The Cost We Never See

Financial stewardship looks past us and into the future. It provides not just for the current generation, but also for the second (and the third!).


Like all noble and worthwhile causes, it requires a certain amount of selflessness.


If we are to be financial stewards pushing towards a better financial future for the next generation, the choices that we make today are important now, more than ever. Especially with Canadians now spending $1.68 for every dollar they earn in 2016.


If we are to be financial stewards, we must begin to weigh the cost.


On the one hand, we have our interest costs that are easy to see and possible to avoid.


And on the other hand, we have an opportunity cost, or the cost of paying with cash.


It’s true that paying with cash for food, cars, and fancy clothes is better than paying with credit because there’s no longer an interest payment.


When we pay with cash however, we are giving up our earning potential, or interest that we could have otherwise earned.


So, what does the cost become for not investing into the future?


Is it a generation that’s consumed by debt, despite living in one of the richest countries in the world? Or a generation whose infrastructure is crumbling because there’s no money available to build new roads?


It’s hard to say, because we don’t see it.


Though if we are to be financial stewards, we certainly owe it to ourselves to try.