Becoming a "Smart, Savvy Young Consumer"
By Melanie Chambers • Bankrate.com

Pat Foran has a knack for saving money. By putting away $400 each month for a few years, Foran was able to put a down payment on his first home. He was 25-years-old at the time.

Today, as the consumer reporter for CTV news and a member of the federal government's Task Force on Financial Literacy, Foran understands that with dwindling pensions, unprecedented debt loads and a tight job market, young Canadians need financial know-how more than ever.

His fourth book, "The Smart, Savvy Young Consumer -- How to Save and Spend Wisely," reveals that giant paycheques aren't always the answer. Michael Jackson, for example, died reportedly $400 million debt, writes Foran.

Instead, it's what you save and spend that counts. Armed with a little financial literacy, discipline and smarts, money doesn't have to be a stressful part of life.

We spoke to Foran about his latest book and his top tips for helping youth save and spend wisely:

Q: In your book you quote Laurie Campbell, the executive director of Credit Canada, saying: "When you're starting off in life, it's like a clean slate, an empty page and you have the opportunity to start out right… The biggest message I would say is don't think managing money is complicated because it's not." Why do you like this quote?
A: Money is such an important thing in your life -- all the way from your student loans, to paying your rent, to your car to investments… it's everything.

Many young people might feel they are starting off and they don't have any money and they never will, but it's a blank canvas and you can start any way you want. If you start out right and start saving money and being wise with money, you'll do just fine. But if you start off by being a big spender and getting into credit card debt then you're starting that spiral of debt and it can be hard to get out of.

Some only figure out money when they're 30 or some when they're 40. Some don't ever figure it out. The earlier you can the better.

Q: Fifty years ago finances were simpler. Do youth have to be savvier than their parents?
A: I think the baby boomer generation had it pretty good. They were able to buy homes for $40,000, $50,000, $80,000 that over 30 or 40 years have quadrupled in value. For young people today, is that going to happen for them? Are they going to be able to buy an $800,000 home in Toronto and is it going to be worth $10-million when they're 50?