18 & Already a Snob

Visiting us right now is an 18 year old family member from Toronto.  It's been 2 days and I'm ready to put him on a plane home tonight.  I have an son the same age and if my son behaved the way this young man does I would kick his butt.  I get that Toronto is a big city with lots of nice things but Calgary is a beautiful city too and we certainly have enough here to appreciate if you want to.  The first thing I heard as we drove into the city limits was that it wasn't very green.  Remember that we've had one of the rainiest springs in a long while.  Then the houses were to close together....seriously?  The row houses in his neighborhood of TO are either attached or close enough to touch both if you spread your arms.  We took him to Banff and Lake Louise yesterday.  When I asked him what he though of the mountains he said they were "alright" but that he thought they'd be taller.  The weather is too cold (it's 25 plus degrees Celsius and sunny) and he constantly talks about how it's plus 33 or more in Toronto.  Let's remember that the rest of the East is begging for a break in the heat wave.  The first night he informed me that he is used to eating organic food.  I took him to our neighborhood Sobey's which has a small organic produce section but that was not satisfactory.  The store was too small and the selection too limited.  I told him "no offense, but it's easy to eat organic when someone else is paying for your groceries".   In my opinion, if all you are going to do is compare Calgary to Toronto to our disadvantage while you are visiting in my city and staying at my home you really should have stayed in TO. 

Students & Credit Cards

A few weeks ago I met with my account manager at my bank to discuss the mechanics of withdrawing money from my son’s RESP. He’s graduating at the end of the month and heading off to SAIT in the fall. During our discussion she suggested we set him up with a credit card. She insisted that he would need one once he was in college, though I can’t imagine why he would. I found the discussion both disturbing and fascinating. What is most disturbing is that the banks appear more than happy, eager actually, to give a young person, one who does not have a regular income, credit. The Globe & Mail recently reported that “Household debt in Canada reached a record $1.41-trillion in December” http://bit.ly/bm4qS0.


Why are banks so willing to start children off on this path. I told my account manager that he didn’t need a credit card. A debit card is sufficient for pretty much anything he could need and if he wants to travel he can use a pre-paid “credit” card. I think she was shocked at my response. I admit that I can see why the banks would want to get young people hooked early. If you give a kid a card but no education on how interest rates and compound interest work then you have a customer (read: sucker) for life. I have worked hard to teach my children how compound interest can work for them when investing and against them with credit card debt. Unfortunately, most schools do not devote nearly enough time to financial education and, let’s face it, many parents are in such a financial mess that they either can’t teach their children successful strategies or are too embarrassed to admit their personal financial status.

I left that day without applying for a credit card for my son. I suppose once he’s 18 he can apply for one without my approval. I hope, however, that I’ve given him enough information to make an informed and intelligent decision. I’d love to hear your opinions on the topic of youth and credit.

Start Your Own "Tips Jar"

I was on Twitter when I came across this post from DivorcedDadFrugalDad.com, @dvrcddadfrgldad: Your Spare Change "Tips" Jar - http://ow.ly/4MNCQ. 

I love the idea of giving yourself tips.  One of my little savings tricks is to not use the change in my wallet.  When I go to pay I make myself break a bill.  I hate breaking a bill, especially for something small.  Often I would rather skip the purchase than break a $5, $10 or $20.  If I do then any coins that I get back are off limits.  Once a week I put that change into my "Tip Jar".  I am always amazed at how much I can collect, often between $5 and $10 dollars.  This is my fun money.  When I had consumer debt I would use this to make an extra payment at the end of the month. 

I'd love to hear your thoughts on this.

Adelina