How To Give Your Children The Best Start In Life Financially

Teach Your Kids Good Money Habits

First Published Date: July 19, 2009

As the old saying goes “Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime.” The same, or at least similar, applies to giving your children the best start in life financially. If your children are forever coming to you asking for money, it can be very hard not to give them a few dollars, especially if they have been well-behaved recently. However, this is something that should never become a habit. After all, you had to learn at some point that you cannot keep relying on other people. The message is that if you can save some of what you get from time to time, and find a (legitimate)  way of making to money it will stand you in much better stead for the future.

This is not a case of advising people to never give their children money. It is true that your children need to learn the value of money, but this is no more likely to be learned by giving them nothing than it is if you give them money every time they ask. All that you guarantee by withholding money every time is that they will one day start making money for themselves and rebel against everything you told them by spending like an heiress in a street full of boutiques. There is a sensible balance to be struck. If your child has a good reason for asking for the money, that scores a point. If they are not asking for much, that scores another. If they really do not ask all that often, then they deserve another point.

You can come up with your own points system, but do your best to make it fair while not being excessively flimsy. How likely is it that a child who knows they will get everything handed to them will grow up understanding that money needs to be earned. The old saying “Money doesn’t grow on trees” may be irritating, but it is also true. It has to come from somewhere, so it is worth encouraging your child – once they are old enough – to get a job which they can do on weekends earning just enough to pay for their leisure pursuits. This doesn’t mean you need to stop paying their way – it is even better if you top up what they earn with a little from your own pocket to show them that good behaviour is well rewarded.

There may seem to be some madness in the above stratagem, but rest assured there is method to it. Giving your child a decent appreciation of the benefits of working for money, a recognition that they cannot rely on someone to just hand it to them, and yet the reassurance that you will not turn them down if they really need help, is the strongest way of reinforcing the lessons of good financial behaviour, and your child will be more likely to thrive financially in times to come.

To streamline and minimize blog maintenance, I will be discontinuing maintaining the Canadapersonalfinancewebsite.com website (however, I will still hold the domain). I will gradually move all articles from this site to A Dawn Journal. This article originally published on the above website on July 19, 2009.

Fragile Global Economy and China

Risks Still Exist

First Published Date: August 18, 2015

The International Monetary Fund (IMF) recently stated that although the global economy is recovering, it is still fragile and there are risks on the horizon.

The US is a strong performer and although China has had some recent stock market turmoil, its economy is still resilient.

The Eurozone economy is expected to grow 1.5 percent in 2015 and 1.7 percent in 2017. These figures are a lot better than 0.8 percent growth in 2014.

A downward trend in commodity prices will hurt emerging economies. And then there is the possibility of a US rate increase – which will likely to have impact on economies around the globe.

After a 0.1 percent slump in 2014, Japan will likely grow 0.8 percent in 2015.

China’s economy is strong enough to withhold volatility and is expected to grow 6.8 percent in 2015. Although this rate is the slowest since 1990, it’s still not bad compared to other global economies. Even with the recent stock market selloff in China, stocks are 80 percent higher than one year ago.

Burj Khalifa — The Tallest Building in the World

World’s Tallest SkyScraper

First Published Date: Feb 6, 2010

In September 2004, the Burj Dubai project started, intending to build what was expected to become the world’s tallest building. In officially opening the building, this January of 2010 – some two years after the originally intended completion date in 2008, the opening ceremony is a testament to the spirit of co-operative human endeavour, overcoming all obstacles, including the global recession, to achieve an outcome which is recognized as being second to none – the achievement of having built the tallest building in  the world.

Despite good progress until late 2008, the fate of the Burj Dubai was left somewhat in the balance when the exposure of the emirate of Dubai to the financial havoc caused by global recession became apparent, with Burj Dubai looking likely to become one of many fire sale items that might need to be sold off to get the emirate out of the red. However, in the pomp and ceremony of the opening day was included a re-naming ceremony for the Burj Dubai – and it was formally opened as the Burj Khalifa – by way of tribute to the leader of Abu Dhabi – Sheik Khalifia bin Zayed Al Nahayan  who recently provided financial assistance to the neighboring Dubai to the tune of  CAD 11 ($10) billion securing the financial future of Dubai and ensuring completion of the Burg Khalifa, enabling it to take its place as the fully accredited tallest building in the world. It can be seen from 95 kilometers away. The Khalifa Tower is around half a mile high and overlooks the entire city, including existing tall buildings, it is expected to be a tourist magnet, not only for its unique height, but its location from which can be accessed all of the wonders of Dubai – the world’s largest arch bridge, the twirling tower, a refrigerated beach and some artificial islands shaped like a map of the world – for a vacation or a stopover, this new centre for tourism in Dubai promises an experience in the grandest style and well worth including in your travel plans, particularly for those who enjoy fine dining and those who love to shop.

There are over 160 levels in the Burj Khalifa – including the area given over to the Armani Hotel. The elevator has the longest travel distance in the world and there are double deck elevators which travel at 10 meters per second-the highest speeds to take you up to the highest level observation deck, where breath taking panoramic views can be enjoyed by night and day. Most of the lower levels of the Burj Khalifa are taken up by the luxurious Armani Hotel with 160 guest rooms, suites and nine hundred one or two room living accommodation units. There are 37 floors of office space all fitted out with the very latest in design and e-technology – the Burj Khalifa is a new hub for both business and social interaction and will bring some much needed new tourism and trade into the economy of Dubai.

To streamline and minimize blog maintenance, I will be discontinuing maintaining the realestateexpedition.com website (however, I will still hold the domain). I will gradually move all articles from this site to A Dawn Journal. This article originally published on the above website on Feb 6, 2010

Singapore Economy Expected to Slow In

Singapore Economy Growth

First Published Date: August 31, 2015

As Singapore reaches 50, it rises from a poor state to the 5th highest GDP per capita in the world. The average income for Singaporeans is now $56,000, which is far than the $600 figure from just 50 years ago.

Singapore is now one of the world’s top financial centres, holding 40 percent of the Asia-Pacific headquarters (319 out of 500 global fortune 500 companies).

The International Monetary Fund (IMF) predicts that Singapore’s economy will grow 2.9 percent in 2015, supported by external demand, macroeconomic policies, and lower energy costs. The Asian Development Bank predicts the growth to be 2.8 percent, Bank of America predicts the growth to be 2 percent, and the Singapore government predicts between 2 and 4 percent.

For 2016, Bank of America predicts GDP growth will be 2.2 percent. The new growth outlook for Singapore appears to be closer to 2 percent than the old growth rate of 4+ percent. Global weaker economic growth – especially weaker growth in Singapore’s neighboring countries such as China, Malaysia, Thailand, and Indonesia – will contribute to slowing down Singapore’s economy.

Singapore ranks very well in international competitive rankings. For example:

2014 World Economic Forum Global Competitiveness – Ranks 2 out of 144 countries
2015 World Bank Ease of Doing Business – Ranks 1
Transparency International Corruption Perception Index – Ranks 7 out of 175 countries

Canada – The First Nation To Step Out Of The Recession

Good News – Growth Is Here!

First Published Date: July 26, 2009

It is slightly too early to say that the recession is in its final throes, and those of us who wish to avoid tempting fate would never dream of creating such a hostage to fortune, but the announcement by Finance minister Jim Flaherty on Thursday that stability and recovery have arrived must at least be a positive sign for those of us who had begun to wonder if the positive forecasts blowing around were part of some mirage. Of course, until we see two consecutive periods of stability and growth it will be hard to say for sure that the recession is receding. At the present time, however, it is good to hear the central bank issuing positive news on growth.

The projections by the Bank of Canada are that after three consecutive quarters of contraction in the national economy, this quarter will see growth of 1.3%. The figures may not be earth-shattering, but it is what they represent that means good news for the country. After a sustained period of contraction, any quarterly growth can be seen as a sign that things are warming up. With better growth, the opportunity for new jobs to be created will be higher, and Canadians left unemployed by the effects of the recession can begin to look ore hopefully for jobs.

This means a welcome vote of confidence for the reading which argued that due to Canada’s more reserved economic approach, the nation would be among the first to step out of the recession and do it in a stronger way. It does not, however, mean that the global recession is over or that a domino effect will see growth kick off in the United States, Europe or Japan. Indeed, some of the financial systems in the world’s other countries may cause more ripples in the global economy for a while yet – meaning that international trade may be stymied somewhat.

The central bank has been keen to point out that the recovery in Canada is, as yet, in its infancy and not something to be taken for granted. This may not yet be the time to take even a calculated financial risk. The financial recovery is at the moment still reliant on stimulus spending from the government – the equivalent of a sportsman whose knee injury has healed but still requires crutches.

The US, meanwhile, is believed by its bankers to be on its way to recovery, with the pace of decline slowing and growth predicted to begin by the end of the year. As Canada’s nearest neighbour this will undoubtedly affect the recovery here, so it is worth keeping an eye on the financial news from south of the border. Although the economy is still vulnerable it is looking in much better shape than a year ago. The global recovery may yet be painfully slow, but the good news is that it is at least set to happen, and that the contraction is beginning to die down. Given the doom and gloom in the immediate aftermath of the credit crunch in 2008, that we may be out of recession by the end of 2010 is positive news.

To streamline and minimize blog maintenance, I will be discontinuing maintaining the Canadapersonalfinancewebsite.com website (however, I will still hold the domain). I will gradually move all articles from this site to A Dawn Journal. This article originally published on the above website on July 26, 2009.