financial literacy

Riding Market Waves : A Surfer’s Guide to Investing

/ Jesse Ogloff

Investing is like surfing. You don’t control the waves, but you can position yourself to catch them. Patience, preparation, and staying calm in turbulent waters are essential. It’s also about understanding that waves come in cycles, and missing one doesn’t mean you’ve missed your chance entirely. The key is to stay in the water and ride the wave when the opportunity arises.

What characteristic does a surfer need more than anything else? If you said adaptability, you’d be right. Surfing is about responding to the environment—reading the waves, positioning yourself, and timing your movements. Investing is remarkably similar.

When you paddle out into the ocean, you’re placing yourself in a vast, unpredictable environment. There will be periods of calm where nothing seems to happen, times of turbulence when waves crash relentlessly, and moments of exhilaration when you finally catch the perfect wave. Successful surfers don’t leave the water just because conditions aren’t ideal—they wait, they prepare, and they adapt. The same principles apply to investing.

Preparation: Choosing the Right Spot and Equipment

Before a surfer ever catches a wave, there’s preparation: selecting the right beach, the right board, and understanding the tide and weather conditions. Similarly, before you invest, you need to know your goals, assess your risk tolerance, and choose the right financial tools. Are you aiming for steady, small gains (the equivalent of riding gentle waves on a longboard), or are you comfortable chasing bigger, riskier opportunities (the bigger, thrilling waves that require a shortboard)?

Just as every beach and wave is different, every investor’s journey is unique. This is where a financial advisor acts as a guide—helping you identify the “surf spot” that matches your financial aspirations. An advisor ensures you have the right tools and strategies in place before you paddle out into the financial waters.

The Waiting Game: Patience is Key

The ocean doesn’t deliver perfect waves on demand, and the market doesn’t deliver constant returns. Surfers spend a lot of time floating, watching, and waiting for the right wave to come along. It requires patience and trust in the process.

Investors, too, must resist the urge to act impulsively. It’s tempting to chase every market trend or head to the beach when the conditions aren’t working. However, those who wait patiently and stick to their plan are better positioned to catch the next big wave of opportunity.

Timing: Don’t Chase the Wave—Position Yourself for It

Catching a wave requires positioning, timing, and confidence. Paddle too early, and you’ll tire yourself out. Paddle too late, and the wave will pass you by. The same goes for investing. Trying to “time the market” perfectly is nearly impossible. Instead, focus on positioning yourself with a long-term strategy so you’re ready to benefit from the market’s natural momentum.

One of the biggest mistakes surfers make is paddling frantically toward every wave they see. The same goes for investors who try to chase every hot stock or trend. It’s exhausting and rarely effective. Instead, surfers watch and anticipate, recognizing that the ocean will always offer another wave. Likewise, investors must understand that markets move in cycles, and missing one opportunity doesn’t mean they’ve missed their chance entirely.

Staying Calm in the Swell: Navigating Market Volatility

When you’re out in the ocean, not every wave is rideable. Some are too big, too small, or don’t have the right form. Surfers learn to navigate the swell, staying calm even when waves crash over them. Investing also has its share of volatility. Markets rise and fall, sometimes dramatically. The key is to stay calm, keep your eyes on the horizon, and avoid rash decisions.

For example, when a wave crashes unexpectedly, an inexperienced surfer might panic and paddle back to shore. Similarly, investors often sell their holdings during a market downturn, locking in losses and missing out on the recovery. Experienced surfers know that poor waves—like negative markets—are temporary. The best approach is to stay in the water and focus on the next opportunity.

The Big Picture: Riding the Wave to Success

When a surfer catches the perfect wave, it’s the result of preparation, patience, and resilience. It’s not just about the ride; it’s about all the effort that went into being in the right place at the right time. Investing is no different. Long-term success comes from sticking to a well-thought-out plan, staying disciplined during turbulent periods, and positioning yourself to take advantage of the market’s natural upward momentum.

The Bottom Line

Surfing and investing share a fundamental truth: you can’t control the waves, but you can control how you respond to them. With patience, preparation, and a steady hand, you’ll be ready to ride the wave when the opportunity arises. So, stay in the water, trust your plan, and keep your eyes on the horizon—the next big wave might be closer than you think.

Email me at info@financerx.ca.

Raising Financially Literate Children: A Lifelong Journey

/ Jesse Ogloff

As parents, one of our most impactful roles is preparing our children for the realities of adulthood, and financial literacy is a cornerstone of that preparation. Understanding how to manage money is a skill that can help children achieve their goals, avoid financial pitfalls, and develop independence. However, teaching these concepts often raises questions about how much to share—and when.

Here’s a roadmap to help you introduce financial lessons at different stages of your child’s life, from simple early concepts to adult responsibilities, ensuring they are ready to manage their own financial futures.

Early Childhood: Building Blocks of Money Awareness

When children are young, the goal is to familiarize them with basic financial concepts in ways they can easily understand and relate to their daily lives.

  • Where Does Money Come From? : Explain the concept of earning money by working. For instance, share what you do for a living in simple terms, emphasizing how work provides the resources to pay for food, clothes, and activities. Use play to reinforce this—children’s chores or pretend shops can be excellent teaching tools.
  • The Value of Choices : Engage them in simple decision-making. For example, let them choose between two snacks at the store or pick a family activity within a small budget. This helps them grasp that money is finite and choices are necessary.
  • Saving for Something Special : Introduce saving by using a clear jar or piggy bank. If your child wants a toy, help them save birthday money or small earnings to buy it themselves. This makes the reward more meaningful and connects effort to results.
  • Generosity Counts : Introduce the idea of helping others. If your family donates to a cause or participates in charitable activities, involve your child. Even contributing a small portion of their allowance can help them understand the importance of giving back.

Pre-Teens: Exploring Financial Responsibility

As children grow, their understanding of money matures, and they often compare themselves to their peers. This is an ideal time to teach values and begin involving them in family financial decisions.

  • Allowances and Earning Power : Transition from a fixed allowance to an earned system. Assign age-appropriate tasks and reward completed work. This builds the connection between effort and reward and introduces the responsibility of managing their earnings.
  • Spending and Saving Goals : Help them balance saving, spending, and giving. For example, encourage saving for a larger purchase, like a gadget or a camp fee. They’ll learn to prioritize and delay gratification.
  • Discuss Priorities : Be open about why your family spends money in certain ways. For example, if you prioritize experiences like vacations over material items, explain that choice and its benefits. This sets the stage for understanding financial trade-offs.
  • Introduce Budgeting Games : Use fun methods, like board games or apps, to teach basic budgeting and investing concepts. These tools can make learning about money enjoyable and interactive.

Teenagers: Preparing for Independence

Teenage years bring more financial autonomy, making it a pivotal time to introduce practical skills and financial planning for the future.

  • Managing Bank Accounts : Open a bank account for your teenager and teach them how to use it. Guide them through using a debit card, monitoring their balance, and understanding bank fees.
  • Planning for College or Career Goals : Begin discussing how education or career plans will be financed. Be honest about what the family can contribute and encourage them to explore scholarships, grants, or part-time work. This clarity helps them set realistic expectations.
  • Real-Life Budgeting Practice : If they have a job, involve them in budgeting their income. Teach them to allocate funds for spending, saving, and long-term goals like buying a car or funding extracurricular activities.
  • Basic Investing Concepts : Introduce the idea of investing early, explaining how compound interest works. Even if they’re not ready to invest, understanding the potential benefits can inspire long-term thinking.

Young Adults: Becoming Financially Independent

As your children step into adulthood, the financial lessons become more nuanced and directly applicable to their lives.

  • Understanding Credit and Debt : Explain how credit works, emphasizing the importance of maintaining a good credit score. Discuss the dangers of high-interest debt and share strategies for using credit cards responsibly.
  • Involving Them in Family Financial Discussions : Share general insights about household expenses, savings strategies, and long-term financial planning. This prepares them to manage their own households one day and fosters transparency.
  • Retirement and Future Planning : Encourage them to start thinking about their financial futures. Help them open an account for retirement savings, such as a TFSA or RRSP or FHSA, and explain the value of starting early.

Adult Children: Transparency and Legacy Planning

When your children are grown, financial conversations shift to estate planning and long-term family goals.

  • Share Your Financial Plan : Be open about your estate plan, life insurance, and retirement savings. Let them know how you’ve prepared for the future and any role they may play.
  • Teach Collaborative Financial Management : If your children will be involved in managing your estate or caregiving, make sure they understand the steps they might need to take. Provide access to essential documents and contacts, like financial advisors or estate attorneys.
  • Encourage Financial Growth : Even as adults, your children can benefit from ongoing financial advice. Recommend books, podcasts, or professional financial planners to deepen their knowledge and help them refine their own financial strategies.

Financial literacy is a gift that evolves over a lifetime. By tailoring lessons to your child’s developmental stage and gradually introducing more complex concepts, you equip them to make informed decisions and thrive financially. These conversations not only prepare your children for the future but also foster trust and strengthen family bonds.

With patience and the right approach, you can instill lifelong financial confidence in your children—ensuring they’re ready for any financial challenge that comes their way.

Email me at info@financerx.ca.