Financial Illiteracy - MEGA THREAD

[ExtraSlow]

This may be mostly for my amusement, but I'm sure it'll come in handy.

People bad at math and financial planning in the news.

Starting with this lady!
116192
https://www.cbc.ca/news/gopublic/cash-for-houses-go-public-1.7003796

[CompletelyNumb]

Thompson filed a complaint with RECO, which eventually penalized Tsai for failing to disclose she had a personal interest in the transaction. She was required to complete a course outlining an agent's obligations, at her own expense.

Accountability strikes again. Glad the agent learned her lesson. :nut:

Financial literacy isn't taught in schools. It wasn't taught to most people parents for them to pass on. It isn't commonplace anywhere.

[bjstare]

Next up: Payday Loan places charge unreasonably high interest rates.

[ThePenIsMightier]

But Holy fuck, should this ever be taught in school. Instead we're making space for comprehensive learnings about zhim/zher and letting kids think that payday loans are viable.

[Buster]

I love the prevalence of financial illiteracy. It makes it much easier to relax as part of the leecher class.

[pheoxs]

I think this one is worse:

This senior sold his home due to interest rate hikes. Now, he can't find an affordable rental | CBC News (https://www.cbc.ca/news/canada/calgary/calgary-seniors-unaffordable-rent-interest-rates-1.7001817)


John Cufflin has just over a week until he has to be out of the house he's owned for three decades — and a lack of affordable rentals in Calgary means right now, the 76-year-old has nowhere to go.

He blames his situation on the Bank of Canada's recent series of interest rate hikes (https://www.cbc.ca/news/business/bank-of-canada-rates-sept-6-1.6957903).

"Previously, the money I was spending on my mortgage was approximately $1,000 a month. And in the last year, that has climbed to $2,600 a month," said Cufflin, who makes $2,200 a month through government support.



Owns his home for 3 decades and somehow still a mortgage probably near 500k.

[bjstare]

Owns his home for 3 decades and somehow still a mortgage probably near 500k.

Haha that's what I was thinking. How tf do you own a home for 30 years and not have it paid off?

[ExtraSlow]

Yeah, that dude never "owned" his home, he clearly was paying minimum amount and re-financing for longest amortizatin every renewal.

I mean, I have done that, but yikes.

[Tik-Tok]

I think this one is worse:

This senior sold his home due to interest rate hikes. Now, he can't find an affordable rental | CBC News (https://www.cbc.ca/news/canada/calgary/calgary-seniors-unaffordable-rent-interest-rates-1.7001817)

Owns his home for 3 decades and somehow still a mortgage probably near 500k.

His numbers make zero sense, it's not surprising he's lost his home. His interest rates would have to have gone from less than 2% to over 10%.

Maybe he had to consolidate all his hair dye HELOC debt into his mortgage.

[JRSC00LUDE]

Next up: Payday Loan places charge unreasonably high interest rates.

hehehehe

[benyl]

Haha that's what I was thinking. How tf do you own a home for 30 years and not have it paid off?

He wants to own a home again... with $2,200 in income.

He's been paying rent to the bank and had to cover all the maintenance expenses. Should have been renting to begin with.

[vengie]

Likely paid $70,000 for his house worth ~$1mil today.
Still owes $500k.

Needed money to buy all those sick antiques bro.

[suntan]

YOLO bro!

[SJW]

Buying 35 year old 4x4 to fix is just bad money too. But fuck it. I love it.

[msommers]

His numbers make zero sense, it's not surprising he's lost his home. His interest rates would have to have gone from less than 2% to over 10%.

Maybe he had to consolidate all his hair dye HELOC debt into his mortgage.

Surprising he didn't run into this situation in the 80s.

But also:


Laura Tamblyn Watts, CEO of national seniors advocacy organization CanAge, says stories like Cufflin's are becoming all too common.

I'm confident that 'common' is not the right wording here. This dude's entire situation is fucked and an outlier.

To be more pointed about the topic, I don't remember learning shit about finances, taxes, how money works etc in CALM class. Fortunately my parents were good with money. My wife's parents barely had money growing up and both my wife and her sister are savers almost to a fault (as in they're terrified they never have enough money). Conversely, others who grew up without much money end up just relentlessly spending their money because they don't think they'll ever have anything nice so what's the point.

The older I get, the more I've come to realize that handling money is like 60% psychological and 40% actual earnings. Think about someone as a cashier their entire life and some CFO. Somehow both can be living paycheque to paycheque.

[ercchry]

Surprising he didn't run into this situation in the 80s.

But also:



I'm confident that 'common' is not the right wording here. This dude's entire situation is fucked and an outlier.


It’s not

Tons of people out there that retired with only cpp/oas as income and use their homes as piggy banks.

You have alt lenders qualifying people up to 80% LTV with 60% TDS (with grossed up income if it’s not taxed). Then you have HEB giving reverse mortgages up to 40% LTV with an 8.5% rate just eroding away equity.

It’s a combo of not adjusting lifestyle and grown adult children leeches

[suntan]

I saw some website that said that the average Canadian @ 55 has around $600K saved up for retirement.

Never trust the interwebs.

[benyl]

So I just looked at the recently solds in West Hillhurst on Honest door. Nothing below $85K that shows sold in 29-30 ago on the 20+ properties I clicked on.

There are plenty of properties in that neighborhood currently selling for less than $500K. He could be ones of those that just kept using his house as an ATM to pay for his antiques.

[Sentry]

Women.
/thread

[max_boost]

oh it happens
next time
call a friend
ask beyond
etc.

[msommers]

It’s not

Tons of people out there that retired with only cpp/oas as income and use their homes as piggy banks.

You have alt lenders qualifying people up to 80% LTV with 60% TDS (with grossed up income if it’s not taxed). Then you have HEB giving reverse mortgages up to 40% LTV with an 8.5% rate just eroding away equity.

It’s a combo of not adjusting lifestyle and grown adult children leeches

Common to me means 50% or greater. Of all the homeowners in Canada, it's happening to that high of number? I think what's common is home owners are making adjustments to their budget but aren't worried about losing their home next month.

Like I said, I think the guy's situation represents a small percentage of Canadians.

[benyl]

Common to me means 50% or greater. Of all the homeowners in Canada, it's happening to that high of number? I think what's common is home owners are making adjustments to their budget but aren't worried about losing their home next month.

Like I said, I think the guy's situation represents a small percentage of Canadians.

Not really, many elderly people are priced out of paradise even though their home is paid off. I think it is higher than you might believe.

Property value increases (hence taxes go up) because they live inner city and they can't afford to stay on their $2,200 a month. Imagine buying a house for $50K in the 60s or 70s that is worth $1.2 Million now where you are speding $8K for property taxes per year, $6K per year to heat your house cause you have single pane windows. You still have to eat. Imagine how many people pulled out equity thinking they could pay it back or better yet, die before they had to.

[SJW]

I'm fairly convinced the Liberal government is financially illiterate. I think we're more than proper fucked.

https://www.thestar.com/politics/federal/housing-crisis-means-canada-needs-more-factory-built-homes-and-foreign-workers-minister-says/article_2b3446a8-737c-593c-9051-bd109dd236dc.html

[suntan]

Considering what PET did to the country, it's no surprise Jr is an imbecile.

[pheoxs]

Pointing to methods of modular homebuilding, 3D printing and other means of mass producing housing, Fraser stated “we need to build more homes in factories.”

So very out of touch with reality. Back to trailer park living we go.

[suntan]

They can put the factories in empty office buildings. And because they're factories, the houses are made by robots.

[SJW]

They can put the factories in empty office buildings. And because they're factories, the houses are made by robots.

This is giving me "Office Space" vibes.

[jutes]

The quality of the houses built in the next 7-10 years is going to be off the charts.

I don't mind the idea of an RTM plopped onto a piece of land, but I would want to screen the builder. I wouldn't want to live in a shack built by foreign workers who will likely be whipped like slaves.

[kertejud2]

I'm fairly convinced the Liberal government is financially illiterate. I think we're more than proper fucked.

https://www.thestar.com/politics/federal/housing-crisis-means-canada-needs-more-factory-built-homes-and-foreign-workers-minister-says/article_2b3446a8-737c-593c-9051-bd109dd236dc.html

Old ideas are new again

https://99percentinvisible.org/episode/the-house-that-came-in-the-mail/

[flipstah]

I think this one is worse:

This senior sold his home due to interest rate hikes. Now, he can't find an affordable rental | CBC News (https://www.cbc.ca/news/canada/calgary/calgary-seniors-unaffordable-rent-interest-rates-1.7001817)



Owns his home for 3 decades and somehow still a mortgage probably near 500k.

I thought it was just me lol. I was like, 30 years but not an owner yet?!

[ExtraSlow]

99pi is wicked.

[max_boost]

So very out of touch with reality. Back to trailer park living we go.

isn't that what camping is

[Tik-Tok]

isn't that what camping is

Racist. The correct term for such people is "Involuntary campers"

[littledan]

Welp. I bought a 1 bedroom condo in Edmonton at the peak of the crazy boom in about 06 I think it was. Paid $185K for a wood frame 4 storey with ug parking. Fast forward to 2023, selling that fucker for $130k, plus I have to pay down $9k of special assessment. So in the end I'm prob losing about $65k+. I should probably go on the troubleshooter and see if the bank will forgive the rest of my balance owing because of reasons. But no, I'm just taking the loss like a fucken g. Cause that's what albertans do. we lose money and then we go and make more of it. To lose that as well. But more. #bestprovince #doublemeat #butactually3"singlemeat

[ercchry]

Welp. I bought a 1 bedroom condo in Edmonton at the peak of the crazy boom in about 06 I think it was. Paid $185K for a wood frame 4 storey with ug parking. Fast forward to 2023, selling that fucker for $130k, plus I have to pay down $9k of special assessment. So in the end I'm prob losing about $65k+. I should probably go on the troubleshooter and see if the bank will forgive the rest of my balance owing because of reasons. But no, I'm just taking the loss like a fucken g. Cause that's what albertans do. we lose money and then we go and make more of it. To lose that as well. But more. #bestprovince #doublemeat #butactually3"singlemeat


If that entire thing was a mortgage, and rented the whole time… about $100k in principal Would have been paid down by not you… not a great use of capital… but hey, you could have panic sold the bottom of a few financial crisis since then too :rofl:

[Swank]

Too many of my wife's co-workers work casual or part time because full time is 'just too much', they all have credit card debt out the ass, no savings, and even working full time wouldn't be enough of a pension on it's own. Marry rich or work until dead is their only hope.

The number of people who think their CPP will be enough is madness.

[SJW]

Too many of my wife's co-workers work casual or part time because full time is 'just too much', they all have credit card debt out the ass, no savings, and even working full time wouldn't be enough of a pension on it's own. Marry rich or work until dead is their only hope.

The number of people who think their CPP will be enough is madness.

Fuck this actually makes me feel better about my retirement. I have been putting $1200 a month away for years and feel like that's not even close to being enough. (wife and I combined) #worktilyerdead

[pheoxs]

The number of people who think their CPP will be enough is madness.

That mentality is why CPP is drastically increasing unfortunately.

Fun (sad) fact. Self-employed the max CPP deductions you'd paid in 2018 was $5,300. In 2025 with the new second tier it'll be $8,500 in deductions.

[suntan]

Fuck this actually makes me feel better about my retirement. I have been putting $1200 a month away for years and feel like that's not even close to being enough. (wife and I combined) #worktilyerdead
You're doing great. I stopped saving for retirement a while ago because I can't make any material contribution to it.

[max_boost]

Too many of my wife's co-workers work casual or part time because full time is 'just too much', they all have credit card debt out the ass, no savings, and even working full time wouldn't be enough of a pension on it's own. Marry rich or work until dead is their only hope.

The number of people who think their CPP will be enough is madness.glad I hang out on beyond
You are the average you hang with
All y’all ballers nice crew :bigpimp:

[Twin_Cam_Turbo]

Fuck this actually makes me feel better about my retirement. I have been putting $1200 a month away for years and feel like that's not even close to being enough. (wife and I combined) #worktilyerdead

And now you’re making me feel better. I’ve been putting $3-5k a month away combined with my wife and paying our mortgage down with double payments every month, and I still feel like we are way behind.

[suntan]

That mentality is why CPP is drastically increasing unfortunately.

Fun (sad) fact. Self-employed the max CPP deductions you'd paid in 2018 was $5,300. In 2025 with the new second tier it'll be $8,500 in deductions.

Your employer pays the other half.

The LPC have gone nuts.

[pheoxs]

Your employer pays the other half.

The LPC have gone nuts.

I put self-employed, as we unfortunately pay both halves ourselves.

[max_boost]

And now you’re making me feel better. I’ve been putting $3-5k a month away combined with my wife and paying our mortgage down with double payments every month, and I still feel like we are way behind.

It’s just a feeling
Adjust your feels about money
Also compound interest is the most yummy thing ever
Bull years, it like you do nothing and there’s an extra 6 figures digital number added haha

[pheoxs]

It’s just a feeling
Adjust your feels about money
Also compound interest is the most yummy thing ever
Bull years, it like you do nothing and there’s an extra 6 figures digital number added haha

Yeah, all the big gains are later in life it feels. 6% average means your money doubles every 12 years so get in early. 10k when you're 18 will be 160k when you retire.

[suntan]

I put self-employed, as we unfortunately pay both halves ourselves.

I feel the pain with you bro. I definitely need to do something different for next year. Might have to do the 100% dividends again.

[CompletelyNumb]

I stopped saving for retirement a while ago because I can't make any material contribution to it.

This is the reality for most Canadians.

MAID will be doing more in retirement than CPP. :cry:

[suntan]

This is the reality for most Canadians.

MAID will be doing more in retirement than CPP. :cry:

No, um, the other reason why for me.