Once I was told, ‘Don’t leave the room or they’ll talk about you when you’re gone’. My response was, ‘I’m sure whatever it is, it will be all good’. Well now that the Royal Highness and her husband have left, I too can talk about the Queen’s frugality, in a good sense of course.

I was born curious (not nosy mind you) and I happen to love the Royal Family. On the first day of the Royal Tour of Canada, I heard on the radio what Queen Elizabeth will be wearing in the days ahead and the words ‘green’ and  ‘recycle’ got stuck in my head so I did my research.

Queen Elizabeth goes green. Among other things, she ensures the lights at Buckingham Palace are turned off when the staff goes for lunch, and she uses “energy efficient light bulbs”…I too save energy this way. She uses paper-free and forest-friendly e-cards, and so do I. 

Yes, the Queen had worn the same designer outfits she wore during her visit here and on multiple occasions as well.  Her staff members make a note of the ‘ws’ – of the functions she attends – the what, where and which and they plan a good mix and match of jewellery and clothes to keep combinations fresh. The news say even the Queen’s mother Victoria, her daughter Princess Anne and grandchildren all recycle their outfits; never insisted on wearing new outfits for every occasion. In fact, The Queen’s Mother recycled her wedding dress. I too mix and match my limited wardrobe.

What I do differently from the Queen is not use plastic containers at the breakfast table. The Queen has been dubbed ‘The Queen of Tupperware’. Reports say the Queen admits to being frugal as a result of her Scotch blood and her experience during the World War’s rationing system. Check out the Herald Scotland Paper dated October 22, 2008 and The Gaea Times dated March 20, 2010 and read for yourself.

Hmmnn… Interesting isn’t it? Are you reading this blog, friends of Paris Hilton? After all what better pedigree of an idea, right?

For some of you who were declined credit due to five or six credit cards you own, let it be a lesson to others. It’s not the number of credit cards and the amount of credit limit on them that ensures another approved credit. The reality is on the contrary. You say you have three other credit cards with high limits and you don’t owe them anything so why can’t you be approved for say, $10,000 to furnish your newly bought dwelling. The answer my friend is that you are considered a high risk in the creditor’s eyes; not to also mention that in the last three months you tried to apply for credit in other furniture companies.

I know this because I used to process credit card applications and had a number of customers opened their wallet to me with a grin on their face and say here pick one, they all have high credit limit. I’d say with a poker face (from experience) okay…then later on faced their angry face demanding to talk to the creditor or the manager because they have been declined credit.

Chose wisely when closing a couple of these credit cards though. Remember the saying,  ‘the more the merrier’ ? It does not apply when it comes to credit cards.

A peace plan for the financial war of the sexes

The artillery sounds from the shores of the Atlantic to the beaches of the Pacific. But it is not the boom of cannons that can be heard across the continent; it is instead cries of frustration and anger between couples – married and unmarried alike – who are at war with each another over issues of money.

It’s an age-old thing. The financial war of the sexes has been going on since the dawn of the dollar, or I believe it was called a shekel in ancient Sumerian times. Back then, hubby doubtlessly got a berating from his spouse for imbibing too much wine with the boys late into the evening. There were mouths to feed in the hut, after all. But hubby had his own beef. Why was the wife shelling out so much for the overpriced pottery? Trying to impress the neighbours no doubt. 

From here, it’s easy to imagine the argument taking a turn for the worse – getting personal and ugly. It’s no different today. At Credit Canada, we are deluged with stories about troubled or ruined relationships between couples who want for skills in money management and who fail to understand the important role psychology plays in financial literacy. Burdened with debt, anxiety, and often depression, they reach out to us for counselling and guidance.

We give it to them in the form of what we call tough love.

For most couples facing crippling debt, coming to grips with the whole issue of money is not easy. The first big hurdle is the realization that – for the gainfully employed – financial problems are almost always symptomatic of deeper issues stemming from neurotic behavior, unhealthy attitudes towards money and an unwillingness to do some honest self evaluation.

But here’s the good news. Once these painful matters come to be accepted, the foundation is laid for an action plan that can turn people’s lives around. Through processes of goal setting and monthly budgeting – and with the aid of Credit Canada’s debt management programs – couples can vastly improve their relationships and often salvage them from pending disaster.

Now, you might be asking yourself, how are unhealthy, neurotic attitudes towards money first identified? The answer can be found in the approach you and your mate take when speaking to one another about money. At Credit Canada, we have identified four major personality types in relation to this matter. Here is a synthesis:

• The Infantilizer

The Infantilizer speaks in ways that treat spouses and partners as though they are children in matters of money management. To cope with a lack of self-confidence and/or financial knowledge, the Infantilizer speaks down to others in the unrealistic hope that gains in self-status can be made by reducing the status of others.  For example, a statement such as, “Don’t worry your pretty little head about it,” translates to, “You wouldn’t understand. “ Or a statement such as, “Don’t worry, I’ll take care of you,” translates to, “You’re not able to take care of yourself.”
 
• The Information Controller

The Information Controller is ambiguous, evasive and dishonest about money issues. Those who fall into this category often lie about losses and about what they owe. They are also apt to conceal documents that give their game away. When pressed, they may lash out and refuse to discuss money issues altogether. In a nutshell, they attempt to reduce mates to a powerless state through the suppression of financial information. For example, a statement such as, “I don’t want to talk about it,” translates to, “It’s my business, not yours.”

• The Money Martyr

The Money Martyr is a classic neurotic. Individuals in this anti-heroic league are apt to make irrational financial sacrifices. For example, they deny themselves something in order to buy designer jeans for the kids. Then they rub it in, railing on about the sacrifices they make.  Often complaining about how hard they work at a hated job – and appearing to sacrifice everything – the Money Martyr attempts to play on a partner’s guilt in the hope that the partner will feel indebted to the martyr. For example, a statement such as, “After everything I do for you, this is the thanks I get,” translates to, “You can never thank me enough.”

• The Unilateral Decision Maker

Let’s call them UDMs for short. Or you could call them petty tyrants. They exercise power through unaccountable spending, and they do not concern themselves with the needs and opinions of others when it comes to spending. UDMs are apt to take out loans and/or use up savings without consulting their partner. And there’s no mistaking where they stand. For example, a statement such as, “I’ll buy whatever I want, it’s my money,” translates to, “Your opinion doesn’t matter to me.”

So those are the four major personality types in relation to couples and the unhealthy attitudes they might hold in relation to money. If you and/or your spouse reflect any of these categories in whole or in part, take heart. A lot of people are in the same boat. None of us are perfect. It can take a half a lifetime to finally grow up and come to accept one’s personal shortcomings.

The chief thing to remember is, once you get started on the road to self-awareness and financial literacy, you might be amazed by how a troubled relationship can transform into one of joy.

On that note, let me just say, give peace a chance.

Come the holiday season, I can’t help but think about George Bailey of Bedford Falls. Otherwise known as actor Jimmy Stewart, George and his townsfolk have become a staple of Christmas viewing as TV and cable networks air what the American Film Institute has labeled the most inspiring film of all time, “It’s a Wonderful Life”, directed by Frank Capra.

George Bailey offers a life lesson to all of us as a man who gives everything he has to family and friends, only to find that he is threatened with financial ruin; thanks to the dishonesty of Bedford Fall’s sleazy slumlord, Mr. Potter. But as George prepares on Christmas Eve to commit suicide by jumping off a bridge, his guardian angel Clarence Odbody arrives to save the day.

Clarence takes George on a guided tour of a sort of parallel universe. He shows George what life in Bedford Falls would be like had George never been born. It’s a pretty grim picture, because George positively influenced, and for that matter saved, the lives of many. The tour is a real eye-opener for George, and it results in a radical change in his attitude towards life. Brimming with new faith, George returns home only to find that his financial problems have been resolved.

I must say, I have a real soft spot for this film and for the character Clarence Odbody, played wonderfully by Henry Travers. As an “Angel 2nd Class”, Clarence can only move up the angel ranks and earn his wings if he is successful in helping George Bailey. I’ve fancied the thought that all of us here at Credit Canada are like Clarence, earning our wings everyday by helping people who are troubled by the financial problems they are facing.

Christmas can be a particularly difficult time for those encumbered by debt. Gifts and all the costly preparations can be cause for worry and even deep depression, rather than joy and celebration. But at Credit Canada, we stress to all those who are troubled, there is always hope. And that hope comes not only in the practical things that can be done to manage finances and perhaps consolidate debt; it comes in the form of a change in attitude towards money and towards life, much like George Bailey’s transformation.

If there is one thing I can impart to the financially troubled this holiday season, it is that life can be far less burdensome when you step back and look at it from a new perspective. Like George Bailey, you may discover that there are wonders yet to be discovered. Maybe all you have to do is contact a guardian angel.

There’s a new word on people’s lips this year: Staycation. And, no, it’s not a summer blockbuster starring Eddie Murphy as the unemployed patriarch of a family of misfits played by none other than Eddie Murphy. Staycation is the term for sticking around home this season and finding ways to enjoy yourself at the same time. It also can make your summer a hit in a big way. 

A staycation makes a lot of sense in a down economy. Travelling can be very expensive and sometimes you’ve just got to tighten the reigns and stay put. But that doesn’t mean you can’t have fun. Luckily, in cities and communities throughout Canada, you can have a terrific time without spending a lot. There is much to see and do for individuals and families alike.

For instance, I’ve already mapped out staycation options for my gang of rowdies, Chelsey (11) and Ben (13). We live in Toronto, and it is really quite amazing what you can discover and experience here while spending little or no money.

Here are some economical choices I’ve included in my summer agenda:

> Kensington Market. Toronto’s downtown west area features one of the most charming outdoor markets you’re likely to discover anywhere. From eateries, bakeries and cafes, to clothing, trinkets and fresh produce, you’re sure to find things of interest at some of the lowest prices in town. And even if you don’t spend a nickel, you’ll enjoy the intimate street scene, much of it set in an old city neighbourhood where colourful locals and curbside musicians are the order of the day.

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Toronto Island. What a gem of a place this is, nestled on the water just south of Toronto’s downtown shore. Here you will find Hanlan’s Point, Centre Island and Ward’s Island (so maybe the plural Toronto Islands is more appropriate). You’ll spend a few bucks on the ten-minute ferry ride over, but it’s worth it and you’ll love viewing the many sailboats. The view of downtown Toronto looking north is stunning, too. Yet at the same time you feel like you’ve travelled to some place far from the city. Toronto Island is tailor made for recreation, fun and sightseeing. Do a walkabout or cycle (rent for cheap or bring your own). Great picnicking sites, sandy beaches, snack bars and restaurants, tennis, baseball and volleyball facilities – even a mini amusement park and farm – are some of the features. There’s also a charming marina filled with lovely boats and an allotment of picturesque summer cottages that look like something from a fairy tale. For a map of this staycation destination, check out this URL: http://www.toronto.ca/parks/pdf/island/toronto_island_map.pdf

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Riverdale Farm. I used to take my children to Riverdale Farm frequently when they were toddlers and they absolutely loved it. Maybe it’s time for another visit to a place so rurally authentic it’s like stepping out of the city right onto a southern Ontario acreage. At this east central Toronto location you will find an array of animals – from sheep to cows to horses – in corrals fenced in by weathered wood. Along with an old farmhouse, there’s a rustic barn filled with artifacts and the scent of hay – all surrounded by beautiful flower gardens and winding paths. On certain days the farm features arts and crafts for the little ones. And it’s all free of charge. Just pack up your picnic basket and look forward to a wonderful outing.

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High Park.  At this west central Toronto location you’ll find offerings similar to Riverdale Farm – with animals, picnic areas and lots of atmosphere. High Park itself stretches out, so there’s added opportunity to roam paths in splendid summer surroundings on foot or by bicycle. Don’t worry about spending a cent in terms of visiting the park’s zoo, touring the greenhouse or watching any of the ongoing plays at High Park’s outdoor theatre. It’s all free.

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The Art Gallery of Ontario and the Royal Ontario Museum.  The first thing you should know is that the Art Gallery of Ontario (AGO) offers free admission from 6:00 p.m. to 8:30 p.m. every Wednesday. There’s been a lot in the news about the gallery’s new Frank Gehry-designed building and its spectacular collections. So for Torontonians this is a must see. And at these prices why not see? Likewise, you can save money while visiting Toronto’s celebrated Royal Ontario Museum (ROM), with wonderful permanent and travelling collections. The ROM offers free admission every Wednesday from 4:30 p.m. to 5:30 p.m., or pay only half price on Fridays from 4:30 p.m. to 9:30 p.m. Both centres are located in the downtown area. You should also know that this summer you can get your hands on a wide-ranging Museum and Arts Pass (MAP) thanks to Sun Life Financial. With the pass, you and your family can explore the best of Toronto’s arts and cultural treasures for free. To get it, all you need is a valid adult Toronto Public Library card, which enables you to “borrow” a MAP for your family at any Toronto Public Library branch. But you better hurry. Quantities are limited and borrowing rules apply.

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Harbourfront. Toronto’s downtown waterfront offers a host of activities all summer long, and lots of great free fun for families. At the heart of the action is Harbourfront Centre where you will find art galleries, theatres, craft boutiques, restaurants, and marinas fronted by a waterside promenade. Check out harbourfrontcentre.com for a calendar of events and activities.

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Distillery District. Take a step back in time to the city’s Distillery District just east of the heart of downtown. A bevy of beautiful old stone buildings have been restored here amid pedestrian walkways that are a pleasure to experience. In fact, the Distillery District is now recognized as North America’s best-preserved collection of Victorian industrial architecture accommodating galleries, museums, rehearsal halls, boutiques, retail shops, artist studios, restaurants, bistros and cafes. Day and night, there’s lots going on. You can catch live music, outdoor exhibitions, fairs and special events. Check out distillerydistrict.com for more information.

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The Beaches. This is otherwise known to the locals simply as The Beach.  It’s a charming, laid-back Toronto neighbourhood that was long ago an escape outside the city. Now it’s part of the city but retains its special atmosphere, with miles of sand, plus a never-ending boardwalk. There is lots of open space and shady areas for picnicking, and free events are common throughout the summer. For some fun exercising there are sandy volleyball courts and an Olympic-size swimming pool where entry is free.

This is just a short list of things to do in Toronto. There is so much more to experience and explore here with little or no cash outlay. I urge you to enquire among friends and family about all that Toronto offers. Great summer outings are waiting for you right here at home.I also encourage you to contact Toronto Tourism at www.toronto.ca to find out more about what our diverse Toronto communities offer. 

Velvet Elvis. The garage sale treasure hunt is on.

I don’t know about you, but I’m seeing garage sale signs everywhere right now, which means spring cleaning is underway – along with Canada’s annual rite of the spring treasure hunt.

I’ve noticed the treasure hunters are out in force this year, reminding me of line-ups at Tim Hortons during the morning rush hour. They’re coming out in droves along curbs, sidewalks and lawns – all in the hope of finding something special for cheap, cheap, cheap, to quote the red-breasted Robin.

Maybe the bounty is an old record player – you know the one with the needle that drops – replete with a collection of Don Ho and Perry Como albums. Or maybe it’s a kitschy pink set of “unbreakable” Melmac dishes from years gone by (actually, I broke one once as a kid). Then again, it could be a turquoise swan ashtray without a single chip in it. Oh, and let’s not forget about that eye-catching velvet Elvis painting.

My point is, never underestimate the acquisitiveness of the spring treasure hunter. What you deem to be a throwaway item could be considered a gem in the eyes of this adventurer.

Right now, the hunt is on for all kinds of trinkets and baubles from dusty old corners. You may be surprised by how much coin some of these items bring you. 

If you are planning a garage sale, here are some moneymaking tips:

1.  Start early. All the bargain hunters are out at the crack of dawn, and you want your goods curb side when they pass your way. 

2.  Price appropriately. People expect a deal; it is a garage sale after all.  If items are too pricey, you may find yourself lugging all your stuff back into your garage or house at the end of the day.

3. Prepare to negotiate. If you are unsure about the value of an item, simply ask for best offers, then look for signs of how badly the hunter wants the treasure. Haggle a bit. It brings some fun to the whole process.

4. Create incentives. To lure people to your sale, set up signs and stands that offer free coffee or lemonade — or both. The point is to stop people by making them feel welcome. Once you’ve got them, they’re bound to browse. Plus, if you’re a parent, the kids can man the stands and have some fun. 

5. Be realistic. Don’t expect to get rich from a garage sale. Ideally, it will put a little bit of extra cash in your pocket with the added benefit of getting some clutter out of your life.

Above all, enjoy yourself during the garage sale. As any good salesperson will tell you, the spirit you bring to the sale rubs off on others. Or to put it another way, open hearts make for open wallets.

There was an article in the news today that stated that Canadians are once again turning into a nation of savers and have curbed back their spending. According to this report, Canadians were finding new comfort in ensuring that their pocketbook remained full and are leaning toward saving rather than spending. What do I think?

Well at Credit Canada, we always see the sad stories of way too much debt and no savings at all, so it is hard for me to be pragmatic about this.  I do think perhaps the tide is turning slightly but we have a long way to go.   For example the Vanier Institute reported that our savings rate went from 13% in 1990 to 3% in 2008.  On top of this, we are really one of the worst country of savers (except for the Americans, their savings rate is 1%).  Consider this: France has a savings rate of 12%, Russia and Germany 11%, Italy 10% and Belgium 8%.   So when I read reports that state that we are suddenly magnificent savers ,I am truly sceptical.
 
We have been great savers in the past and we can be  great savers again but as it stands today we have a long way to go.  Sure I know we are all wary about the economy and that tends to make people hone in and spend less, but hopefully people will make saving money a habit that does not go out of style.  Remember, Grandma was right….save for a rainy day.

Recently, a friend of mine suggested we go to Value Village to check it out.  Now I have been there many times in the past and have found some great deals but for some reason had not gone in over  a year.  So off we went to find super bargains at a fraction of the price.   I was in need of a few items any way.   In fact I was mentioning to my friend that we should go to a local shoe store around the corner from Value Village afterward as I needed a pair of shoes and since we were in the neighbourhood it made sense.
 
I was first of all flabbergasted at the number of people at Value Village.  Apparently, we weren’t the only people in Toronto looking for hot deals.  I saw young people, old people, and everywhere in between. Some were quite well dressed and I had to wonder if the clothes they had on were in  fact from Value Village.
 
First thing I did was go to the shoe department. Now in my mind I was thinking that the chances of finding a good pair of black shoes at Value Village was little  to none. Now, to my utmost surprise not only did I find a great pair of shoes but an awesome pair of boots that looked like they had never been worn…Price?  Eight dollars for the shoes and eight dollars for the boots.  Talk about happy!  If I had gone to the shoe store around the corner it would have cost me at least $60 for a good pair of shoes.
 
Some people find it disturbing to consider wearing clothes that are second hand from  a store like Value Village.    For me, not only did I get awesome bargains but I felt like I was  being environmentally friendly too, isn’t it after all, a form of recycling?   My suggestion… try it.   You will be amazed at what you can find!

Financial experts are now predicting that both the stock market and housing prices will continue to fall until the end of 2009, and the overall economy won’t hit an all time low until early 2010. Well, there go all those headlines and reports that said Canada’s economy will begin to look brighter by mid 2009. I don’t enjoy being the bearer of bad news but we all have to come to the sober realization that this economic nose dive is going to take some time to recover from. With the economy predicted to recover beginning only in 2011, we’re definitely in for the long-haul.

There are still a vast number of people out there thinking this financial mishap is going to correct itself within a few months, so for now they’re treating it as an excuse to spend and take advantage of lower prices. This is a huge mistake. I know we need to spend to get the economy going, but if you’re already experiencing personal financial trouble it’s only going to get worse. People need to keep track of what they spend and spend only what they can.  Not what your credit card or your bank loan will allow you to spend, but what your actual take-home income allows you to spend. Debt is the leading enemy when it comes to withstanding difficult financial times. Try handling debt accumulated by a two income household when it’s been notched down to a single income household.  These are the kinds of difficult situations I’m talking about.

I hope I’m wrong and that I’m just being a pessimist, but if I’m not then a lot of us are going to be in a heap of trouble once this economic downturn has run its course. I for one am holding strong by watching how I spend and working with my budget; hoping for the best but prepared for the worst.  

Check out more about budgeting on the Stephen and Chris show this Friday, March 6^th at 2:00 pm.

As we all heard in the federal budget, we are to get out there and spend our well-earned dollars (or well-earned credit) on home renovations to help in doing our part to boost the economy.  I am well aware of the stimulus package and the need to spend our way out of a  recession but in these  unprecedented times, where debt levels are at a record high and savings rates at a record low, this seems ludicrous to me.

According to a report on Family Finances by the Vanier Institute, debt levels in Canada are dangerously high with average household debts soaring over $90,000 in 2008.  Add to that the total debt to disposable income climbing to a record 140% in 2008.  Clearly, many people will have difficulty paying their bills, never mind purchasing unnecessary home renovations.  As it stands Canadians have found themselves in a heap of trouble from overusing credit and now need to take the necessary steps to dig themselves out.

I, for my part, will not be spending money for the sake of spending it. Isn’t that what gets us into trouble in the first place?