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October 30, 2021

Half of travel points customers frustrated with redemption process, says survey

Every person loves the idea that they could earn points while spending money that they would any way and eventually, they would be treated to a free trip. Unfortunately, about 68 per cent of people surveyed faced irksome situations when it came to cashing in their points, according to a recent survey conducted by Capital One Canada.

Some of the major issues include hidden fees, blackout dates and the lack of flight availability.

But there is one ray of sunshine within this survey, apparently credit card companies and airlines are changing their ways since customers aren't afraid to walk away and switch card providers, says the survey.

With many travel reward cards to choose from there's lots to consider including annual fees, extra benefits, such as car rental or travel insurance, interest rates, where you can collect points and how quickly you can accumulate points. Most importantly, you should consider any details about the redemption process, such as if there's an expiry date on using your points, and how many points you'll need to redeem for a flight to wherever you want to go.

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October 29, 2021

That's why it's so tough to save money!

Budgeting is tough, particularly when you're trying to actually set some money aside for the future.

Like losing weight or battling any addiction, saving money resides in the realm of behaviour that sometimes seems immune to rational solutions, says one ex-banker turned blogger. But it's often tough to get out of the gate without some help.

"My guess is that the best person to help you figure out how to save money is somebody who has suffered from living beyond their means in the past, and who has developed effective strategies for overcoming this problem," he says. 

But if that person isn't readily available to you, you still need to figure out what's holding you back. That means tricking that rational mind and helping it get with the program, he suggests, including developing a better sense of just what's going on upstairs. 

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October 28, 2021

Rather than downsize, retiring boomers hope to stay put

If you read the headlines, just about every urban boomer is leaving the suburbs behind and moving into condos or lofts in a trendy downtown area

Yet there's little evidence that most Canadians are actually that open to the idea of moving into a smaller residence as they grow older.

A majority of Canadians aged 50 and over – 83 per cent – said staying in their own homes and paying for home care is the most appealing option for them, accordsing to Royal Bank research.

Even then, while the majority of us want to ''age-in-place'', this doesn't necessarily mean that we expect to stay in the same house. Most people are attached less to a particular pile of bricks and mortar than to a local area – to a network of friends, services and familiar places.

Among those who were already retired, a decision to move out of their home was most often due to a change in their health – 66 per cent – rather than to cash in on their home equity or get closer to restaurants.

"Remaining in familiar surroundings – in a home of their own, in their current neighbourhood and close to family and friends – is definitely how Canadian Boomers wish to live when future health changes occur,” says RBC head of retirement and aging strategies Amalia Costa.

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October 23, 2021

Are you getting the most out of your company benefit plan?

If you're lucky to have a decent benefit plan at work, you probably value your health coverage. But are you getting everything you can out of the plan you have?

Corporate health plans increasingly have features that are tied to a 12-month cycle, including annual deductibles, preventive checkups and, in some instance, health-spending accounts.

Employees who don't pay attention to the calendar risk wasting fully covered benefits and paying more than they have to for procedures delayed until the following year.

For example, a dental plan may limit expenses in a calendar year while a vision plan bases its cap on a moving 24-month window.

If your plan benefits do roll over in January, one thing you might want to check is that you aren't missing out on important counselling services or potential stress-relieving perks like massage treatments or physiotherapy. 

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Food marketers taking notice in the rise of male shoppers

Women are known to be the decision makers in the home, which is why many advertisers cater ads for household goods toward them, but times are changing.

Food makers are revamping their packaging towards men in reaction to a growing trend that males are doing more grocery shopping and meal preparation, according to a recent article by the Wall Street Journal.

Companies such as General Mills and Kraft Foods redesigned their product packaging in hopes of attracting a new customer for products they might not normally buy, such as yogurt. They're selling larger portion sizes, using darker-schemed designs with red and black and also using words, such as "ultimate," for the product to appear more manly.

Apparently, many products in grocery stores don't appeal to men, the head of research at Innova Market Insights told the WSJ. "A beer or soda in a long-necked, brown bottle makes a man feel like a man. Drinking out of a straw does not—puckered lips and sunken cheeks are not a good guy look," she says.

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October 22, 2021

Is it smart to lend your parents money?

Although you hear lots of stories about parents supporting their grown offspring, sometimes positions are reversed and it's the kids that have to carry the load. 

We're not talking here about parents who fallen on hard times because of disability or ill health.

No, this is more about dealing with those who've simply made a mess of their financial lives, leaving their grown children to pick up the tab for their irresponsibility -- whether through addiction, divorce, or simply poor money skills. 

What do you do when your parents ask for money? Just say no, advises money guide Dave Ramsey, otherwise you could end up subsidizing them forever. 

 

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October 21, 2021

Are 'pet-friendly' hotels really worth the extra money?

The pitter-patter of paws can be heard in close to half of all Canadian households, so it’s no wonder that the hospitality industry is anxious to capture this demographic with enhanced 'pet-friendly' features.

A decade ago hotels either “accepted” dogs or they didn't, Len Kain, the editor of Dogfriendly.com, a travel site for dog owners, told the New York Times. “You could not really say they welcomed them, that is, encouraged you to bring them.”

But they sure do now.  

Some hotels welcome pets in all rooms; others have a limited number. But their doors are always open to pet owners and their friends.

"It makes good business sense for hotels to recognize that pets are part of the family," says Susan Sims, publisher of Fido Friendly magazine. "People who bring their pets tend to stay longer and spend more."

One reason guests spend more is that, unlike children, pets usually don't stay free. Many hotels charge about $25 a night, others far more, Sims says. You might also have to put down a refundable $100 deposit and accept financial liability for any damage your pet causes.

Pet policies vary widely among pet-friendly accommodations. Some hotels are only dog friendly; others have a 2 pet maximum.

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October 18, 2021

Empty-nest syndrome may be a thing of the past

Once that last child is gone, parents often struggle with a profound sense of loss, not just because they miss the kids, but because their very identities have been significantly impacted, suggests psychologist Guy Winch.

But, rather than haunting their children's now uninhabited rooms, empty nesters are enjoying better social lives, traveling more frequently and have more financial freedom, a recent survey suggests.

As a whole, nine out of 10 empty nesters — defined as those whose children have permanently moved out of the home — indicated they're happy and look forward to more social and personal time now that the kids are gone. 

So much for the proverbial empty-nest syndrome. Other recent research indicates that, once that early sense of loneliness passes, parents tend to adjust quite nicely to a child-free household.

Rather than pining for soccer practice, empty nesters said they enjoy having more personal time (95%); lower grocery bills (91%); spending more time with their significant other or dating (85%); socializing with friends (80%); and no longer attending school-related functions (68%).

And they'd like this to be a permanent arrangement, it seems.

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October 17, 2021

Why your budget may not be working

Got that nagging feeling that you’re just not doing enough to manage your money? You’re probably right, which leaves you with two options. Keep writing cheques and melting plastic until your money runs out, or get a handle on things right now by establishing some sort of spending plan.

A reasonable spending plan can provide a shot in the arm for many households – particularly those where there are dissenting views as to where the money actually goes.

Once you've decided how much your family is likely to burn through in big-ticket categories like cars, housing and food, then you can work towards either predetermined savings goals or emergency planning.

Here's one story of how someone ended up suddenly without a job -- and without a firm idea of his household’s spending.

The important thing to remember is that money is fungible, maintains economist Emily Oster. In reality, all dollars are the same. There is no such thing as a gas dollar, a grocery dollar, or a “fun” dollar.

So simply slotting expenses into envelopes depending on what you think you might spend may actually hinder you in the long run since it doesn't allow for much flexibility.

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October 15, 2021

Are roadside "take what you want and pay what you owe" stands doomed?

For some time now, Cropthorne Farm on B.C.’s Lower Mainland has sold eggs on the honour system. They load up a cooler with about eight dozen eggs and put it at the end of their driveway with a sign reading “$5” and a jar filled with some change in to get things rolling.

Whether it's corn or apples, honour boxes like this remain a point of pride and practicality for a number of small farmers across the country who think their time is better spent tending crops than manning a roadside stand -- and who firmly believe that most people are honest.

And it would seem that many are. Despite the hundreds of vehicles that rush by, nobody has ever stolen a single egg, lifted the cash or even shortchanged owner, farm owner Lydia Ryall says.

Unfortunately, that doesn't seem to be the norm.

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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...