Teaching Teens Financial Fitness… One Classroom At A Time!

“The great aim of education is not knowledge but action.”
― Herbert Spencer

Earlier this year, our McCullough Team discussed unique ways that we could share our knowledge of credit, lending practices and investing with our community.  We are excited to announce that we are partnering with Junior Achievement Canada, an amazing program that introduces concepts such as interest, credit card debt and types of currency to teens throughout Canada.  JA Canada helps to deliver cutting-edge, experiential learning in financial literacy and entrepreneurship.  The organization is committed to encouraging students to engage in their own economic development and contribute to the strength of their families, their communities, and Canada’s economy. Myles and I will be presenting to a Dover Bay classroom four sessions that hopefully will be engaging and informative for the students.  Our message will be that every student can develop a millionaire mindset – even before college.  Understanding the pitfalls of poor financial decisions and how they can impact us for the balance of our lives is critical for encouraging our youth to see money through a different lens.

Why share knowledge of finances and credit with kids?  It has always astounded me that schools teach students how to play the recorder (parents will immediately wince), cook, sew, and yet, students often enter university with no idea about the importance of knowing what a credit score is, cost of borrowing on a credit card, or that the interest on a vehicle loan can end up costing them tens of thousands more than they realize.  We have worked with couples in their late 60’s who are struggling to qualify for a mortgage, and clients who are carrying a tremendous amount of consumer debt that prevent them from qualifying for a mortgage. We see adults who have lack financial fitness and our goal is to ensure that our future clients have a solid understanding of basic finance principles BEFORE they even need them.

I recall working with a young couple who were pre-qualified to purchase their first home.  They found their dream home in their price range, made an offer to the sellers which was accepted, removed subjects, and prepared to move into their own home.  However, the husband wrongly thought that since they had been approved for the mortgage, that he was free to acquire other “dream items” in addition to the house.  He went and purchased a $50,000 truck and proudly showed it to his wife, only to receive a frantic call from their banker advising that the additional loan put the couple above the debt threshold allowed.  The contract to purchase the home was subject-free but the bank would not give the couple the money for the home without the vehicle debt somehow eliminated (and quickly)!  Needless to say, the wife (along with her sheepish husband) returned the fancy truck to the dealership and paid thousands in penalties after owning the truck for less than 24 hours.

Our MMS Team’s goal is to help teens understand the concept of money and debt before they actually need it.  By educating these future adults, it is our team’s hope that they will take away one or two things that will allow them to protect themselves when buying online, obtaining and using a credit card, and basic investing knowledge.  Our motto is to “give where you live” and we are so excited to have partnered with JA Canada to become financial advocates for our community’s youth.

One of the most interesting things that I learned after doing some basic research on the changing costs of vehicle ownership was that in 1965, a new V8 Mustang coupe cost $2,734, which would have taken 911 hours at the average wage then of $3.00 per hour to buy this vehicle.  In 2013, a Mustang would have cost at least $31,545 and taken an average of 1162 hours earning at least $27.15 per hour to purchase!  It is interesting to see inflation have such an impact on new vehicles over the past decades.

Let our MMS Team help you have a millionaire mindset when it comes to your real estate needs.  Call Brian & Myles McCullough today for a FREE review of your assessment at 250-751-1223 and let’s get you moving in 2018 in the right direction!

Brian & Myles McCullough

BUYING? If you are interested in buying or investing in real estate, view some of our featured listings on my website at www.mmshomes.com. Feel free to call McCullough Marketing anytime at 250-751-1223. We look forward to hearing from you.

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