Every week for the last three months, the Toronto Star’s Evelyn Kwong has shared the story of a millennial (or a millennial couple) living in Toronto or the GTA who needs help with saving their money as part of the #MillennialMoney series.

The stories have ranged from a couple, both 25, who make $262,000 combined and want to pay off their mortgages and travel more to a 30-year-old Toronto DJ who makes $1,500 a month and wants to move out of her family home. Each time a financial planner helps the person make sense of their spending and makes recommendations on how to they can reach their saving goals.

The series has sparked a lot of dialogue through our social channels. We brought in one of the financial experts involved in the series, Jason Heath, teamed him up with Toronto Star’s Evelyn Kwong and together they chatted live with readers.

Here’s what they had to say:

Question from email: I’m a 26 year old engineer making $78,000 before tax. I’m paying off student loans at $470/month, renting at $980/month, have about $1200 in monthly expenses, and currently have $20,000 in savings. My goal is to own a modest condo — doesn’t have to be downtown, but it does have to be close to good transit, because I have no interest in owning a car. What are my best opportunities for how to save money? How am I ever going to make this happen? I feel in over my head and I don’t know how to make the math work out.”

Jason: Saving and investing are a multi-year process. Putting aside a little each month can make a big difference. I’d focus more on getting started and less about how insurmountable a savings goal feels. RRSP contributions should provide a decent 25-35% tax refund (depends on your province of residence and how much you contribute). Up to $35k in RRSP withdrawals can be taken under the Home Buyer’s Plan to buy an eligible home. RRSP contributions can definitely accelerate a home savings goal. You also never know what happens in the future in terms of a relationship and having a second income to buy a home. Renting isn’t as bad as people make it out to be either.

From Martin via email: I have an entry engineering job at 54K per year in downtown Toronto (sh*tty I know, could be worse of course!). I have an ambiguous goal to save money for retirement, save money for a down payment for a house in GTA, vacation as well as a car. But whats the saving goal I should set myself to for each pay check? 10-30%?

Aside from that, if someone were to buy a car, at what price range should someone look into? I know that probably depends on their salary and expenses they have, but whats the general rule? Someone has told me 30 per cent of their salary, but that doesn’t take into account how long I plan to finance or lease a car, and the level of expenses (i.e. rent) that I already have.

Jason: There’s not really a simple answer to how much you should save. If I had to commit to a rule of thumb, the best I could say is between 10 and 20% of income with a ton of asterisks. The reason I say this is there will be points in your life where you save zero, or where you are going backwards. Income and expenses tend to ebb and flow. Your financial life will not be a straight line. Someone with a pension needs to save less. Someone expecting an inheritance needs to save less. Someone who expects their income to rise significantly in the future needs to save less. Whether on your own or with a professional, I think it’s good to do some number crunching to set some targets rather than just relying on rules of thumb.

From Derek via email: I understand that you also specialize in tax issues pertaining to non-resident Canadians. I am currently 47 years old and left Canada in March 2013 but still have an RRSP and a LIRA account with a brokerage firm. I am a non-resident Canadian according to CRA guidelines.

I understand that if I want to collapse (de-register) these retirement accounts I have to pay a 25% withholding tax. Collapsing an RRSP account is fairly straightforward, but how does it work with a LIRA? Is there an age limit before I can do this? If I do not collapse these accounts do they need to be converted to a RRIF eventually?

RRSP withdrawals in a lump-sum are generally subject to 25% withholding tax for a non-resident. It’s important to look at the tax treaty between Canada and the country in which you are resident. LIRA accounts can generally be unlocked after 2 years of non-residency, at which point, they’re just like an RRSP in terms of withdrawals and withholding tax. Remember that your RRSP withdrawal may also be subject to tax in your country of residence. Different countries have different rules on how they tax (or don’t tax) income from other countries. Withdrawing your RRSP savings as a non-resident is not always advisable.

From Cameron via thestar.com: I am 25, renting downtown splitting $1650/month with my girlfriend. I am only managing to save $300 a month in the form of regular contributions to my (low-risk) TFSA, containing a large majority of my savings, around 26K. My girlfriend, recently graduated, is looking for a full time career, hoping for a starting salary around 50k. This makes our combined income about 110k.

Should my goal be to buy an apartment? This will probably require staying where I am, while trying to save. As I do this, property values continue to increase. It does not seem within my budget, but I do not want to be renting forever.

Jason: Given you have a girlfriend, and aren’t married, and she is looking for a full-time career, I would say your life isn’t exactly a straight line. Could you end up living in the GTA for the rest of your lives? Maybe not. Maybe she gets a job somewhere else. I’d be hesitant to buy in the short term unless you could see yourself somewhere for three to five years at least. On the seemingly continual increase in real estate prices, I think it’s important to remember that real estate prices are cyclical, and have increased at significantly more than the long-term average over the past 10 years in Toronto. Prices can’t continue to increase indefinitely at more than the increase in average incomes. I’d continue to save for the future period, and look at buying when your path becomes more clear and based on a price you and your girlfriend can afford while still living a bit and leaving room in your budget for other stuff (like a family if that’s a priority).

Question from email: I’ve worked at my present company for more than 20 years. Prior to that I worked at another company for four years. I pulled out my pension money from that company and put it into a locked-in RRSP. I now have the option of “buying back my pension” those four years with my present pension company. As a general rule, is it a good idea to buy back your pension years?

Jason: It depends. My experience has been that it often makes sense if the buyback resulting in a partial contribution from your employer. The other consideration is that buying back service is highly tied to interest rates. When interest rates are low, the buy back cost is high on the assumption the pension will invest your buy back money at today’s low rates. I think it is best to compare the future increased pension income to what you could otherwise produce in retirement income by investing that same lump-sum in an RRSP, for example. It really depends.

Question from email: Could you go into detail about the “rules of thumbs” to use in the Toronto real estate market? Most of the “rules of thumbs” I see in most financial advice books / blogs / columns / reports seem wholly inapplicable to the Toronto real estate market, where the average home price is extremely high. For example, one rule of thumb is that your home should be no more than 2.5 times your income. This would mean that a family earning $200k/yr could only afford a $700k property (i.e. the average price for a 1 bedroom condo in the Toronto city limits). This must be wrong, since $200k is the top 1% of income earners within the city and $700k is effectively the cheapest property you can buy in the city that is livable. Similarly, another rule of thumb is that your housing costs should only make up approximately 30% of your take-home pay. Again, using a couple earning $200k/yr (and assuming a 30% average tax rate), they would have a monthly take-home pay of ~$11,666. This means their total monthly housing costs (i.e. mortgage, property tax, maintenance fees, and utilities) should only be $3,850. I would estimate that this means they can only afford a $600,000 place (which doesn’t really exist within the city limits, save for bachelor apartments). This is estimated as follows: mortgage @ 3%, 25-year amortization ($2,552.43), property tax ($350), maintenance fees ($500), utilities ($250). If this is the “max” of affordability for a couple earning the top 1% of incomes in the city, then this obviously cannot be an applicable rule of thumb. It would be useful to know what “rule of thumbs” to use, since we are starting to get quite nervous about purchasing a starter property in the city, even though we earn a relatively good income.

Jason: Hi there. It’s tough for me to address all of this, but I think it reinforces how cautious you need to be with rules of thumb. The cost of real estate in Toronto is very different from that of Charlottetown. Or US rules of thumb that people often come across. I think the best thing you can do when you’re contemplating a home purchase is — on your own or with a professional — crunch the numbers. Figure out how much you can reasonably afford to spend on a home and still hit other ongoing goals like retirement savings, vacations, and everything in between. I’ve worked with clients who plan to downsize as part of their retirement plan. That can also impact things. How much you can spend on a home depends on whether you are 25 or 40, whether you plan to retire at 55 or 70, whether you have a pension, what sort of return you expect on your investments (depends on risk tolerance), etc. So, personalize your planning. Rules of thumb are interesting, but should not considered financial advice or advisable for you.

Question from Twitter: What are three tangible steps that millennials can take as employees to increase their income within 12 months?

Jason: You can increase your after-tax income pretty easily. Contribute to an RRSP. You can increase what remains of your income by spending less (budgeting). And you can increase your future income by investing as aggressively as you can (within reason) and keeping your investment fees at a modest level. Little tweaks may not seem like much in the short run, but in the long run, can be really powerful.

From Andres via thestar.com: I have been working towards paying my mortgage as fast as possible, and save interest costs. I consider it a better investment, than contributing to RRSPs. I think once I finish paying my mortgage (6/7 years) I can start saving that money, or investing it on more real estate which I can rent, and ideally produce higher return than RRSPs. Is that crazy?

Jason: That’s not crazy at all. 30 years from now, whether you pay off your mortgage more aggressively or slow down and contribute to your RRSP, it may not really matter. Things that would cause me to lean towards RRSP contributions are: high risk tolerance, high tax bracket, company matching contributions on your RRSP, a low 5-year fixed mortgage rate. Both debt repayment and investing are good for you and increase your net worth (assets minus liabilities equals net worth). The other consideration is some people get a peace of mind “return” from choosing debt repayment. In the meantime, get educated on investing as you will have plenty of extra cash flow (hopefully) once that mortgage is gone.

Question from email: I’ve maxed out my TFSA at 25. I currently live at home for free but plan to move out within the next year with my boyfriend. I am hoping to buy a condo in the next couple of years. Does it make sense to start contributing to my RRSP so i can withdraw from the HBP or should i just keep my money in HISA?

Jason: Congrats on maxing out your TFSA. RRSPs can be helpful saving tools for a home downpayment as well, as you can withdraw up to $35,000 under the Home Buyer’s Plan (HBP). If you have a group RRSP with matching contributions at work by chance, I’d be all over that. Anything you contribute to your RRSP will give you tax refunds, unlike TFSA contributions. But going the RRSP route will be more impactful if you’re in a higher tax bracket. What’s high? Generally $50,000 ore more but it depends on your province of residence and other potential tax deductions.

Question from email: We’re a couple, and one of us has a lot of school debt, while the other has a few thousand saved. Do you consolidate and pay down the debt so that together there is less debt? Or work to make savings bigger for an eventual down payment on a piece?

Jason: I think it’s important to make choices as a couple. If one of you has student debt, you’re probably paying interest of 4.95% or more depending on whether it is as provincial loan, federal loan, the province you’re in, etc. If one of you has money sitting in a savings account, you’d need to be earning a higher interest rate than the interest rate on the debt to come out ahead.

Question from Facebook: Evy can you please do these profiles on rich boomers instead of millennials? I want to see how much tax people making 300k a year have to pay compared to people making 50k, and how they spend their money every week.

Evelyn: I would love to profile different generations! Personally, as a millennial who didn’t know much about money at all, (I only got a credit card in the last few years), my idea behind the series was to expose the different affordability issues that the younger generations may face compared to an older demographic. Throught that we also found millennials who were successful in navigating finances. It was also to have a money coach help out — something that may be inaccessible and expensive for some in the younger generations. My answer: I’d love to, and maybe in the future!

Jason: People making $300,000 a year may pay $100,000 to $130,000 in tax depending on their province of residence. How do they spend their money? It’s amazing how as people’s incomes rise, their expenses also rise too. They call it lifestyle creep. Some people keep their expenses in check as their incomes rise, but that’s tough to do.

Question: How do I know if a financial advisor at my bank really has my best interests in mind?

Jason: I hate to be a pessimist, but a financial advisor at your bank often doesn’t have your best interests in mind. Most people mistakenly think that financial advisors are fiduciaries and have to put their clients first. That’s sadly not the case. At best, most advisors need to make recommendations that are suitable, which is awfully broad. Banks often pressure and financially motivate their employees to sell certain products, and not surprisingly, those motivations often benefit the bank, their employees, and maybe not the consumer.

Question from email: What’s the average return on index funds? Please suggest the top 3.

Jason: There’s not really an average rate of return on index funds. The average rate of return for an index is the return of the index itself. A bond index and a stock index are going to have very different returns. And a stock index in particular is going to have a very different return from one year to the next. The Toronto Stock Exchange, for example, could be up 30% or down 30% in a given year, and an index fund tracking the TSX would have a similar return. There’s also no such thing as a top 3 index fund selection. It depends on your risk tolerance, time horizon, what account, etc. But generally a combination of bond and stock funds would be advisable, with stock exposure to both Canadian and international stock ETFs.

Question from email: Buy or rent for a young professional making $70,000?

Jason: There’s no right answer on buy versus rent. Interestingly, there can be markets that are renters markets and buyers market. In other words, where rents are cheap relative to the price of buying, or when rents are high relative to the price of buying. I think the most important questions are: can you afford to buy what you want to buy? Not will the bank approve you for the mortgage. Can you afford the mortgage and still live the lifestyle you want? And if you’re not going to live somewhere for at least 3-5 years, it may not be worth buying and then selling given the transaction costs (commission, land transfer, legal fees) and renting could be preferable.

Question from email: We are 36. We don’t make much money... Maybe 110k? We have a 580K mortgage. We have 1 kid and want to have another, but not sure if we can afford 2 kids! Zero savings, except for a bit in RRSPs and kid’s RESP. My sibling and I inherited a mortgage free house in Etobicoke, worth approx $1.2 million? We currently rent it out for under market rent. My sibling currently rents downtown and is 28, and just starting making a household income of over 175K with a partner. Should we sell the house or continue to collect rent? If we sell, what do we do with the money? Should I pay my mortgage? Invest?

Jason: There’s a lot of moving parts in your question, but I’d start by saying this. You own have a $1.2M home. That’s $600k. Your mortgage is $580k. You could sell the house and pay off most or all of your mortgage. That’s pretty good to potentially be mortgage free at 36. That would free up plenty of cash flow for RRSP and RESP contributions and a second child. Should you sell the house? I don’t know. I’d start with considering what you’d do if you had $600k in cash. Would you buy half of that same house and rent it out for a low rent? If the answer is no, I’d consider selling it. Real estate can be a good investment, but maybe you could earn a better return elsewhere. I’d prioritize what was easier and preferable. Being debt-free could be really appealing, and not having to manage a rental property when you’re busy raising your family could also be pretty great for some people.

From W from thestar.com: I am looking for some advice. I am 28 years old, just started working in a professional job (making 100k annually). I have $40,000 in a student line of credit (prime +0.5%) that goes into repayment in a few months. I have zero savings. I am hoping to start saving to buy a house/condo in the future. Should I pay down my entire line of credit before saving for a downpayment; conservatively invest some of the money I’d normally use to pay down the line of credit; or, make modest payments on the line of credit, with the goal of making a downpayment sooner?

Jason: With $100k of income, you’re in a fairly high tax bracket and RRSP contributions could be beneficial. But the $40k line of credit debt is going to inhibit you from qualifying for a mortgage. And if you were otherwise going to save and invest in a TFSA or some other account for the downpayment, you’d have to earn a rate of return higher than your line of credit rate. If you need the money in a few years for a downpayment, you wouldn’t want to take much risk. As such, saving in a 1% savings account while paying 4.45% interest on your line of credit wouldn’t make sense. Pay down the line of credit.

From Kevin via email: I was a political consultant but recently left Toronto on a multi-year travel adventure. I am currently living in India and plan on traveling Asia on a backpacker style budget.

I have a 3 bedroom townhouse in the Davenport area which I have rented. Rent covers all my housing expenses plus I make an additional $600 profit.

I have roughly $45,000 in savings for my travel but I’m looking for advice in how to invest my savings and rental income so my money can make more money and allow me to see more of the world.

My budget currently is focused on spending no more than $1200/month which I have kept to so far — $600 from rental income and $600 from savings. This means I have significant funds to invest which can help to increase my travel budget.

Jason: Sounds exciting, Kevin. I think I’d consider when you might need the money. If you are going to travel for a couple years and come back, could you need the money in a couple years? If so, that’s a short time horizon to invest aggressively. In that case, paying down your mortgage, if you have one, may not be a bad idea. If your time horizon is 3-5 years, maybe you could have more aggressive exposure to stocks. Opening an investment account can be trick as a non-resident, and you may be prevented from buying certain types of products (ie. Canadian mutual funds may be offside). If you’re a non-resident, remember you can’t contribute to a TFSA account. Make sure you’re on side in terms of your tax status (non-resident or resident) as there a special tax filing requirements for non-residents with rental properties in Canada.

Question via email: I am a confused millennial. I am 26 years old and I just started making $55,000 annual salary. I am a marketing manager in Mississauga. I have around $50,000 saved up so far. I pay no rent currently. My monthly expenses are around $500 for restaurants and activities with my family. I was wondering what I should do with my savings and my money forward. I need a fool proof way to protect and grow my savings.

Jason: Investing really depends on your time horizon and risk tolerance. If you could be buying a home in a couple years, I wouldn’t take on too much risk. You’d hate to invest in stocks and have markets fall when you need your money. The typical advice for young people to invest aggressively can be wrong. Money you’re saving today is often needed for education, a car, a downpayment, a wedding, a baby, etc. TFSAs are great to reduce tax on investment income, and RRSPs can be good for high income earners. Up to $35k can be withdrawn from an RRSP under the Home Buyer’s Plan to be used towards an eligible home downpayment. However you invest, keeping your fees low is important to make sure you keep more of the returns available to you. Mutual funds can have fees of 2-3%, not leaving much return. There are more low cost options available right now, even for small investors, than ever.

Question via Instagram: $58,000 salary, $40,000 in debt. $2,000 month on rent and bills. How can I pay off my debt?

Jason: Sorry, there’s no magic to it. I think it’s just a matter of looking for ways to reduce expenses or increase income as best you can. Sometimes, debt can seem insurmountable. But starting off small whether it’s repaying debt or investing can be really impactful over time. With each additional debt payment you make, there’s less interest accumulating. That means more of your next dollar goes towards repaying debt principal.

Question via Instagram: Can you do a segment on what millennials will need money-wise for retirement?

Jason: Whether you’re a millennial or boomer or anything in between, there’s really no one size fits all answer. It depends when you’re going to retire, how long you’re going to live, what your risk tolerance and expected investment return is, do you own your home, are you expecting an inheritance, etc. Beware rules of thumb when you’re doing financial planning.

Question via Instagram: How to decide to buy or rent a house?

Jason: It really depends. See what you can afford given your budget first and foremost. And then consider whether you can afford home ownership. There are a lot of unexpected costs that people don’t anticipate. Don’t necessarily use what the bank approves you for as your budget. Someone who brown bags their lunch may be able to afford a more expensive home than someone who vacations four times a year. And most importantly, think twice about buying if you don’t think you’ll live somewhere for 3-5 years. Otherwise, transaction costs to buy and sell could eat up any potential financial benefit (real estate commission, land transfer tax, legal fees, etc.).

Question via Instagram: How much to save before buying property in the GTA?

Jason: Totally depends. You generally need a 5% downpayment, but there are additional closing costs to consider as well. You need to furnish the property. You want an emergency fund or buffer. I think it’s important to consider what the bank will lend you, what you can afford when you look at your monthly budget and consider some of the other costs of home ownership, and start there. It may impact where you look within the GTA for a home, and whether you decide to rent for a time instead of buying. Renting isn’t always throwing away money, and can sometimes be advisable, especially if you can’t commit to live somewhere for a while – or afford to own.

Question via Instagram: 29-year-old living with parents, makes $3,000 a month. How much does she need to save to buy a house?

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Jason: I would start with how much house you can afford – both from a cash flow perspective and what the bank will lend – and work backwards from there. While you’re saving, things will change too. You’ll get a promotion, house prices will ebb and flow, you may get into a relationship, etc. So, I think the main thing is to always try to be saving to the extent you can when you’re young and know that the savings will be used for a variety of things – including a home downpayment.

Question via Instagram: ‘Investing in real estate’ in the GTA. Still a good option?

Jason: It depends. The amount of rent you can earn per dollar of rental property can differ between different parts of the city. Some neighbourhoods around the GTA offer better income, while others are more reliant on capital appreciation. I would be cautious about buying solely for capital appreciation at this time. Prices are high, debt levels are high, and the economy has had a good, long run. Historical real estate price growth is much lower than we have seen over the past 20 years in Toronto. And just because real estate has grown a lot over the past 20 years, it doesn’t mean other potential options like buying stocks in an RRSP or TFSA should be ignored.

Question via Instagram: Should I put down my bonus I just received into a RRSP or pay down my mortgage?

Jason: Over the long run, paying down your mortgage or investing in your RRSP may not have a significant difference in terms of your long run wealth. One determining factor may be whether you can earn a significantly higher return in your RRSP than the interest rate you’re paying on your mortgage. And not just the current rate on your mortgage, because that will no doubt go up over the balance of a long mortgage amortization. A conservative investor may do just as well paying off debt as contributing to their RRSP. A more aggressive investor, in the long run, may be that much better off contributing to their RRSP. A higher income taxpayer will benefit more from RRSP contributions than mortgage repayment. And if you have matching contribution from an employer on your RRSP contributions, that’s a strong incentive to choose investing in your RRSP over paying down your mortgage more aggressively.

Question via email: What are the benefits of renting for the rest of your life and not owning?

Jason: You pose an interesting question. Mathematically, I could make an argument for renting over owning and going all in on stocks. We live in the real world though, and in the real world people like to own their home. Also, in the real world, renters may not be disciplined enough to take the lower cost of renting over owning and invest that extra cash flow each month – they could spend it. As such, having a mortgage that you need to pay (or the bank takes your house) can be good forced saving. Renting also has the drawback that you can get kicked out for a variety of reasons, so ownership gives more peace of mind to families and seniors.

Question via email: Is there a point in saving for a house or a condo if you live in Toronto/GTA and are in your 30s and single (no help from parents, not married, not splitting it with a partner etc.)?

Jason: When you’re young, don’t save for a house. Save for the future. I was you not that long ago, and money I thought I was saving for a house went to cars, education, wedding, day care, kids’ camps, starting a business, etc. Save for the future generally, even if a good amount of that money will go towards a home. Even if you think you’ll never own in the GTA, you never know what the future holds in terms of real estate price growth or depreciation, a promotion, a relationship with someone who will also contribute to a home purchase, etc.

Question via email: Best credit cards right now for points/cash back/rewards?

Jason: I admit to having little insight into this specific area. Barry Choi has written some good posts. Check him out. Personally, I just have a rewards card with the bank where I do all my other banking.

Question from email: Best way to check your credit score for mistakes etc.? How long does it take for your credit score to change once you have eliminated mistakes on it?

Jason: I think it makes sense to check your credit score at least once a year. There are two main agencies in Canada — Equifax and TransUnion. Interestingly, your score may differ between them. In terms of how long it takes for your score to change when fixing a mistake, it depends on the mistake as well as a number of other interrelated factors. I would focus more on monitoring for mistakes and correcting them right away regardless.

Question from email: My situation is probably fairly common, but I am living on my own (renting a place) which already consumes half of my monthly income. I am in my second last semester of university, for which I have relied on OSAP to cover the cost of tuition. I had begun to save up a little over $2,000 to put down as my first payment, but then something happened to my car and I needed to use the money to fix it so I could get back and forth to my job and school. I am absolutely terrified about having to begin paying off OSAP this fall. I get paid biweekly and so I am only pocketing one cheque a month, which is going to groceries, hydro bill, and an internet bill. I am lucky if I come out with $100 for myself at the end of it all. What are some tips for being able to save/pay OSAP in this position?

Jason: It’s a tough position. I think anyone who needs to pay down debt or save more quickly should start with looking at their budget. It’s amazing when you start to pick through the unnecessary expenses you can identify. I’m not a big fan of budgeting just for the sake of it, but if you need to in order to hit your monthly goals, it’s important to know what you’re spending. There are good apps, both third party, and integrated with online banking, that may help. There’s no simple answer in your case. Just look for ways to bring down costs and also ways to increase your income. Most financial planning exercises boil down to managing income and expenses in the best manner.

Question from email: What is the least damaging way to withdraw from your RRSPs if it isn’t for buying a house or education?

Jason: RRSP withdrawals are fully taxable. If your income is low, the tax payable is low. If you’re working and need the withdrawals for debt repayment or some other purpose, the tax payable could be pretty significant. You should be really cautious withdrawing RRSP savings during working years. In retirement, RRSP withdrawals are a fact of life. You have to take money out by the time you’re 72. And if you can get money out at a lower tax rate than the tax you saved when you contributed, the RRSPs did their job.

Question from Instagram: Sounds dumb, but I need to stop spending on stuff I don’t need. It’ll help me save way more. Best tip for self control?

Evelyn: I need help with this too! Not a dumb question — one that sounds obvious but really isn’t. Jason, what do you think?

Question from Instagram: Best way to start paying off $10,000 in debt on a $65,000/salary?

Jason: Start small. There’s no magic bullet. Look at your spending using a budget app or your online banking’s built in budget tool and see where you can cut costs.

Question from Instagram: Ace and Ada can’t be real right?

Evelyn: Our Ace and Ada profile was definitely the one that caught the most attention in the #MillennialMoney series so far. They are real, and anyone who wants to participate can join by emailing me at ekwong@thestar.ca. I find their story to be extraordinary and just shows the spectrum of millennials in the GTA!

If you haven’t read it yet, here it is.

Question from Instagram: At what age should I be saving for retirement? Do I prioritize paying off OSAP first?

Jason: I’d prioritize repaying OSAP when you’re young. A couple reasons. The debt will inhibit your ability to borrow more money for, say, a home purchase. Secondly, your income usually rises as you age, and RRSP contributions, for example, can be more beneficial (higher tax rate and higher tax refund). When you’re in your 20s and 30s, money you’re saving for the future often gets spent on a home, wedding, kids, and lots of other stuff long before retirement. The earlier you save for retirement, the better, but money you’re saving at age 18 is unlikely to be money you use when you’re walking on the beach in your golden years.

Question from Instagram: How to start buying property on a single income of $60,000?

Jason: Buying real estate is a function of two things: downpayment and income. Other debt you have will have an impact, but the more you save and the more you earn, the more home you can buy. Focus on saving and your career, and most importantly, buy a home you can afford. Forget what the bank approves you for and look at your budget, the projected mortgage payment, and other home ownership costs as you make your home buying decision.

Question from Instagram: How much money would a millennial need for retirement living in Toronto?

Jason: It depends. Someone who wants to retire at 50 will need way more than someone who will retire at 65. And will you live in Toronto at retirement or home elsewhere and downsize? The rules of thumb make for good article titles, but you really need to personalize things and look at your own situation. And most importantly, know that life will change significantly between 30 and retirement. I think the best thing anyone saving for retirement can do is try to set targets based on where they are now and try to achieve them through the best combination of saving and debt repayment.

Question from Instagram: What is the best money management app?

It depends what you’re trying to do. If it’s budget-related, some of the apps that are embedded through your online banking aren’t bad actually. I think one of the most powerful options is an Excel spreadsheet. Summarize your net worth (assets and liabilities) and set some goals. All the fancy spending and investment analysis tools mean nothing if you’re on a road trip without a map or destination.

Question from email: Do you think that millennials care more about their mental wellness than other generations and therefore prioritize spending on things that improve quality of life such as travel, houseplants, experiences?

Evelyn: I definitely think mental health and happiness are important for millennials. However, this doesn’t necessarily mean that they aren’t trying to save money. In fact, a new study says that millennial couples are more open with their finances and are delaying marriage until they feel stable.

From Sam via thestar.com: I notice you no longer hype the results with ‘Success!’ or ‘Failure!’ but I would say the results aren’t meaningful when comparing single weeks (you previously noted this drawback) so why not move to monthly comparisons like the other dozen publications that run a similar series? It’s pointless if the reader can’t filter out the randomness of the weekly comparisons.

It seems that because this series is for millennials the analysis doesn’t have to be more than superficial.

Evelyn: Hey Sam! I totally agree. When we first started the series, we went through a testing period to see how much a two-week comparison could work. It does work, but the ‘success’ and ‘failure’ results are something we’re evaluating. This became very apparent during the holiday season, when people were comparing spendings before and after gift-giving. I think we still like the idea of putting a microscope to their exact spendings, but we are always open to iterations to make this series more digestible! Thanks for your comments, it means a lot and feel free to give us feedback at ekwong@thestar.ca.