How to explain net worth to your kids + MORE Sep 13th

Scotiabank and the Royal Bank of Canada say they aren’t providing accounts to companies associated with the marijuana industry, leaving some business owners scrambling to find alternate arrangements.

(Getty Images / Nigel Carse)
Home buyers should expect tougher mortgage rules to kick in as early as November 1 of this year.
In an announcement released today by the nation’s financial regulator, banks and lenders that offer mortgage financing will face stricter regulations and this will translate into tougher lending rules for home buyers.
Hot markets prompt tougher rules for banks
“These changes aim to reinforce the need for banks to exercise prudent underwriting and proper due diligence when originating insured mortgages,” the Office of the Superintendent of Financial Institutions (OSFI) said in a statement. OSFI continued by stating: These proposed changes to mortgage lending “reflect the changing risks in the Canadian mortgage market.”
In the last year, policymakers have warned that Canada’s housing market is overvalued in some cities, such as Vancouver and Toronto. As such, the current Liberal government has been keen to limit taxpayer exposure to any potential price correction and real estate market downturn…

Your net worth is the sum of all your assets and liabilities. It’s a basic calculation that will help determine your financial worthiness with banks and creditors. If you want to buy a house, rent a car or just get an apartment, it’s an important figure to know.
1. “You make $200 a week, right? That’s an asset. Call it $10,400 annually.”
2. “How much is your bike worth? $1,500?! Okay, also an asset.”
3. “But your student loan is a liability. It’s $5,730 a year.”
4. “So your assets add up to $11,900. But you have a liability of $5,730. Subtract your liabilities from your assets and your net worth is $6,170.”
5. “But you’re priceless to me.”
More tips on how to raise money-wise kids:
Ages 0 to 6: My first money moves »
Ages 7 to 12: Saving not spending »
Ages 13 to 17: Big kids, bigger budget »
Ages 18+: Preparing to launch »
How to explain…
Basic budgeting to kids »
Compound interest to kids »
Ways your kids can earn and save
Run a successful lemonade stand »
Save money at school  »
More tips:
How can I avoid money tantrums? »
Should you pay your kids to volunteer? »
Should I buy my 10-year-old a smartphone? »
Does my kid need a clothing allowance? »
Should I give my teen a credit card? »
My kid called from college and is broke again »

The post How to explain net worth to your kids appeared first on MoneySense.

During the ages 7 to 12, the money questions become more plentiful—and more challenging. And just as you want them to learn household skills like chopping veggies and eating healthily, you also want them to understand basic concepts about saving and spending money. “I’ll go to the store with my young daughter Abby and do a lot of what I call, ‘browsing without buying,’” says MoneySense columnist Bruce Sellery. “We’ll go to the store just to look much of the time but I’m clear with her that we’re not buying, we’re browsing. That’s important.”
Help! My 10-year-old wants a smartphone »
It’s also an ideal time to take them to the bank and open up an account for them to replace their piggy banks. In a survey of more than 200 MoneySense readers, fully 92% had opened up a bank account for their child by the age of 12. You can either deposit their piggy bank savings into it or simply open one with a few of your own dollars to get them started. “Teach them they can spend all that money on new shoes or music downloads now, or you can save something for university, or you can do both,” says author Kira Vermond…