Transcript Slide 1

Making Money Make $ense
INTRODUCING…THE NBSC
Crown corporation
 Investor Protection
 Fostering Capital Markets

Education and Market Development
 Enforcement
 Regulatory Affairs
 General Counsel

SO WHAT DO WE KNOW ABOUT YOU?
You are the wealthiest generation of 16 – 24
year olds ever to exist.
 You don’t realize the cost of your everyday life.
 You’re highly educated
 You don’t have many siblings, so your social
lives (real or virtual) are very important
 You’re popular with big companies
 You have yet to form long-term
brand loyalties.
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WHY SHOULD YOU CARE?
1.
2.
3.
4.
5.
6.
Credit cards
Job market is changing
Higher taxes
Multiple Jobs
Cost of energy
Education costs
But despite that – you’re in the best place to
take responsibility for your financial situation
as it is right now, and keep making it
better!
WHAT CAN YOU DO?
 Set
goals
 Be
a smart spender
 Be
a smart saver
 Budget
SET GOALS
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Values drive almost every financial decision
you make!
Values are what you consider to be the most
important things in life. They are intangible.
Goals are accomplishments you work toward
that fulfill your values.
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Goals can be short term or long term.
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Make them S.M.A.R.T.
SMART SPENDING
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Double Check – “Do I need this or do I want
this?”
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Use cash – plastic tricks your brain!
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Pack a lunch – I save $150 a month
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Get a hobby
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Don’t be stingy
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Pay your bills on time
SAVE THE MONEY YOU DIDN’T KNOW YOU HAD!
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How much should I save each month?
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10%
Adjust it with your income
Build it into your budget
Set challenges
Pay off debt vs. saving
What are you saving for?
Tuition?
 Rent?
 Personal spending?
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SMART SAVING
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Find free money:
Scholarships, bursaries and grants
www.studentawards.com www.scholarshipscanada.com
 Buy used text books
 Recycle binders/bookbags from last year
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Food / Entertainment / Personal Items
Don’t do groceries when you’re hungry
 Wait for sales to go shopping
 Don’t take the credit or debit card – just cash
 Buy CDs or rent movies online.
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HOW TO MAKE A BUDGET
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Gather pay stubs, bills, receipts, bank
statements
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Budgets are for saving too!
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Ask yourself:
How can I even out my income if it goes up and
down a lot?
 How can I spend less at times when my income is
lower?
 If I need to borrow money, how can I reduce
the cost of my debts?
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WHY MOST BUDGETS DON’T WORK
We give up too quickly
 We expect too much
 We don’t adapt our budget
 We become:
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A budget miser
 A half-way budgeteer
 A carved in stone budgeteer
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HOW TO MAKE A BUDGET WORK
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Think of it as a GPS for your financial life. Where
the money comes from and where it goes.
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Be honest and realistic
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Allow for change
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Give it a chance
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STICK TO IT
HOW TO MAKE A BUDGET WORK
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Start with how much you’re spending on:
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Fixed Costs
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Needs
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These are not flexible and you have to pay them
(tuition, student feeds, rent etc)
These are things you have to buy, but what you
pay for them is flexible (power bill, groceries,
personal items)
Wants
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These can have the most impact on your budget.
These are things that you can live without so you
can trim the costs or even eliminate them
(entertainment, shopping, phones etc)
BUT I WANT IT NOW!
Jennifer
Megan
Mark
iPad Cost:
$650
$650
$650
How did they
pay?
Paid balance
right away
Paid $50/month
Chose to pay back
by paying only
monthly minimum
payments of $10.
1 yr 3 months
21 years
Paid $78 interest
Paid $1827 interest
$728
$2,477
REAL cost
$650
18% interest rate
32gb iPad wifi about $650 with tax
BE CREDIT SMART
Always read and keep all paperwork
 Sign the card immediately
 Don’t lend your card to anyone
 Pay your monthly bill, in full.
 You’re the ideal customer – shop around!
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No/Low annual fee
 Good grace period
 Low long-term interest rate
 Rewards programs
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A few months of credit card abuse
can lead to years of repayments
REMEMBER THE BASICS!
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Set goals based on your values.
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Distinguish between needs and wants.
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Be a smart spender.
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Create a realistic budget.
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Saving money doesn’t mean going without.
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Use credit wisely.
WANT TO KNOW MORE?
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www.makeitcountonline.ca
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download the budgeting app (iTunes)
www.InvestInKnowingMore.ca
Twitter - @4NBInvestors
 Facebook – www.facebook.com/4NBInvestors
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