Canadian Personal Finance Blog

More Canadians Buying on Internet

In Canada we enjoy our Internet shopping to the tune of $12.8 Billion and 61% more purchases for products and services than in 2005 according to Stats Canada. An interesting statistic is that the average price for each transaction was $183.00 which seems astronomical to me, but since delivery is usually a major cost in Internet purchases (unless you are buying a product or service that can be downloaded), I suppose this isn’t as strange as I think it is?

I spend a fair amount on the Internet for services and software, and I do buy the occasional “do-dad” on E-bay but I don’t think I have spent $183 on any purchase in the last little while, maybe I need to buy a fur coat to help compensate for this lack of spending?

Oil Companies Care About Environment?

Another article from Stats Canada had me a bit confused as well, evidently the industry that spends the most on Environmental Protection is the Oil/Natural Gas business? The stat that had me floored was:

In 2006, $4 of every $100 invested by oil and gas extraction went to environmental protection

So 4 cents out of every dollar spent goes to environment protection? Wow, that must mean they must be making one heck of a mess? I really don’t know what to make of that number but it is very interesting that is for sure.

Interesting to see the continued decline of Petro Canada, given the roller coaster ride of income they have had this year, I wonder if the amount spent of Environmental Protection might change?

Live Now, Pay More Later

With the credit crunch it seems consumer credit companies are squeezing their clients even more, and will increase their late fee penalties, in response to the alleged credit crunch. Does this mean that some of the store credit cards that were already charging close to 50% usury fees on their credit vehicles are heading even higher? Goodness, maybe Loan Sharks will get back into business, and create competition? (someone please tell me what the correct font is for sarcasm). I really wonder what the rates will be for the Usury Pay Day Loan Businesses?

Michael James posted yesterday an interesting article about inheritances and how money can disappear or dissipate at least from generation to generation. I commented on it and then spoke to Michael James about it (while watching a Little League baseball game).

I see problems with what a lot of people view what money is to them and without a good understanding of what money’s value is, and what it actually means to you it is very easy to spend it without thinking about it.

The Value of Money

My eldest daughter and I have been having talks (OK monologues mostly from me) about her spending habits now that she has a part time job. I have tried to get her to understand that just because you earn money, does not mean you have to increase your spending to compensate for this (yes, I know sometimes parents should listen to their own advice too). She doesn’t seem to understand this point, or forgets it a lot, but I think I made a good point with her a couple of days back.

I still have access to her bank account, so I can see where she is spending her money (she doesn’t usually carry cash, she uses her debit card, and that is another problem, but also for another post). I saw that she had spent $6.95 at Pizza Pizza (presumably for lunch), I remembered she had worked a very long shift at her job the previous night and when I drove her home, she complained about how her feet and back hurt, so I tried to use this to explain the value of money to her.

I pointed out that, the lunch she bought and snarfed down without thinking about it, was almost an hour on her feet, scanning food in the express line at Loblaws (where her job is). Did she really think her lunch was worth the hour of standing, scanning products and listening to customers either complain or ask questions about what she was doing? I hope this helps her understand the value of money, I am not sure, but if it causes her to think, before she spends, that is all I can hope for.

I remember when I was younger, and I had a paper route, I got paid 4 cents a paper, for a paper route of 35 papers, for 6 days a week (I got paid more for Saturday paper), but at the end of it, I made about $8.40 a week and then maybe some tips from my customers. I could have easily gone to a movie every week, but luckily I was socially inept, and really cheap, because I knew how hard I worked to make that money, so I didn’t want to just blow it on the first thing I saw.

Wonder when I lost that?

How do you value money? Do you see the work that went into buying that iPOD? All comments appreciated.

As Christmas Looms on the event horizon a few final thoughts on finances and such:

• If you don’t have everything you want to get, and you think you won’t find it in time (say like a copy of Guitar Hero III) remember you can simply leave a card with a note or an IOU for the present and get it later (instead of driving all over town in a mad attempt to find said present).
• Keep your receipts, for your records, and in case anyone wishes to return one of your presents. Watch your credit card balances as well, now is the perfect time for someone to defraud you without you noticing. Ask your husband, “Did you charge something to ‘Big Bouncy Beauties’?”, if you don’t recognize that charge.
• Here are some interesting presents to give kids to teach them about money (Larry McDonald also is talking about this) :
• The game of LIFE, that one is an amazing tool, if you talk to your kids about all of the events that come up.
• Pay Day, again, that game is a little bit too realistic at times
• Careers, is always an interesting one, but I am not sure they make it any more.
• The Grandaddy of them all Monopoly this game can teach so much about Math, Money and life that playing it with your kids is actually educational!
• You could always put some money in your kid’s RESPs as a gift (you don’t need to tell them that, because it is kind of a gift to yourself).
• Remember Charity at this time of year. It doesn’t have to be big or extravagant, just remember that gift is for yourself as well.
• Remember all of the end of year things that maybe need looking at:
• RESP
• RRSP (yes you have until March, but still)
• Tax installments
• Enjoy the time with your friends and family, don’t turn this into an excuse to get sullen about life.

Holiday Hours

I will be making posts over the holidays, but around Christmas and New Years there may not be posts, due to family and merriment.

I wish you all a Merry Christmas and Happy Holidays and also wish you a Happy and Prosperous 2008!

So Stats Canada has posted a report card for the Canadian Economy, and it is a very interesting read (for me at least). Some important points that they hit:

• Employment is increasing, which is a good thing. The quality of employment and whether these folks are happy with their jobs is another interesting question to ask, but I really don’t know who might measure that one.
• There is a lot of investment in businesses in Central Canada especially.
• Cross border shopping is down below levels seen in 1972 (back when the Canadian dollar was worth more than it’s Yankee cousin).

That last point is very interesting. Sounds like a stronger Canadian Dollar and the new restrictions on border crossing (which hasn’t come in to play yet at Car border crossings), is choking off tourism to the Canadian border towns? Not good for folks who live in Cornwall, Kingston, or anybody else on the St. Lawrence corridor. Unfortunately in this article it seems less Canadians are going to the U.S. for shopping as well.

I know I have not gone to the U.S. for a day of shopping in years, mostly due to time constraints, but also I haven’t seen any need to do it. Now I may go down to Ogdensburg or maybe even Syracuse soon, in search of better court shoes, but that might be about it.