Talking Money With My Boomer Mom

The information provided in The Kinder Way Podcast is for educational purposes only, and is not intended as a substitute for professional advice from a licensed advisor. The content of each episode is the opinion of the host and interviewees, and does not represent the views of Serenia Life Financial or any of its other subsidiaries or affiliates. Please always consult a licensed insurance advisor for guidance. Serenia Life Financial does not endorse any third-party views referenced in this content.

Episode Transcript

Hello and welcome back to The Kinder Way Podcast!

I’m excited to have a very special guest on the show with me today – my mom: Julie O’Hagan!

A former high school English teacher, I definitely inherited my love of reading novels from her. While she’s been retired for a couple of decades now, she still loves to read and is always taking home a new batch of books from the library. She also continues to learn and read about history, politics, and world affairs. Speaking of the world, she and my dad used to travel A LOT, and to this day, she still has a bit of the travel bug. Most recently, she spent a month visiting her son and family in Japan.

Fun fact: Her Polish/Ukrainian heritage instilled in me a love of a variety of foods, including her own mom’s homemade (and very delicious!) pierogies and cabbage rolls.

Just a note before we begin that my mom will be sharing her own personal experience, and that this episode should not be considered a substitute for financial advice. Always consult with a qualified professional for expert guidance that is tailored to your situation.

Hi Mom! Welcome to the show!

From the time dad helped me get my first GIC, you and dad always made it very clear that financial planning was important. Do you recall if that was why you guys decided to buy your children life insurance policies while we were still very young?

You realize we are talking about over 50 then over 40 years ago. No doubt we were probably approached by an agent. I recall an old friend of mine – who was an insurance agent with one of the big names – visiting in my home with a presentation, I believe, for you. Of course, we would have been convinced, in a positive way, about getting life insurance. I still have the ancient original policies.

2. Thanks for calling me ancient, mom! (haha) When your grandsons were born, you and dad helped get them off on a good foot by contributing towards their RESPs, which – in our case – we really appreciated… thank you!
When my daughter explained why it was a better option. 

3. I’m going to stop you right there and say it’s not necessarily the better option. In our case, it WAS because we were had been contributing more than necessary to his RESP in order to make the most of the government matching program – which I actually go into more detail about in Episode 2 – but do you recall what I said that convinced you it was a “better option”?

I knew you were paying enough into his RESP… and I liked the flexibility of him being able to use it for whatever he wants – rather than towards post-secondary only.
I suppose it’s good to have both, if a family can afford it. Because if you completely replace your RESP with a whole life policy and the child ends up needing financial help for their post-secondary education, then you’ve limited the many different ways you can use the cash available in their life insurance policy to pay for tuition. I think the smart thing to do would be to keep investing in an RESP for a child’s education AND, if you can, complement it with a whole life policy that can be used for other purposes – like if they want to take a gap year and travel or need help buying a home one day.

4. Of course, getting both an RESP AND a whole life policy isn’t always an option for everyone – it depends on each family’s financial goals and budget. We were certainly lucky to have your help! So… Why do you think it’s important to give your grandkids’ a financial leg up… especially during these challenging times?

I think, with all the challenges that today’s generation face (for ex: unaffordable groceries, the housing crisis, salaries not keeping up with inflation, etc), that if grandparents can afford to take on the extra cost of a whole life policy – a cost which I believe is fair, especially when the grandkids are still very young – then it’s just a kind and generous way to help someone we love dearly.
5. As a grandparent, you were probably very aware of the fact that your grandkids would prefer toys to a non-tangible investment like a whole life policy. How did you account for that in your decision?

Well, let me start by saying that I still get him toys for special events, like birthdays or Christmas. But I like the option of a non-tangible investment as something special and lasting. There is so much pressure from ads – and from our kids – to get the latest LEGO set, video game, etc. With an investment, the excess of toys can be reduced and the ones they *do* have can be appreciated more. In the case of my grandkids, it sometimes feels like they have so many toys that they don’t know what to play with! I’m sure I’m not alone in feeling that way.

I’m sure he will be very grateful that his Nana thought of his future in this way. While I’m quite sure I won’t be around in 30 years, it will hopefully be one more reason to remember me, lovingly.

6. It’s one thing to put money away for kids until they’re older, and it’s another thing to talk to them about it when they’re still little. Do you think it’s important for kids to learn financial literacy from a young age? If yes, what’s a good way to do that in your opinion?

Absolutely! Parents need to be consistent, and so does the child. If you have a child open a bank account, for example, he needs to learn to contribute to it regularly. When a grandchild receives a gift of money, the grandparent is probably thinking about the child’s savings – whereas that child is thinking: NEW TOY! I guess this is where Google comes in handy for helping teach kids about money in an age-appropriate way. It’s also a good idea to NOT hide what family expenses are as past generations seem to have done. 

7. And now it’s that time in the episode when we sprinkle a little bit of kindness in. Can you share a story when you were witness to or participated in an act of kindness – big or small?

Both my adult children are very kind to me. I could go on, forever. Let me think. My daughter, who is presently interviewing me, plans something thoughtful and lovely and fun for every special day that would have normally included her dad who passed away 19 months ago. Her bright smile is just part of her kindness in including me in so many special events.

Aww, thanks mom. And thanks again

Now I know that what worked for our family may not necessarily work for others – each family’s situation and budget is unique. But it’s always interesting to think about outside of the box –- or bank, as I like to say – options when it comes to our children’s financial future. Five years ago, I didn’t even know that this sort of investment was an option. So I’m on a bit of a mission to let more parents in on what I consider to be a bit of an industry secret.

If see the value in getting your kids a whole life policy, why not share this episode with your boomer parents? Hearing why my mom wanted to take this on as a sort of “gift that keeps on giving” for her grandson might prove to be an interesting a-ha moment for any grandparents living in comfort.

On another note – if you want to do further reading on this topic, I’ve linked to a couple of articles that you might find helpful. Give them a read, and reach out anytime with questions, ideas for future topics, or just to say hello!
dev-www.serenialife.ca/the-kinder-way-podcast/why-giving-back-makes-sense-cents Well, that’s it for today! Thank you for tuning in to yet another episode of The Kinder Way Podcast.

dev-www.serenialife.ca/the-kinder-way-podcast/why-giving-back-makes-sense-cents See you next time!