October 1, 2024

Bottle service is dumb and does your bank know your name?

Hey everyone, the newsletter has been sporadic for the last few weeks and will continue to be for the next month or so. I’m in the final stages of getting this word dump of a manuscript into some kind of shape, plus I have several new projects that I’m excited about and they come with deadlines. But I did want to talk about a few things that came up in the last couple of weeks. 

Bottle service: Paying for awe and sparklers

Is bottle service back in a big way? In the last few weeks I’ve seen and heard of bottle service at Toronto restaurants. Now, bottle service never really went away but is it trending again? 

Whether or not it’s trending, bottle service is a waste of money. You’re paying a big markup for okay-ish alcohol, the fanfare and the awe of the audience. Which, if that’s the point, have at it. (Now, the tips if you work bottle servic? Definitely get those.)

Secondhand shopping gets stronger but is it much cheaper?

Canadians are still feeling financially stressed despite inflation dropping. Angus Reid and Karrot, a local buy-and-sell website surveyed Canadians about their shopping habits. 

• 70% of Canadians say they shop on second-hand marketplaces, and one-in-four say they shop for second-hand items monthly.

• 84% of Canadians say cost savings is the biggest motivator for choosing second-hand over new items, with Canadians ages 18-34 being most likely to shop second-hand to save money (93%), followed by Canadians ages 35-54 (83%), and ages 55+ (78%). 

• In addition to saving money, other motivators for choosing second-hand over new items include finding unique items (46%), and reducing environmental impacts (38%).

• 55% of Canadians are considering or are planning to shop on second-hand marketplaces during the upcoming holiday season, with those aged 18-54 being most likely (63%). 

None of this is a surprise but i was wondering how much Canadians were saving because it feel like secondhand and thrift items have increased in price. See the sparkly F21 shorts. I asked Robert Kim, CEO of Karrot North America how much Canadians expected to save shopping secondhand.

He said that it depends on the category and item, but in general, Canadians can expect to save between 30-70 per cent when shopping second-hand. On the lower end of 30 per cnt when the item is in high demand, new, a brand name, or an electronic, but can also be as high as 70 per cent cost saving for other items. 

An opportunity for institutions to know their customers’ names 

As I mentioned in this newsletter, I’m starting to work with a financial advisor. My accounts are being moved which means I got a survey from Wealthsimple asking why I was moving them. I wrote a shorter version of what I had in the newsletter, ‘I’m very happy with them but it can’t answer these questions that I have. It set me up so that I am in a positive position that I can envision a possible financial future, which is wild to think about. I plan on keeping my emergency and tax account with it because I really like the platform.’

I’m looking for the personal touch because yes, I write about money but I am not an advisor. I know what questions to ask for articles but giving advice? Hah, no. Not just because I don’t have the needed qualifications, but because I know that I know enough to make some stupid mistakes but enough to know I needed a qualified person. (Wow, that’s a terrible sentence but I’m keeping it.)

Plus, sometimes I really want to talk to someone about my money decisions and get advice. Being single means you make all the financial decisions but it also means you make all the financial decisions. I want some help with that because there are days when I just want to lay about on my couch and do nothing. Or go fall shopping.

The More Than a Number study by Meridian found that Canadians want a personal relationship with their financial institution especially since we’re all feeling the pinch. It’s an extension of the campaign you may have seen across the country. 

https://www.youtube.com/embed/-KFoBgvlfcg?si=_5JA36iNjcYZfz1f

There are some interesting findings: three in five Canadians feel their bank doesn't know them on a personal level. I certainly don’t think my banks know me personally. Close to half (46 per cent) want that personal touch. What’s also interesting is despite the increase in AI use to find and answer finance questions - as I wrote about here for the Toronto Star - 87 per cent surveyed still want to work through the serious financial problems with a person. 

As Colin White, portfolio manager and CEO of Verecan Capital Management said in the article about AI and finance, financial services have done it to themselves. So between the use of AI to find answers and Canadians feeling that banks don’t see them as people but as numbers, financial institutions are being screamed at to change their tactics and strategies.

Managing money can be lonely especially when you’re single. There’s something to be said for having a personal relationship with the person who’s advising you about your money at your financial institution. It builds trust and you’re more likely to retain your customers, providing you’re not just upselling them on unnecessary products. Which, by the way, 38 per cent of Gen Z says the advice they get from their bank feels like an upsell. Don’t do that.

Fun trivia stuff

Who hasn’t been tempted to buy a lottery ticket when the jackpot reaches $70 million? (Americans, this is huge for us up here even though it’s no Powerball.)

MinimumDepositCasinos analyzed data from major Canadian lotteries, including Daily Grand, Lotto Max, and 6/49, to pinpoint the most commonly drawn numbers. The most frequently drawn number is 7, followed by 46, 14 and 28.

Cool things I love: LegacyNex

I had a cold connect from Elena Iacono on LinkedIn. I always take a meeting and I’m so happy I did*. Elena just launched her new company, LegacyNex.

The company helps you define and document your non-financial legacy. From the website, Your legacy goes beyond financial assets – your stories, wisdom, and experiences are the true guides for the future.

By documenting your most meaningful messages, you offer those dearest to you a lasting gift that provides guidance, inspiration, comfort, and connection.

Discover how you can enrich financial inheritances with emotional and intellectual depth.

Elena is right. Legacy is more than something financial and a lot of us don’t think of that. I’m excited to see what Elena does with LegacyNex. I think it’s long overdue.

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This week’s readings:

Got some extra savings? Read this before spending or investing it (Globe and Mail, paywall)

What’s it like being a billionaire’s personal assistant (The Cut)

The best budget apps for 2024 (NerdWallet)

How to use AI for personal finance (Passive Income MD). Just remember that if a product is free, you might be the product.

We’re personal finance journalists - and we’re revealing our expert tactics to increase your earnings. (Bankrate)

What is Middle Class Income in Canada? (MoneyGenius)

Minimum wage in Ontario increased this week to $17.20, up from $16.55 but some employers are paying more to reduce employee turnover. (CBC)

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*Not sponsored and I make no money. I highlight companies here I think are doing interesting things.