Romana King on Financial Literacy for Canadians

Author(s): Scott Douglas Jacobsen

Publication (Outlet/Website): The Good Men Project

Publication Date (yyyy/mm/dd): 2025/03/21 (Unpublished)

Romana King, a seasoned financial and real estate expert, discusses Canadians’ top financial regrets, especially not saving early enough. She emphasizes the importance of financial literacy, budgeting, and realistic homeownership goals. King highlights generational shifts, noting that today’s young Canadians face tougher economic challenges without pensions and rising living costs. She advocates for early education, practical tools like spreadsheets, and using public resources such as government sites and library seminars. King also underscores the emotional aspects of financial decisions and encourages openness about financial mistakes to promote resilience and long-term stability. Trusted information and adaptability are key to financial success.

Scott Douglas Jacobsen: Today, we’re here with Romana King, an award-winning personal finance and real estate expert with over 20 years of experience.

She is a senior editor at money.ca and has contributed to major Canadian publications, including The Globe and Mail, Maclean’s, and The Toronto Star. She is also the best-selling host of No More and frequently appears on CBC, Global News, and CityNews.

Romana is also a licensed real estate professional in Ontario and British Columbia through her platform, RK Homeowner. You can follow her on X at @RKHomeowner, where she provides insights on smart homeownership, financial literacy, and expert financial advice. You can find more at romana.com. What were the most surprising findings from your money.ca survey on Canadians’ biggest financial regrets?

Romana King: It wasn’t necessarily surprising, but what stood out was the sheer number of people who had financial regrets. The large percentage of respondents expressing regret was notable, though the nature of their regrets—mainly not saving enough—was expected.

Many people don’t fully grasp the impact of not starting early or not saving enough until it’s too late. Instead of saving $100 a month, they need to save $1,000 because they no longer have the time to benefit from compound interest or long-term investment growth. The sheer volume of people facing this issue was surprising.

Jacobsen: That’s interesting. What financial mistakes did people make that prevented them from reaching their milestones? Not everyone wants to retire or own a home, but most Canadians want both.

King: Yes, the core issue is financial freedom. Whether someone wants to own a home or retire—some people have even said, “I want to work in retirement”—the real goal is financial independence. What that looks like varies from person to person.

As you mentioned, some people prioritize homeownership, while others prefer the flexibility of renting due to the financial and logistical responsibilities of owning a home. Ultimately, however, everyone strives for financial freedom.

One of the most telling findings from our survey is that nearly half of Canadians struggle to build savings. 46.4% of respondents said they had difficulty saving for a nest egg or even a down payment on a home. That’s a striking statistic. Looking back a few generations, people had similar concerns, but homeownership and financial security didn’t feel as unattainable as they do today.

You felt like you had an opportunity—you just had to put your nose to the grindstone and do it. Even with that level of effort, it just might not be possible.

Jacobsen: What are many young Canadians doing when they turn to loved ones for financial support after making money mistakes? Is that a common occurrence? Is it uncommon? Are there any incorrect assumptions in the question?

King: This isn’t drastically different from past generations, but we don’t have a strong national approach to financial literacy. Regardless of what organization I belong to or what job I have, I’ve been banging that drum for too long now. Many people feel confused about financial matters, and when they face challenges, what do they do?

They turn to the people they love because they trust them. So, yes, young Canadians do rely on their loved ones for support.

We also have to consider the economic landscape. Previous generations benefited from strong markets—whether in housing, stocks, or job security. There were more opportunities, wages were rising, and the cost of living was relatively lower.

By contrast, young people today are entering the workforce or trying to advance in their careers while dealing with significantly higher living costs. That’s why many turn to their family members for financial assistance.

Jacobsen: How do generational differences shape financial regrets and decision-making? You noted that generations aren’t that different in their goals, but you hinted at some key differences.

King: There isn’t a generational difference in the ultimate goal—financial freedom. However, there are massive differences in how each generation tries to achieve it.

The path was relatively clear if I look back to my grandparents’ or even my parents’ era. You got an education—whether through trade school, university, or college—you found a job, and you might have changed companies a couple of times, but generally, you stayed with an employer for 10 to 15 years. You’d earn a pension, typically a defined benefit or contribution pension, and then you retired.

That is not the reality for today’s younger generation. Defined benefit pensions or employer-sponsored pension plans have largely been phased out over the past 10 to 20 years. As a result, people now have a completely different approach to achieving financial freedom.

This shift has also changed how people work. Many are far more willing to embrace the gig economy or take on side hustles—something my father’s generation would have scoffed at. He would have said, “Why would you bother with that? Put all your eggs in one basket—stick with the company you work for.”

There is quite a big difference. I don’t believe that’s solely due to preference, though—I think we are shaped by what we experience.

If the younger generation—including myself and you—does not have access to employer-provided pension plans, that will inevitably shape how we pursue financial freedom. For example, I may now consider holding real estate as an investment because I don’t have a defined pension plan.

That’s just an example, not a prescription.

Jacobsen: How can financial literacy help people prevent costly mistakes? Or, when mistakes happen—which they inevitably will—how can they be less damaging?

King: Yes. When introduced early enough, financial literacy allows people to make small mistakes, adjust course, and avoid making expensive ones later.

What do I mean by that? In a world dominated by digital transactions—where debit and credit cards have replaced cash—it’s essential to understand how to use these tools responsibly. It is critical to know what it means to carry a balance on a high-interest credit card and its long-term impact.

If someone learns this lesson when their debt is $1,000 instead of $10,000, that knowledge can make a massive difference. When most of your income is spent paying off interest on a credit card, that $10,000 balance can take years—not months—to pay off. That, in turn, delays other financial goals, like saving for a home, a car, or retirement.

Financial literacy and money management skills, like saving, are crucial. The sooner you develop those skills, the better.

That doesn’t mean—and here I might ramble, Scott, so feel free to interrupt—that people in their 20s, 30s, 40s, or even 50s won’t make financial mistakes. Mistakes are inevitable. Some of the most financially savvy people I know still make mistakes.

The problem is that many people feel ashamed when they make financial missteps, as if a mistake means they’ve failed. That mindset is damaging. We need to be more forgiving—both of ourselves and others. We also need to encourage people to ask for help when needed. Many financial resources are available in Canada, but people often don’t seek them out.

That’s why part of what we wanted to highlight in this survey is that big financial mistakes are common. Normalizing that helps people understand they’re not alone. When someone realizes that others have also made significant financial mistakes, it becomes easier to say, “I didn’t save enough for retirement, and I’m in my late 40s or early 50s—what do I do?”

That’s the right question to ask at that time. The wrong thing to do is hide it, avoid talking about it, or refuse to address it.

Jacobsen: What policies and financial products can help Canadians make better financial decisions? Is it an app?

King: I wish there were a single app where you could input everything and get a perfect financial roadmap, but there isn’t.

I’m a big fan of Excel spreadsheets. When I was in my 20s, I asked friends who were far more financially savvy than I was, “How do I invest?”

At the time, they told me, “You just need this one ETF or you just need this one mutual fund.” Back then, it was all about mutual funds.

I’m dating myself, Scott—I probably shouldn’t say that, but I am.

I remember not understanding their advice. The worst mistake I made at the time was not asking follow-up questions. “What do you mean by a mutual fund? Why is that the right investment?” I didn’t ask those questions when I should have.

There isn’t one app or tool that does everything for you, but you can do a few things. The first step is finding a budget that works for you. I always emphasize this because people tend to resist budgeting. Friends tell me “I hate the idea of tracking every dollar.”

So, I suggest a simple approach—take pictures of everything you buy. Whether it’s a receipt or a meal, take a picture.

Then, at the end of the month, review those images. Visually scan what you’ve spent money on, and then assign a monetary value to something you genuinely want to save for—whether that’s a car, a house, or another goal.

When you start comparing your spending habits to your financial goals, you ask yourself, “Is this purchase more important than my long-term goal?”

That shift in perspective makes it easier to adjust behaviour. It’s easier to avoid financial mistakes when you can tangibly see that spending in one area means sacrificing in another.

This approach is far more effective than simply sitting down with a pen and paper, filling out a spreadsheet, listing numbers, and forcing yourself to cut expenses. It’s easier to say, “I’m choosing not to spend on this because I want to save for something else.”

Jacobsen: How does the volatility in real estate—the spikes over several years and the downturns—factor into Canadians’ financial regrets?

I know some people who sold their homes just a month before the market peak, right before the downturn, and they were quite happy with that decision. How does that kind of market fluctuation contribute to financial regrets? A big part is luck, but other factors are also at play.

King: Scott, that’s the first thing I would point out—I think there’s a well-documented cognitive bias at play here. We know that people have a cognitive bias against losses.

For example, you could buy a home for $250,000 and sell it for $750,000, making a $500,000 profit. But if, a month later, you learn that you could have sold it for $850,000, you might suddenly feel like you lost something—even though you made a huge gain.

We tend to fixate on what we missed out on rather than appreciating what we gained. We don’t value the positive as much as we should. Instead of seeing the $500,000 profit, we focus on the $100,000 we didn’t make.

One of the key things I’ve written and spoken about regarding homeownership is this: when buying a home, you must understand that it is not solely a financial decision. I’m very clear about that.

What do I mean by that? While math and finances should be factors, they should not be the sole determinants of what you buy. Life decisions dictate home purchases.

For example, you may want to live near a particular school if you have a family. That priority will shape what and where you buy. If a townhouse in that school district is within your budget, that may be a better home for you than a larger detached house in a less desirable neighbourhood.

Ultimately, buying a home is an emotional decision about safety, community, and security.

That being said, finances do play a role. You shouldn’t buy a home that stretches beyond your means. If you max out your housing budget and an unexpected expense arises—like a roof repair, plumbing issues, or a major appliance breaking down—you may have to take on high-interest debt to cover it. That kind of financial strain can derail all your future goals.

I’ve seen people in unfortunate situations, particularly during the pandemic. Some were dealing with both a housing market crisis and the end of a relationship, leading to divorce. Sure, they could sell their home at a fantastic profit, but they were forced to buy in an overheated market.

That’s a terrible situation because you’re not making decisions but being forced into action. And when you’re forced into financial decisions, you often lose. Statistically speaking, you might come out ahead, but it’s risky, and much luck is involved.

You asked how homeownership—and the roller-coaster ride of real estate prices in Canada—affects personal finances. The impact has been massive because saving up for a down payment now takes significantly more time.

It takes significantly more to purchase a home now than it did in previous generations. Homeownership is a much larger piece of our financial puzzle when creating a solid financial plan.

I would say that people need to be realistic about what they can afford—both in the short term and the long term—and understand that they may have to adjust their expectations.

Not everyone will get the showcase home that looks like it belongs in a glossy magazine. Instead, we should redefine what a home means—a safe place, something financially sustainable, and a purchase that won’t prevent us from reaching other financial goals.

When friends or family often call me and ask, “Should I buy this house?” The first thing I ask them is:

“If their household has two income earners, should you afford to keep this home on just one salary in a pinch?”

If one person lost their job, could the other person cover all the bills for six months to a year until you get back on your feet?

For me, that’s a critical benchmark. If the answer is yes, that home is within your budget. You may be taking on too much financial risk if the answer is no.

I say this because life happens. Unexpected events—like the pandemic—threw many people into financial uncertainty. Some found themselves wondering, “How am I going to afford this when neither of us is earning?”

Part of responsible financial planning is treating homeownership like an insurance policy—you need to ensure that your finances can withstand unexpected hits rather than collapsing under pressure.

Jacobsen: If people make a financial mistake, how do they recover? How do they aim for long-term stability after that mistake?

King: The hardest part of making a mistake is owning it—just being aware of it, acknowledging it, and understanding what went wrong. Then, the next step is figuring out how to fix it—which can sometimes require making tough choices.

Yes, I might need to cut expenses. That’s difficult. People often say, “I work really hard and deserve to treat myself—whether it’s meals out, shopping, or vacations.” That may be true, but pausing those expenses—even temporarily—can be the best way to get back on track.

The key word here is pausing, not denying. It’s about making temporary adjustments to regain financial stability rather than permanently cutting out things that bring joy.

The most critical factor in financial recovery is a clear view of the mistake and an understanding of what is needed to correct it. The mistake itself does not define you—how you respond to it matters.

Jacobsen: Where can Canadians find reliable government sources of financial knowledge for decision-making? Where can they find independent, trustworthy sources for financial literacy and education?

King: I’m a huge fan of the federal government’s financial resources. They provide extensive documentation on various financial topics, from buying a home to understanding buy-now-pay-later loans and short-term financing options available through credit cards and store cards. These government resources are incredibly valuable, and more Canadians should know them. A wealth of information is available if people are willing to tap into it.

I’m also a big fan of local knowledge dissemination. If you visit your local library, you’ll often find free financial seminars, especially around tax season, designed to help people navigate financial decisions. I’ve personally led sessions at the Toronto Public Library, offering insights to attendees who can ask questions in a supportive environment. These sessions are free, accessible, and a great way for people to educate themselves on financial matters.

Books are another excellent resource. And the best part? You don’t have to buy them—go to the library. Books allow you to learn at your own pace, putting them down and picking them back up as needed. I also believe that online forumscan be useful for starting your research, but I always caution people never to rely on them for definitive answers. Instead, use them as a launching point and verify the information through reputable sources like government websites or books written by credible personal finance experts.

For independent sources, there are many reputable voices in the field. I’ll do a shameless plug here—you can check out my book, website, or money.ca. Beyond that, many newspapers still have personal finance columnists who consistently provide authoritative and well-researched insights. My biggest piece of advice is to read as much as you can. If one financial expert doesn’t resonate with you—whether on topics like exchange-traded funds or building a financial plan—shop around. There are plenty of knowledgeable writers and experts covering these topics. Find someone who speaks in a way that makes sense to you and stick with them.

Jacobsen: Romana, thank you very much for your time today. I appreciate your expertise, and it was great to meet you.

King: Thank you, Scott. Take care.

Jacobsen: Take care. Bye.

King: Bye now.

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