Toronto tech worker balances high savings with family financial support

TORONTO — A Toronto tech worker with nearly $300,000 in savings says her top financial worry is job security as she supports her parents who have no retirement savings.

Grace, who asked that her last name not be used, has $15,000 in a savings account, $82,000 in a tax-free savings account, $64,000 in a registered retirement savings plan, $39,000 in a first home savings account and $97,000 in non-registered investments.

"The longevity of this job, because I am working in tech and it’s super volatile right now," she said of her main concern. "If I want to get a home or save for my parents’ retirement, I need a predictable stream of income."

READ MORE: King Charles urges tech leaders to prioritize safety in AI development

READ MORE: Proposed pipeline unlikely to bring back Alberta oil sands hiring boom

Grace was born in Korea and moved with her family to Toronto when she was in elementary school.

Her mom stayed home with their three kids, and her dad picked up various low-paying jobs, sometimes several at once.

"Being immigrants, they didn’t know about RRSPs or TFSAs," Grace said. "They were missing a lot of the fundamental knowledge of things that would have set them up for a better situation."

She knew she’d have to support herself through university, so she worked hard to get good grades in high school, earning a scholarship that included residence fees for her first year.

She chose a co-op program that combined math and business and was able to earn income during her co-op stints.

"There was exponential growth from term to term in terms of the salary I was able to make," said Grace, who is now in her second full-time job since graduating.

The first was at a large company based in Europe.

"It had a huge focus on work-life balance," she said. "Now I am at a startup and it’s definitely a grind. My hours have probably almost doubled."

But her salary has almost doubled as well, and she says being in a small company makes it easier to show off what she’s capable of.

"At my previous company, I was many layers removed from the C-suite. Now I interact with those decision-makers every day," she said. "If they find you valuable, they will do what it takes to keep you there."

Grace moved back in with her parents after graduating.

She doesn’t pay rent, but she helps out financially a lot, paying the family’s property tax and covering expenses such as car repairs or plane tickets back to Korea for a family emergency.

"They’re barely making it paycheque to paycheque," she said. "They have no real retirement savings."

She’s saving as much as she can to help fund her parents’ retirement while also striving toward her own goals, such as home ownership, marriage and children.

Grace has a long-term partner and is interested in taking the next step, but isn’t sure what combining her finances with someone would look like given how much she supports her parents.

She spends most of her time around other high-earning tech workers and says it’s hard not to notice how wealthy many of them seem.

"There’s people in the same position career-wise, but they might not have the same responsibilities to family or are even getting help from their family," she said. "I try not to compare myself."

Her monthly expenses include $583 to her TFSA, which she contributes fully at the start of each year, $220 to student debt, $30 for gasoline, $200 for Uber or taxis, $30 for alcohol, $4,000 for payroll deductions, $800 for parent care, $10 for haircuts and $20 for personal services.

She notes the parent care amount can be as high as $2,000 some months.

With files from The Globe and Mail