Hello it’s me: This article was written in 2016. It was a time of low interest rates. New iPhones had no headphone jacks. There was also rising tuition. Since then, Canada has weathered COVID-19, record-high inflation, student debt reforms, and fluctuating interest rates. The observations still ring true but now read like a prequel to the financial chaos that followed.
Exciting news this week in the technology world, with the iPhone 7 being announced, by Apple. Is there anything new? There are two different cameras. No headphone jack. There are some other fun features, but nothing earth-shattering. This upset investors, so the stock didn’t do its normal jump on the announcement of a new iPhone. During the keynote for the launch, the Apple CEO highlighted that the iPhone is the Gold Standard for smartphones. Unfortunately, this claim is true. Just as Good as an iPhone is the battle cry of all the smartphone pretenders.
The Bank of Canada announced that loose money policies will continue. They also stated optimistically that the economy should turn around soon.
On balance, risks to the profile for inflation have tilted somewhat to the downside since July. At the same time, while there are preliminary signs of a possible moderation in the Vancouver housing market, financial vulnerabilities associated with household imbalances remain elevated and continue to rise
Evidently, the new CCB payments will also positively affect the economy? I guess if you give folks tax-free money they will spend it?
Stats Canada put out their yearly report on Tuition fees. Surprisingly, tuition fees are up again in their latest survey. The report does have some interesting breakdowns. These breakdowns show that Ontario is the most expensive place to send your kid to school. They also reveal that Engineering and Professional programs are bloody expensive as well. The report doesn’t really mention all the funny service fees that are typically part of your tuition bill. It does not cover the cost of textbooks and other things either. However, it is still a useful barometer to confirm what I already knew. It is expensive to send your kids to University in Canada.
Redux perspectives on 2016 Tuition
After years watching tuition climb faster than my blood pressure, I’ve seen the same cycle. There are flashy distractions, buried costs, and a whole lot of marketing from banks and schools alike. Most folks miss a crucial point. While everyone debates iPhone specs or economic policy, real financial erosion happens slowly. This erosion occurs through inflation, fees, and student aid that doesn’t keep up. Most people don’t question why OSAP doesn’t cover actual costs or why textbooks aren’t included in tuition until it’s too late. The savvy ones? They budget like they’re broke and choose degrees like investors long-term value, not prestige.
My Writings for the Week Ending September 9th 2016
It is back to school season. I continue with my onslaught about the high price of a University Education in Canada. Remember, it is not just fees. Textbooks are too Expensive as well. If you are fretting about the price of your kids’ backpacks, think about the costs of post-secondary education. You really need to learn more about those expenses.
Economic Stimulations
- It seems our good friend the Blunt Bean Counter is having some lamentations about blogging, and he writes about it in, Blogger Blues. Let us hope he is cured of his blogging melancholia.
- Barry from Money We Have implores you to Stop Screwing Your Retirement! A very good idea.
- The Canadian Couch Potato wants to help you Understanding the Value Factor and how you can access it with ETFs.
- Is it that easy that you can do The One-Page Financial Plan Blessed by the Potato, seems to think you can.
- Have you ever wondered about, Tax treatment of Canadian dividend paying stocks, Mark from My Own Advisor has some answers for you.
- Speaking of Dividend investing, Robb from Boomer & Echo brings us his views, with Why My Thinking Changed Around Dividend Investing
- The complicated world of Credit Reports is never simple, as pointed out by Michael James in Adventures in Credit Reports. Never assume your report is correct, you could end up with a very rude surprise.
And Now, Kraftwerk
A much hidden late 70's video of the song Autobahn by Kraftwerk. "Now is ze time on Sprockets vhen ve dance!"
FAQ:
Ontario has higher operating costs and fewer provincial subsidies compared to other provinces.
Indirectly. It can keep borrowing costs low, but it also inflates housing and general living costs.
The Canada Child Benefit gives tax-free money to families to support child-related expenses.
Apple removed it, claiming wireless is the future. Many called it a cash grab.
2016 Random Thoughts
- January 7th, Market Meltdown, TFSA, WildCard Weekend and #MoneyStories
- January 14th, Cheap Oil, Cheap Dollar, Dead Folk, and #MoneyStories
- January 21st, Loose Money, High Household Debt, Weak Loons and #MoneyStories
- January 29th, Doomsday Clocks, Rogue RRSP Receipts, Cash Crops and #MoneyStories
- February 4th Bouncing Loonies, RRSP Season, Superb Owls and #MoneyStories
- February 12th Lent is Here, Bricked iPhones, Love Day and #MoneyStories
- February 19th Digging Out, Ransomware, RRSP Time and #MoneyStories
- February 26th RRSP Time and #MoneyStories
- March 4th Welcome Americans and #MoneyStories
- March 11th Bank Rate Stays Put, Spring Forward and #MoneyStories
- March 18th Financial March Madness, Budgets and #MoneyStories
- March 25th, Easter is Here and some #MoneyStories
- April 1, Money Fools, Ronnie, and #MoneyStories
- April 8, Tax Time, Spring Delayed, Panama Papers and #MoneyStories
- April 15,Loose Money, Free Stuff, Hockey and #MoneyStories
- April 22,Disabilities, Tax Time, The Queen and #MoneyStories
- April 29,Pitter Patter Tax Time, RESPs are For Rich Folk and #MoneyStories
- May 6, Fort Mac, Mothers and #MoneyTalk
- May 13, Panama Papers, Google & PayDay Loans, Full Moons and #MoneyTalk
- May 20, Victoria Day, The People's Elbow, Haircuts and #MoneyTalk
- May 27, Loose Money and #MoneyTalk
- June 3, CRA Itunes Pmts, RESP Scams and #MoneyTalk
- June 10, Portal to Hell Opens in Ottawa, BoC FSR and #MoneyTalk
- June 17, Fathers Day, Trump Housing Bubble, and #MoneyTalk
- June 24, Brexit, Fete National, Enhanced CPP and #MoneyTalk
- July 1, Happy Canada Day and Best Mid-Year Financial Stories
- July 8, Brexit Market Mayhem, Millenial Bashing and #MoneyTalk
- July 15,Brexit Hurts, Loose Money, Postal Strikes, Recounts and #Moneytalks
- July 22,More Pensions, New CTC, and #MoneyTalk
- July 31, Unknown Long Weekend, Windows 10 and #MoneyTalk
- August 5, The Olympics, Topless Spelunkers, and #MoneyTalk
- August 12, Women Rule, Less Jobs and #MoneyTalk
- August 19, Obnoxious 30 Year Old Retirees, Olympics and #MoneyTalk
- August 26,Farewell, EpiPens, Ombudsman Report and #MoneyTalk
