The first question always seem to be ‘How much?’ and if they’re not asking it, you probably are. The amount can be determined with a couple considerations:

• 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. Read more »

I’m not sure where she got the idea from but she’s been asking for an allowance. Thinking back to the days of when I got an allowance I very clearly recollect 25 cents and 50 cents. The reason I remember is because 25 cents bought either a bag of chips or a chocolate bar but 50 cents bought both. It must have been a big raise to jump from 25 to 50 cents each week.

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!

Our two kids have taken an interest in money lately. Not so much the big dollars but they have spent time categorizing different coin denominations and moving their piggy bank stash from one container to another. The different values of the penny, nickel, dime, quarter, loonie and toonie are lost on our 3.5 year old but our 5.5 year old is starting to do the math. Read more »

After Retirement Savings Plan (RSP) season there is a lull. RSP’s are in the news a lot early in the new year because of the deadline to invest to deduct against past years! Sixty days after January 1st to be precise.

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!

How is 2012 going for you? Did you make financial resolutions and are you meeting them? Here are some handy and simple tips to help keep you on track with your budget:

· 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!

Sometimes the expenses you face are out of your control. Take this week for example, BC kids have no school Monday, Tuesday and Wednesday. The first question is whether or not existing child care can provide additional coverage and the second is what to do if they don’t.

As it is, Spring Break begins March 12th and runs for two weeks which means extra expense. Another three days adds to the bills. Whether it’s $20 per day or a fun camp for $200 it makes for an expensive month.

Do you have room in your budget for unexpected expenses? They come in all shapes and sizes such as car repairs, a last minute dinner invitation, good bye parties and gifts. It doesn’t matter what it is, if you don’t have a little extra room in your budget to accommodate these unexpected expenses, the dinner menu may become a little dull around the house for the next couple weeks! Read more »

Have you started receiving tax info in the mail? Don’t ignore it, the faster you get it done, the faster you will receive any return you are owed.

As the tax slips arrive in the mail, put them all into one envelope. Write a quick checklist of the tax information you expect to receive and cross them off as they arrive. Once you think you’ve got it all it’s time to start completing the government forms.

Will you file them by paper, by phone or on-line? Whatever your preference, don’t hesitate! If you’ve done them on-line in prior years, it can be pretty quick to do the current year if you use the same software provider and much of your information is pre-filled.
Get a jump on 2012:

• Set up a monthly RSP savings transfer – starting now!
• Start an envelope to gather 2012 tax receipts
• Do your taxes using a software that will ‘remember’ 2011 data so it will be quicker in 2012

A little more than one left to make your RSP contribution for the 2011 tax year!

Why do it you may ask?

• Save for your future
• Reduce the amount of tax paid now Read more »

Isn’t it amazing what effect the date February the 14th has on the prices of certain things? Every year it comes around, right in the middle of the stat holiday drought and it doesn’t matter if it falls on a Tuesday or a Saturday there are a few things you can count on:

• Restaurant reservations are coveted
• The menu has a lot of chocolate on it and the prices for dinner are higher than usual
• The cost of buying flowers for your sweetheart is suddenly double

It all goes back to the basic economic laws of supply and demand. Mostly demand in this case. There is no getting around the fact that the big day is once a year on the 14th of February and if you want flowers delivered on that date, you will pay the going rate!

It’s one of those things though….it is worth treasuring the things you love any time of the year, not just on the day that the commercials tell you too! Creative and thoughtful ways of appreciating those you love doesn’t have to cost an arm and a leg and likely will be received with a glowing smile if it’s not delivered per a formula.

How’s it going with your 2012 resolutions? Even though it’s already the beginning of February, 2012 is hardly underway and there’s always time to get started on the right financial path.

Many of us start the year with fresh resolve to improve, change and/or get organized. What can you get done before that impetus to put plans into action dissolves?

How do you make it happen?

1. Start small
2. Put it on the calendar
3. Make it easy for yourself Read more »