Written by Vanessa Santilli on May 8 on CreditCards.ca

No generation is the same as the one that came before it. Of course, you’d never be caught dead wearing the clothes your parents thought were cool when they were teens, that’s a given. But even the finance and credit habits of today’s youths are different than those of Generation X.

Several things factor into those habits: millennials (people born between the early 1980s and the early 2000s) live with parents longer, seek “life experiences” over things such as homes and cars, and see debt as “something everyone has,” leading them to make radically different money choices.

Youths’ priorities different than their parents’
This generation doesn’t want a big house and fancy car, says Sandra Daga, an accounting professor at the University of Toronto’s Scarborough campus.

“These materialistic wants aren’t on their radar,” she says. Millennials seem to prefer to have life experiences, such as travelling as much as possible, before they’re tied down.

“They are not absorbed in the norm of the boomer generation — getting married, getting a house, a big mortgage and car payments,” Daga says. While those things, too, essentially equal debt, it’s not the same as debt from one too many trips abroad. Buying a home will build equity over time, and marriage will ideally contribute to a more stable financial future, as you’ll be working with two incomes instead of one.

The previous generation started out on their own earlier, and put more money toward mortgages — in essence, building their net worth, says money coach Christine White. Since millennials live with parents longer than the generations before them, they have a larger discretionary cash flow for eating out, entertainment and travel. Once a level of spending has been established for such extras, it’s hard to peel back, she says.

This results in a struggle to keep up, which often starts the debt cycle.

Millennials see credit card debt as an inevitable constant
According to Project Millennial, a Canadian study conducted by TrendSpotter Consulting and People Talking Marketing Research, Gen Y’s most consistent debt is credit card debt.

“Many more millennials are growing up with consumer debt as an accepted fact of life,” says White. And increased accessibility to credit, which can be good in theory, enables bad habits.

According to American Express Business Insights Canada, between 2009 and 2011, millennials increased their spending on luxury goods across a variety of categories. Spending on luxury fashion increased by 33 per cent, travel by 74 per cent and fine dining by 102 per cent.

“Now, some people pay off their credit cards with their revolving lines of credit and think they are fine because they pay off their credit card,” says White, who adds that too many millennials run out of money before payday and end up borrowing again.

And while many millennials have university degrees, this doesn’t always translate into being financially savvy.

“They still aren’t necessarily aware of what they need to know for sound money management,” says Daga.

That includes the importance of compound interest, setting financial goals and reducing their spending.

“Since keeping more of their hard-earned money is even more important than having a savings plan, they need to keep living frugally. Don’t get caught up in wanting material stuff and the consumer mentality,” says Daga.

And youths today are attached to rewards points, resulting in increased spending on credit.

“The rewards points change our psyche when we are at the cash register,” says White. “Instead of having pain triggers firing in our brain for losing our money, subconsciously, when [they] put things on credit, [they feel like they’re] gaining something — like that free flight.”

Gen Y not entirely at fault, and coping in its own way
While many write off millennials as being self-absorbed and entitled, the reality is that they are living in a tough economy with not enough jobs to go around and, therefore, tough job competition, says Daga. As a result, young people have learned to cope by being frugal.

“They pay their bills, use coupons with no hesitation and save some cash in low-risk — but low-return — savings accounts,” says Daga.

They’re also footing higher educational bills than the generations before them. According to the Canadian Federation of Students, students studying in Ontario and the Maritimes have the highest average debt loads, averaging about $28,000.

And while living with their parents as young adults, they have gained financial insight and important life lessons.

“It’s made them more aware of the dangers of not managing their money,” adds Daga. “They have seen parents lose jobs, live through a recession, cut back on frills.”

Written by Vanessa Santilli on April 20 in The Catholic Register

Marichka Galadza, left, and a workshop participant prepare pysanky, the colourful Ukrainian Easter eggs that are a tradition among Ukraine’s Catholics. (Photo courtesy of Marichka Galadza)

Written by Vanessa Santilli on April 20 in The Catholic Register

A before and after shot of St. Elias the Prophet Ukrainian Catholic Church in Brampton, Ont. (Photo at left courtesy of Fr. Roman Galadza, photo at right by Vanessa Santilli)

Written by Vanessa Santilli on April 17 on CreditCards.ca

If you’re having trouble keeping up with your debt, declaring personal bankruptcy could tempt you.

But it can be a daunting process — how do you know if you qualify, what’s the first step, what might you lose, how will you cope?

Here’s a basic how-to if you think bankruptcy is right for you.

Qualifying as a bankruptcy candidate
Technically, to qualify for bankruptcy, you must owe at least $1,000 and have no way to pay your debt, says Apolonia D’Sa, a trustee in bankruptcy and senior vice-president with BDO Canada Limited.

Signs that bankruptcy may be right for you include the inability to keep up with debt collector phone calls, garnished wages and a frozen bank account.

“It really boils down to whether [you] are not able to meet [your] liabilities, [such as credit card payments and overwhelming debt,]” says Mary Plahouras, a senior estate manager with MNP Ltd., who is in the final stage of becoming a trustee in bankruptcy.

Finding a trustee in bankruptcy
In Canada, only a licensed trustee in bankruptcy can file a bankruptcy.

Keep in mind that a trustee is an intermediary between the client and creditors, says D’Sa. Here is what you must provide to your trustee:

• The names of your creditors and how much you owe each one;
• A list of your assets and their current value (You may have assets you can use to pay off the debt on your own, says D’Sa);
• The details of your employment situation;
• Your typical household income.

Losing — and keeping — your assets
Contrary to popular belief, you won’t lose everything when you file for bankruptcy.

1. Vehicles: If you have a vehicle that’s paid off and worth less than $5,650, it would not be touched by the trustee, explains Plahouras.

2. RRSPs: Only contributions made in the last year will be seized.

3. Your home: “If [you] have a house and [you’re] in default in payment to the mortgagee — the bank – [you] could potentially lose the house,” Plahouras says. However, if you are paying on time or own the deed, you won’t lose your home.

In addition, household furnishings worth up to $11,300 are exempt, as well as personal effects — such as clothing and jewellery — worth up to $5,600.

Not eliminating debt
Filing an assignment in bankruptcy does not eliminate your debt, but protects you from creditors’ actions, explains Suzanne Dorosiewicz, a trustee in bankruptcy and senior vice-president with BDO Canada Limited. You are released from the debts when you get a discharge from bankruptcy.

“The process can take a minimum of nine months, but depends on household income and previous insolvency filings,” Dorosiewicz says.

Your credit will feel the sting for much longer, though. Credit bureaus will give you an R9 rating for seven years from the date of bankruptcy.

Experiencing the emotional effects
“Some individuals are happy to be free from the stress of being in debt, while others may feel shame,” says Dorosiewicz.

While there aren’t bankruptcy support groups, Plahouras wishes there were.

“Unless they reach out to people in their community they’re comfortable talking with, it can be very difficult. At the onset, most people don’t want anyone to know they’ve just filed for bankruptcy.”

Taking this into account, one legislative requirement of declaring bankruptcy is to participate in two sessions with qualified insolvency counsellors.

But often, people tell Plahouras that while the decision to file for bankruptcy was the hardest thing they ever had to do in their life, it was the best.

“They say ‘I don’t need to be scared at work that my creditors are calling my boss or co-workers; knowing that I’ve got enough money to set up savings and retirement and knowing that I’ve learned to live with a budget.’ “

Written by Vanessa Santilli on April 14 on Bankrate Canada

When Sophia Cheng first heard about Ebates — a website that offers cash back for shopping online — she was skeptical.

Then, she tried it: In less than three months she earned about $55 and now Cheng recommends the site to other avid online shoppers.

Since launching in 2012 — its American counterpart was introduced in 1999 — more than 650,000 Canadians have joined Ebates.ca, says general manager Adrienne Down Coulson. “The increasing membership base has helped drive over $20 million in sales to partner retailers.”

How does it work? Users register, then simply log on and browse through the various shopping sites. “If you make a purchase, Ebates gives you a certain percentage in cash back, depending on the online store,” says Cheng.

“The amount of money you can earn with Ebates.ca depends on the amount you shop online as well as the percentage of cash back offered by a particular retailer,” says Down Coulson.

The amount fluctuates. For example, as part of the spring fashion event sale, Banana Republic and Nordstrom are offering up to 10 per cent cash back. But others, such as Amazon.ca and Apple are currently offering up to 1 per cent.

Cash back is not instant. Ebates issues cheques every three months — in May, August, November and February — and the minimum payout is $5.01.

Ebates.ca also provides added value by working closely with its retail partners to offer coupons, promotion codes and deals for extra savings.

Who’s on Ebates? With more than 650 retailers linked up to Ebates.ca, there is a wide variety, ranging from clothing and hardware to pets and drugstores.

If a retailer can be found in a mall, it’s likely connected to Ebates. However, there are also smaller retailers on the site.

As for who is shopping, the largest and most loyal users are moms, says Down Coulson. “Due to their busy schedules, shopping online for everything from day-to-day household items to gifts for others and themselves to family travel is quick and convenient.”

While Ebates offers the largest selection of stores, there are other cash-back sites that target Canadian shoppers, including Great Canadian Rebates and DealGuild.

Vanessa Santilli is a Toronto-based freelance writer.

Written by Vanessa Santilli on April 11 in The Catholic Register

Prayer can be carried by the simplest of words. For American author Anne Lamott, those words are help, thanks and wow.

Particularly relevant for Catholics who are paying special attention to their prayer life during Lent, her book Help, Thanks, Wow drives home the message that prayer doesn’t have to be fancy. What it does have to be is honest and sincere.

Anne Lamott, author of Help, Thanks, Wow and Stitches.

As she shares the ups and downs of her life — from the pain brought about by her beloved 13-year-old cat’s death to the fact that she used to be an alcoholic — Lamott’s writing is incredibly powerful and somehow relatable, even if you’ve never struggled with an alcohol addiction.

“Awful stuff happens and beautiful stuff happens and it’s all part of the big picture,” she writes in her signature no-nonsense language.

The fact that this 100-page book was a New York Times bestseller comes as no surprise.

Her writing is so honest that it brought me to tears numerous times. Catholic or not, Lamott’s focus on the “hard work of everyday life” strikes a nerve. We all fall and we try our best to get back up again. But no matter whether your circumstances change for the better or worse, there is one part of the puzzle that will remain constant: God will always be there for you.

In Stitches, Lamott’s book on what Catholics will call discernment, this Evangelical describes how she makes sense of the chaos that comes with living.

Her most recent book is chock full of inspirational quotes you’ll want to write down because they ring so true or are written so beautifully. She writes words to live by. I will admit I dog-eared at least 20 pages.

“We live stitch by stitch when we’re lucky,” writes Lamott. “If you fixate on the big picture, the whole shebang, the overview, you miss the stitching. And maybe the stitching is crude, or it is unravelling, but if it were precise, we’d pretend that life was just fine and running like a Swiss watch.”

Lamott is also refreshingly counter-cultural in her remarks about a society obsessed with success. Growing up, no one mentioned to her that peace was attainable through belief in a higher power. Instead, her non-religious parents pushed on her the all-too-familiar golden calf of getting the best grades and attaining the perfect job.

Her realization that the meaning of life doesn’t lie in material success is one we can all benefit from.

And while Lamott may not be concerned with promoting the New Evangelization, this is precisely what she’s achieved through these two down-to-earth books.

Just as Pope Francis has spoken about the need to make the Church more merciful and more welcoming, Lamott captures the human side of the need for spirituality in coming to terms with the mysteries of life. In her writing, there is no judgment, just compassion for her fellow brothers and sisters doing their best to get by.

Help, Thanks, Wow: The Three Essential Prayers by Anne Lamott (Riverhead, hard cover, 112 pages, $19.50) Stitches by Anne Lamott (Riverhead, hard cover, 112 pages, $19.50).

(Santilli is a freelance writer based in Toronto.)

Written by Vanessa Santilli on April 11 on CreditCards.ca

When everyday spending allows you to donate to charities using your rewards points, everyone wins, right? While this may be technically true for charity affinity credit cards, it’s best to find out how much of your donation actually reaches your preferred causes —  you may find it’s best to donate directly to the organisation.

“If somebody is considering donating to a particular organization via a charity affinity card, they’ll need to take a look at the exact terms under which the card issuer will make the charitable donations,” says Elena Jara, director of education at Credit Canada Debt Solutions.

In some cases, the donation is a set amount per purchase, she says. For example, the set amount may be 10 cents per transaction. If you use the card 100 times in a month, the charity gets $10 for that month.

This is the case with MBNA’s charity-related credit cards. Each time you use one of these cards, the cause connected to your card — Canadian Wildlife Federation, Ducks Unlimited or The Royal Canadian Geographical Society — automatically receives a donation from MBNA.

But with other cards, the donation is a set proportion of the money spent. For example, with MBNA Rewards, MBNA Rewards World Elite and Choice Rewards, you earn a certain number of points per dollar spent (usually 1 or 2 points per dollar). Then, once you have earned 2,500 points, you can redeem them for a $25 donation to a participating charity of your choice.

However, details on what proportion of that $25 the organization actually receives are not clear. That information is kept confidential by contract, says Cathy Velazquez, spokesperson for TD Bank, the parent company of MBNA.

Examine your spending habits before you sign up for a charity card
“You have to do the math and figure out what is going to give you the best result for the rewards points you’re giving,” says Tina Tehranchian, a certified financial planner. “I would rather use my rewards points for more predictable items and use my cash for charitable donations. I think [that method] gives you more flexibility.”

While the cause you support should be the main factor when deciding which card to sign up for, be sure to factor in the card’s costs, too.

“The interest rate is of primary concern to many people, as many of these cards don’t have beneficial interest rates,” adds Jara. Typically, the interest rate on charity cards is between 19 and 20 per cent.

“If a cardholder is carrying a balance on a card like this, they’re effectively giving 0.25 per cent [for example] to a charity… and another 19 per cent to the card issuer. It would be better to just pay cash for purchases and mail the would-have-been interest portion directly to the charity,” Jara says.

Of course, signing up for this type of credit card should never replace your direct donations, advises Scott Plaskett, senior financial planner and CEO at Ironshield Financial Planning.

But there is definitely value in these cards because you know support is being directed to a cause or charity that is close to your heart, says Plaskett.

“Although many times you don’t know how much is being directed, the knowledge that you are helping support the cause is a benefit.”

Written by Vanessa Santilli on April 4 on CreditCards.ca

If you’re shopping for a new vehicle on a budget, promises of “no money down!” and “no interest for X months!” or “bad credit, no problem!” may be enticing. But don’t be deceived. These “easy money” car loans might end up costing you more than the vehicle itself.

“The Ontario Motor Vehicle Industry Council always recommends consumers be cautious of deals that seem too good to be true,” says communications director Terry O’Keefe. “Those ‘deals’ should most often be considered a warning, not an opportunity.”

“No money down and no interest may sound like a great offer and tempt you to sign on the dotted line,” says John Haralovich, trustee in bankruptcy and senior vice-president at BDO Canada Limited. “But while you may not be making payments for a number of months, interest charges accumulate from the date you signed for the loan.”

Consumers who finance vehicles over extended terms often find themselves “upside down,” adds O’Keefe.

“This term — often referred to as ‘negative equity’ –means the consumer owes more for the car than it is actually worth.”

Bad credit, big problem

The reality is that if your credit is bad, you’re going to end up paying a higher interest rate on your loan, says Sandra Sherk, a senior counsellor with Credit Canada Debt Solutions. Sherk has seen rates from 15 per cent to 30 per cent.

“[With no] down payment and a less-than-stellar credit score, the company is taking a higher risk with that borrower,” explains Patricia White, executive director of Credit Counselling Canada.

To illustrate the detrimental impact of these loans, BDO’s Haralovich offers an extreme example that recently made headlines.

“A couple in British Columbia with a poor credit history purchased a $21,000 car and financed their loan through the dealership at an interest rate of 25 per cent. At the end of the term, the car will have cost them $44,000 — that is $23,000 in interest payments.”

Is this the auto equivalent of a payday loan?

Although neither is ideal for your credit, “easy money” car loans and payday loans are quite different, says Haralovich.

“Car loans, even high interest ones, are payable over a long period of time,” he explains. “Payday loans are designed to be quick hits: get your money now and repay the loan within a short term.”

Payday loans are also much higher in interest, adds White.

“All payday loans must comply with the Criminal Code, which states the maximum interest rate is 60 per cent.”

How to avoid these costly loans

Here are some tips from the experts on how to avoid car loan pitfalls:

1. Get pre-approved for a loan before shopping for a vehicle, suggests Christopher Northey, a credit counsellor with Credit Canada Debt Solutions.

“Know what you can afford. Do not rely on the dealer to get you a good financing rate.”

2. Negotiate, says O’Keefe. “At most dealerships the prices of the vehicles are negotiable. Often, so are the finance terms. Don’t fall into the trap of negotiating only a monthly payment — negotiate the all-in purchase price, the interest rate and term.”3. Work on your credit score, advises White. If you’re not in a rush to purchase, take the time to improve your score in order to land a better interest rate.

4. Ask yourself: Is there another alternative to borrowing from a subprime lender? Perhaps a family member will give you the loan with a lower interest rate.

Written by Vanessa Santilli in the April edition of Panoram Italia

Along with adjusting to a new language and frigid temperatures, Italian newcomers to Canada also had to deal with a radically different cuisine. From sliced bread to extra sugary sweets, the sapore of Canadian food just wasn’t the same as back home for Italians who arrived in the land of opportunity.

Unidentified Customs Officer with family, 1963. Canadian Museum of Immigration at Pier 21 (DI2013.1362.4)

During the Pier 21 years, 471,940 Italians came to Canada, making them the third largest ethnic group to immigrate between 1928 and 1971. Franca Della Rossa was among the large wave of Italian immigratings to Canada post-World War II. She still vividly remembers her first experience eating Canadian food at a public venue. “We went to shop (at Eaton’s) for my wedding dress…and my uncle suggested we visit the buffet,” recalls Della Rossa, who immigrated to Canada in 1960. “The fragrance in the air was excellent, but as soon as I tried it, it had no flavour whatsoever.”

And as a result of her less-than-positive experience eating at Eaton’s, Della Rossa and her family didn’t eat out for many years. “When my daughter turned 20, she said, ‘I don’t want any presents. As a present, I would like the whole family to go out and eat.’ By this time it was the early ’80s. Things had improved.”

Still, Della Rossa always considered herself one of the lucky ones. “I lived with my mother-in-law who was a great cook so I didn’t have to suffer that long.” But of all the meals, she found lunchtime to be the biggest challenge. “I was accustomed to soup or something warm at noon and sliced bread didn’t do a thing for me… It was not satisfying for me. But it was convenient, I suppose.”

“In order to understand the reaction, it’s important to understand what Italians were used to back home,” says Joyce Pillarella, an oral historian based in Montreal. “When many of the immigrants arrived, the white bread they were given really had a negative effect on them, mostly because it was a really sharp contrast to what they were accustomed to, she says.

Bread had always sustained them as it was wholesome,” she explains. “It got them through a war. It got them through difficult times and so it was something they looked towards with confidence that it would get them through their day. Sliced bread made a big impression on them as they didn’t see any nutritional value in it,” she adds.

Fiorina Bomben, who came to Canada in the early ’50s can also attest to being less than impressed with sliced bread.

“My eldest daughter used to ask for ‘la torta,’” she says, a reference to the bread’s sweetness. On a day-to-day basis, Bomben recalls not having many options when making her packed lunches for work. “My boss used to say to me, ‘Bologna again, Fiorina?’ I used to like bologna for lunch or Polish sausage.”

Soon enough, this feeling towards bread would create a new slang word. It’s commonly believed that the term “mangiacake” evolved from the sentiment that Canadian bread is sweet as cake, compared to the taste of Italian bread.

“In fact, stories about the sweet white bread that the children refused to eat had made their way back to Italy and Italian immigrants were coming prepared,” writes researcher Carrie-Ann Smith on the Canadian Museum of Immigration at Pier 21’s website. And these immigrants often came prepared with food from their homeland.

“Newcomers often went to enormous efforts to conceal their food products from Canadian customs officials for fear of losing their beloved sausages, nuts, bread and other cherished food items,” writes researcher Jan Raska on the Canadian Museum of Immigration at Pier 21’s website. But this did not sit well with customs officials. “This middle ground often led to interesting exchanges between Canadian ‘gatekeepers’ – those entrusted to safeguard Canadian society and economy, including customs officers – and new arrivals from across the globe,” writes Raska. But as more and more Italian immigrants settled into their new life in Canada, Italian services sprung up to cater to this growing community.

Bomben was happy to discover an Italian grocery store on College Street, as the items they were used to buying back home were not readily available at Canadian supermarkets. “They had olive oil from Italy,” she says. “They had everything.” When shopping at Canadian supermarkets, however, Bomben was pleasantly surprised by the quality of the meat, fruit and vegetables.

And as the Italian community grew, Italians also brought their food traditions with them, something that continues on to this day with well-stocked cantinas showcasing homemade sausages, wine and preserves.

With a wide variety of bakeries and supermarkets stocking top quality Italian products – and Italian restaurants galore – Italians immigrants have not only managed to preserve their culinary traditions but successfully integrated them into mainstream Canadian cuisine and eating habits.

Written by Vanessa Santilli in the April 6 edition of The Catholic Register

If you know a couple whose love has stood the test of time, Worldwide Marriage Encounter Canada wants to hear from you.

For the second year in a row, the marriage enrichment ministry is running a nationwide search for the longest married couple in Canada.

“We want to honour husbands and wives that work to keep their marriages vibrant,” says Connie McNeill, one of the organization’s national leaders. “We want to celebrate the fact that people do stay married.”

Last year’s winning couple, Alice and Arthur John, had been married for more than 77 years when they were selected.

To honour them, Worldwide Marriage Encounter representatives travelled to the couple’s hometown of Ross River, Yukon, to deliver a papal blessing certificate along with a certificate from the organization.

“We did a big celebration with them up there and we gave them a number of other small gifts which were appropriate for them, such as a blanket with the organization’s logo.

“They had already been celebrated in their parish by their bishop, but that bishop again decided that he would be part of the celebration. It really was a community-enriching event,” says McNeill.

The particular way in which the winners will be recognized depends on the couple’s circumstances.

“Sometimes, you may have couples who are living in a nursing home, couples who are living at home with their families or, for health reasons, aren’t necessarily living in the same building.”

In their first year, they received approximately 80 nominations, she says.

“So that doesn’t necessarily mean that there aren’t people out there who have been married longer, it’s just that based on the nominations we receive, this is who we selected.”

The organization is hoping to find couples from each province and territory.

Worldwide Marriage Encounter is a Catholic organization, but McNeill said the nominations are open to couples regardless of whether or not they have a religious affiliation.

“To keep your relationship vibrant and alive does take work but it’s something that is very rewarding early in life and later in life as well.”

(Santilli is a freelance writer in Toronto.)