Kids Archives - Ellen MCKAY

April 1, 2023 Kids

Talking To Teens and Kids About Money

Wondering how to talk to your kids about money? It’s not easy, but it’s important! It’s essential to have these conversations with them early on so they have the skills and knowledge to make informed decisions about their finances as they grow older. We’ve got several great tips for you!

Start early.
Make it a regular conversation.
Use real-life examples.
Explain the differences between needs and wants.
Teach them about credit and debt.
Lead by example.
Be patient!

Start Early

It’s essential to start teaching kids about money as early as possible. Even young children can understand the concept of saving, spending, and earning. You can start by giving them an allowance, which will help them understand the value of money and how to make decisions about how to spend it.

Make It A Regular Conversation

Talking about money should not be a one-time conversation but an ongoing conversation incorporated into your daily routine. This will help your kids and teens to see money as a natural and essential part of life.

Use Real-Life Examples

Using real-life examples is a great way to teach kids and teens about money. For example, you can take them shopping with you and show them how to compare prices and make informed decisions about what to buy. You can also talk to them about budgeting and show them how you decide where to allocate your money.

Explain The Difference Between Needs and Wants

One of the most important things to teach kids and teens about money is the difference between needs and wants. They need to understand that they need some things, such as food and shelter, and other things they want, such as a new toy or video game. Helping them to understand this distinction will help them to make informed decisions about their spending.

Teach Them About Credit and Debt

Credit and debt are important topics to discuss with kids and teens. They need to understand the dangers of overspending and going into debt and the importance of paying off their debts on time. You can talk to them about the different types of credit, such as credit cards and loans, and the consequences of misusing them.

Lead By Example

Kids and teens learn by example, so it’s essential to lead by example when managing money. Show them how you make informed decisions about your finances, budget and save, and pay your bills on time. This will help them to understand the importance of sound money management.

Be Patient and Supportive

Teaching kids and teens about money can be challenging, and patience and support are essential. Encourage them to ask questions and provide them with the resources they need to make informed decisions about their finances.

Have You Had “The Money Talk” With Your Kids? How Did It Go?

Let me know in the comments!

March 1, 2023 Kids, Student Loans

Free Money for School in Canada: Your Guide To Grants and Bursaries

Are you interested in heading back to school or hoping to cut down on costs for your children? There are several different options for helping pay for your education – which means less student debt for you!

I’ll explain the following:

The differences between grants and bursaries
Some of the most popular grants and bursaries available
How to learn more about getting grants and bursaries

What is the difference between a grant and a bursary?

Grants and bursaries differ in the way they are awarded. Grants are usually awarded based on financial need, while bursaries are awarded based on academic merit or other factors such as community involvement or leadership.

Both grants and bursaries are non-repayable, meaning that students do not have to pay back the money they receive.

What are some of the most popular grants and bursaries available for students in Canada?

These are some of the most popular grants and bursaries available for students in Canada:

Canada Student Grants: The Federal Government offers these grants, and is available to full-time and part-time students enrolled in a degree, diploma, or certificate program. The grants are awarded based on financial need and can be up to $3,000 per academic year.
Provincial Student Aid: Each province in Canada has its student aid program that provides grants and bursaries to students enrolled in post-secondary education. The amount of money available varies depending on the province, but students can receive up to $5,000 per academic year.
Scholarships are financial awards based on academic merit, athletic ability, or other unique talents. Various organizations offer scholarships, including universities, corporations, and private foundations. The amount available can vary greatly, but some scholarships can be worth up to $50,000.
Various organizations offer bursaries, including universities, corporations, and private foundations. The amount of money available can vary greatly, but some bursaries can be worth up to $5,000.

How can I learn more about gaining access to grants and bursaries?

Several sites can help you learn more about grants and bursaries:

And don’t forget to look locally! Be sure to research the grants and bursaries available in your area and apply for the ones relevant to your needs. In addition, each province or territory offers grants or bursaries specific to that area.

Have you benefited from a Canadian grant or bursary?

I was lucky enough to get a small entrance scholarship to university and a few local bursaries, which helped with my first year’s tuition! Leave your details in the comments!

March 1, 2021 investing, Kids, Saving money

What is an RDSP?

In my previous posts, I’ve talked about three different types of government savings plans:

Today I’m going to talk about a savings plan not a lot of people are familiar with – a Registered Disability Savings Plan.

What is an RSDP?

A registered disability savings plan or RDSP is a savings plan for parents and others (e.g. grandparents, aunts and uncles, etc.) that is intended to provide anyone who is eligible for the disability tax credit with long-term financial security. A beneficiary can only have ONE RDSP at any given time.

Who is eligible to be the beneficiary of an RDSP?

The following criteria must be met in order for someone to be the beneficiary of an RDSP. They must:

Have a valid social insurance number
Be eligible for the disability tax credit (DTC)
Be a resident of Canada when the plan is opened
Be under the age of 60

To be eligible for the disability tax credit, a qualified medical practitioner must have filed in Form 2201 Disability Tax Credit Certificate and the government must have approved it.

How do contributions and government matching work?

There is no yearly maximum for RDSP contributions, but there is a lifetime maximum contribution of $200,000. And the government will match your contributions up to a certain amount, depending on your household income. If your income is low enough, they will give you a contribution via a bond even if you have made no contribution.

Canada Disability Savings Grant

If your family income is $97,069 or less:

on the first $500 contribution—$3 grant for every 1 dollar contributed, up to $1,500 a year
on the next $1,000 contribution—$2 grant for every 1 dollar contributed, up to $2,000 a year

If your family income is more than $97,069:

on the first $1,000 contribution—$1 grant for every 1 dollar contributed, up to $1,000 a year

Canada Disability Savings Bond

The Government will pay a bond of up to $1,000 into an RDSP – even if you haven’t made any contributions! No contributions have to be made to get the bond. The amount the government contributes will be based on the beneficiary’s adjusted family net income as follows:

$31,711 or less — Bond $1,000
between $31,711 and $48,535— Part of the $1,000 is based on the formula in the Canada Disability Savings Act
more than $48,535—No bond is paid

RDSPs are a great savings vehicle

With the government providing a match to your contributions – or even a bond if you make no contribution, but have a low income, RDSPs are a great savings vehicle! Do you know anyone who has an RDSP or is contributing to one?

October 1, 2020 Good money habits, investing, Kids

The best money decisions I’ve made – Part 3

If you’d like to know more about some of the best money decisions I’ve made, please check out Part 1 and Part 2 of this series. This will be the last post in this series for now.

Here are two more of the best financial decisions I’ve made:

Switch to having my investments managed by a robo-advisor.
Give my son hand-me-down toys and clothes.

1. Switch my from an investment advisor to a robo-advisor

I’m not going to lie – I still have some of my investments with banks for various reasons. But I have complete control over them – and no one is calling me up a few times a year to remind me that I need to make a switch in investments (without explaining why!) or trying to sell me additional products I don’t want.

With a robo-advisor, you can “set it and forget it”. I got tired of getting reams of statements I didn’t understand and didn’t want – and if I did ask questions, my advisor would take forever to answer and then not really answer me at all. Plus robo-advisors have much lower fees – so over the long term, you’ll get more of the money your investments actually earned instead of it going into someone else’s pocket!

2. Give my son hand-me-down toys and clothes

I’ve talked before on this blog about how to save money on clothes for your kids. I’m lucky that he still has very little interest in what he wears – although he is big enough now that clothes for birthdays and Christmas isn’t going to cut it – he wants toys! But the good news on this front is I’ve been lucky enough to get bags of clothes and even some toys in good shape from various people.

This has been particularly helpful during the pandemic. I didn’t have to order online or brave the few stores that were open to buy him new clothes – I just went to my basement to open up the bags that were there and had a whole new wardrobe!

In addition, my son has a second-hard store near his school. He was initially interested in it because they had Halloween stuff outside – so he called it “The Halloween Store”. When I finally took him he was pleasantly surprised that it had more than just Halloween stuff! It’s a great opportunity to allow him to pick his own toys at a reasonable price. As well – I tend to limit him to one toy per visit so he’s learning to make decisions about what he does and doesn’t really want!

The Takeaway

It can be a lot of effort to make a new money habit – like moving from an investment advisor to a robo-advisor – but it’s well worth it in the end. You can also help your kids get started early by making them comfortable having everything not be brand new – and help them learn how to make money decisions early on.

What’s a good money decision you’ve made regarding your finances or your kids?

December 15, 2019 Kids, Saving money

3 easy ways to save money on clothes for your kids

Kids are expensive! Did you know that the average cost of raising a child these days is estimated to be over$230,000! That means it’s very important to save money where you can. When kids are little, they are constantly growing, meaning you often have to get them a whole new wardrobe every six months. And babies need new clothes every few months!

The good news is there are lots of great ways to save money on clothes for your kids. Here are three of them:

Hand-me-downs
Mom to Mom sales
Second-hand stores

1. Hand-me-downs

Hand-me-downs are the best! In case you’re not familiar with the term, it just means clothing that has come from another person.

Most people with children are eager to clear out space once their kids have outgrown their current set of clothes (assuming they aren’t saving them or another child in the family). Before my son was born, I got not one, but two sets of hand-me-downs. That meant I had to buy very little in the way of clothing for him. It was a win-win situation! The donors cleared up some space, and I got a ton of clothes for free. Everyone was happy.

If you don’t have any family or friends looking to get rid of hand-me-downs, you can always try places like Kijiji, Craigslist, or Facebook groups to see if there’s anyone looking to rid of stuff. I’ve been lucky enough to get some bags of hand-me-downs from a friend who is part of a Mom’s group on Facebook – and she doesn’t even have kids!

Pros: Free stuff!

Cons: Some sorting and washing required.

2. Mom to Mom sales

A Mom to Mom sale is exactly what it sounds like – parents selling to other parents. It’s a similar set up to a church bazaar or a craft show – people get a table, then put all the clothes they have out for sale. The sellers make their own prices, and when the doors open, the bargain-hunting begins!

A friend of mine got shorts for her son for 50 cents are one of these – that’s pretty cheap. It can definitely be a good place to stock up on clothes, but it can be the equivalent of a Boxing Day or Black Friday sale in terms of crowds – it can be pretty crazy! You need to go in with a firm idea of what you need and not get overwhelmed or distracted.

Pros: Cheap stuff.

Cons: The shopping experience can be a little stressful!

3. Second-hand stores

When children are older, it may be harder to convince them to wear second-hand clothes – so just call them vintage! :). In all seriousness though – as the world becomes more eco-conscious, second-hand clothes are becoming more and more popular. Plus you’re doing good by helping support charities when you buy from places like Value Village, the Salvation Army, or Goodwill. You can even drop off your own unwanted stuff, then do a little shopping. I got my son’s Halloween costume at Value Village this year – he loved it, and I saved at least 20 bucks!

Another option for second-hand clothes for kids is somewhere like Once Upon a Child. They specialize in just kids’ clothing. The quality is usually better than places that take donations as Once Upon a Child pays for clothing. They often have great sales on – before my son was born, I got him 10 sleepers for 10 dollars. And believe me, we went through a LOT of sleepers. Kids go through clothing quickly (they are always getting messy one way or the other) so having extra backups is always handy!

Pros: Can be better quality than hand-me-downs.

Cons: You have to spend your hard earned money!

You’re ready to start saving money on kids’ clothing!

You’ve now learned 3 awesome ways to save money on clothes for your kids. The least expensive route is definitely hand-me-downs, but if you’re looking for something specific or for a special occasion, then you can try Mom to Mom sales or second-hand stores as well. Happy shopping AND saving!

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