The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

THE OAKVILLE BEAVER D on On the Money with Gordon Pape Oakville Beaver Weekend, Sunday, December 4, 1994 â€" 22 PAPE‘S TIP: "The government‘s efforts to control the deficit will likely mean higher taxes." Bad news coming in ‘95? Finance Minister Paul Martin has vowed to make a serious effort to reduce the federal government‘s massive deficit in next February‘s budget. Spending cuts are his No. 1 priority, but don‘t be surprised if you end up paying more taxes too. The deficit: difference between what the government spends each year, and the revenue collected through taxes, fees, etc. This year it‘s nearly $40 billion. The debt: total debt accumulated over years of deficits, plus the interest payments needed to carry the debt. Currently $700 billion. EFFECTS OF EXCESSIVE DEBT Weak Canadian dollar: International confidence erodes as we appear incapable of living within our means. Higher interest rates: Rating agencies reduce safety ratings for government bonds, which increases the cost of borrowing. Less money: As interest payments on debt soar (now over $40 billion a year), there‘s less money to spend on normal services. SsCARY STUFF § Total debt is more than $24,000 per Canadian and grows by more than $85,000 a minute. # The federal and provincial debt is now more than our GDP. What to expect More taxes. Some tinkering with pension/ RRSP contribution limits, more surtaxes for high income earners, higher gas taxes, higher user fees for public services. ® Public sector cutbacks. Likely some public sector layoffs, less funding for higher education, a revamped unemployment insurance system, fewer business subsidies. s # g‘,é #0 © .. $, © 1994 ArtPress International GRAPHICS SYNDICATE 4/12 Gordon Pape is a financial author and broadcaster. On the Money provides general informa: tion on money management. For specific advice, consult an appropriate financial professional. y w al | | | | | . FINANCIAL SERVICES I | | . | | do for you? Invest some time to find out December 12th in Oakville. USINESS Give children stocks for Christmas as a yearâ€"long present seem that easy, but there is no doubt that young children can develop an interest. Buying shares for children teaches them the merits of saving and investâ€" ing and can help to get them started on a lifetime of smart money management. The key to teaching a child to invest is to demystify the market. You must attempt to talk to the child on his/her level, and to provide concrete, understandable examples to back what you are saying. A good way to start a child on a simple investment path is to buy a small quantity of quality stocks that the child can idenâ€" tify with such as Walt Disney, Nike or Bell Canada. You should also ensure that you teach proper research techniques. The child must pick a stock based not only on its familiarity but also on its merits. It is also very important that the child learn to follow the Introducing children to the stock market may not Investment dealer Scotia McLeod‘s Oakville office opened up its doors this past week during the ‘Take Our Kids To Work‘ day. Checking things out were students (I to r) Lindsay Smyth, Lisa Robson, Jason da‘Costa, Shannon Donnelly and Chris Maxwell. That‘s investment execâ€" utive Jeff Jonathan in the background. The company is a member of The Learning Partnership, a notâ€"forâ€"profit organization of business people, educators and community leadâ€" ers. The special day is to create a learning experience that allows students to make the connecâ€" tion between their education, the workplace and their future. RRIF‘s MUTUAL FUNDS performance of the stock after it has been purchased by , reading pertinent financial papers and articles about,â€" the company. Because patience is a necessary virtue for successful stock investing., you must make the child aware that investments are meant to be for the" longâ€"term and not to be alarmed about each and every setback the stock suffers. "€ Rather than giving your niece, nephew or grandâ€" child a toy or outfit that they will grow out of, why not give them something sensible, durable and profitable for Christmas? Start them off with their own beginner portfolio and when they are a little older, teach them to invest in a stock of their own choosing. This is not only an investment for the present but also for their future. This article is courtesy of Peter Lambert, Paul Stewart and Karl Zimmerman, financial advisors with the Oakville office of Midland Walwyn, call 844â€"CHIP. (Photo by Peter McCusker) Thinking faster and thinking better; it‘s an ability you‘ll develop in The U of T Executive MBA Program. It‘s 20 months of alternate Fridays and Saturdays with four classes a day plus two oneâ€"week stays in resiâ€" P â€"dence plus about 25 hours of case preparation and team learning each week. There are two study tours: 3 days in USA, 10 days in Asia or Europe. Of course, you hold onto your regular job as well. If that sounds like a pressure cooker, consider the fact that 460 people have already done it and many of them say, ‘it‘s the best thing I‘ve ever done.‘ That‘s because they‘ve spent two years working with 17 senior faculty memâ€" ‘You had time to ponder a move, there was more time while your opponent made a move. Today, response time is everything. Your enemies are not known. They come at you over the horizon, they change shape and form. Your best partner can turn into your biggest threat.‘ The business I joined in 64 was a lot like chess. Todays market is more like a video game? might like to explore, we invite you to contact us. We‘ll send a compreâ€" bers, scholars of distinction, widely recâ€" ognized for excellence in research, teachâ€" ing and consulting. And with more than 40 other teachers _ hensive EMBA Program ... their classmates. On average, they‘ve _ outline. Then if you‘re inclined to seize the day, you can attend a oneâ€"hour informaâ€" tion session, get a taste of what we‘re like and any questions answered. worked 15 years for 2.5 companies, been promoted twice and really underâ€" stand one or more functional areas like marketing, MIS, finance, HR or producâ€" tion. These are the people who, as you solve problems in teams, finally make you understand: net present value, sku‘s and turns, hedging, decision trees, skim pricing. You never forget them; they always return your call. If this adds up to something you * William Etherington, President and CEO, IBM Canada Ltd. speaking at Ontario Hydro‘s New Directions international symposium, February 1994. Executive MBA Information Sessions: Midâ€"Town Toronto, Markham, Mississauga locations. Call (416) 978â€"6586 for details. * Uof Ts Executive MBA *« The business decision of a lifetime. Call (416) 978â€"6586 or fax your business card to (416) 978â€"5549, Faculty of Management, University of Toronto EXECUTIVE MBA ¢