Tag Archives: money

Re-thinking post-secondary

As even the American folks who read this may be aware, students in nearby Quebec have been protesting for several months because the provincial government proposed raising their tuition – already the lowest in the country – by about $700 over the course of several years.

I haven’t been following it that closely, because I find it embarrassing. But we noticed a poster in our neighbourhood advertising the leaders of the student unions (two out of three of whom, by the way, attended expensive private schools throughout their primary and secondary educations) speaking in Ottawa and started chatting about it.

I mean, okay – if someone had offered me free tuition, I would have taken them up on it… or would I? Repaying our combined $90,000 of debt has kind of sucked (although we collectively earned four degrees – two Bachelor’s and two Masters – out of it). But those degrees allowed us to get careers in our fields that we love (okay, mine’s tangentially related, but I definitely apply the skills I learned, if not the factual knowledge). And to be fair, we could have graduated with less debt if we had worked more (Eric) or travelled less (me). Going into debt allowed us access to the funds we needed at the time.

If my tuition had been free, would my education have been as valuable? Would my classes have been (even more) full of people who didn’t want to learn about critical thinking and complex systems analysis, but figured that they needed a degree to get a job? How would the university bring in revenue for paying teachers, subscribing to journals, building infrastructure?

I think that access to debt is more logical than free tuition. Of course, I don’t mean that tuition should balloon and we end up paying crazy amounts like they do in the states – I think it’s amazing that our government puts a priority on post-secondary education an subsidizes it as much as they do. But I think that if you value post-secondary education, you should be willing to shell out for it to ensure that the quality is maintained. Going into debt is borrowing from your future income. Once you’ve graduated and found a job, you can pay for your degree.

The rebuttal to this, of course, is that a university degree no longer guarantees a job. I completely agree, but guess what? That isn’t what a university degree is meant to do. A BA in Philosophy should by no means be a ticket to a job (unless you want to become a philosopher, and if you know anyone that’s hiring those, call me!). But if you want post-secondary education that will prepare you for a job, you should probably do a college degree (NB – in Canada, college would be the equivalent of a community college in the US, I think – more practical, hands-on learning as opposed to esoteric bull sessions about Kant).

Our jerk parents accidentally sold us a bill of goods in this respect, because for their generation, a university degree was rare enough that it was a valued indicator to employers that you were a relatively competent person, and so it often did get you a job despite offering little to no practical skills. But by the time we got there, everyone else’s parents had told them the exact same thing, and so your BA? Useless.

Employers, of course, now expect a university degree for every position, but why is that? Is it just because everyone has them, or is it because our secondary educations are missing some essential skill? Maybe we should be taking a harder look at what kids are learning in high school, and if that bar could be raised. I certainly can’t ever remember being challenged in high school (except socially).

Really, most people getting a university degree wouldn’t need to (and might not want to bother) if it weren’t for the expectation that everyone have one. I think that a lot of people would be better off doing a college degree, especially if they know what job they want to go into. But now the same cycle is occurring with Masters degrees, and eventually I suppose we’ll all be Doctors. When will the acronym madness end?!

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If it plays, it stays

I’ve foiled Apple’s attempts to lure me into buying a shiny new computer to replace my four-year-old macbook by spending a whopping $30 on upgrading my operating system. Behold how fast my computer runs when nothing is telling me that my browser is out of date! Okay, you can’t behold, but trust me – it’s awesome.

I love stuff as much as the next person (okay, slightly less, because of the wracking environmental studies guilt) but I love not spending money (on stuff) even more. What I DO love spending money on is paying back our giant mountain of student debt, which I’m pleased to report is now only a medium-sized hill. It might end up as a hole in the ground as early as next September, if we’re lucky.

Hence, a useful rhyming guideline. I tried to think of others, but in the end had to steal this one from the internet (and promptly forgot the source; I’m a bad pirate). But seriously, this is the best I could do:

  • If it still works, it blurks
  • It’s still good, keep it you should!
  • It’s still running, so keep on funning

I’m fired.

 

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Money Management

That’s right, my Friday nights are exciting!  I’m blogging about monthly finances!

In university, I had a really simple budget plan of which I was quite proud.  The 1st of every month, I put $1000 into my chequing account from my savings, and that covered my rent, groceries, transit, other bills, and discretionary purchases.  If I had $150 left at the end of the month, I only added $850, so that I rounded up to $1000 again.  When I got paid, it went right into my savings so that I wasn’t spending more than my budget allowed.  It was perfect.

When Eric and I merged finances, I was envisioning something similar, but with separate chequing accounts for our discretionary spending.  Due partially to some misunderstanding at the bank, and partially to the value to us of using our credit card for purchases (we get mad points!), we have 2 barely-used chequing accounts, 2 barely-used savings accounts, and a joint credit card.  When I say barely-used, I mean that we don’t use them for purchases, not that we don’t put any money in them, of course – we pay our credit card in full every month; I refuse to carry a balance because it was drilled into my head as a child that credit cards are evil.

The bank accounts are free, but it’s super-complicated as to whose cheque goes into which account and from which account our various automated payments come, and of course there’s not really a set amount of discretionary spending that we each have every month, because it’s just all slapped on the Visa.

I’m okay with this system (except for the billion accounts, which I’ll be fixing), which surprises me a little.  I thought that I would be more concerned about the autonomy and equality of our discretionary spending, but I really haven’t been stressed about it.  I think that it’s because we have really similar spending styles – ie, we don’t really buy things very often, and never without much humming, hawing, and comparison shopping.

What I’m not okay with is how much I’ve allowed myself to withdraw from the process of tracking our expenditures, watching the credit card balance, saving for big purchases, and generally paying attention to the money.  Eric’s job is so similar, and while I don’t dislike personal finance, he likes it so much more that I just sort of let him do all the work.

But I feel uncomfortable not knowing the day-to-day state of our finances.  I catch myself asking him permission to spend money – not because it’s his to grant, but because I just don’t know if we can afford something.  I don’t want to become that woman; the one who only spends the money (tee hee!).  I want to know what’s going on with our money, so that we can make decisions about it as a team.

So this weekend, I’ll be spending some time on the bank website, going over our past months’ spending and marking down all the auto-payment dates.  I’ll also be memorizing my bank card number (seriously, a big part of this was that I used to have my card number memorized, and when we got the new account I was always too lazy to go find my card to log in).  Then I’m going to see what we can get with all our credit card points (come on, Aritzia gift card!).

Yay for financial literacy!

What’s your budget system look like?  Do you and your partner pool everything or keep it separate?  Do you always know how much you have to spend, or do you cross your fingers while buying coffee on debit? (this has happened to me before).  I want to hear about it!

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there ain’t no journey what don’t change you some

A quick unrelated note: the title is taken from the Cloud Atlas, by David Mitchell, one of my favourite books in the world.  I’ve been threatening to break up with Eric if he doesn’t read it soon.

As you may have noticed in my last post, I’m selling some stuff!  When I emptied out our closet back in February, I kept a few things for which I knew I could actually get some cash – mainly my climbing equipment and guitar.  This weekend, I finally photographed everything and put up ads online.

So far, I’ve sold my backpack (for only $30 after shipping, because I’m a huge softie and it’s for students at an alternative school doing the Duke of Edinburgh program, two things I love) and I’ve had an offer on my guitar (I’m waiting for a reply to my counter-offer, but hopefully he takes it).  I’ve also *just* received an offer on the rope and hardware, so if you want those shoes, you’d better act fast!  *ahem*… sorry.  My salesperson past reveals itself sometimes.

So, selling this stuff is a great way to clear out our place, and it’s also a great way to make some cash to pick up supplies for…. our trip to Ecuador!  Yes, we’ve changed plans – as much as I do want to go to Tierro del Fuego one day, we realized that a) the weather will be really terrible this time of year, and b) it will be half the price to go to Ecuador.

We’ll still be climbing some (small) mountains, and we’ll also get to explore some jungle, see some cool indigenous craft markets, tour an organic coffee plantation, and (hopefully) find a last-minute deal to the Galapagos Islands to see some boobies:

from about.com

(when I showed Eric this photo, he proclaimed himself officially In Love with the blue-footed boobie).

Specifically, I’m hoping that the cash will be able to go towards new gear – we’ll both need serious raincoats, and we both want more manageable backpacks (we learned our lesson about 80L bags the hard way in Europe – mainly, that they’re totally unnecessary!).  I’ve got my eye on this beauty from Topo Designs in Colorado:

droool, right?

I’m into backpacks the way some girls are into purses, but lately I’ve been finding myself drawn towards a more stylish aesthetic, and away from too much rip-stop nylon and crazy buckles.  I’d also like to eventually get a nice suitcase (like the animal-painted LVs from the Darjeeling Limited, the only Louis Vuitton I would ever admire), and I had also wanted a classy duffle bag, but I feel like the Klettersack might actually do double duty in that respect because it’s so shapely.

Anyways, all this to say, I’m selling some crap and going to South America.  Sometimes, I think I might be a bit verbose.

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Birthday List #23 in Progress – Pay down our Student Loans

Yesterday on APW, there was a discussion about credit card debt and wedding planning. I hesitated a bit before posting a comment, because I didn’t want to seem too negative, but ultimately I did, and I’m glad. I won’t rehash the whole thing here, but I basically said that debt sucks, especially credit card debt on account of usurious rates, and that I’d be loathe to start a marriage under additional financial stress because you HAD to have XYZ from BHLDN or whatever.

Obviously, I’m not planning a wedding, but I am in the process of paying off a fairly large sum of student debt – $90,000 between the two of us (which isn’t bad for 4 degrees!) as of graduation. We had to defer payments for about six months while we found jobs, but once we did, we started paying it back aggressively. Originally, we were going to use a big chunk I had leftover to pay back Eric’s bank loan, but we ended up putting that towards our down payment. Our plan A was to pay our debt back in 22 months, but it’s been changed to 32 because we bought our house. I struggled a lot with that decision, including drawing diagrams entitled “the debt spiral of doom” to illustrate my concerns for Eric, but

Ultimately, I’m glad that we did. We were able to take advantage of the lowest interest rates EVER; we also qualified for a lot of tax credits as first-time buyers and were able to make a lump sum payment in the bank loan that was even more significant than my original savings when we got our tax returns. Best of all? We pay about $500 more a month than our old apartment, but have a bigger, nicer space in a neighbourhood we love, and which we own. It’s been a pretty good deal.

Sometimes people are surprised about how quickly we’re paying back our loans, and they ask how we do it. Unfortunately, I don’t have a very good answer, other than “don’t buy shit you don’t need.” growing up kind of poor (not destitute, but not far) made me really skilled in seeing things I like at the mall and saying, “wow, that’s nice. I’m not going to buy it, though.” Don’t get me wrong, I still buy things sometimes. But I try and make sure that I really need something, that it’s not just a trend or a whim, and that I’m not shopping as a form of therapy (believe me, I still love that new-thing feeling).

This isn’t intended to be preachy or anything. I spent a fair amount of my student loans on ridiculous things, because I didn’t learn to budget until my last year. Obviously the smarter alternative would have been to save more money during university so that i wouldn’t be in as much debt when I graduated, but that’s easy to say now. But I hope that it might be encouraging to people who are going through the same things, to know that it’s possible to live a good life and still make headway on your debt.

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