Jordan Cahill is a Chartered Accountant (CA) and Chartered Professional Accountant (CPA) with a bachelor degree in business from Simon Fraser University. He articled at a national CA firm in Vancouver,BC and previously held a position at the Canada Revenue Agency as a business auditor.
CPA BC Fall Summit- Professional Development
Cahill CPA values continued education and professional development, and that's why we are always looking for ways to stay current in the latest accounting, business, and finance information. This week we attended the CPA BC Fall summit in Whistler, British Columbia. Along with networking with leading professionals in a variety of fields, myself (Jordan), Matthew, and Tony attended a variety of informative sessions. It was interesting to learn about some of the current issues in income tax, along with the harsh reality of money laundering and fraud in Canada & the impact it has on our economy. We learned some very practical new approaches to cyber security and office software, and also got a deeper look into ethics and professionalism in our field.
We are a firm that values staying current, up to date, and at the top of our game. It's also important to us to be informed with what's going on economically & politically, in order to best serve our clients in all their tax & finance needs. And as always, all our Chartered Professional Accountants (CPA's) continue to keep up with their professional development points (PD) as required for our certification.
If you have any questions, feel free to ask us!
Teaching Your Kids About Money
It’s back to school, and that got us thinking about… well, school! Ever heard someone say, “Why didn’t they teach us that in school!?” I find this often revolves around money- when we start getting adult responsibilities and we realize we don’t quite know all there is to know about finances!
So, how can you help your own children learn about money in a practical and age-appropriate way? We certainly aren’t going to answer this question in ONE blog post, but I hope to share a few tips that might be useful, along with some great resources to consider for further reading.
Talk about Money:
This may sound really simple, but wherever possible, talk about money in daily situations. For example, if you’re at Walmart and your child asks for that gigantic Lego set that costs $168….. that’s a great time to talk about the cost of things! Open up the conversation around how many hours someone has to work to make that much money. Or, how many of something else you could buy with $168 (for example, groceries, clothing, or gas for your car). It’s important that children start learning about numbers and prices, so they gain an understanding & appreciation for earning & buying. Keep the conversation positive, but realistic. You can also start introducing great vocabulary words like sale, tax, more & less, saving, discount, etc. “Wow- those apples are on sale! That’s a great deal- we will choose those ones today.” At an early age, start introducing the proper terminology for denominations of money. Let them help you count out coins or bills when paying, or chat about the amounts on the screen when paying at a till.
When you find the time is right for your child, introducing the concept of receiving a “paycheck” is important. There are differing opinions on whether this allowance should be “earned” by doing chores. Some believe that working to receive this allowance is key, and if they don’t do their chores for the week, they will not get their allowance that week (or they will receive less). Other families feel that chores/housework is just part of participating in family life, so they don’t assign a price to these jobs. Instead, the allowance is simply given on a determined day each week, regardless of chores done. Whichever method you choose, the purpose should be the same: they receive a weekly amount, so that they can learn the importance of saving, the value of money, and the “reward” of spending it on something you want. This changes slightly as kids get older and they take on a part-time job. However, as parents, YOUR job remains the same- guide them and keep the discussion open.
Teach them to Save:
In an age-appropriate way, teach your child to save some of their money. Whether that’s their allowance, part-time job, or birthday/holiday money, teach them to put some aside. Our instinct at a young age is to spend it. We receive an amount, and we want to spend it all (and spend it now). There are different ideas on how much to save, so you decide what feels right for your family. It might be 10% goes right into a bank account (or piggy bank!), and the rest is yours to spend. This helps young kids especially see that a very small amount is saved each time, and the rest is theirs to spend. This is a great way to start teaching about saving in a positive way! We’ve also seen families with a 1,2,3 system- the 1st part is saved, the 2nd part is given, and the 3rd part is spent. Many families find this system helpful, and instills both a habit of saving & giving. Friends of ours do this with their children’s weekly allowance, and the “giving” portion is set aside to purchase items for a Christmas hamper for a family in need. Whatever method you choose, help create the habit early of saving.
There are so many great tips out there about teaching your children about money, finances, saving, and more! The biggest and most important thing we can leave you with today is to keep the conversation open & positive. Talk about money often, and talk about it in a positive way. Use real-life experiences and activities to chat about financial topics and vocabulary. Help your children be responsible and informed about money- it will provide them with a great start for their future!
Some Recommended Reading:
“The Opposite of Spoiled: Raising Kids Who Are Grounded, Generous, and Smart About Money”- by Ron Lieber
“Money Still Doesn’t Grow on Trees”- by Neale Godfrey
“Rich Dad, Poor Dad”- by Robert T. Kiyosaki
*These are some books we’ve either read, or been recommended, but we do not necessarily support all the opinions mentioned in these books.
And for kids:
“Three Little Piggy Banks”- by Pamela George (Talks about the 1,2,3 system we mentioned!)
“Little Critter: Just Saving my Money”- by Mercer Myer (our kids personal favourite!)
“The Berenstain Bears’ Trouble with Money”- by Stan & Jan Berenstain
Co-written by Jordan & Crystal Cahill. Crystal has been a teacher since 2010, and Crystal & Jordan are parents of two young children.
BC Businesses: 5 Billion Dollars in EXTRA tax since 2013
Small businesses are feeling it. That's the consensus after a recent report looked into how the tax changes have impacted businesses in BC over the last six years. The Business Council of BC (the BCBC), who did the report, estimated that BC Businesses are paying almost 5 Billion dollars in additional taxes than they were in 2013.
The largest tax increase to businesses- the failed shift to the Harmonized Sales Tax (HST)- which they estimate accounts for about 3 Billion dollars in additional sales tax. The second largest- the introduction of the Employer Health Tax (EHT) which will eliminate MSP premiums by 2020. Additionally, increases in corporate tax rates, rising carbon tax, taxes on fuel, etc. have also contributed to the overall burden on BC businesses.
So, the results show that these tax changes clearly impact BC businesses. Cahill CPA is watching these changes closely to see how we can better help your business minimize losses. Every time there are tax changes, we have to look carefully at your bookkeeping and year ends to make sure we are accounting for these changes and looking for ways to save you money. This is why having an accountant is so important- we know about these changes, and we know how we can help you and your business. If you have any questions about these specific tax changes, or have noticed something new or different recently with your business, don’t hesitate to call us.
Cahill CPA- we focus on your accounting, so you can focus on what YOU do best!
To read the original report published by Hayley Woodin on August 1, 2019:
Or the updated report, published by PIQUE magazine on August 6, 2019:
Cahill CPA, North Shore’s favourite Accountant.
Servicing North Vancouver & West Vancouver for over 5 years, and with over 35 years of experience in Accounting & Finance.
Canadian Families with Children under 18
If you are a Canadian with young children, you may have recently received mail from Canada Revenue Agency (CRA) regarding the Canada Child Benefit (CCB) and the BC Early Childhood Tax Benefit (BCECTB). Wow- that’s a mouthful! Let’s break it down….
The Canada Child Benefit (CCB)
A tax-free payment to families with children aged 0-17.This most recent notice included a separate information brochure that stated: “Starting in July 2019, the CCB will be raised for a second time to keep up with the cost of living. That means that this month you may notice your CCB payment has increased.” As of July 2019, The maximum annual benefit has increased to $6,639 per child under age 6 and to $5,602 per child age 6 through 17.
Some of our clients have noticed a difference in their entitlement from year to year, so make sure to read your notice carefully. It may be due to a change in income or marital status, age of your child (ex. Over the age of 6), number of children in your care or a recent move. It is rare, but in some cases, it could be an error. If you need clarification, log in to your CRA “My Account” to access your personal information or feel free to contact our office to look into it for you.
There is also a helpful online calculator through CRA, available here. It will help calculate what you should be receiving each month based on a number of questions.
BC Early Childhood Tax Benefit (BCECTB)
If you have a child under the age of 6, and you are eligible, you will receive an additional monthly tax-free payment from the Canadian government. This payment is calculated based on your income, marital status, and province/territory of residence. They will specifically look at your family net income from the previous year (in this case, 2018).
Two other areas CRA provided information on:
BC Healthy Kids Program
If you are already on MSP, you can use this program to receive additional coverage related to your child’s basic dental services, prescription eyeglasses, hearing aids, etc. For all children under 19 years old who are already covered under MSP. For more information, visit www.gov.bc.ca
Canada Learning Bond
If your family has a low income and an eligible child born in 2004 or later, the Canadian government could deposti the Canada Learning Bond into an RESP for your child up to the age of 15. In total, your child could recieve up to $2000 in a tax-free RESP to use towards post-secondary education. You can also add money to an RESP for your child up to the age of 17, and the Candian government will add between 20-40% of your contribution (to a max of $7,200).
As always, feel free to ask us if you have any questions regarding your child’s education savings, RESP contributions, or any of these government benefits/savings/etc.