(Special) – The report card on how well Canadians are doing educating their children about money and finances has some good and some not-so-good grades.

In its latest financial literacy study, BMO Financial Group found that while the majority of Canadians believe teaching children about money matters is important and is a key to a healthier economy, very few actually spend much time discussing money management with them.

Canadians almost universally recognize the importance of developing good financial habits early in life. In fact, 99 per cent in the survey agree about the importance financial literacy can play in bringing about national prosperity.

Yet, only 18 per cent of Canadian parents spend a lot of time with their children discussing money and financial matters.

“The survey results clearly indicate that Canadians put a premium on getting to our kids early to teach them the basics of personal finance and that we, as a society, need to place more of an emphasis on this,” says Jacques Menard, chairman of BMO Nesbitt Burns and vice-chair of the Federal Financial Literary task force. “But less than 20 per cent of parents spend any time or ample time talking to their children about money. So between what we think and how we behave there is a distance and a disconnect.”

Despite its importance, parents spend more time talking to their children about school, their hobbies and friends and what they want to do in the future in life than they do about money. “Somehow we never get around to

Article source: http://money.ca.msn.com/savings-debt/yourmoney/financial-education-improving-not-there-yet

OTTAWA – Statistics Canada says its new housing price index rose 0.2 per cent in April, following a 0.1 per cent increase in March and similar gains over the last 12 months.

The agency says Calgary was the top contributor to the national advance for the third consecutive month, as prices for new homes rose 0.5 per cent in April.

“Builders reported that higher material and labour costs as well as market conditions were the main reasons for higher prices,” Statistics Canada said.

The largest monthly price advance occurred in St. John’s, N.L., where prices rose 1.0 per cent, following eight consecutive months of little or no change.

“This was the largest price movement in St. John’s since November 2010, when new housing prices rose 4.3 per cent. Since then, prices have been relatively flat, despite a few modest gains over the summer of 2012.”

Hamilton followed closely, with prices for new homes rising by 0.8 per cent — the largest month-to-month increase in that area since October 2012.

Prices rose 0.6 per cent in Winnipeg and 0.3 per cent in Saskatoon and 0.1 per cent higher in Quebec City, Toronto-Oshawa, Ottawa-Gatineau, Vancouver and Victoria.

Prices were 0.1 per cent lower from March to April in Montreal and the region including the New Brunswick cities of Saint John, Fredericton and Moncton.

“Builders in the region of Saint John, Fredericton and Moncton reported lower prices as a result of market conditions, while builders in Montréal lowered prices to finalize sales,” Statistics Canada said.

Builders reported that prices were

Article source: http://money.ca.msn.com/savings-debt/yourmoney/new-house-prices-up-in-april-statscan-1

MONTREAL – The death of a parent can sometimes mean financial turmoil for surviving relatives, but advisors say that lingering debts aren’t the responsibility of the adult children in the family.

“There is no liability for a child to take on the debts of the parents,” said lawyer Murray Morrison, who specializes in insolvency and practices in the Vancouver area.

If the parents die in debt, the first place to turn is their estate which can go bankrupt, he said.

But a bankrupt estate also means there won’t be an inheritance for the family.

“Kids do not come first,” he said. “Under the law, the debts have to be paid before anybody gets a nickel.”

So the surviving children can choose to ignore their parents’ debt and let creditors sue and garnishee the deceased mom or dad’s bank account, or they can spend what money is in the estate to bankrupt it, Morrison said.

He said surviving children should not “try to pay the bills without thinking about it” and also recommended they seek legal advice.

Debts aren’t transferred by virtue of marriage or death — not without your signature — even though spouses and children may feel they should clear up any outstanding money owed, said Margaret Johnson, president of Solutions Credit Counselling Service.

“A lot of people want to do the right thing,” Johnson said. “The right thing is to pay debts that are yours. If they’re not yours, don’t pay them.”

For example, if dad passes away but has a credit card bill and an unpaid

Article source: http://money.ca.msn.com/savings-debt/yourmoney/children-dont-inherit-parents-debt-experts

A condominium under construction is shown in Toronto on Saturday, February 4, 2012. The Bank of Canada is issuing among its starkest warnings to date about the country’s housing market, again taking special aim at Toronto’s condominium sector. THE CANADIAN PRESS/Pawel Dwulit

OTTAWA – An overbuilt and overpriced condominium market is posing a risk to Canadian households, banks and the economy in general, the Bank of Canada warned Thursday in its latest review of the health of the country’s financial system.

The central bank particularly singles out the Toronto condo market, which it notes continues to carry a high level of unsold high-rise units in both pre-construction and under-construction phases.

It urges policy-makers to continue monitoring developments in the sector, saying it is “working closely” with federal authorities to maintain an ongoing assessment of risks.

Overall, the bank says it believes both global and Canada financial conditions have improved somewhat despite the subdued pace of the economic recovery.

In Canada, the growth in household credit has continued to slow and has fallen broadly in line with growth in disposable income. As well, overall activity in the housing market has moderated.

But the central bank is still worried about the housing market, and particularly condos in Toronto.

“If the upcoming supply of units is not absorbed by demand as they are completed over the next 12 to 30 months, the supply-demand discrepancy would become more apparent, increasing the risk of

Article source: http://money.ca.msn.com/savings-debt/yourmoney/condo-market-vulnerable-to-correction-boc-3

OTTAWA – The federal government is bringing in new rules to monitor people who may be hiding property offshore.

Revenue Minister Gail Shea says a tougher foreign income verification statement will help fight tax cheating.

Starting with the 2013 taxation year, Canadians who hold foreign property worth $100,000 or more will be required to provide additional, detailed information to the Canada Revenue Agency.

Holders of foreign properties will have to provide the name of the institution that controls the overseas funds, the country to which the property relates and the income generated from the property.

The revenue agency will use the new information to ensure compliance with tax laws.

Shea says the information will help the taxman track cheaters.

“Our government is committed to combating tax evasion and getting tough on tax cheats,” she said.

The Certified General Accountants Association of Canada welcomed Shea’s announcement.

“We are pleased to see the government taking action on this important issue,” said Carole Presseault, the association’s vice-president of government and regulatory affairs.

“Increased reporting requirements of large offshore assets will help to ensure that all Canadians are operating on a level playing field when it comes to their taxes.”

Article source: http://money.ca.msn.com/savings-debt/yourmoney/new-forms-to-track-potential-tax-cheats-2