The Piggy Bank Show

Meditation and Visualization

Every morning before we start the day, we go into our meditation room and write in our journal: What we are grateful for, what we are willing to let go and what we want to achieve. We also have a vision board which helps keep our goals in perspective.

Canadian sensation Bianca Andreescu says
Meditation, visualization key to Canadian teen winning 2019 U.S. Open. She visualized herself defeating tennis superstar Serena Williams at the women's singles final at the U.S. Open.

She said she visualized her match against Williams unfolding, thinking about how certain points might play out, when she woke up Saturday morning.

Bianca Andreescu began her day the same way she started every morning during her run to the U.S. Open title. By meditating and visualizing how she could beat her next opponent.

Financial Planning For Your Children | At Any Stage Of Life

Under 10 Years Old – Explaining Money to Kids

Allowance:

Don’t just give the child money every week or month. Make a trade-off the funds for completion of a task like making a bed, picking up clothes or setting the table. Explain that this aspect of barter (work for money) is the fundamental element of our society.

Piggy Bank and Savings:

Keep a piggy bank and have them count what is inside regularly. If the piggy bank is empty, show them that they cannot afford to buy anything.

RESP Planning:

When your child was born, you may have opened an RESP (Registered Educational Savings Plan) which is a government-sponsored savings program where you get a 20% grant for every dollar you deposit up to defined limits.

10 To 18 Years Old – Teaching Children About Money

Setting Up Your Child’s First Bank Account:

Set up a child’s savings account and obtain a debit card for the child.

Explaining Taxes to Your Kids:

A teenager with earned income from a job also means you can file a tax return for them. They will not pay any income tax unless they earn more than $10,000 a year but filing a tax return regardless starts them receiving RRSP contribution room. They can open an RRSP at age 18 and a lump-sum contribution made at that point.

Teaching Kids the Value of Money

These are formative years for understanding the value of money. Often children get anything they want and can have little appreciation for hard work or for the challenges of getting money if you don’t have it. Encourage them to get part-time jobs and remove all allowances at this age.

No Credit Cards for Your Kids at This Age

Don't expose your kids to credit card as it shows using other people’s money and spending beyond your means. Give them a debit card instead and teach them how spending their own money will reduce their account balance until there is no money left.

18 – 24 Years Old – Teach Your Child Financial Responsibility

Introducing Credit Cards for Your Children:

This stage is often the first point where children get credit cards, so talk about cash flow budgeting, how a credit card works and the importance of not carrying balances month to month.

Setting Financial Goals When Your Children Go to Work:

Try to get them thinking about how to compartmentalize their money, and how to allocate some of it towards a variety of goals. Without this coaching, a child will end up getting it backwards – spending most of their paycheque on lifestyle and then struggling to find the money for RRSP, disability insurance, an emergency fund and other important financial goals.

Teaching Kids What to Do with Their Paycheque:

Now that they have a paycheque, they are paying taxes, and they are accruing RRSP contribution room. Have them open two investment accounts: a Tax-Free savings account to and a basic RRSP account. By doing this, they have a higher likelihood of achieving their retirement goals by starting early.

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