn to be financially responsible and just become more independent people when it comes to their finances. We all need to learn how to handle money.
The 'experts' can't quite agree on it, but every family is apparently supposed to have between three and nine months' worth of expenses socked away somewhere, preferrably in a high-interest earning place that you can get to without penalty. This is in case of job-loss, medical emergencies, household repairs and other 
life-changing and expensive events.
Think about the numbers: the average four-person Canadian family spends $800 a month in groceries, alone. Nine months of groceries is $7,200.
How long would that take you to save?
Baby steps are much less daunting, aren't they? That's why I have a greater appreciation for Dave Ramsey's Debt Snowball method: a seven-step plan that basically waltzes you through, from barely making ends meet, to fully-funded retirement savings, a paid-off home and money to play with.
Step one of the plan is to save a $1,000 emergency fund; not $7,200, and not the approximately $32,000 that would represent a lot of families' nine months of expenses.
One measly grand.
But when you're living tight and paycheque dates are already circled on the calendar, when a fluctuating cell phone bill is the frequent cause of you either breathing a sigh of relief or getting a migraine, $1,000 can still seem like a chunk of overwhelming change. Unless you...
- Buy a roll of quarters every week
Saved: $10 a pop - When you use cash: throw your change in a opaque jar/container/bucket out of reach
Saved: $0.50 to $6.50 a day (average) - When you debit: add your own 'service charge' of $1.25 per transaction, payable to your savings' account
Saved: $25 a month - Return empties to the liquor store and grocer
Saved: $0.05-$0.20, each, depending on size - Open a no-fee bank account with a credit union, ING Direct or President's Choice
Saved: $5-20 per month for 'plan' fees, not including service charges for going above allotted debits, interest on overdraft, etc. - Quit a habit
Saved: $3-23+ a day, depending on if it's visiting the coffeeshop, smoking cigarettes, drinking booze... and so on - Go meatless
Saved: $5-15 per meal
You've got to admit, those seven things aren't too time-intensive, painful or even very obvious. You'll barely miss the funds, right? Now, let's figure out how long it'll take you to save a grand. Don't worry, I'll do the math for you.
A family of four, who uses one returnable container each a week, debits 20 times a month and eats a meatless dinner twice a week:
- Can save $1,000 in only four months and 17 days by saving the minimum amounts above;
- Can save a bit more than $1,000 in one month and sixteen days by saving the middle-of-the-range of the amounts above; and
- Can save more than $1,000 in less than four weeks by saving the higher end of the ranges above.
Totally doable. Quick, where's your change bucket?
Now that the holidays are approaching again, it's often a time of reflection. Looking back over the year, surprised how crazy fast it has gone. Wondering where all the time went. 
For some, we are also wondering how we will afford yet another holiday season. All the gifts, food and extras we'll be forking out. Did you save money for the holidays?
A small percentage of us have budgeted for this event. As you know, it comes every year, at the same time. So, those that plan ahead are ready for the season, with a lot less anxiety I'm sure.
The other large percent of us haven't planned, didn't save money and are winging it once again. Swiping plastic, spending more than we make and digging a nice big hole for ourselves.
Which leads me into the following 5 myths:
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Myth #1 - I will pay off the credit card bill after the holiday season.
Odds are, you won't. And by using a credit card, you are likely to spend more. A study of credit card use found that people spent 47% more when using credit instead of cash. There is time left to budget. Put aside some of your hard earned money. Determine how many gifts you will be purchasing, put a cap on it and pay in cash.
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Myth #2: - I don't need to plan my holiday shopping. I'll just pick up things here and there when I get some free time.
Impulse shopping will only dredge more money out of your pocket. Plan your shopping (around sales) and spend consciously. Random purchases are going to eat your budget alive.
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Myth #3 - Saving money by making holiday gifts is cheesy.
Absolutely not. Making gifts can be very special (and can save money). If you have some creative talents, get busy. If you love to cook, get on it. If you have no skills, offer your time. (You could babysit kids for free). There are a ton of beautiful and resourceful DIY sites that can help you out with this one.
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Myth #4 - It's okay to treat myself too. It is the time for giving after all.
Don't do it. You have all year to shop for yourself. You'll end up spending twice as much if you head into the mall with a "one for her, one for me" shopping mindset. Figure out a solid spending plan and you'll be safe.
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Myth #5 - I can keep track of my spending in my head. A good ball park figure is all I really need.
Ah, no. Spend less money by tracking the gifts you intend to buy or make. Record the amount of money you spend on each person. This will help you stay within your budget.
So, leave your credit cards at home. Formulate a shopping plan including the full list. Save money. Don't buy anything if you can't afford to pay for it in cash. Happy Holidays!
You may have heard of people who find fantastic deals, buy in bulk, and lower their grocery and living expenses to a crazy degree. And some people do. In fact, some people have found ways to maximize their savings by using coupons, double- and triple-deals, points cards and so on, and end up spending a ridiculously low amount on a monthly basis. Do you actually know any of those people? 
Because I don't.
While I envy the efforts of those who try to live frugally - especially this guy, who committed to spending only $1 a day and ended up having surplus to donate to food banks - and those who take advantage of deals to maximize their savings in the long-run, I have a sneaking suspicion that the majority of us are actually breaking our budgets by buying in bulk. As far as I know, us Canadians get stiffed on savings simply because we don't have CVS stores - the number one saver I witness frugal grocery shoppers mention. So, to us CVS neighbours-to-the-North, it seems like a great deal to stock up while earning bonus points, gift cards or %s off, but what if we're really just buying the image of saving?
When bulk makes sense
- When you have a large family and it makes sense to buy multiples for reduced prices - such as when each person needs their own tube of toothpaste, despite them all being the same brand and flavour. If you have toddlers, you know what I mean.
- If you have a large family of men, it makes sense to buy bulk sizes of any type of foodstuff that they'll inhale. Again, you'll know what I mean if this is your life.
- If you're prone to batch-cooking or -baking, buying bulk cuts of meat, and stocking up on pasta, potatoes, frozen and canned vegetables, flours and so on is economical.
- If you use a bread-maker frequently, large bags of flour and sugar make sense.
- If you have a large freezer, buying 10 pounds of chicken at a low per pound price makes perfect sense - just divide it into meal-sized portions, date the freezer bags and store it until you need it.
- If you want to donate goods, buying multiple packages of products you use is a good plan.
- If you have the space and you're not verging on hoarding, stocking up on anything that you'll use, that you got for a good price, and that you didn't have to spend money you didn't need to (or have) to get is GENIUS.
Let's look at some examples of advertisings that suck us into buying more, or in different ways.
Points for spending
When you get that flyer, email or newsletter, it seems like a genius idea: If you just spend a certain amount of money, you'll get free points that you can use in the future to save more money! In fact, Shoppers Drug Mart just gave me 18,500 points for spending over $75 last week. But what if I didn't actually need $75 worth of stuff, or the prices of items I bought we inflated, compared to another store that wasn't offering the points-deal? Luckily, I only bought items that I needed, and that were cheaper or of equal price to what I would normally pay. And I ended up gaining a $30 savings in the future when I use my points. If there hadn't been great sales on items that I needed, though, I would have been throwing money out the window.
Lesson: Know what points will ultimately earn you, be aware of ideal prices, and go with a shopping list. Don't end up with things you don't need, just to make the minimum threshold of spending.
Maximize the deal: If you will save a large portion of money in the future and you have the storage space, now is the time to buy non-perishable things that you're constantly going through - as long as they're wisely priced. Think bathroom tissue, paper towels, cleaning products, condiments, soda, frozen foods, toiletries.
Coupons that save you big bucks
You've got a cache of little scraps, all bold-facedly telling you to save money when you purchase a specific brand's product in a specific size. If you wouldn't normally buy the brand or the product and it will go to waste or sit in your home, collecting dust, get rid of the coupon. If it's an item that you're likely to use, have at 'er as long as the price is right.
Lesson: Using coupons can convince us to buy items we ordinarily would pass by. Trust your instincts - just because it's a deal, doesn't make it more attractive once it comes home.
Maximize the deal: Use your coupons when the product's already on sale, and if possible, also in combination with a points card or spending threshold deal.
Gift cards for spending
If you spend a certain amount on certain products, you get a gift card for future purchases at the store, or to a 3rd party. What if you don't use iTunes, but it's a $10 freebie, when you spend $50? If you're planning to spend that much anyway, go for it - you can always give the card away as a gift; if you wouldn't spend $50 without that deal dangling before your eyes, don't bother.
Lesson: Just because you get something free, you don't need to spend more. But, if it's part of your plan, and you'll put the freebie to good use, go for it.
Maximize the deal: Let's say that you have $200 in groceries to buy, the store's offering a $10 gift card if you spend $50, and you can guarantee that you'll use the gift card. The store didn't say $10 gift card for every $50 that you spend, so if you spend the $200 all at once, you'll only get $10 in plastic back. Split up your shopping into four bills though, and you'll end up for four $10 gift cards.
Use your Amex, Visa or Mastercard for bonus flyer miles, cash-back or points
The set-up: If you use a specific credit card for your purchase, you'll get extra points, dollars saved, freebies and so on. This is of course a bonus when you were planning to use the card to start with, but not if it convinces you to spend extra per item or in total, and definitely not if you won't be paying off your balance when the bill comes from your creditor. Why spend (in the form of interest charges or extra shopping to meet a threshold) to 'save money' and/or earn intangible rewards?
Lesson: Airmiles seem like a great freebie - I know I've bought extra peanut butter and cereal to earn some bonus miles - but if you're not using the points anyway, they're really not doing much for you. Especially if you've spent extra (via inflated pricing, impulse purchasing and interest on your charges) to earn them.
Maximize the deal: When you have cash for a large shopping trip, put it aside to pay off your credit card when the statement comes. Then shop as needed, combining coupons, sale prices and store points cards to maximize your discounts. Pay with the bonus-earning credit card.
Buy in multiples for a sale price or shop at a bulk supplier
Costco ropes so many of us in, but have you ever walked around with a calculator, figuring out their prices versus your regular, inexpensive grocer? I did. It turned out that my soy milk was actually more expensive per litre than it would have been at my No Frills store - but that three for $10.99 sign almost had me convinced. Try it and see what you come up with for your regular shopping list.
Lesson: if a deal seems amazing, it might actually be smoke and mirrors. Know your needs, regular prices for sizes of products that you'll need (or have room to store) and don't be afraid to keep the Costco membership for the savings on clothes, gel pens and books alone. I'm not judging you.
Maximize the savings: You find a great deal on something in bulk in comparison to your regular retailer, but there's no way you'll use it all so buying it would actually be burning money. It might not be if you split it with a friend, group or donate it to a worthy, needy cause.
Another thing...
What's worse than spending extra to get points, freebies and so on, coming home and feeling like you over-did it? Driving across town to do so with a tired, hungry child. If there's a superb deal but it's further than you'd ordinarily shop, or you have to go to multiple stores to maximize your grocery savings, it might not be worth it. Gas, insurance, stress, quality time with your children, your time - those all have a price, even if most of them aren't tangible.
An example: If you drive for half an hour, you'll get a ham for Easter dinner at a quarter of the price it is in your neighbourhood. You'd save $15! How much would you spend in the extra gas, though? Let's say five dollars. Now factor in an hour of driving, assuming that you avoid traffic rushes and the half hour you'd be shopping in an unfamiliar store - that's at least worth $30. Tack on your son's tantrum because they have The Cereal With The Cartoon On It and he needs it, now. Priceless. Add the stress of knowing that you must get home, store the ham and there's a list of things waiting for your attention. Also, impossible to quantify. On top of it, you end up snapping at your son because his tantrum has finally broken you down a bit, so now he's upset, you're feeling guilty and stressed and no one's happy. That's gotta be at least an hour of therapy for each of you. So, to save $15, it may have cost you at least $260.
Happy shopping!
Everybody has something they are passionate about whether it's collecting vintage wines, hiding at Chapters in the Philippa Gregory section or sewing baby blankets.
Sometimes, every so often, that passion starts to become something else. 
An idea becomes a possibility; the possibility becomes a day dream and slowly, it evolves into that magical statement, "what if?". What if I could turn this hobby of mine into a viable business? What if I could actually earn an income, avoid daycare and NOT return to my day job after mat leave is over? Where do I go next?
Many start-up entrepreneurs are over confident (I know I was!) and under aware of what is involved. But in all fairness, it is a tough plunge to take! How do you know whether to dive in or not?
- Do you eat, sleep and breathe your business concept?
- Have you made yourself an expert in your field?
- Have you researched all your competitors, to see what they are doing right (and wrong?)
- Are you prepared to work harder than you ever have in your entire life?
- Do you have the financial backing to take the hit of losing your income for awhile or would that put your family at risk?
- Are you passionate, resourceful and energetic?
If you have created a product, service or business that makes your heart race with excitement and you have covered the start-up questions. It is time to take yourself to the next step.
Ask Questions. Build Knowledge. Get Help.
Aside from qualifying your idea from friends and family, my advice would be to find a consultant in your field who can cut your learning curve time in half. Putting your business plan together with the aid of somebody who has also ate, slept and absorbed your concept will produce faster results and give you objective clarity. Those fabrics, toys or ideas you had, might have already been tried. Don't reinvent a broken wheel. Ask tons of questions and surround yourself with knowledge and industry expertise.
Be Patient.
The growth process takes time. If you can take baby steps into your industry, I highly recommend it. Especially in the recession and the volatile economy we are still experiencing. Nowadays with the Internet and online everything, you can run many businesses right from your home office. I know on top of my 5 bo bebe stores, I run an entire, 40-page glossy magazine from my office computer. Heck, I could be living in Tahiti and still be running a Calgary based, printed magazine!
Use the Proper Tools.
Research the tools available for online data storage, web hosting, and virtual assistants; research the research tools too! There are literally thousands of online tools that will help you take your business to the next 'virtual' level before plunging into signing a longterm commercial lease. I have at least 30 different informational Google Alerts set up for various topics to automatically feed into my email. This keeps me on top of competitors, recalls, industry releases, trade shows, manufacturing issues, European announcements, new trends and more. and they are all served up to my inbox by 8am, every morning, while I sip my morning coffee in my pyjamas.
Take Advantage of Social Media.
If you market yourself creatively, use social media and word-of-mouth, you can test the waters of your field without enormous expense. I am a huge believer in creative and gorilla marketing. When I was still a home-based business doing home-parties, I would hit the zoo on a sunny day and leave flyers on all the windshields of the cars that had a car seat inside them. Labour and time intensive? Not really; 30 minutes by the river on a warm sunny day wasn't exactly difficult. Guess what? It paid off enormously! Be creative, think outside of the proverbial car seat box and most of all, be different. I am a firm believer in being an original. Learn from what everybody else in your field is doing well, then just do it better!
