Managing debt or talking about sex?
It’s commonly believed that all parents dread having the “sex” talk with their kids, but a recent study from BMO shows parents would rather talk to their kids about sex than their financial situation and managing debt. Imagine that! Canadians are stressed about money and probably feel ill-equipped to educate their kids about finances and managing debt.
Personal debt in Canada
According to a new national study conducted by Leger:
- Canadians struggle with regret over financial decisions
- Argue over spending
- Feel pressure to keep up with friends or colleagues
- Bend the truth to friends and family about their financial situation in order to save face
A Bank of Montreal study reports that:
- More than 33% of all Canadians are ashamed of the debt that they have
- Almost 40% say they stress over debt levels multiple times a day
There’s no doubt about it, money and managing debt is the top source of stress in our lives. Why are we so financially stressed? Why are Canadians stressed over debt and have so much trouble managing debt? Here are 10 of the most common reasons:
- Expenses are greater than your income
- You worry about job security
- You’re living paycheque to paycheque
- You’re fighting with your spouse/partner about money
- You’re paying bills late
- You use your home equity like an ATM machine
- You’re counting on an inheritance to solve your money problems
- You’re late on student loan payments
- You’re helping out your parents and your kids
- You don’t have a financial plan
Dealing with debt
It’s time to become financially literate and educate your kids, not just about the birds and the bees, but about finances and managing debt. Foresters recently offered 5 tips to get smarter about your finances:
- Learn everything you can about your finances, including your mortgage terms, bank interest rates and credit score
- Start with the simple things like contributing to RRSPs, setting up RESPs for your kids and protecting your family’s financial future with life insurance
- Keep track of every penny you spend for a couple of months and look for ways to cut back and start saving. Even a small commitment to saving will make you feel better about your finances
- Look ahead 10, 20 and 30 years. Imagine the life you want and what it will take to make that happen
- Talk to your kids regularly about money, involve them in household budgeting, open bank accounts for them and encourage them to save for things they want
How to get help with debt
All of this is great advice to avoid financial problems, but if you are already in serious financial difficulty and don’t know where you will begin on how to manage your debt, you need professional help now. Contact Ira Smith Trustee & Receiver Inc. Don’t ignore your debt issues. Face them head on and with the help of the Ira Smith team you’ll be on your way to conquering debt Starting Over, Starting Now.