You asked. We answered. A previous Instagram poll said that the people wanted to see more blogs about players, money management, and the QMJHL so here we are. Lets talk about what the school system should be teaching – money.
I’m sure some of you are wondering – why the f^*k is a hockey business owner/coach talking about money? Well, I have an undergraduate degree in Business Administration and 36 of 39 completed credits of an MBA in Business Management via Florida State University (1 more course to go). I am an avid equity investor, and if I didn’t love what I do so much with VHG and in other areas of hockey, I would be living in the Tampa Bay area working as a financial advisor (I’ve actually had 2 such offers. Maybe some day b’y).
These blogs will not discuss the latest hot stock pick, or how to calculate intrinsic value of a REIT (real estate investment trust). We will employ the K.I.S.S (keep it simple stupid) method in these articles, however, these simple tips can save readers thousands. Lets go!
Tip #1 – Check your bank accounts daily. Back in 1990(ish) when dad and I walked into TD Canada Trust on Elizabeth Avenue for the first time, there was no such thing as the internet and banking was done at a teller counter, with transactions being archived in a little book that almost looked like a larger version of a passport. In today’s tech-heavy world, you don’t need to go to the bank to keep tabs on your hard-earned money. Which is why checking your bank account(s) every morning when you’re eating your scrambled eggs and toast is easier than ever.
Log in and eye your chequing and savings accounts each morning… for the rest of your life. I don’t suggest obsessing over this and checking every 5 minutes, but checking your bank account(s) should be part of your morning routine like brushing your teeth and/or setting your starting lineup in fantasy baseball. If you’re over the age of 19 and qualified/were approved for a credit card, check the card balance too. (Click here to see the age that you can legally apply for a credit card in each Canadian province). If you’re not the lap top type, ‘the big 5’ banks in Canada (Bank of Montreal, Toronto-Dominion, Canadian Imperial Bank of Commerce, Scotiabank, Royal Bank of Canada) all have mobile-friendly phone apps. All you need is a bank account number from your favourite institution, a password and/or a face for Face ID. Download, login, and have a peek.
The number one reason why you check your accounts/balances every day – to watch out for financial fraud/sneaky fees, and as one of my favourite investors Kevin ‘Mr Wonderful’ O’Leary calls it; ‘ghost money’.
Financial fraud – simply put – is criminal financial deception. Someone lyin’, cheatin’ and stealin’ your dollars away from ya. Although technology has wonderful perks, the adoption of ‘credit cards on file’, ‘personal financial information’ pages on shopping sites and swaths of data moving online seemingly every day has made it easier (still hard, but easier than before when everything was done by analog means) to commit fraud. Don’t rely on the ‘unusual device detected’ push notification – do a 5 second manual check, daily (also helps to have a low limit credit card regardless of your age or financial status – this way, it prevents someone from having a real large spending spree on your dime and helps during credit checks, which I will explain in a later blog).
Checking your bank accounts every day can catch accidental overcharges in their tracks. For example – say you bought a sweater for $50 (hope it was a VHG sweater). If you never check – or check once in a blue moon – you might miss seeing that transaction on your statement because it was umpteen transactions ago. You might forget that you didn’t spend $100 on that VHG sweater, you only spent $50 but those jerks at VHG accidentally double charged you! Don’t be a sucker… check your dollars daily.
NEVER FORGET THAT BANKS ARE BUSINESSES and – despite the school system trying to tell you that banks are your best friend (PS they’re not – will discuss this in another blog) – they can bleed your accounts with fees that you didn’t know existed when you signed up. ‘Oh but it was on page 17 of that 19 page document you signed’ is what they’ll imply. If your bank is charging you sneaky fees, call and ask about them. You may never recoup that $3 ‘in-house ATM use’ fee from March, but knowledge is power. Don’t use the in-house ATM to avoid the fee in April.
‘Ghost money’ is money that disappears out of thin air. Looking at your bank accounts each day gives you an opportunity to analyze your purchases and spending. Click on your chequing account and go down through the transactions – ask yourself ‘Netflix just went up by $2 a month, and I already have 76 other streaming services on my lap top. Do I NEED Netflix any more? Could I save that $137.88 a year for university? Gas for the car? Or better yet – something that will appreciate in value over time? Mind blown!
Until next time,
AP