How is everyone dealing with their finances in this economy?

[blankall]

Originally Posted by undercoverbrother

I don't doubt you, based on your posting history.

But can you send me the source please?

From my anecdotal experience. The rich and/or people with lots of parental support are still having babies. The very poor are having even more babies. Lots of middle class people are choosing not to have babies, often due to affordability reasons and the impact trying to keep up with expenses would have on their lives.

[MoneyGuy]

Victims of this are charities. Charitable contributions have declined for 11 consecutive years and many charities are struggling mightily. It’s unfortunate.

[flamesfever]

With regard to wealth, the old saying is, "shirtsleeves to shirtsleeves in three generations".

The first generation builds it

The second generation maintains it

The third generation squanders it

Research shows that, for 90% of families, their fortunes do not last past 3 generations. I understand that communication breakdown is one of the main causes.

For the other 10%, that goes beyond 3 generations, they invest a lot of energy in building a strong family system that balances wealth creation with family cohesion. Things like family retreats, where members profess family values, purpose, and ways forward, help the process.

[boogerz]

Originally Posted by Monahammer

This 100%

Doing a budget seems daunting, but once you settle into it it becomes so routine and easy you honestly almost forget about it. Except you don't forget about it, because the benefits (lack of anĺxiety!) become so clear that you start becoming enamored with it.

My wife and I LOVE our budget and talking about it. It's perverse on a surface level but damn.

Most people here very likely do not need to make more money. Some do, I am not discounting that, but most probably just need to be more realistic with what they're spending on.

Not to belabour the point, but my wife and I spend an hour of each month reconciling and reviewing our budget. Nothing is more eye-opening than seeing where the individual dollars are going, and technology has made budgeting so much easier and automated now.

Our incomes have substantically grown with time, but strict budgeting has helped us cut down on lifestyle creep. That's been the single best money-saving activity that we've consistently done over the past decade.

[BigThief]

Originally Posted by Sliver

lol I'll send my daughter over to your house again. I don't think she was done hanging with your boys when we left haha. Now those are some polite and cool kids. Eye contact, hand shakes, friendly and fun. You guys are killing it. I'll take your tips on raising kids any day.

Hand shaking??? Replace that with bumping fists and those kids are alright

[8sPOT]

Both my parents come from families with 8 and 10 kids, there was no inheritance to be had with that many youngsters.

Interestingly though, I know 3 co-workers/colleagues in their 20's that own a home and got a free down payment from their parents. One of them didn't even get a mortgage, his parents bought the house and he pays them whatever they agreed on. I do think that is becoming the only way to buy a home.

Back in 2004 we bought our first house in Temple for $150k with zero down. Even back then it was tough saving for a down payment when you're starting out. That zero down payment is partially why I own a home today. Got me into the market. Not that I'm advocating for it! I got lucky, as its all timing with real estate.

[blankall]

Originally Posted by 8sPOT

Both my parents come from families with 8 and 10 kids, there was no inheritance to be had with that many youngsters.

Interestingly though, I know 3 co-workers/colleagues in their 20's that own a home and got a free down payment from their parents. One of them didn't even get a mortgage, his parents bought the house and he pays them whatever they agreed on. I do think that is becoming the only way to buy a home.

Back in 2004 we bought our first house in Temple for $150k with zero down. Even back then it was tough saving for a down payment when you're starting out. That zero down payment is partially why I own a home today. Got me into the market. Not that I'm advocating for it! I got lucky, as its all timing with real estate.

There's a 1200 sq foot house in Temple, that requires a lot of upgrades, on a very small lot for $500k!

[8sPOT]

Originally Posted by blankall

There's a 1200 sq foot house in Temple, that requires a lot of upgrades, on a very small lot for $500k!

Wow lol.

[TrentCrimmIndependent]

Originally Posted by flamesfever

With regard to wealth, the old saying is, "shirtsleeves to shirtsleeves in three generations".

The first generation builds it

The second generation maintains it

The third generation squanders it

Research shows that, for 90% of families, their fortunes do not last past 3 generations. I understand that communication breakdown is one of the main causes.

For the other 10%, that goes beyond 3 generations, they invest a lot of energy in building a strong family system that balances wealth creation with family cohesion. Things like family retreats, where members profess family values, purpose, and ways forward, help the process.

Or just don't be stupid with money.

Makes sense why it's 10% then. Almost no modern western family operates that way with retreats, communication, values, planning lol. Maybe in a more traditional country with sheltered children.

Western society places value on individuality over the clan and carving your own identity and each succeeding generation wants to be nothing like their parents. People are raised in this society to squander on their own pursuits in hopes of making a name for themselves.

[Zary's-Mustache]

Originally Posted by blankall

There's a 1200 sq foot house in Temple, that requires a lot of upgrades, on a very small lot for $500k!

That honestly sounds like a good deal in this market. Will probably get multiple offers.

Edit: just found it and yeah its only 30 meters frontage so that's why it's a low price. 50 foot lot that's going for 575k minimum

[blankall]

Originally Posted by Zary's-Mustache

That honestly sounds like a good deal in this market. Will probably get multiple offers.

Edit: just found it and yeah its only 30 meters frontage so that's why it's a low price. 50 foot lot that's going for 575k minimum

The lack of supply is equally shocking. I occasionally check out the listings in Sundance, where my parents still live. 3 total listings. I've never seen anything like that.

[Whynotnow]

Originally Posted by MoneyGuy

Victims of this are charities. Charitable contributions have declined for 11 consecutive years and many charities are struggling mightily. It’s unfortunate.

So true, I’m on 2 boards , it’s very tough sledding. It’s so counter cyclical because when the need is the greatest is when is when people don’t feel secure to give.

[Winsor_Pilates]

Originally Posted by CliffFletcher

Fertility rates are declining steeply in Canada. And fertility rates correlate with income. So like marriage, having children is becoming a marker of class.

When I meet a family in Vancouver with 3+ kids; I instantly assume they're loaded.
It's nearly impossible to afford the house + living expenses that requires here.
I'd say 7 figure household income or stop at 1 or 2.

[GGG]

Originally Posted by Winsor_Pilates

When I meet a family in Vancouver with 3+ kids; I instantly assume they're loaded.
It's nearly impossible to afford the house + living expenses that requires here.
I'd say 7 figure household income or stop at 1 or 2.

Doesn’t that assume kids are getting their own rooms? That certainly wasn’t a requirement when I was growing up. Now if you had kids sharing rooms you would be looked at as failing them.

Though I didn’t realize my parents were low income until much later in life so perhaps I have a bit skewed view.

[mrkajz44]

For those who seem to be against budgeting as they don't want to reduce spending, I'll say that instituting a budget for our family had an interesting effect. It really highlighted how we were spending money on things we didn't really care about as much, so it was very easy to cut there and its resulted in us spending more on the things we do care about. It was a win/win by spending less overall and more on what matters to us.

The other huge benefit to budgeting I've found that hasn't really been mentioned as much is it makes us think about opportunity cost all the time. So we're going to spend $5k on a vacation? Okay, but what we are not spending that $5k on now? Upgrade vehicle, reno, generally entertainment? It forces you to consider trade offs and really puts the big ticket items into perspective.

[iggy_oi]

Originally Posted by GGG

Doesn’t that assume kids are getting their own rooms? That certainly wasn’t a requirement when I was growing up. Now if you had kids sharing rooms you would be looked at as failing them.

Though I didn’t realize my parents were low income until much later in life so perhaps I have a bit skewed view.

“Failing them” might be a tad harsh.

At our house my kids have their own rooms but I wouldn’t consider it the end of the world if they didn’t. I know of lots of families whose kids share a room so it’s not as if it’s a rarity.

When houses in my area were being built they generally offered floor plan option of either 1 primary bedroom with an ensuite, two bedrooms and a bathroom or 2 primary bedrooms each with their own ensuite. While the market value would be lower on the latter option I don’t think I’d consider it much of a downgrade if I had a home with the latter option and my kids had to share a much larger bedroom with a walk-in closet and an ensuite bathroom. I certainly wouldn’t consider that to be “failing them”.

[surferguy]

My kids share a room, should I be concerned about their well being?

[Bigtime]

Originally Posted by surferguy

My kids share a room, should be concerned about their well being?

I'm calling social services right now.

[DoubleF]

Originally Posted by surferguy

My kids share a room, should be concerned about their well being?

No, but why aren't you doing more to increase your salary or decrease your expenses so that you can afford to give them each their own room?

[GGG]

Originally Posted by iggy_oi

“Failing them” might be a tad harsh.

At our house my kids have their own rooms but I wouldn’t consider it the end of the world if they didn’t. I know of lots of families whose kids share a room so it’s not as if it’s a rarity.

When houses in my area were being built they generally offered floor plan option of either 1 primary bedroom with an ensuite, two bedrooms and a bathroom or 2 primary bedrooms each with their own ensuite. While the market value would be lower on the latter option I don’t think I’d consider it much of a downgrade if I had a home with the latter option and my kids had to share a much larger bedroom with a walk-in closet and an ensuite bathroom. I certainly wouldn’t consider that to be “failing them”.

I think that’s the prevailing attitude in the world of social media parenting.