Fellow Canadians, we are in debt big time according to a recent report by the Certified General Accountants Association of Canada.

Despite all the cautionary tales we might have learned from simply watching the evening news during the past couple of years, household debt in Canada reached $1.41 trillion at the end of 2009. That translates to a debt load of $41,740 for every man, woman and child in the country.

Now debt in and of itself is not a bad thing. Credit helps drive the economy, and it allows us to enjoy material goods that would otherwise be beyond our financial reach. Problems come in when we reach too far, too fast. And much of the overreaching has to do with what is called consumer debt, as opposed to secured debt.

Secured debt is backed by assets or collateral, a prime example being a mortgage, which is generally less risky than consumer debt, which includes things like credit cards and lines of credit.

Credit card debt is often central to the problems facing the clients who come to us at Credit Canada for debt counselling. More and more, we see Canadians living beyond their means, financing their lives through high interest rate credit cards and lines of credit.

It’s the interest rates that get you. And there’s no sign that they’re going to remain manageable. 

Not too long ago, the Bank of Canada let us all know that low interest rates for economic growth policy is over. So we should all be preparing for higher interest rates and adjusting our debt accordingly. 

My advice to you is, reduce your credit card debt as much and as quickly as you possibly can right now.  And if you’ve got a bunch of credit cards on hand, make the effort to get rid of all but one of them. Or, if you’re in the financial thick of it, cut them all up.  

Meanwhile, if you’re in the market for a new credit card, know what you’re getting yourself into, and discipline yourself in the way you handle the card. 

Keep the following pointers in mind.

• Know the terms of the card.  Read the fine print. Know the interest rate, the fees and the payment schedule.
• Be cautious about low interest teaser rates.  You might be enticed to get a new credit card because it offers a low introductory interest rate. All fine and well until the “go-to” rate kicks in. Know what you will eventually end up paying.
• Calculate interest rates.  Determine how debt can build up because of interest. Those $60 sandals and last week’s $15 pizza delivery at 20 percent interest can be costly. You can calculate the true cost of your credit card debt with Credit Canada’s  Debt Calculator.
• Set and keep a budget.  This is simple. Don’t charge more than you are able to pay. Credit Canada can help here. Download our Monthly Budget Tracker.
• Pay on time.  Always try to pay off your balance. But if that’s not possible, pay as much as you can, or at least the minimum. Never lapse in a payment, ever, unless you’re just plain flat broke. Anyway, long before that happens, you should be talking to us at Credit Canada about your money problems. Our programs can help you manage your money and get debt free.
• Don’t go over your limit.  If you spend too much, you’ll incur additional fees. That’s just dumb. Stick to what you know.
• Think about a “secured” credit card.  Last but not least, if you need a credit card but wish to avoid interest rates altogether, then consider getting a secured credit card. That’s a card that is backed-up or secured by funds you have deposited with your bank. The card looks like a credit card, and acts like a credit card, but it will have a limit depending on the amount of money that secures the card. Usually a very low monthly fee is required for the card, as well as a one-time set-up fee.

Okay. Let’s be smart about how we handle our credit cards in Canada shall we. The debt we are incurring is getting out of hand. Let’s get a handle on it.

Meanwhile, happy swiping.

So maybe you’re down this year about a lack of dough for some summer fun. Forget about it. Tuck those credit and ATM cards away for the time being. There are lots of great things to see and do in cities and towns across Canada this summer that cost you nothing, or next to nothing. You might need a little transportation. But that’s where low-cost or no-cost public transit, bicycles and comfortable walking shoes come in.

All it takes on your part is a little research via the Web. Take my home town of Toronto, for example. Based on my personal experience and with a little help from the Internet, I’ve compiled a list of ten things Toronto families, couples and individual explorers can do for local summer enjoyment. And even if you’ve experienced some of these offerings before, I say get out and experience them again. New sights, sounds and energy abound in Canada’s most populous city. But the same rule applies to just about any city or town in the country.

Get moving. Get exploring. Pack your own lunch or dinner and get yourself some hot summer fun that won’t fry your piggy bank.

1. The Beaches

Soak up the sun or get your limbs moving on the expansive sandy beaches that stretch out along Lake Ontario’s shore in this amiable east Toronto neighbourhood. The Beaches were in fact once a summer getaway for city folks in the days when Toronto was still a budding metropolis. Enjoy cycling, sunbathing, beach volleyball and, of course, people watching. There’s a local commercial area featuring interesting wares and the charm of summer sidewalk cafes.

2. Harbourfront Centre

Along Toronto’s downtown shoreline you’ll find a cultural hub in the summertime called Harbourfront Centre. Here is live music, and plenty of festivals and special camps, many with free admission. The harbourfront is a joy when the sun is high, with sailboats and yachts gliding between Toronto Island Park and the city’s gleaming downtown business and entertainment districts. On warm summer evenings, the whole area takes on a magical quality.

3. Toronto Island Park

The paths, picnic areas and beaches of the Toronto Islands make them an ideal place for a fun, relaxing day or afternoon. Terrific trails for walking and cycling. Sandy beaches for suntanning. Picnic areas. The charm of rustic cottages. A number of baseball diamonds, volleyball courts and wading pools. Plus food and bicycle rental outlets along with a mini amusement park for the kids. Meanwhile, for the more adventurous out there, a clothing-optional beach on the west side of Hanlan’s Point could be worth a look.

4. Chinatown

You can get lost for hours in downtown Toronto window shopping the wares of Chinatown’s many stores and enjoying the ethnic color of the neighbourhood’s streets and people. Plus, if you do have a little spare change, you can find amazing things for cheap, not the least of which include fresh produce and tasty treats like baked goods, many of which will send your taste buds to heaven.
 
5. Kensington Market

The ambience of this little neighbourhood in west downtown Toronto is charming and funky – in the best sense of the latter word. The area boasts colorful corner fruit stands, many thrift stores and pubs, and it is a gathering place for some of Toronto’s most interesting people. Visit during a summer Sunday afternoon when they block off the streets for strolling and festivities including music, dancing, street theatre and more.
 
6. Riverdale Farm

Riverdale Farm is a special a treat for urban families, particularly if you have little ones. You will find it in east Toronto near Cabbagetown. It’s an authentic, fully operational farm covering almost eight acres of land.  Amidst the farmhouse, barn, outdoor paddocks and flowering gardens you’ll feel as though you’ve been transported to some idyllic rural landscape far from the city. The kids will love seeing and petting the animals, including cows, horses, donkeys, sheep, goats, pigs, chickens, turkeys, ducks, geese and rabbits. There’s a shady, adjacent park for picnicking, too.

7. Don Valley

Toronto is unique among major cities of the world in that it is blessed with what is essentially wilderness area running throughout the many valleys and ravines that crisscross the metropolis. The Don Valley is a prime example. The 10 kilometers of biking trails are great for avid cyclists or those who enjoy a nice, easy pace. There are also beautiful wooded areas and open lawns for splendid picnics, sun tanning, plus surprises I’m not going to tell you about because, well, they wouldn’t be surprises otherwise.

8. Art Gallery of Ontario (AGO)

The AGO has always been a pleasure to visit. Now, with the relatively new Frank Gehry redesign, it’s even more of a pleasure to see and experience. And it doesn’t cost a lot to do so. In fact it’s free every Wednesday evening between six and nine o’clock pm. The gallery features more than 36,000 works of art in its collection.
 
9. St. Lawrence Market and Market Gallery

What was once the site of Toronto’s old city hall is now a vibrant, colourful marketplace filled with vendors offering delicious food, produce, meat, fish – you name it – under the soaring, vaulted roof of an old Victorian building. You can spend a good portion of a morning or afternoon exploring stuff, and finding some good deals, too. The building also hosts exhibits of paintings, artifacts and furnishings showing the history and culture of the historic area in which the market is located. Admission to gallery is free.

10. Allan Gardens Conservatory

Looking for a peaceful escape in the heart of the city? Look no further than Allan Gardens Conservatory, a lovely Victorian style greenhouse with a unique botanical garden, free to the public.
 
Okay, so there’s 10 great, economical ways to have some fun this summer in Toronto. Check out www.torontoonthecheap.com for more details on all of the above.

Meanwhile, I’m going to add just one recommendation to the list as a bonus because it can be so much fun for families and individuals who like the magic of outdoor theatre. Every Tuesday night from July 6 to August 31, 2010, Toronto’s Yonge-Dundas Square will be transformed into a giant outdoor movie theatre. And it’s all free with quite a line up of movies starting at 8:30 p.m. (except for double billings).

Have yourself a happy local summer holiday.

A couple of months ago I arrived home to a letter from my landlord advising that my rent was to increase by $16.17. This brought my monthly payment to just over $1100. I was scandalized. $1085 was one thing, $1100 was quite another! I know people who have smaller mortgage payments than that.

After years of redirecting my pay cheque to a grumpy old man it was time for action. I handed in my sixty days notice and informed the landlord that he had priced me out of my home and left me heartbroken, he informed me that I was to make sure I cleaned the oven and depart in a timely manner. It wasn’t long before I realised that I was in fact priced out of the WHOLE downtown core. Drastic action was required. I’m not sure at what point I decided to move in with roommates but before I knew it, the contents of my one bedroom apartment had been redirected to one bedroom.

Six years of living alone and I’m now faced with the prospect of walking around fully clothed, keeping my George Michael’s greatest hits CD at a communal volume and having a rather limited pre assigned space in the fridge. Hell hath no fury like a roommate’s fridge boundaries scorned. Part of me thinks it’s the pits, that I’ve failed in some way but mostly, all I can see are dollar signs. I’m saving over 50% on the rent and have put together a plan to save for a down payment with my colleague and new financial coach. In an attempt to help keep my roommate experience short and sweet he has also cut out my golf lessons (a vain attempt to pick up single investment bankers rather than a love of the game) and introduced a foreign concept of bringing my own lunch to work. My new roomies are amazing but what will be more amazing is being in a position to look at purchasing my own place in the next few years.

Thank you greedy landlord for forcing me into action!

I am one of those who clip and collect store coupons thinking, ‘I could save money’. At times, I would spend a half-hour cutting out coupons and piling them up in my ‘coupon box’. But I never used them- my collection became a hobby.

One day as I was cutting out some, a light goes off in my head.  It was Airmiles Bonus Days Celebration for the week so off I went to my favourite pharmacy with health and beauty coupons and Airmiles bonus coupon. Lo and behold! I came home excited with the extra $10.00 bonus coupon for my next purchase, discounts and three times extra Airmiles for the $50.00 worth of purchase I made.

Gee that wasn’t so bad, so now I watch for flyers and defer my shopping to take advantage of specials. Yesterday was Senior’s Day at my favourite pharmacy so I grabbed my husband (who is not happy to have just turned 65) and went shopping. Guess what? I saved $17.00, got an extra $10 bonus coupon for my next purchase and earned Airmiles.

Really not bad for the fun I had. My collection is diminishing but my motivation is increasing. I can’t wait for the next time.

You’ve finally put a savings plan together.

No more DVD’s and concerts or weekend trips.

Then you open your mail…

 The credit card balance is a little bigger than expected. That weekend trip turned out to be a bit more expensive than planned. It seems you owe some taxes this year? That’s right you took out that mutual fund to buy a computer. Plus that balance is still there on your other credit card.

The room suddenly feels a little bit smaller.

Don’t let the panic set in. Breathe. Re-prioritize your plan. Make the necessary sacrifices. Cancel a few subscriptions. Take out the HD for a couple of months. Well…maybe cancel a few more subscriptions instead. The point is, when new costs come up, or ones you forgot about, you can’t ignore them. They will show up at the worst possible time, and probably a few at the same time.

Sometimes its better to clear out those debt balances first before enacting your savings plan. Its very easy to get caught up in the worry of not saving with every pay check. But it is not worth it to continue to carry debts in order to save. The hole will just grow, but at a slower pace. It is the slow growth that you will not notice until the suprise bills roll in.

Clear balances, get back to square one. Build some savings so when the extra costs due occur, or you decide to spend a few more days at the tropical resort, you won’t be spending the next 6 months worrying every time the mail is delivered.

As I write these words, a glorious golden sun is setting over Ontario’s horizon. The brilliant orb is slipping into a pale orange mist beneath big, baby blue skies that are fading into the beautiful navy of night. A slight breeze brings whispers from nearby trees and a flower garden where a few birds chatter earnestly among glowing violet-blue irises.

It’s 24 degrees Centigrade (about 75 degrees Fahrenheit) in my hometown of Toronto this late holiday weekend in May, and I’m thinking it’s the perfect time of year for a wedding.

Well, as a matter of fact, during an outing this afternoon, I caught a glimpse of just such an event – a lavish affair in one of Toronto’s well-heeled suburbs. I saw a yard full of stunning dresses and tuxedos, truckloads of flowers, gleaming stretch limos, and scores of guests lapping up pricey champagne beneath yellow tents on lawns that seemed to reach all the way to Bay Street.

How lovely, I thought, until as usual my mind turned to the question of what a pretty penny the whole affair must have cost.

Not that I’m against lavish weddings, you understand. In no way will I ever badmouth a big, beautiful, expensive wedding – unless, of course, the folks who are holding it are breaking the bank to do so, going deeply into debt for a celebration that will be remembered not only for its splendour, but for the anxiety that results from the big bills hidden behind all those bottles of Dom Pérignon.

Should one day of pleasure cost anyone months or even years of financial misery? I think not.

I never hesitate to tell young couples that if they and/or their parents can not comfortably fund a lavish wedding, then don’t do it. With a little help from Mother Nature, you can stage a big, fat cheap wedding that can be just as lovely and wonderful as anything, say, a successful hedge fund manager can afford to stage for his spoiled daughter.

Consider my above description of this most glorious day in May. That’s where any big, fat cheap ceremony can start when wedding season gets up and running and keeps going full throttle through to early autumn.

An economical wedding starts with the glorious outdoors and a simple, natural location that can cost you nothing, or next to nothing, and yet make for a terrific ceremony given all the lovely settings in Toronto – from the City’s many parks and waterfront areas, to the lush grounds of institutions like the University of Toronto. The setting could even easily be a flowery, well-treed backyard belonging to a friend or relative.

The same holds true for any city, town or rural location. Just take a look around you. Nature is rich and generous. Some of the best things in life truly are free.

If holding a lavish wedding is a status thing with you – a matter of impressing others and keeping up with the Joneses even when you can’t afford it – then I strongly suggest you call me and my staff for some counselling. You need an attitude adjustment about money and debt. Getting married is not a time for showing off wealth and possessions; it’s a time for showing off your love and showering friends and family with good cheer – none of which necessarily costs a cent. Besides, the Joneses, contrary to appearances, are going broke these days.

Here are a few pointers for staging a big, fat cheap wedding that can be both fun and memorable.

• BUDGET

Start with a realistic budget and work from there. What can you afford? What can you do without? Above all, take what steps are necessary to avoid going into debt that you can not easily and quickly pay back. 

• DRESS

To avoid costs associated with expensive clothes, consider semi-formal or even informal dress for the ceremony. If you insist on going formal, think rentals, of course. For brides to be, check out vintage store offerings. One of the loveliest wedding dresses I have ever seen came from a vintage store, and cost only around $100.

• FOOD

Look at alternatives to the big evening, sit-down dinner. Think about more cost-friendly catering for an afternoon reception immediately following the ceremony, or a homemade buffet, or even a barbecue, depending on the location. Get family and friends to pitch in on the food. It’s what families and communities used to do as a matter of course not too many decades ago. Too bad we’ve lost touch with these great traditions. Also, do you really need a wedding cake costing $500 to $1,000? How about economical, home-made cup cakes?  One special one could feature a little bride and groom on the icing (go on, use your imagination and have some fun).

• RECORDING THE EVENT

Got a talented friend or a member of the family who’s into photography or videography? Get one of them to document the event.

• ALCOHOL

Booze wise, ask the reception venue if you can provide your own alcohol. Or try to make arrangements for a cash bar on the hard stuff and you provide only the beer and wine. Even better, make it BYOB in a beautiful backyard belonging to a friend or relative. You can decamp from the location of the ceremony to the yard – or hold the whole affair in the backyard if its pretty and large enough to comfortably accommodate all the guests.

• DÉCOR

For décor, be creative. Instead of a bunch of expensive flowers, how about just a few tasty flowers arranged beautifully among photos and memorabilia relating to the bride and groom to be? Anyway, my earlier point is to take advantage of a nice natural setting so that flowers are not a chief requisite.

• ENTERTAINMENT

For entertainment, invite the participation of friends and family who are good musically, or engage somebody you know who can do a reasonable job as a DJ. Surely you can pull together a reasonably good sound system and song list by pooling resources with friends and family.

Okay, so these are just a few pointers for a big, fat cheap wedding.

Now, you curmudgeons out there might say to me: but Laurie, what if you make big plans for a wedding ceremony outside and the weather turns foul? Well, to that I can only say: you choose your location, kid, and you take your chances. Life is uncertain. But I’ll tell you something, I know of rained out weddings that ended up being some of the most fun-filled ceremonies ever.

In the end, as always, the joy and pleasure we experience at a wedding just comes down to the people who attend it  – and to what the event symbolizes, a lifelong bond of love and friendship. It’s we who make or break the ceremony. The money and all the associated baubles are secondary.

On that point I hope you agree. In fact, can you say it? “I do.”

They say knowledge is power. I say knowledge is money and Credit Canada can show you how to put that knowledge to work for you.

Understanding how to manage money properly can be a life-changing experience. Worry and stress can be lifted from one’s shoulders. The world seems new, fresh.  You start making the right decisions, such as how much to save, invest, spend and give.

Suddenly your days are no longer a grind; they are an adventure, full of all kinds of gratifications often of a simple nature. You stop living in your head. You start looking around and noticing there is a whole world of interesting things to experience. And you find you begin to relate to others – be they family, friends or associates – in new and positive ways.

At Credit Canada, it’s been a goal of ours for some time to develop and offer a special education program that tells troubled souls everything they ever wanted to know about personal finance but were afraid to ask. Through our certified credit counsellors, we now offer what we call our Financial Coaching Series, and I guarantee it can put vital energy back into anyone’s money-rattled life.

The program is designed for anyone who is interested in taking control of his or her finances. It brings relief and wisdom to those who are marginally or deeply concerned about money. However, the program should not be confused with our regular counseling services at Credit Canada, which often involve putting together Debt Management Programs.

The Financial Coaching Series is for those who are experiencing life changes or for those who are constantly fretting about money, in other words, it’s for everybody. The Series teaches and guides you on how to create a realistic monthly and annual spending plan– and all the ins and outs about credit and debt. It is also about planning and attaining goals and lifelong dreams, all of which factor greatly in taking financial control of one’s life.

Participants in the Series are motivated with a coach physically on hand and in constant communication. All within a year’s time, you can at last become an expert yourself in personal finance through six sessions that are easy to understand, through self assessment, practical guidelines and advice that anyone can implement.

If you are interested, I encourage you to visit this link www.creditcanada.com/financialcoaching.asp. I tell you honestly, joining our Financial Coaching Series could change your life in ways that will surprise and delight you. Not only that, it could change your life for life.

Rules of the allowance game.

I’ve got three simple words of wisdom for gainfully employed parents who include kids’ allowances on their list of money problems.

Break the cycle.

Most of the time, the financial problems adults face directly relate to the financial illiteracy of their own parents. Like father, like son. Like mother, like daughter. Bad habits involving spending and saving are passed down through families. It is the responsibility of the self-aware adult to come to grips with this reality and – break the cycle.

The argument, “It’s not my fault, my parents weren’t any good with money either,” just doesn’t hold. The definition of being an adult includes self-reliance and taking financial responsibility. It’s easy to blame others for your own shortcomings. The problem is, doing so nets you absolutely nothing.

Unfortunately, our school systems generally don’t teach kids about money, so youngsters must learn about the ins and outs of personal financial management at home. But there is a big upside to this: mothers and fathers who take the time to educate their kids about money are bound to themselves benefit from the process both personally and as parents.

So, here are some rules for parents concerning the allowance game. Follow them and chances are excellent that as a money-savvy parent you will raise money-savvy kids.

• START EARLY

Psychologists tell us that children as young as three have a general concept of what money is – or at least what it can do. So it’s appropriate to start putting money in kids’ pockets not too long after they stop putting money in their mouths.

Coins apportioned on a weekly basis help little ones understand the proportionate value of money and the dynamic nature of its ebb and flow. And it’s never too early to introduce youngsters to the concept of savings, best done with a see-through piggy bank whose full contents can eventually be used to demonstrate the power of savings to purchase a “big-ticket” item  – say, a stuffed giraffe.

• BUDGET AND BE CONSISTENT

As kids grow older, maintain a strict regimen in relation to their allowances that is within your means. This means you yourself ought to have a monthly household budget for the money you allow the family at large.

Gradually increase the amount of the allowance over time, always pay on time, and avoid linking the allowance with everyday household chores, which within the family should be a given that is not dependent upon what could end up becoming a “negotiable” reward. However, as children progress into adolescence, it is wise to assign special tasks for which the child receives additional “incentives” over and above the regular allowance.

Also, on the odd occasion when you might have to borrow money from your kids, make sure you pay it back promptly lest you start sending mixed messages about the importance of discipline.

•  MAINTAIN DISCIPLINE

To introduce the idea that budgeting is most important, you must teach the child that there are limits to resources and there are consequences to overspending an allowance. Therefore, if your child runs out of money as part of an allowance that is devoted to non-essential items (discretionary income you could say), then no more money should be forthcoming for that allowance period.

For older children – teenagers in particular – whose allowances may cover essential items such as clothes and school supplies, discipline for overspending may include covering the shortfall by deducting money from future allowances, including especially the “discretionary” funds that form part of that allowance.

In these circumstances, another great way to educate kids about the value of money is to provide them an “advance” against which you charge interest. Also, you can play the “status” card. Acquire cheaper, not-so-trendy replacements for stuff your child needs and/or wants. Money wise, there is a no more powerful way to educate kids than to suddenly introduce them to the threat of a drop in status among peers.

Meanwhile, I caution against withholding allowances for bad behavior not associated with the allowance. Withholding money may create resentment that exacerbates the child’s bad behavior. Find other ways to discipline the child on this front.

• COMMUNICATE, MAKE KIDS FEEL SPECIAL

Teenage years are pivotal in financial literacy. This is the period when the youngster ought to be given – and to be taking – more and more responsibility for the way money is handled. Engage and involve your children in family matters concerning money. You ought to have set monthly and yearly budgets for the family. Set aside a special time to walk your children through the process. Be open with them and keep them up to date on the family’s financial standing. Your kids will respect you for it, even if they grumble at first that it’s boring.

Also, as they enter their teens, or even before that time, your kids should be familiar with the process of opening chequing and savings accounts at a bank. If you can swing it, take out RRSPs in their names, which will make your kids feel special.

• AVOID NEUROTIC BEHAVIOR

Do not play the money martyr with your children, giving them what you never got as a child at the expense of overspending yourself. Many parents do this, denying themselves needed and wanted items just to keep the kids happy. The trouble is, parents end up resenting themselves for such behavior because at some level of consciousness they know they are being unrealistic. You know you’re a money martyr when you hear yourself saying things to your kids like, “After all I do for you, this is the thanks I get.”

In terms of kids and allowances, always be realistic, disciplined and fair. By doing so, your own financial literacy will likely improve too.

Happy parenting.

Movies about money that will move you.

Pop culture has plenty to teach in terms of financial literacy – movies about money, for example.
 
Indeed, having discussed popular books about money in this space, I think it’s worthwhile to talk about a few popular films about money. But let me clarify that. The movies I’m thinking about are works of fiction primarily experienced on a gut level rather than on the more rational level of a reading experience.
 
To put it another way, through the image-oriented, make-believe world of movies, I think it’s possible to experience something like emotional learning about money in addition to the more cerebral lessons that come from books most often created with education, rather than entertainment, in mind.
 
While there are few good feature films whose stories directly address crippling debt and ways out if it, there are a number of great movies I can think of that offer general life lessons about money. From these films insight can be gained into the deeper urges, influences and expectations that play out in our lives in the context of money.
 
Here, then, is my movie list. It includes five mainstream features that tell interesting stories relating to money management and finance – if only as a byproduct of the central storylines.

Doubtless many of you have already seen some or all of these films. If that’s the case, my advice is that they are worth seeing again on DVD, particularly if you’re in a situation where you’re evaluating or re-evaluating your finances and what money means to you in life.
 
• Wall Street (1987). The message of this memorable film resonates even today – in fact especially today – thanks to a bad guy known as Gordon Gekko, the greedy, ruthless Wall Street titan played by Michael Douglas. Some 23 years after its release, we’re told the movie Wall Street will be getting a sequel. The new movie has a lot to live up to. The original film offered as clear a lesson as ever there was about putting greed and personal interest before ethics, self-respect and matters of the heart. Here, specifically, the heart belongs to one Bud Fox (played by Charlie Sheen). As Gordon Gekko’s eager and ambitious financial gopher, Bud learns through a number of twists and turns that coveting money and cheating your way to the top can have dire consequences. The story stands as a timeless reminder that if something in life seems too good to be true, it probably is too good to be true. It’s good advice a lot of people with money troubles ought to consider since financial difficulties often stem from unrealistic expectations and exceeding one’s bounds.

• The Shawshank Redemption (1994). There are a couple of important messages in this critically-acclaimed film about a wrongly accused New England banker named Andy Dufresne (played by Tim Robbins) who is sent to federal prison for many years. Andy suffers some terrible ordeals there. But thanks to his perseverance and his commitment to a carefully thought out plan, he escapes from prison. He even manages to create a financial nest egg for himself. While in prison, he is appointed money manager to a corrupt warden whose ill-gotten gains eventually end up in Andy’s possession through a little sleight of hand. The story is a good, if unusual, reminder to anyone that focus and patience are required for long-term security. The movie also illustrates life’s uncertainties. None of us can be sure about what fate holds in store, so we must do our best to be prepared; we must take the good with the bad, and learn to adapt.

• Trading Places (1983). On a lighter note, here is a comic romp that begins with two aging, ultra-rich commodity brokers making a bet that they can turn a privileged rich kid named Louis Winthorpe III (played by Dan Aykroyd) into a common criminal, and reinvent a two-bit street hustler named Billy Ray Valentine (played by Eddie Murphy) as a successful businessman. The old guys conspire to have Louis and Billy trade places in life. It’s interesting and funny to see the different ways the two young men deal with their new financial circumstances. Message wise, the movie shares something with The Shawshank Redemption in that it addresses the issue of coping with life’s uncertainties. It also shares Wall Street’s lesson concerning self-interest, but with a positive twist. Trading Places promotes the idea that it’s only right to look after and think about your own finances, just don’t do so at the expense of others, or for that matter, at your own expense.

• Jerry Maguire (1996). Here is another movie that will leave you with a smile by the time the final credits start rolling. Based on a real-life character, this is a dramatic but uplifting film about high-powered American sports agent Jerry Maguire (played by Tom Cruise). As the story unfolds, Jerry is on the rebound in his career and faces some big obstacles in a cutthroat business. In the process of overcoming those obstacles, Jerry learns to value people above money. His trials teach him to respect himself, to care for others and to understand the value of good business ethics. In a nutshell, the message here is that there is more to life than money. Additionally, Jerry shows us that we grow in spirit and positive self-awareness when we realize the true value of our abilities.

• Glengarry Glen Ross (1992). Now, back to a solemn note. The movie Glengarry Glen Ross is based on a celebrated play written by David Mamet, whose ear for dialogue and insight into today’s social and economic realities make for high drama. Or perhaps excruciating drama is a better way to put it, particularly as we watch one of the film’s main characters, Shelley Levene (played brilliantly by Jack Lemmon), come unglued. He is amongst a group of dishonest salesmen competing for business in a dingy real estate office where a dog-eat-dog ethos prevails, and where heart-breaking tragedy is the real end product. Desperation is the operative word here and it’s the main reason I’m mentioning this movie. As a cautionary tale, Glengarry Glen Ross amply illustrates the folly of acting foolishly out of desperation in difficult financial circumstances. Indeed, the message we always promote at Credit Canada is that, regardless of how desperate your financial situation seems to be, there is always hope. It just comes down to keeping a level head, educating yourself and perhaps reaching out to honest people with the financial know-how to give you a hand, like our counsellors at Credit Canada.

So that’s my list about movies concerning money. Of course, there are many other films whose storylines have something to tell us about money – everything from the classic Citizen Kane, to The Godfather series. But my blog space is limited. And besides, film reviewing is not my forte.

In closing, let me just say that if anyone out there is wondering why I didn’t include on the movie list It’s a Wonderful Life – possibly the most famous film ever about money problems and debt – it’s because I already reviewed it at length in my 2009 Christmas blog installment, which is available for reading in my Archive section (just search the column that you see to the right). Look for the installment dated December 2009.
 
You know, it just isn’t Christmas until George Bailey (Jimmy Stewart) discovers that a person’s true wealth is measured by the love and support of family and friends.

And that, dear film fans, surely is the ultimate money lesson.

Or how to live large on a small budget.

Permit me to introduce you to my extraordinary friend Bubbles, whose nickname derives from the fact that she gets a charge out of popping the plastic bubbles you find in bubble wrap. Or so the joke goes.

Bubbles, a grown woman, is a bit eccentric. She used to be a successful art director in Canada’s advertising industry, bringing home a six-figure salary. Then one day – feeling creatively unfulfilled in her line of work – she dropped everything to become a fine artist, an abstract painter making just a fraction of her former salary.

The big leap came two years ago. Since then Bubbles has experienced quite a learning curve in terms of money and budgeting. She paid off her debts, cut up her credit cards, sold her car (which she didn’t use much anyway) and moved to a small but stylishly appointed loft in downtown west Toronto. Today, in addition to the income she receives from arts grants and commissions, she makes a living by serving as an assistant at a local art gallery. And, yes, when pinched she still sometimes returns to her old trade as a freelancer.

But gone from her downsized closet are the high-end designer labels. She shops vintage and used clothing stores now and claims her wardrobe has actually improved. Gone, too are wild nights on the town and season’s tickets to the theatre. Also, she’s off cable TV. She is now entertained by stuff she gleans from the Internet, through books and occasionally DVDs often used or from the public library. Meanwhile, she hangs with pals in what she calls “cost-friendly” ways, including most especially sports activities (volleyball and cycling) and dinner parties where participants pool resources.

As her dinner guest one evening, I’m told over a steaming plate of chicken curry that the biggest and most important changes in her life have to do with two simple things – smoking and food. At 34, Bubbles has quit smoking, and she has learned that healthy eating is actually far cheaper than filling yourself with “poisonous crap” – processed food, junk food, pop and sweet stuff in various forms that has no nutritional redeeming value whatsoever.
 
“My eyes have been opened since my income nose dived,” Bubbles tells me. “I mean, I’m appalled now when I look back on the way I used to throw money around. I was spending $400 a week on rich or unhealthy food and expensive booze, and about $120 a week on cigarettes. In effect, I was spending something like $25,000 a year for a lifestyle that probably guaranteed me an early grave.”

Back in the day, with monthly take-home pay of $6,500, Bubbles could afford to spend freely. She now gets by on barely a third of that sum. And she says she feels great about it primarily because of the way it has changed her health and eating habits.

“Food has become a total joy for me,” she says. “Not only in terms of cooking and eating, but I now take pleasure in studying food, planning around it and shopping for it.”

Before, as a single professional woman caught up in her work, she didn’t give food a lot of thought. Much of the time she was eating at restaurants, or picking up pre-cooked food from chic delis like Pusateri’s. She purchased a lot of convenient, quick, processed and pre-packed stuff. But times have changed.

 “I’m now a card-carrying member of the slow-food movement. My motto: Eat fresh, eat cheap, eat healthy.”

Bubbles in fact brims with enthusiasm when you get her on to the specifics of food. She has studied Canada’s Health Guide and knows all the facts surrounding all the food groups. She’s big on fresh fruits, vegetables and grains, most of which she buys in Toronto’s Chinatown and Kensington neighbourhoods at prices that she says are often a fraction of what the big chain stores charge. She even makes her own bread from scratch.

“Right now I’m exploring food dishes that are inexpensive but delicious. I’m alternating between curry dishes and Italian cuisine. So my shopping journeys take me by trolley or bicycle to east Toronto’s Little India on Gerrard and to the St. Lawrence Market downtown, including the local farmers’ market. It’s amazing what you can do with a few fruits and vegetables – along with maybe a little fresh chicken, fish, lamb or sausage – and the right spices.

“Or forget the spices,“ she suddenly pipes up. “You give me Ontario farmers’ potatoes fresh from the soil, and all I need to do is boil them and add a little butter and salt. They taste like heaven. Same goes for tomatoes and other stuff fresh from the farm.”

My friend lets me know that contrary to popular opinion, tomatoes actually do have taste. She adds that all this fresh stuff comes cheaper than produce and processed foods from the big store chains.

“Of course, it’s nothing like the cost of restaurant food,” Bubbles explains. “For $6.00 I can buy a whole chicken for a stew that will last a week. What does that get you at a fast-food joint? A burger, shake and fries – and it’s unhealthy food.”

Bubbles admits she hasn’t given up entirely on chain stores when it comes to food shopping. But it’s mostly the necessary canned, bottled and jarred goods she buys from them these days, and not before scanning the Internet for penny-saving coupons. And, yes, every once in a while Bubbles still splurges on a restaurant meal, but she’s managed to locate little ethnic eateries around Toronto where the food is tasty and the prices are surprisingly modest.

“I used to think I needed hundreds of dollars a week to eat well and entertain myself. Now, I can make a feast for a few bucks at home, invite friends over and we have a great time. Invariably, someone who knows wines brings a couple of cheap but fantastic bottles to the table, and we’re set for the evening.”

She notes she doesn’t even go out for coffee anymore, having learned that delicious  – and cheap – coffee comes from a good St. Lawrence grind and a simple coffee press. It’s as good as anything Starbucks makes, she maintains.

This Bubbles tells me as she starts preparing me some coffee, then shuffles the remains of her chicken curry onto the lower shelf of her fridge. I note she has one of the most organized refrigerators I’ve ever seen. It’s full of plastic enclosed containers of various sizes, chock full of all kinds of goodies – vegetables, fruits, smoked meats, sausages – all lovingly wrapped in absorbent paper towels to “extend their shelf life by weeks,” she notes.

Observing her in action, I see she has made an art out of home economics. And that makes sense to me since, after all, she is an artist, in one sense a pop artist I guess you could say.

On that note, a thought pops into my head: People with money problems can learn a lot from my friend Bubbles.