Part Three: Kids
Stats Canada says it costs $243,660 to raise a child to age 18. That’s about $1,130 a month. And that’s not including post secondary education which can cost anywhere between $20,000-$64,000 for a four-year degree. If you can’t afford it, don’t have children.
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Chapter 7: Give your children an MBA (Money and Banking Awareness)
It’s up to you to teach your children about money. O’Leary said when they were young, he tried to instill in his kids two basic principles: money just doesn’t materialize - you have to work for it; and if you don’t have any, sometimes you have to borrow it, and that’s a bad thing. Rarely in life is debt good.
Take your kids grocery shopping with you. Pay with cash so they understand that something left your wallet forever. Invite your kids to the kitchen table with you while you settle the household accounts. Bring them to your next portfolio review so they see how your money is growing.
Don’t spend too much. Mostly save. Always invest.
Things you can do for your children even at a relatively young age - open them a bank account; take them to work with you so they can see how you earn money; get a part-time job (when they’re slightly older).
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Chapter 8: Kids: Get a Job!
A spoiled, pampered kid isn’t helping anyone - including him- or herself. Your kids ned a job as soon as they’re old enough to work. Even young teenagers should find ways to be employed (part time, of course, and not in a way that interferes with school). Every job will give your kid a new experience and perspective, both the good and the bad.
In his teens and early 20’s, Kevin O’Leary had many backbreaking jobs that made him appreciate the value of hard-earned cash and a well chosen career. At age 17 he got a summer job planting seedlings for a logging company. It was strenuous work. They had to carry around heavy bags with the sun beating down on them all the while being eaten alive by mosquitos and blackflies.
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Six Safe Summer Jobs for Teenagers
1) Golf caddy. Most caddies earn between $50-$100 a bag. Your child will have to been on his or her feet 4-5 hours at a time.
2) Summer entrepreneur. If you live in Ontario, your children have access to a program called Summer Company. It’s designed to help young entrepreneurs between the ages of 15-29 start a summer business. Your son or daughter can apply for a $3000 grant. If they are selected they will receive the start-up money as well as advice and mentorship from local business leaders. http://www.ontario.ca/business-and-economy/start-summer-business-students
3) Product merchandiser. At grocer stores they hand out samples as well as stock shelves and take inventory.
4) Camp counsellor/lifeguard.
5) Junior park ranger. Parks Canada (www.pc.gc.ca) offers over 1,000 student jobs across the nation. They typically run from May to September and give students opportunities to work in resource conservation, visitor services, heritage preservation and waterways. Your teenager will gain valuable experience and a great boost to the résumé.
6) Caregiver. Does your teenager have a passion for helping the elderly? He or she will need to be up front about their age and lack of professional training, but there are plenty of positions for non-medical assistants. This could take the form of helping an elderly neighbour or relative, or offering services at a seniors’ facility.
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Chapter 10: A Letter to your Teenager from Uncle Kevin
You’re never too young to establish credit. You can become an authorized user on your parents’ credit card at age 16. Make small purchases and pay them off fully on time. Never, ever carry a balance. This will help build your credit rating making it easier to get a loan in the future.
Be safe when concerning sex. As stated before, children cost $243,660 from diapers to diploma. Guys, you can’t afford to get a girl pregnant. Girls, the cost is much higher for you. The correlation between teen pregnancy and high school dropout rates is huge. If you do drop out of school, the future gets bleaker. According to Statistics Canada, women without a high school diploma make, on average, less than $30,000 a year.
Stay away from drugs. Besides messing up your head, you definitely can’t afford a drug addiction. Period.
You have other options besides going to university. If you don’t think you have the smarts to go to university or it just doesn’t interest you there are many other jobs you can choose from that pay very well. The Conference Board of Canada estimates that 40 percent of all new jobs will be in the skilled trades and technology industry by 2020.
10 Cold Hard Cash Careers:
1) Oil and gas drilling supervisor. Top 50 ranking #1. Median salary: $74,880.
2) Audiologist and speech-language pathologist. Top 50 ranking #11. Median salary: $77,813. This job requires a master’s degree.
3) Construction manager: Top 50 ranking #13. Median salary: $72,800.
4) Registered nurse: Top 50 ranking #16. Median salary: $72,072. This job normally requires at least a bachelor’s degree.
5) Dental hygienist. Top 50 ranking #18. Median salary: $69,992. You must complete either a bachelor program or a dental hygiene diploma to be licensed and registered.
6) Metal-forming contractor and supervisor. Top 50 ranking #21. Median salary: $65,874. Normal Metalworkers make around $55,000.
7) Pipe-fitting contractor and supervisor. Top 50 ranking #23. Median salary: $66,560. A regular Pipe-fitter can make $40-50,000.
8) Electrician. Top 50 ranking #31. Median salary: $68,493.
9) Mining supervisor. Top 50 ranking #43. Median salary: $64,480.
10) Construction inspector. Top 50 ranking #48. Median salary: $62,400.
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Chapter 11: A Letter to your 20-Something, from Uncle Kevin
In the new reality of 2014 youth unemployment is currently at a sky-high 19.6 percent. If you can’t find a regular full-time job you may have to create your own opportunities. If you have a skill set find a way to monetize it. You might end up as a freelancer working part-time for different employers. Or, perhaps, you’ll find a niche as a consultant. In 2012, 29 percent of Canadians between ages 20-24 were employed in temporary positions.
Open a RRSP. Even if you contribute a small amount it all adds up. RRSPs are a tax deferral program. You only pay taxes when you withdraw the money from the RRSP after you retire.
(This is advice from me). Consider putting away money in a TFSA (Tax Free Savings Account). It’s sort of the opposite of an RRSP. Currently you can put away up to $5,500 a year. Any interest/capital gains you earn on your investments are tax free.
Don’t buy things to make yourself feel good (shopping therapy). A lot of people do it. Big mistake. All those seemingly small purchases add up.
Don’t overshare on social media. Saying the wrong thing or posting inappropriate pictures can hurt your chances of employment if the wrong people see it. Be cautious.
Don’t over-educate yourself to avoid setting foot in the real world. More/higher degrees doesn’t necessarily mean higher income. Especially if getting a job in your particular field of expertise is rare. All you’re accomplishing is putting yourself deeper in debt and wasting time you could be using to potentially generate income.
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