“Professionally I see it with a lot of people,” says Jim Yih, owner of Retirehappy.ca. “I hear things like, ‘we don’t have a enough money for retirement, we just paid for three weddings, we just put two kids through school, my kids just got divorced and they need financial assistance.’”
As a financial planning educator, Yih highlights the importance of avoiding cash hand outs to assist children. He believes the healthy handling of money starts in the formative years, while watching what goes on at home.
“I think the most important thing for parents to consider is to set a good example. If they are not saving for their own retirement or paying down debts, what are they teaching their kids?” asks Yih. “If we give our kids too much we are creating a generation of entitlement. If you constantly give your kids money, they don’t learn to earn it themselves.”
Freedman agrees adding that the younger generations he has come into contact with are accumulating too much debt due to unrealistic expectations, leaving investing for their future or retirement little more than a pipe dream.
“It’s more about managing debt than anything else,” says Freedman. “The situation I have found with a lot of the younger people in their 30s, is that they come out of university and they’ve immediately gone into buying a home that is too big for them, furnishing their home on credit and now how are they going to manage investing?” (continued on Page 3.)