Money. Many of us have more frank conversations about PMS, children’s bowel movements and even the inner workings of our marriages than we do about our financial dilemmas. This momcafé session aimed to change that.

Summary by Sarah Dakin, mom café’r

Speakers’ Key Points

Sheila Walkington, The Money Coach

“Goals are dreams with a deadline. Dreams without a deadline are just wishes.”

Sheila used to work as a certified financial planner, investing people’s money. She constantly had clients who were trying to figure out their financial situations and were looking for deeper advice than just which mutual fund to buy. She is the founder of Money Matters and now works on a fee-for-service basis with no selling so that she can offer unbiased advice. Not everyone needs investments, but we all need advice. Sheila also is co-founder of the Women’s Financial Learning Center which offers courses and workshops for women.

The importance of having goals

• If you write your goals on paper, that step alone makes them more achievable and real.
• It is helpful to have your partner do this too so that you can have dialogue about your goals.
• Powerful goals can encourage you to spend less on lattes, sweaters, and other things on which you fritter your money away. Too often we just wish and wishing is not enough, we need to take actions.

A spending savings plan

• Write down how much money is coming in and how much money is going out. Ask yourself “Am I putting money towards the things that are important?”
• It can be really powerful to see on paper that you are spending more than you earn. Are you spending more on your cell phone than your kids’ education? Is that in sync with your values?

Saving plans

• Have a specific account for the top two or three key goals. Even if it is just $25 a month, just open the account and start putting money in.
• Name the account after the goal, to help you refrain from taking the money for other things. Having the account can make achieving the goal seem more real and you will be surprised how fast the money will grow.

Susan Yuen, The Banker

“The journey of a 1000 miles begins with a single step.”

Susan is a senior manager at Coast Capital Savings Credit Union and she is the mother of a 3 ½ year old daughter. Susan grew up in a family business, so she learned early on what it takes to be an entrepreneur. She has been in banking for 10 years now and she recently moved to Coast Capital Savings to find better work life balance.

“If you are feeling overwhelmed, remind yourself you don’t have to do everything at once. Just start by doing a little bit every day.“

Start with evaluating how you are currently doing your banking.

• There are advantages to building a relationship with one financial institution. Look carefully at factors like fees, convenience, online services, products and packages when choosing.
• Are you actually using the points or miles you are collecting on your credit card?
• Setting up preauthorized payment plans is a stress-free way to save.

Insurance

• Read financial documents carefully. Susan recently had a careful look at new home insurance papers only to realize it was not her house! If something had happened to her house, she might not have been covered!
• Do you have life insurance? Home insurance? Business insurance?
• Set up an emergency fund in a high interest savings account so you can have access if you need it.
• Ensure that you have “key man insurance” (a type of corporate-owned life insurance) so that you don’t have to use your personal life/disability insurance policies for your businesses (she mentioned that Coast Capital has insurance specialists who could help with this).

Penny Deming, The Financial Advisor

“If you or your spouse were suddenly not working for six months would you be okay?“

Penny’s passion is helping women achieve their financial goals. She is the founder and president of She Financial Group Inc. and a licensed mutual fund representative with Portfolio Strategies Corporation.

Build a solid financial pyramid for yourself, and make sure you have a sound foundation with an emergency fund, home insurance and income protection.

• Consider critical illness insurance. It is a lump sum benefit that is paid if you get cancer, heart attack or stroke (as well as 20 other disabling conditions). It was developed because, due to medical advances, people often don’t pass away, they survive but lose their homes and businesses due to expenses.
• Take a look at ethical funds and consider including them in your investment portfolios.
• She Financial offers fun home parties. You can invite 6 to 8 friends over for a fun and interactive 1 ½ hour session. There is no fee and you can find out more at shefinancialgroup.com.
• They also have a SHE to SHE directory for women to share services. Contact Penny directly if you want more information.

Questions and Answers

Have you ever been to an event and found the question period the best part? I sure have. Often the issues others are facing are ones I can learn from, and it brings the information to life to hear it in a real life context. What follows are some highlights from the question and answers session and a synopsis of the answers given by our three expert panelists.

Q1. I have set up a “stay at home” fund to save for when my maternity leave ends. It seems that online e-accounts are offering around 3 to 4% interest. They are doing even better than many GICs. Are they the best way to go?

It depends on when you need access to your money. If you don’t need access to the money for 6 months, there are accounts that offer 4.25%. You get lower rates if you want to have access to the money.

Q.2. I have some clients I am working with who are a married couple. They keep their finances separate, and she is in debt, while he is financially fit. If she predeceases him, is he responsible for her debt load?

It depends on whose name things like the credit card and assets are in. Perhaps this woman does not have strong enough goals. Even if the husband says he does not care, it probably adds considerable stress to both of their lives. If they are not on the same page financially, they should get some help.

Q.3. Financially speaking, when do you go talk to whom?

Come to the money coach first. It is unbiased advice and can help you get a really clear plan. Then go to your bank. Once you have been to the bank, then it is time to see a financial planner.

Q.4. We have one RESP for both our children. How does that work?

You can have a family plan and the use the money for both of the children. The sooner you start, the better for RESPs There is a new Registered Disability Savings Plan that came out in 2008. It helps families with disabled members save for their futures.

Q5. What do you think about earthquake insurance on your home insurance?

It is a personal decision. If you live in Richmond or other higher risk areas, it can be highly recommended.

Q6. Tips for renegotiating your mortgage?

If you have everything with your current financial institution, you are in a better position. If you are not comfortable with negotiating, at least shop around for the lowest posted rate.

Q7. I have been at the same financial institution for 26 years, but it is not convenient. Should I stay so that I have better negotiating power?

Do you go to the branch and do they know you? If you are not getting any benefits for your loyalty, shop around! We always think about negotiating mortgage rates, but we don’t think about all the other rates and fees. Try negotiating and if they don’t give you some benefits, then go with the convenience of somewhere closer.

Q8. I started my consulting company 6 years ago and I did not open a separate business account. The fees just seem more expensive, and I don’t have too many transactions, so I just continued to do the in and out through my personal account. Is this bad?

Get two accounts, one for business and one for personal. You need to keep it separate so you can clearly see your business’s financial position and in case you get audited. They do not have to be business accounts. Pay yourself a regular salary to your personal account out of your business account to even out the ups and downs of your income.

9. How do I keep my husband up to speed on the household finances if I handle most of it?

Do a shared spending and savings plan. Give him an allowance. Brief him on how much groceries are per month and other expenses he might not be aware of. Keep mentioning how the money is being spent.

10. I have a RESP through the Canadian Scholarship Trust Plan. Does this have any benefits over regular RRSPs?

No. The plans can be confusing, and they have more rules which add to the complexity. Go with RESPs through a regular bank or financial advisor.

11. Are there any advantages to filing our taxes jointly or separately as a couple?

It is better to do them together. You can share charitable contributions, which is to your financial advantage and it is just easier.