We stayed downtown in an older hotel but our room had been renovated and had a fabulous view of the north shore mountains, Stanley Park and the harbour. I realized that although I’ve traveled a lot and in many big cities, I’ve never stayed downtown in a major city with such an incredible view. It really felt like more than 24 hours.

The rest of our mini-break was spent out for dinner (gift certificate), biking around Stanley Park ($17), breakfast ($12), coffees ($30) and the hotel was on sale ($184). We took a Car2Go to and from as we knew we didn’t need a vehicle once we were downtown ($7.50).

Very enjoyable and great value!

You might be surprised how many steps forward you can take once you’ve got the majority of the thinking done. Details can always be added or refined as long as an infrastructure is in place. These two pieces of information are your foundation:

1. Goals and objectives
2. A reasonable idea of your income and expenses

Once you have them in mind, drafting a budget that incorporates your goals and objectives is the next step. Turn it into reality by setting up monthly savings transfers or increasing debt payments. Take action and you will be off to a solid start. If you wait until your plan is 100% complete, it will remain just that, a plan!

1. Take a look at your calendar and review your plans.
2. Estimate the costs.
3. Add them up.
4. Compare the total to what’s in your budget.

Do you have enough to pay for your plans? If not you have several options:

• Increase your budget by decreasing what you spend on something else.
• Earn some extra cash to cover the difference.
• Make some choices with respect to what you’ll do and what invitations you will decline.

Still find it tempting to have the fun and worry about the bills later? Think about your goals and consider what you want more….the two month trip to Europe, the down payment to buy your first home or summer weekend fun.

The best way to get the most out of your tax refund is to have a plan. It’s your money after all – coming back to you! Before you dip into it (even a little bit), take a moment to think about your goals and what kind of a difference this money could make. Even if it’s a small amount, it all adds up.

• Are you saving for anything? A wedding, a trip or a new car? This could be a great start.
• Do you have a nagging debt that you want to be rid of?
• Have you started saving for retirement? Funds put into a Retirement Savings Plan today can serve many purposes such as planning for your future, a contingency fund or home down payment. In any case, it likely ensures less tax paid next year too!

Knowing what you want to do with the money may be all it takes to tip the balance to use the funds towards one of your goals before it disappears amongst all the other ‘ins and outs’ of your bank account.

If you aren’t expecting a tax refund, you won’t pay interest and penalties if you submit your taxes by the deadline (April 30th for personal taxes). If you can not submit them by April 30th, do it as soon as possible to minimize these extra costs!

I read an article recently that said that most Canadians would rather clean the bathroom than do their taxes! I think it may be because we only do it once a year and there are often changes that take time to figure out. Tax preparation software can help to make the process smoother but good organization probably makes the biggest difference.

• Gather all your tax slips and receipts
• It can be helpful to have your 2010 Notice of Assessment and Income Tax
• Do it (it will take less time than you think!)
• Make notes on 2011 for your reference
• Make notes for 2012

If all else fails, there are plenty of people who will do your taxes for you. It usually takes less time than you think it will.

• What do you expect them to do for the allowance?
• What can they reasonably buy with the money? Will you place any restrictions on what they can spend it one?

A place to start is 50 cents per year of their age per week. Weekly is a short enough amount of time that you can monitor it but long enough that if they want to spend it on several treats over the week, he/she must manage the money. A child of six would receive $3 per week.

If you believe that your child should earn their allowance, it is good to understand what motivates your child. If they are not motivated by the money, your expectations won’t be met! Many people believe that a child should contribute to the household in some way (specific and regular chores) without receiving allowance however additional contributions or jobs are rewarded with an allowance. If the allowance is contingent on chores being completed, make sure the expectations are clear to all parties.

• Show them how to complete the task.
• Explain how often it must be done and without reminder.
• Explain the consequences of not doing the job (someone else has to do it in their place and they won’t receive their allowance).

Is it enough that they have everything they want or is it enough that they need extra?
Are they willing to work for what they want?

Do you have the money set aside in your budget to give them an allowance?

Our five year old was gung-ho to have her allowance and rattled off an extensive list of the chores she would do to earn it however when it came time to help with the first job (collecting the garbage from the two bathrooms, tipping it into the kitchen garbage and taking it out for removal), she exclaimed that she didn’t like it, it was stinking and she didn’t feel like taking it downstairs. That was the end of that. I guess we’re not quite ready yet!

I’m in favour of our children receiving an allowance with the following considerations:

• What is the right age to begin?
• How much is a reasonable amount?
• Are there conditions attached?

Growing up we had several jobs we were expected to do on a weekly basis to contribute to the running of the home and property. Because we lived in a rural area and had nine acres to look after as well as various animals there was a fair amount of daily work. We were also expected to help with larger, seasonal jobs.

An allowance may be appropriate for the period of time between when a child starts school and until they can be paid for work by others. Whether it be babysitting, cutting lawns or working in a store, restaurant or pool. I think a child is old enough if:

1. The child is able to contribute to running the home and family, and
2. Interested and able to learn and apply the concepts of money and money management.

Next post will discuss appropriate amounts and whether or not to attach conditions to payment!

The concept on needing a specific amount of money to buy an item she wants is starting to take seed. She announced loudly in the car (with her collection of coins in a sandwich bag) that she was rich! We asked her what ‘rich’ means and she quickly responded that it means that you have lots of money. We didn’t correct her at that point but have started to introduce the more nebulous concept of values and worth to tie in the different meanings of the word rich.

She also raised the question on an allowance. We’ve embarked on that conversation/negotiation and it is underway! The journey will follow in the next post.

2011 Tax Time – You’ve probably started received most of your tax information in the mail? T4′s, T5′s, government information and so on. Don’t ignore it, the faster you get it done, the faster you will receive any return you are owed and April 30th is fast approaching.

While you’re working with your 2011 information here are some ideas to set a good foundation for 2012.

Get a jump on 2012:

• Do your taxes using a software that will ‘remember’ 2011 data so it will be quicker in 2012
• Label an envelope to gather 2012 tax receipts you receive throughout the year (donations, kids’ sports expenses, transit passes)
• Set up a monthly RSP savings transfer – starting now!

· Buy on sale
· Buy second hand
· Make a list for what you want to buy – this helps avoid impulse buys.
· Plan your weekly meals so that you’ll buy only what you need and reduce the temptation to order in or eat out for convenience. Did you know that typically we throw out one third of the food in our fridge because we don’t use it before it expires?
· Clothing swaps with friends
· Keep an eye out for savings and coupons
· Brown bag it
· Entertain at home
· Use the library
· Avoid buying clothes that are dry clean only
· Repair instead of replace

Oldies but goodies!