| The fact is that when it comes to finances, I | | | | seemed a good place to start. |
| have nothing to hide. My lack of financial | | | | I can't believe that my parents and I never |
| knowledge had really hit me for the first time a | | | | "really" talked about money before. The only thing |
| few years ago, shortly after the birth of my | | | | I was told was "cash was king" and to never |
| daughter. I realized I was responsible for another | | | | borrow money. My parents were very frugal with |
| life. It wasn't like I wasn't given good role models - | | | | their money, and I was always told to work for |
| my parents have done well! I felt I was doing ok. | | | | things and save, save, save. My mother had |
| It was only until I was reading a business | | | | taken responsibility for educating herself financially |
| publication when I stumbled across "Self-Analysis | | | | because she was never taught about investing or |
| Financial Planning Test." | | | | financial planning by my grandparents. But here I |
| No sweat I thought. Confidently, I picked up my | | | | was 35 and felt like I was uneducated and blamed |
| pencil and set about responding to questions such | | | | the education system in part for my ignorance. |
| as:o Have you selected the proper amortization | | | | How could I know calculus and not know how to |
| period for your mortgage?o Is you will | | | | do my own taxes. |
| up-to-date?o Could your dependents live | | | | It is inconceivable that our government has not |
| comfortably in the event of your death?o If you | | | | altered the school curriculum to include a basic |
| plan to retire early, have you set up a suitable | | | | family finance course. All high school graduates |
| savings program?o How do you plan to pay for | | | | should know how to fill out an income tax form |
| your children's education?o Fifty percent of | | | | properly. They should know how to select their |
| Canadians retire in financial hardship. What are you | | | | mortgage, how to finance their child's education, |
| doing to guarantee you won't be one of them?o | | | | and how to save and plan for retirement. We |
| Are you debts structured properly? | | | | now live in a society that demands instant |
| Not only could I not give a satisfactory answer to | | | | gratification, which is part of the problem. |
| many of the questions, but also I didn't even | | | | I am not sure that politicians understand the |
| understand some of them. I caught an ominous | | | | tremendous benefits the economy would enjoy if |
| glimpse of my husband and daughter living on the | | | | the average family knew how to handle their |
| streets. | | | | money properly. Most North Americans are |
| I dropped my pencil, an unnerved woman. It's not | | | | financially illiterate. There is no excuse for our |
| that I want to be a multimillionaire, though like | | | | possessing the little financial knowledge we do. |
| everyone else, I do. I'll settle for comfortable - | | | | When a university educated person like me is |
| very comfortable. I enjoy living in a nice home, | | | | embarrassed by an elementary financial test, |
| owing a yacht (our floating cottage), driving nice | | | | something is wrong. |
| vehicles and contributing annually to an RESP and | | | | So I embarked on a journey of discovery. Most |
| RRSP for my daughter and myself, respectively. | | | | financial books concentrate on investment |
| However also recognized that I would probably be | | | | alternatives, not on mundane topics such as |
| one of the millions of people who would be forced | | | | saving, buying a house, and insurance - the |
| to work into their 70's. I wanted the ability to | | | | common person's concerns. They all showed you |
| have all of those luxuries, but not compromise | | | | what to do with money once you had it, but they |
| my thoughts of an early retirement. I think these | | | | didn't tell you how to accumulate it. I was assured |
| are goals that are shared by most North | | | | that a 7 year university career and full time |
| Americans. Are they realistic? Can they be | | | | permanent job with benefits was the way to go |
| realized on an average salary? If so, how? | | | | and to save a percentage of my earnings for |
| Within an hour of reading that article, I was | | | | RRSP's. But.... |
| committed to learning the basics of financial | | | | The best advice that I ever received was "if you |
| planning. I had no desire to learn the intricacies of | | | | want to learn to do something right, watch |
| the stock market, nor was it my goal to be able | | | | someone who does it successfully. It is also true |
| to recite the mortgage tables from memory. | | | | for financial planning. Now we have more financial |
| All I wanted to know was how best to get | | | | education available for people, as a direct |
| where I want to be from where I am now. I | | | | response to the economic difficulties many are |
| figured my parents were no financial genius', but | | | | facing. Those who educate themselves are the |
| they must have learned a few things in their 64 | | | | ones who will retire sooner than later and will |
| years and they have retired quite wealthy. It | | | | have achieved their financial goals. |