Posts Tagged ‘Ontario’

The Saturday Weekend Review #15-”Tipping Out” The Team

Posted: April 13, 2013 in The Saturday Weekly Review
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29

Tipping Out Tips

Tipping out the team sure never happened when I was young and worked in the back of a pub in the UK as a dishwasher boy. It would have been nice if someone were to hand me a few pounds (dollars) extra at the end of the night thanking me for my hard work. In all honesty I was getting paid a fair wage at the time for my role and it was never an expectation of mine.

It was alot of work trying to keep up with the dishes in a busy restaurant although it did help me to pay for my education. It was one of the worst jobs I ever held in my life but I never did complain as I was just happy I was working. I never did spend my money in the pub to eat nor do I remember tipping being something that was the norm.

As a couple we don’t go out to eat much mainly due to the high cost but also because we love to cook homemade meals. We have a friend who works at Tim Hortons and says line-ups are non-stop and at the end of the day he is physically exhausted. He works there so he can save money which helps him pay for his University education. He reminds me of the type of guy I used to be when I was his age.

He gets minimum wage and if anyone does say, “keep the change” they all split the money, including the back-end staff but not management. Tipping is not required in the consumers eyes at Tim Hortons as it is in the full serve restaurant industry although staff at both work equally as hard.

Leaving tips is a sore subject for those that don’t believe in leaving a tip for good service and think that restaurant owners should pay their employees proper wages. When consumers hear some owners are making millions of dollars it’s easy to see why some people just don’t care to tip leaving the servers and the team in an awkward position. Some people feel that patrons shouldn’t have to feel embarrassed if they don’t want to tip or feel pressured into it either.

We’ve had a server in a buffet restaurant visit our table, tell her name, smile then take our beverage order, drop off the drinks and that was last we saw of her until she brought the bill. I would have gotten more service at Tim Hortons than I did that day yet it’s not required of me to leave the Timmy’s team a tip but it was the server in the buffet restaurant.

The buffet style is as “fast food” as it comes, comparable to eating at a restaurant which cranks out meals as fast as possible.

You might even get servers in full-serve restaurants thinking, “why do they (buffet restaurant servers) get tips when we have to work harder than them”. There will always be that struggle with who works more or harder in the food industry with this tipping mindset in place.

So although I know some of you are saying, wait a minute they are both different roles Tim Hortons and the restaurant server that’s not always the case. If Tim Horton’s employees were paid less than minimum wage and relied on tips would you tip them for their fast food service?

How much should we tip in Canada?

Well that’s a good question for those that don’t know.  I was told upwards of 15-25% before tax depending on the restaurant. It was then when I realized that maybe I can create the same experience in our own kitchen. There’s no reason we can’t make burgers, fries, pizza and club sandwiches at home for a fraction of the cost of eating out.

Last year we  decided to eat out vs eat in on my birthday at a local chain restaurant with some gift cards I had received. The total cost for burgers and fries for 2 came to $27.97 and that’s no tip included. I can buy a weeks worth of groceries for the cost of that meal and if we added in a tip it would have went up another $5.60. I guess the definition of fast food differs to some because I’d categorize this burger meal we had to be fast food whether eating it in or out and buying it from a full serve restaurant.

From a financial stand point it makes no sense to us when we can buy all the simple ingredients and make it at home, depending on what we would order. From the “live a little” stand-point we should just do it and enjoy life. I agree but if I’m going to eat out I’d rather go somewhere that will give me the foodie experience of a lifetime rather than plain old food I can cook.

I was not surprised when I was reading an article by Steve Mertl about Ontario politician MPP Michael Prue who wants tips to go to the servers and not management. Prue has introduced his private members bill to amend the provincial labour law, Mertl says.

“An employer shall not take any portion of an employee’s tips or other gratuities.”

I had no idea that some owners and managers were taking a cut of the tips through something called “tipping out” which is required by staff. What was more shocking was that some servers had to pay upwards of 4% of their gross sales whether or not they made any tips. If I was the server I’d be telling them to tip-off and see you later if they wanted that from me.

Tipping out is where the server has to pay a percentage of his/her tips to the house or team each night. This money gets divided amongst the people who helped the server make the customers experience a memorable one. Everyone from the person who greets you when you walk through the door, to the person who washes the dishes at the end of a meal. Each of these people would get a cut of the cash pot, which in all honesty makes sense to me. The problem in this system they say is when the management team is holding out their hands for their cut.

I’m going to go out on a limb here and say that management makes more money than the wait staff, dish washers and general cooks. In some cases the wait staff may make an overall higher salary after tips then management but managers  get their wage no matter what. They don’t have to worry if they don’t make enough in tips to take home at least minimum wage for their work that night. If you are in a restaurant that is staffed with trained sous-chefs and red seal chefs then you can also bet they aren’t getting minimum wage either.

So that leads me to  question should management be getting a cut of the tips at the end of the night? I don’t know because I don’t work in a restaurant but I’d like to learn more about the industry behind closed doors. Management are part of the team after all and it wasn’t until I read what Steve had to say that I even knew about this. There are also many servers who work their butt off only to be dissapointed that at the end of the night they may have just broke minimum wage in tips or worse, not at all.  Should this role be comparable to someone who works in sales on commission? Lots of questions but no answers, have your say today.

Should tipping just be eliminated and employers forced to pay a fair wage to their employees?

What are your feelings towards tipping out and some of the money going to management?

What’s Happening At The CBB House?

Not too much is going on at the CBB house at the moment although the seedlings for the garden are doing well. I promised I’d do a weekly update on them and they are slowly growing for us. I haven’t lost any yet so that’s a good sign although we are sitting on the fence waiting for spring to show up.

I’ll also be taking the winter machine off the road this week. I finished up an oil change on it the other day so it’s time to bring out the CBB beast… finally!! Did you take your winter tires off yet?

What’s Happening With  Canadian Budget Binder?

I’ve talked to my designer and continue to work on the new site behind the scenes. What would you like to see for CBB? Share your thoughts. I’m also thrilled to see that we are almost at 5000 LIKES on Facebook. I never dreamed that so many people would want to talk about personal finance. I don’t say just Canadians because our group is so diverse with people visiting from all over the world although Canada tops the charts.

It’s great to get the perspective on life, money and culture of different countries and Canadian Budget Binder encourages people to step up. If you are new to the blog please have a look around and if you have any questions at all simply email me. You can also hook up with me on the Facebook page where you will typically find me yapping when I’m not at work or working on the “honey-d0″ list.

I’m also on the hunt for someone who wants to have the CBB fans “Bust their Budget” so if you want us to look at your budget email me. If you have a debt pay-off story you want to share send it my way. You never know if your story will be the next CBB Fan Contribution Post.

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web search terms

Google Search terms really help me to understand what people are looking for at Canadian Budget Binder! Any typos below are simply how the person who searched Google and typed it in search incorrectly, or me ;-) Another week of thousands of search terms but only a few good ones worth mentioning.

Top Pick: The Justin Bieber Budget-  Coming to a blog near you the Bieber Budget,  NOT! I did find it fascinating that someone would search that. How about the CBB Budget.. is that comparable do you think?  haha!

  • Quotes about Quiet Smoking- I didn’t know smoking was a loud addiction.. maybe they wanted “quit” Smoking
  • Women Only Want Men With Money- I’m not going to touch that one but it does go both ways
  • Nosey Neighbours- We’re everywhere.. watch out for us!

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How I Paid Off My OSAP Loan Fast

Posted: March 13, 2013 in Students
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31

Graduation Cap

I never dreamed that I’d have such a large OSAP (Ontario Students Assistance Program) loan when I finished my education. Sure I would sign off twice a year to receive the money but when you are only accepting a couple of thousand at a time it is hard to picture the total amount of money that I had been given.

If I only knew then what I know now than I may have made different choices when it came to my personal finances. I hope that all the parents and students who read my story can take away some valuable tips to use along their path towards financial freedom.

My Story

My name is Carla and I grew up in a second generation Italian home in a nice neighbourhood with my parents and two siblings in the Greater Toronto Area. As kids we never went without, our parents put us in many activities, sports, etc. We did not go on fancy trips but we still had a great lifestyle. My parents never involved us in finances nor explained budgets or bills, everything was always paid for and that was just what was expected.

My parents saved for some of my education (roughly half of my first year’s tuition) but they did tell me that I would need to save for further years and any other expenses. For me at the stage I was in I did not understand the concept of money and where the money would come from to pay for my education but that it would be paid for.  I was nineteen going on twenty at this stage but I can honestly say I never quite understood the concept. I knew I should save money so I did before moving out but I would also spend just as much on silly purchases (cottages, movies, clothes, hair cuts, etc.). I do not think I truly understood the concept of finances and budgeting until I was in my fourth year of university around twenty two.

I had a great job teaching swimming at a local pool but I did spend at least half of my income on going out to the movies and purchasing designer clothes etc. I remember my worst purchase being a pager that I had to hide from my parents. A pager is a small device where people can call and submit their number and it would beep to let me know to call them back. It had a monthly cost as well. I did not need it but I wanted it to keep up with everyone else. Money to me at that stage really had no meaning – I did not understand the concepts of utilities, having to pay for groceries – it was always taken care of for me.

McMaster University

When I was accepted at McMaster University in the Kinesiology program I was thrilled. My original goal was to become a chiropractor (a lot of this was family pressure). My first year’s tuition came out to just over $5000. I paid for that first year in full before even having to move to Hamilton, Ontario where McMaster University stands. I did not qualify at the time for OSAP due to my family income so I thought I would be okay and this ‘school debt’ problem everyone was worried about would not happen to me. Books my first year (something I did not calculate!) came out to just under another $1000 (and I even purchased some second-hand!). I made the decision to live off campus – when we worked out the numbers it was cheaper to rent off campus and purchase my own food than live on campus and purchase their food plans.

This Was Not In The Plans

About three months into my first year I found out I was pregnant. It was a scary and exciting time for me. My husband (boyfriend at that time) supported me and encouraged me to continue my education. It was about three months after that reality hit. I was almost seven months pregnant; I had run out of money, had no job, no family or friends in the area and did not know where to turn to. I went into our school’s financial department and broke down in their office. They gave me an emergency subsidy and helped me find a job. It is something to this day that I will always remember. I still give donations to McMaster’s bursary fund as it touched me so much as it allowed me to have shelter over my head, food in my stomach and hope.

The Baby, OSAP and Back To School

I delivered my son in August and he was a dream. I was so in love with him! I made the tough choice to go back to school and this time I did qualify for OSAP and several of the bursaries that they handed out. I took all of it. My schooling was always paid for first, than books and the rest was for living expenses. I know many students that took their loans and used it to pay for trips, new computers, alcohol. I still feel the maturity and the understanding of the concepts of debt are not there at such a young age in all students. I never made silly big purchases but I know I could have been smarter with my loan (if only I knew then what I know now!).

Graduation

When I graduated I received a lovely letter stating that I owed $16,000 in OSAP loans and had to re-pay the loan over ten years at a rate of $210 a month!! At that age, ten years is so long!!  I knew I wanted out of debt and that we had to make big decisions. We worked together and developed a budget. We met a lovely woman at the bank who helped us to understand finances, how to save, how to follow a budget and why it is important to pay off our debts. We had so many goals!

I doubled up my OSAP re-payments and chose to pay bi-weekly to increase the amount of payments. We started a savings fund to save for our wedding. Five (long!) years later we saved up enough for a wedding and paid for it in full with cash! We were married 3 years after I graduated University. I paid off my OSAP loan in full (what an incredible feeling off of my shoulders!) and added another member to our family, a son!

I did not find a job in my field – to use my degree I would have to go on to post graduate studies that were by far just too expensive for me. I had to focus on my young family and that meant finding a job. It took my two months to find my first job and another seven to find the job that I currently am in now. My income was not what was expected! But I was not the only one who found this problem (unless you went into nursing!). We all found very few jobs out there and the income levels were a lot lower than what was expected.

How I Paid Off My Osap Loan Fast
  • I only took what I needed (did not take the extra and use it to travel or go out!)
  • Applied for the bursaries and grants
  • Made double payments monthly and also paid bi-weekly (they only wanted $220 so I paid $440)
  • Budgeting and cutting out the extras that weren’t needed
  • Purchasing clothes on sale- (I learned quickly that a $100 pair of jeans is NOT worth the expense!).
  • Keeping it simple opting for generic labels- In the kitchen (ex. using store brand products for common grocery staples), generic medications (Life brand versus Advil or Tylenol)
  • Extra work on the side
Tips For Students

My best advice for students is to understand how a  budget works and use one, understand what the debt will do to you and how you will be able to pay it off. Be realistic and work if you can during the school year part-time and full-time in the summer to save up for school. Only take what you need from OSAP, if you don’t need it don’t take it. You never have to take the full amount. Do not be shy to head into the financial department at your school and see if you qualify for bursaries or if you are really stuck if they have emergency funding.

After you graduate – make a plan and keep on budgeting! If you can make double payments, apply tax refunds to your debt, work weekends or live at home with your parents to help pay it off quicker.

Teach Kids About Money

For parents, please teach your children from a young age the concept of money and debt! Help them understand the family finances and how much life truly does cost. Get them to help out with groceries, organizing budgets and what the meaning of earning money and responsibility is. We are so honest with our children – we tell them where the money is going, how much things cost; if we buy this item we cannot get another, etc. My son amazes me when he will offer up his allowance to take us all out for McDonald’s if he is wishing for it and it makes my heart melt!

Looking back now at my OSAP loan and my years at university I wish that someone had made me see how much that OSAP loan would cost me in the long run. If I knew more about OSAP and finances I would have saved more (I had every opportunity to do so but did not), I would have worked more hours and more odds jobs to save more and I would have spent smarter. OSAP can be a useful tool but needs to be used appropriately. Students need to be taught how to better control finances, proper spending habits and the consequences of improper spending.

Click the link To learn more about OSAP and how to apply.

Editors Note: Thank-you Carla for sharing your personal story  which was very motivational. You explain to us that any obstacles life throws our way we can still reach our goals. I too hope it inspires not only students but also parents to encourage their children to save, spend less and budget their way through school.

Contribution Post by: Carla D who works full time in the Department of Medicine. She is married with two young boys. Budgeting and financing has been a long and hard journey for them as family but has been the most successful. We have found that budgeting and taking control of our finances has allowed us to grow as a family and achieve our individuals goals.

Image courtesy of  David Castillo Dominici/ FreeDigitalPhotos.net

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