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Money Matters

Money Matters

For many, discussions about money can be uncomfortable and embarrassing.  Not talking about money, may deprive you of those lessons that might set you on the right path financially as you  get older.  CPA Canada conducted research demonstrating that teens who talk about money with their parents at home, feel more optimistic and confident about their financial futures. Filing Tax Returns Young people need to file tax returns. Here are some important reasons why:

  1. To learn how to fill out tax forms properly, specifically employment forms.
  2. Entitlement to refundable tax credits.
  3. Start to build RRSP contribution room.

 

Credit Cards

An individual can get their own credit card once they reach 18 years of age. Pros and cons of getting a credit card at a young age:
Pros

  1. Build credit history.  A strong credit history can help to negotiate better interest rates.
  2. Convenience.
  3. Experience with the credit card cycle.
  4. Good introduction to paying bills.

Cons

  1. May not understand that credit is borrowed money, leading to bad habits.
  2. High interest on unpaid credit card balances.
  3. Risk of fraud and identity theft – teens tend to be too trusting and over-share information that could put them at risk.

 

Delayed Gratification –  is the ability to wait for rewards. Young people who demonstrate the ability to wait before purchasing tend to be successful later in life. This is who you build life skills when it comes to good financial habits.

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