TVGuide.ca Interview with Alison Griffiths

Griffiths keeps viewers in control of their money

After sharing her no-nonsense financial advice on W’s Maxed Out for four seasons, Alison Griffiths returns to help viewers with the new live call-in show Dollars & Sense with Alison Griffiths.

When teaching Canadians to be financially organized, the financial journalist of 25 years emphasizes the basics, such as maintaining folders for receipts and statements with dividers for each type of payment (ex. a medical folder).

Says Griffiths, “One of the problems a lot of people have is they’re not clear. They have bits and bobs of money here, there and everywhere. Now that we’re facing really difficult times, I think this is an excellent time to sit down and do a master list of where all your money is.”

With that, Griffiths offers TVGuide.ca her guide to staying financially savvy – from childhood to retirement.

KIDS
Youngsters: Start early by showing toddlers the different colours of your bills, then progress to giving them a tiny allowance.

Tweens: Teach those Jonas Brothers fans to save money and comparison shop by giving them an allowance for clothing four times per year. “Don’t bail ‘em out,” warns Griffiths. “This is so critical. This is where the parents have to be taught. [Kids say,] ‘Aw Mom, I’ve spent all my money and I’ve gotta get socks for soccer, please?’ And this is when the parents have to say, ‘No!’”

ADULTS
Lovebirds: With financial discord listed as the primary cause of divorces, what is a happy couple to do? Simplify by opening a joint account for rent, food and your mortgage. “Then there’s no arguing, all the food is paid out of that account, all the bills are paid out of that account,” explains Griffiths. “It’s not a cash withdrawal account, it’s just for expenses.” She stresses that couples should talk about money and keep informed about their financial situation.

The house hunt: Prices are dropping in real estate because of the recession, but don’t look at the bricks as an investment. “I’m dealing with somebody right now who did just that and now the property decreased in value,” says Griffiths. Wait until you can afford your cosy cottage by saving the good old-fashioned way. “Listen to your heart. Listen to your wallet,” she says.

Renovating: Thanks to the Home Renovation Tax, which allows homeowners to claim 15 per cent of the cost of renovations until Feb. 1, 2010, Canadians who have already saved for a home reno are getting a tax break. But Griffiths warns against renovating just because of the new legislation: “Don’t get stampeded into renovating simply because you’re going to get a $1,350 maximum tax credit.”.

The tax crunch: Make April 30 less stressful by organizing, starting your taxes early and using an automatic tax program. Keep a tax filing system with slots for various tax-deductible payments. When tax day nears, save money by doing your own taxes with an online program. If you need help, call the Canada Revenue Agency or visit a tax office.

Don’t charge it: “Credit cards, in my opinion, are there for emergencies. They’re not cash flow,” says Griffiths. “If you have to put something on a credit card and you know you can’t pay it off at the end of the month, don’t buy it.” If you only pay the monthly minimum, you’re heading down a spiral of debt.

Drowning in debt: “Make sure all your debt is on the table and [pay them off] from highest to lowest [interest rate],” says Griffiths. Try moving your debt around to avoid high-interest fees. Griffiths says you can save thousands of dollars on interest, since some department store credit cards charge interest rates of 30 per cent. Also look at your car debt, which may have a higher interest rate than your credit cards. Families in serious trouble should seek free credit counselling. “Don’t wait until they start knocking on the door,” says Griffiths.

Laid off? Griffiths advises you examine your debt and see what’s negotiable. Get a revision of terms on your student loan to stretch your payments and contact your creditors to see if you can pay a percentage. Lastly, don’t be afraid of taking a less-than-stellar job. “If you’ve gotta flip burgers or stock shelves, I don’t care whether you’ve got an MBA degree,” says Griffiths. “There’s no shame in any kind of work.”

SENIORS
Pensions: “The earlier you start saving, then the less you have to save as the years go by,” says Griffiths. But pay attention to where that money is invested. “The problem is, is we open these registered retirement savings plans and we dump the money in, and we don’t pay attention to where we’re putting it in,” says Griffiths. “This is exactly why so many people have lost so much money in the last year.”

Watch the little things: “Sweat the small stuff,” says Griffiths. “For example, a lot of the money we waste, we waste on small things.” Skipping your morning Tim Hortons run adds up, and avoid pesky ATM fees by sticking with your own bank. Save change by finding cheap alternatives for luxuries, such as baking cookies instead of buying them. “In a time of recession, if you can target two or three things in your life and either cut back or do without, it can totally put you in control,” she concludes.

Dollars & Sense with Alison Griffiths airs Mondays, 10 p.m. ET, on Viva and W Network.