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Name, age: Grace, 26
Annual income: $175,000 plus equity
Debt: $16,600 in student debt
Savings: $15,000 in savings account, $82,000 in tax-free savings account (TFSA), $64,000 in registered retirement savings plan (RRSP), $39,000 in first home savings account (FHSA), $97,000 in non-registered investments
What she does: Technology worker
Where she lives: Toronto
Top financial concern: “The longevity of this job, because I am working in tech and it’s super volatile right now. If I want to get a home or save for my parents’ retirement, I need a predictable stream of income.”
Grace was born in Korea and moved with her family to Toronto when she was in elementary school. Her mom stayed home with their three kids, and her dad picked up various low-paying jobs – sometimes several at once.
“Being immigrants, they didn’t know about RRSPs or TFSAs,” Grace said. “They were missing a lot of the fundamental knowledge of things that would have set them up for a better situation.”
She knew she’d have to support herself through university, so she worked hard to get good grades in high school, earning a scholarship that included residence fees for her first year. She chose a co-op program that combined math and business and was able to earn income during her co-op stints.
“There was exponential growth from term to term in terms of the salary I was able to make,” said Grace, who is now in her second full-time job since graduating. The first was at a large company based in Europe.
“It had a huge focus on work-life balance,” she said. “Now I am at a startup and it’s definitely a grind. My hours have probably almost doubled.”
But her salary has almost doubled as well, and she says being in a small company makes it easier to show off what she’s capable of.
“At my previous company, I was many layers removed from the C-suite. Now I interact with those decision-makers every day,” she said. “If they find you valuable, they will do what it takes to keep you there.”
Grace moved back in with her parents after graduating. She doesn’t pay rent, but she helps out financially a lot, paying the family’s property tax and covering expenses such as car repairs or plane tickets back to Korea for a family emergency.
“They’re barely making it paycheque to paycheque,” she said. “They have no real retirement savings.”
She’s saving as much as she can to help fund her parents’ retirement while also striving toward her own goals, such as home ownership, marriage and children. Grace has a long-term partner and is interested in taking the next step, but isn’t sure what combining her finances with someone would look like given how much she supports her parents.
She spends most of her time around other high-earning tech workers and says it’s hard not to notice how wealthy many of them seem.
“There’s people in the same position career-wise, but they might not have the same responsibilities to family or are even getting help from their family,” she said. “I try not to compare myself.”
Her typical monthly expenses:
Investment and savings: $6,750
$583 to TFSA. “Full contribution at the beginning of each year.”
$1,500 to RRSP. “XEQT ETFs.”
$667 to FHSA
$4,000 to savings and unregistered investments
Servicing debt: $220
$220 to student debt. “Only the interest-free portion is left.”
Household and transportation: $770
$0 to rent. “Living with parents.”
$450 to property tax. “Paying for parents.”
$30 to gasoline. “Occasional gas top-up on parents’ car.”
$50 to transit. “Office commute.”
$200 to Uber or taxis. “Office commute and leisure.”
$40 to cellphone. “Public Mobile $35 plan.”
Food and drink: $370
$100 on groceries.
$40 at coffee shops
$200 at restaurants
$30 to alcohol. “Celebrations, vacations or work events.”
Miscellaneous: $6,372
$4,000 to payroll deductions. “Varies monthly.”
$50 to going out
$10 to streaming
$20 to apps. “AppleCare and iCloud.”
$100 to clothing
$100 to sports. “Running, tennis.”
$800 to parent care. “Some months it can be $2,000.”
$50 to hobbies
$10 to haircuts. “Every six months to a year.”
$30 to cosmetics
$20 to personal services. “Nails and lashes around vacations.”
$500 to vacations
$250 to donations. “Church.”
$400 to life insurance
$32 to credit card fees.
Some details may be changed to protect the privacy of the person profiled. We want to thank them for sharing their story. Are you a millennial or Gen Z who would like to participate in a Paycheque Project? Send us an e-mail.