Vancouver’s Economic Challenges: An Expert’s Perspective

The rising cost of living in Vancouver has become a major civic issue, with residents struggling to afford housing, groceries, transportation, and other essentials as wages remain stagnant. Soaring rents and home prices have made affordable housing nearly impossible for many, while grocery prices force low-income households to rely on food banks or skip meals.

Sherry Soltani – Local Journalism Initiative

High gas prices and rising transit fares add further strain, and the cost of childcare and healthcare intensifies the pressure. These financial burdens not only widen the income gap but also impact mental health and well-being. To help families and young people save and improve their quality of life, Sherry invited financial advisor Hamid Payambernia to share strategies for managing finances.

Sherry asked Hamid how low-income seniors can save money amid rising living costs. Hamid responded that seniors living in the Vancouver area who haven’t already taken advantage of a Retirement Savings Plan (RSP) should consider doing so, as it can provide long-term financial benefits.

While government programs like the Canada Pension Plan (CPP) and Old Age Security (OAS) offer some support, these payments are often insufficient to cover all expenses. Hamid also emphasized the importance of exploring other financial resources, such as community support programs and subsidies, which can help reduce living costs. He suggested that seniors invest their savings strategically to potentially create an additional income stream, easing financial pressures and improving their quality of life.

Sherry asked Hamid why it is important to start saving at a young age. Hamid explained that it’s not just about saving money early; it’s also about taking advantage of the many opportunities available to grow those savings over time. Young people, even with low incomes, have the benefit of time on their side, allowing them to leverage compound interest and long-term investments. He emphasized that the government provides several tools and programs to support this, such as Registered Retirement Savings Plans (RRSPs), Tax-Free Savings Accounts (TFSAs), and, for those pursuing education, Registered Education Savings Plans (RESPs).

Hamid also highlighted that small, consistent contributions to these accounts can add up significantly over the years. He also noted that younger individuals have the flexibility to take calculated risks, such as investing in diversified portfolios, which can yield higher returns over time. By starting early, they can build financial security and resilience, making it easier to manage future expenses like housing, education, or retirement. Ultimately, Hamid encouraged young people to educate themselves about these options and take proactive steps toward financial independence.

Hamid also emphasized the importance of balancing your life by understanding your income and carefully managing your finances. He advised calculating your expenses, tracking any debts or obligations, and consistently setting aside money for savings, even if it’s a small amount. This practice not only helps build financial discipline but also creates a foundation for long-term stability and peace of mind.

The interview with Hamid Payambernia was invaluable, as it highlighted practical strategies for saving money and building financial stability in Vancouver's challenging economic climate. Not everyone in Vancouver is familiar with the tools and resources available to help them save and manage their finances more effectively. Hamid's insights into government programs, smart investments, and long-term planning emphasized how crucial it is to gain financial knowledge.