34 — Wednesday, February 5, 1992 ~ Nortn Shore News

BUSINESS

No correct way
to spend money

IF ‘YOU spend all your money on your home and never go
out, you could be just as ‘‘normal’’ as somebody who lives
in a bare bones place and spends everything on clothes,

entertainment, travel and so on. matters is always a wise move.

C onsulting with a CGA in financial
CGA's unique training makes them

There is no correct way to
spend your money. Still, it is in-
teresting to know how “‘average”’
people spend, just to give you an
idea of how you compare.

Combining census and other
Statistics Canada information,
Tetrad Computer Applications
Ltd. analyzes how 47 different
groups of people spend their
money in dozens of different
categories.

We have chosen a cross-section

of the groups — last week we
looked at Old Money and
Establishment Wealth, Affiuence
and Achievement, and Upscale
with Immigrant Roots — and nine
spending categories.

Here is the key to those
categories, with the annual spend-
ing amounts (remember, these are
averages) shown below, foliowing
the description of each group: (a)
personal income tax, (b) food
from stores, (c) food from restau-
rants, (d) operating car/truck; (e)
women’s wear, (f) men’s wear (g)
home entertainment equipment
and service, (h) alcohol and (i}.in-
terest on personal loans.

@ Young Professional Families in
Transition. These families tend to

be iz the formative. stages of their |
life cycle, oftén:- moving . from: ©

rental! to homeowner status. Most
are very well educated; their
children are in the pre-teens and
educational planning for the
children is paramount.

More than two-thirds of the:

wives are in the workforce. These
families have relatively high
disposable incomes, having settled
in. more affordable housing. They
have insurance and credit cards,

and have most of their savings in .

liquid assets. .
(a). $12,571; (b) $4,422; (c)
$2,052; (d) $3,158; (e) $1,589; (f)
$956 (g) $620; (h) $1,028; (i) $542.
@ Goldea Years Affluence. These
are largely couples at or near
retirement — very well educated
with incomes more than 50%
_above the national average. Their
children have left for or are
graduating ftom college. They like
to travel, especially outside
Canada, and buy luxury cars.

(a) $13,177; (b) - $4,168; (c)
$2,005; (d) $2,937; (c) $1,596; (f)
- $925; (g) $582; (h) $978; 4) $463.
© Maturing and Empty Nest
Homeowners. Household income
is average, with most wage earners
in a broad range of technical and
service occupations.

Those few children still living at
home are in their late teens, either
in the work force or preparing to

Michael
Grenby

DOLLARS AND SENSE

enter it. These families watch con-
siderable TV.

(a) $8,344; (b) $4,073; (c)
$1,566; (d) $2,715; (e} $1,156; (f)

” $700; (g) $493; (h) $853; @) $366.

© Maturing Affiuent Singles and
Couptes. These singles and cou-
ples (mostly children) are highly
educated with above-average in-

scomes; many. of the couples are

two-income.: households.

- About two-thirds rent but those
who. own have high. value proper-
ty. They tend to live in the city
core, buy luxury cars, work in
professional fields, shop actively,
but generally stay out of debi.

(a) $11,157; (b) $3,466; (c)
$1,886; (d) $2,475; (e) $1,409; (f)
$794; (g)'$537; (h) $890; (i) $427.

@ Maturing Singles and Couples
with Moderate Incomes. Of the
couples (58% of this group),
fewer than half have any children
at home and most of these have

completed schooling and now are.

in the workforce.

Most live in single detached
dwellings, while. 15% live in
highrise apartments and condos.
Many work -in the health. and
education fields. .

(a) $7,964; (b) $3,795; (c)
$1,553; (d) $2,478; (e) $1,127; (D
$652; (2) $468; (h) $818; (i) $328.

NEXT WEEK: Singles and

Couples with Moderate Incomes,’

Young Professional ‘‘Cliff
Dweliers,’’ Pensioners, and
Maturing Blue-Collar Workers.
Mike Grenby is a North
Shore-based colummist and in-
dependent financial adviser who
works with individuals; he will
answer your questions as space
allows — write to him c/o The
North Shore News, 1139 Lonsdale
ore North Vancouver V7M
4,

‘Set up a savings program

DO YOU have a reserve for
emergencies (three to six months’
expenses) or buying/investing op-
portunities? Do you have trouble
saving for new furnishings, a car,
a home, a special holiday or early
retirement?

*‘Being disciplined enough to
save regularly is tough,” says a
certified general accountant
{CGA) whe works in industry.
“But running the household’s fi-
nances can be just like running
business finances. The advantage
in business is that you can usually
enlist the help of others in
budgeting, keeping track of ex-
penses and so cn.”’

And so, suggested this. CGA,
setting up an effective savings
program could include one or
more of the following approaches,
some of which rely on others to

help you do the job.

@ Sign up for the Canada Sav-
ings Bond payro!l plan at work.
Money is taken off your payche-
que before you get a chance to
spend it. A year later you get your
bond.

@ Have your financial institu-
tion automatically transfer funds
to a special account (perhaps to a
registered retirement savings pian)
every pay day or every month.

@ Deposit the family allowance
cheque into an account in the
child’s name, or in your name in
trust for the child. Added benefit:
the inierest earned on these funds
will belong to the child — not you
— for tax purposes. The child will
probably pay no tax. {Of course,
the parent must still declare the
family allowance as income.)

See Continue page 35

YOU MIGHT WANT
TO TALK TO
SOMEONE
WITH MORE
EXPERIENCE
THAN YOUR
AVERAGE
BANK TELLER.
A

irreplaceable in analyzing complex financial
situations and providing practical solutions.
They are the professionals that business
people count on. And you'll find them wher-
ever sound financial decisions are made.

CGAs have earned this position of respon-
sibility and trust. They are members of an
organization that leads the way in demanding
the highest levels of professionalism. And
CGA continues to protect this reputation by
requiring all its members to update their skills
— the only accounting association to do so.

When you need the expert services cta
thoroughly qualified financial manager. an
experienced public practitioner, or are con-
sidering a career in professional accounting, _
the smart move is to look to CGA.

It could be the biggest deal of your life.

_ Ss
CGA |

The Certified General Accountants
Association of British Columbia
1555 West Sth Ave. Vancouver, BC. V6J ITS. -
(604) 732121

or re

Opportunities callforCGAs

Many years ago we came to the recognition that one of the.
most important factors in investing is ‘objectivity’. In fact, it was in
1974 that we began making cur mutual funds available through

“independent mutual fund specialists, financial planners and

advisers.

Since then, our mission has been to combine our knowledge
of mutual fund management with their knowledge of their clients’
investment objectives to achieve a single, common objective.

Building Investor Value. ; ;

In making your RRSP pians this year, think about the’
contribution that experience and objectivity can make to your

ture.

And then call your independent financial adviser.

* The United Group of Funds are distributed by United Financial Services Limited and
are sold only by prospectus.

UNITED FINANCIAL

BUILDING INVESTOR VALUE TOGETHER

CALL ME TODAY

GREG GIRDLER
(604) 669-1143 — 987-2082
GREAT PACIFIC MANAGEMENT CO. LTD.

300 - 1190 Hornby Si.
Vancouver, B.C. V6Z 2K5