1. www.theccfl.ca A division of FINANCIAL LITERACY

2. www.theccfl.ca A division of Introduction-Facilitator CONTACT INFO:

3. www.theccfl.ca A division of Introduction What is your name? What would you like to learn from this program?

4. www.theccfl.ca A division of Overview $ MONEY - What is it? What do we do with it? Budgeting -How do we use it? How do we find more money? Save it (Money in) Spend it (Money out) Savings Investing basics Educated Consumer Banking Credit & Credit cards Debt & Financial Woes Credit Bureau, Ratings, Scores & Reports Income Tax basics

5. www.theccfl.ca A division of Module One: Exploring Your Relationship with Money

6. www.theccfl.ca A division of Money What is Money? Discussion/Activity

7. www.theccfl.ca A division of Money Messages Our feelings about money today almost always can be traced back to an incident from our past, our first experience or message about money- Suze Orman

8. www.theccfl.ca A division of Money What is your first memory of money? Discussion/Activity

9. www.theccfl.ca A division of Money If I give you $1,000,000 What would you do with it? Handout/Activity

10. www.theccfl.ca A division of Money If I give you $10,000 What would you do with it? Handout/Activity

11. www.theccfl.ca A division of Activity – 5 mins Rate yourself from 1-10 on your current financial knowledge 1= Very Low 10 = Very High Handout/activity

12. www.theccfl.ca A division of Money In groups, make a list of what would happen if you do not know how to manage your money. Handout/Activity

13. www.theccfl.ca A division of Goal Setting Important to set goals Write them down Start with the end result in mind Build a plan to reach your goals Goals should be SMART

14. www.theccfl.ca A division of Goal Setting Set goals to apply what you learned today. Remember, goals should be SMART Specific Measurable Achievable Realistic Timeframe Attached Handout

15. www.theccfl.ca A division of Module Two: Budgeting – Developing a Money Action Plan

16. www.theccfl.ca A division of Budgeting – Module 2 What is budgeting? Budgeting exercise Budgeting tips Goal setting

17. www.theccfl.ca A division of What is Budgeting?

18. www.theccfl.ca A division of Spending Money What do you spend money on? How do you make sure you dont spend too much? BUDGETING!

19. www.theccfl.ca A division of What is a Budget? A plan for your money Detailed or simple to use – your choice! A big picture of where your money comes from – and where it goes A way to identify spending or saving that you may want to change A way to work towards your future financial goals…..and more!

20. www.theccfl.ca A division of Steps to Making a Budget List your income List your expenses Determine if you have any money left over List your debts Decide how much money you can put towards your debt Make short and long term goals Be sure to include savings in your budget

21. www.theccfl.ca A division of Budgeting Activity As a group of 3 or 4 complete the budgeting sheet based on a scenario.

22. www.theccfl.ca A division of Activity – Create a budget! (10min) Scenario 1 Single mother On social assistance Non-smoker Monthly income (~$1200) Scenario 2 Single guy Makes minimum wage Smoker Wants a car Monthly income (~1280) Activity

23. www.theccfl.ca A division of Activity – Create a budget! (10min) Scenario 3 Married father of 2 Works full-time for $15/hr Has credit card debt of $5,000 Monthly income ($2400) Scenario 4 Married, no kids Both work full time Annual income of $60,000 Monthly income ($5000) Activity

24. www.theccfl.ca A division of Practice Makes Perfect! What did you learn from this exercise? Were you realistic? Did anyone include savings in their budget?

25. www.theccfl.ca A division of Benefits of Budgeting You have a plan for your money Less stress Compare one month to another See how your spending habits affect your budget Find ways to save money Use last months budget to plan for the next

26. www.theccfl.ca A division of Budgeting Tips Keep your budget flexible Keep your budget simple Be honest and realistic Try keeping track of every dollar you spend for a month…it may surprise you! Requires some trade-offs and sacrifices Budget for the unexpected Budget for large items that occur once a year Keep accurate records

27. www.theccfl.ca A division of Do you know where these things are? Birth certificates/other ID /Social Insurance Card Lease / Mortgage documents Tax papers / Receipts for taxes Banking / Investment statements Insurance documents Warranties/guarantees for items purchased Receipts for major purchases Final will and testament Handout

28. www.theccfl.ca A division of Module Three: Savings

29. www.theccfl.ca A division of Savings – Module 3 Needs vs. Wants Finding Money activity Paying Yourself First! Compound Interest Goal Setting and Resources

30. www.theccfl.ca A division of Introduction to Saving FACT: An adult who invests $1,000 a year for 7 years between the ages of 19 and 26 and then invests nothing more will have more money at 65 than one who waits until he turns 26 to invest $1,000 a year, every year, for the following 40 years!

31. www.theccfl.ca A division of Finding Money Write down how often you buy the item Daily? Multiply by 30 Weekly? Multiply by 4

32. www.theccfl.ca A division of How often do you buy the item… If Amount Is:Then: WeeklyMultiply by 4.33 Every Two WeeksMultiply by 26; Divide by 12 Twice a MonthMultiply by 2 Four Times a YearDivide by 3 Twice a YearDivide by 6 Once a YearDivide by 12 Handout/Activity

33. www.theccfl.ca A division of Finding Money Activity!! Write a list of things you buy often For example: parking.. Coffee.. Convenience purchases.. Magazines/newspapers.. Gas.. Cigarettes/alcohol.. Renting movies.. Downloading songs, videos, texting messages Handout/Activity

34. www.theccfl.ca A division of Finding money… What can you do with this money? Spend it Save it

35. www.theccfl.ca A division of Look at this! Save this week:At % interest:In 10 years youll have: $7.003%$4,234 $14.003%$8,468 $21.003%$12,702 $28.003%$14,560 $35.003%$18,200

36. www.theccfl.ca A division of What is the Golden Rule of Saving?

37. www.theccfl.ca A division of Pay Yourself First!!!

38. www.theccfl.ca A division of The Magic of Compound Interest

39. www.theccfl.ca A division of Compound Interest Interest paid on original amount PLUS any interest earned Example: $100 paying 6% compounded annually Year 1 $100 x 1.06 = $106 Year 2 $106 x 1.06 = $112.36 Year 3 $112.36 x 1.06 = $119.10 Year 4 $119.10 x 1.06 = $126.25 Year 5 $126.25 x 1.06 = $133.83

40. www.theccfl.ca A division of Are they needs or wants?

41. www.theccfl.ca A division of Activity List as many things as you can think of that you need to buy List the things you want to buy Handout/Activity

42. www.theccfl.ca A division of Needs vs. Wants Whats the difference between a need and a want? Discussion/activity

43. www.theccfl.ca A division of Needs vs. Wants A need is something you must have to live your daily life. Food,clothing, and shelter are the usual needs.

44. www.theccfl.ca A division of Needs vs. Wants A want is a way to meet these needs with more style, comfort, or ease.

45. www.theccfl.ca A division of Why Save Money? To buy large items (vehicle/house) Surprise Bills or Emergencies More Choices (vacations, new wardrobe) Retirement Help family Childrens Education Less Stress

46. www.theccfl.ca A division of Saving is a Habit Start small Dont dip into savings Try forced savings technique

47. www.theccfl.ca A division of Saving Early As an example…. MR. START EARLY saves $3600 per year for 7 years in an investment earning 8% interest MR. WAIT LONGER starts saving $3600 per year for 17 years in an investment earning 8% interest, 7 years LATER than Mr. Start Early.

48. www.theccfl.ca A division of Saving Early Mr. Start EarlyMr. Wait Longer AgeYearly ContributionTotal AccumulationAgeYearly ContributionTotal Accumulation 25 $3600 $3888 25 0 26 $3600 $8087 26 0 27 $3600 $12622 27 0 28 $3600 $17520 28 0 29 $3600 $22809 29 0 30 $3600 $28522 30 0 31 $3600 $34692 31 0 32 $37467 32 $3600 $3888 33 $40465 33 $3600 $8087 34 $43702 34 $3600 $12622 35 $47198 35 $3600 $17520 36 $50974 36 $3600 $22809 37 $55052 37 $3600 $28522 38 $59456 38 $3600 $34692 39 $64212 39 $3600 $41355 40 $69349 40 $3600 $48552 41 $74897 41 $3600 $56324 42 $80889 42 $3600 $64718 43 $87360 43 $3600 $73783 44 $94349 44 $3600 $83574 45 $101897 45 $3600 $94148 46 $110048 46 $3600 $105567 47 $118852 47 $3600 $117901 48 $128,361 48 $3600 $131,221 Total Contribution $25,200$61,200

49. www.theccfl.ca A division of Small Changes = Big Money What if you can make small changes in your spending habits and start saving X amount of money per day or per week? Can you cut down on the following? Sodas, Cigarettes, Lattes, Cable TV, Cell phone bill, Games, Bottled Water, Sweets, New Gadgets, Shopping, Driving a big car, Eating out… $497,107$994,215

50. www.theccfl.ca A division of BUT….What if you are the one paying the interest? Guess how much a $200 guitar bought on a credit card with 28% interest cost after 4 years?

51. www.theccfl.ca A division of What that guitar really cost !!! $536.87 Year 1 $200 x 1.28 = $256 Year 2 $256 x 1.28 = $327.68 Year 3 $327.68 x 1.28 = $419.43 Year 4 $419.43 x 1.28 = $536.87

52. www.theccfl.ca A division of Set Goals and Make Plans Think about a timeline for your savings goals…. For this week….for next month…AND… Short Term 1-5 years Mid Term 5-10 years Long Term 10-20 years

53. www.theccfl.ca A division of Goal Setting Set goals to apply what you learned today. Remember, goals should be SMART Specific Measurable Achievable Realistic Timeframe Attached Handout/Activity

54. www.theccfl.ca A division of Banking and Alternative Financial Services

55. www.theccfl.ca A division of Banking – Module 4 Introduction to Banking The Unbanked Alternative Financial Sector Opening a Bank Account Comparison of Bank Accounts Banking Tips Goal setting and Resources

56. www.theccfl.ca A division of Introduction to Banking Safe place to keep money Wont lose your money accidently No one can steal your money.

57. www.theccfl.ca A division of Introduction to Banking Why do you bank where you do? Reasons: handout

58. www.theccfl.ca A division of Introduction to Banking How many people have a bank account? Why do you bank where you do?

59. www.theccfl.ca A division of Introduction to Banking The Canadian government insures the accounts in trust companies and most banks up to $100,000. The provincial governments insure the accounts in credit unions (from $100,000 to all the money).

60. www.theccfl.ca A division of Introduction to Banking There are also a variety of financial services available outside of banks and formal financial institutions. These services are often referred to as the Alternative Banking Sector.

61. www.theccfl.ca A division of Introduction to Banking If the bank has a problem and it closes, then you get your money back. Canadian branches of foreign banks and a few Canadian banks are not covered by Canadian government insurance. The bank must tell you if it is not covered by government insurance.

62. www.theccfl.ca A division of The Alternative Financial Sector

63. www.theccfl.ca A division of Alternative Financial Sector What are some examples of Alternative Financial Services?

64. www.theccfl.ca A division of Cheque-Cashing Outlets Cash pay cheque or government cheque High interest plus a fee Examples….

65. www.theccfl.ca A division of Cheque-Deferral Services Cash advance on next paycheque Short term loan (2 weeks) Very high interest rate ( for example: 470%) Example…. $300 for two week loan= $54 interest

66. www.theccfl.ca A division of Rapid-Refund Tax Services Provides instant refund Could be 20% – 30% of your refund Example… Preparation Fees………………….$100 Electronic Filing Fee……………...$ 40 Refund Loan Charge……………..$ 125 Padded Loan Fees………………..$ 35 Cheque-Cashing Fee ………up to $200 Total…………………………………$500

67. www.theccfl.ca A division of Pawn Shops Charge high interest for loans based on value of an asset When you repay the loan plus the interest, you get your collateral back Dont pay back = Lose collateral Interest paid e.g. 264%

68. www.theccfl.ca A division of Pros and Cons of Banks and AFS Why do some people choose not to have a bank account? What are the PROS to having a bank account? Why are some people unbanked How can this negatively affect them?

69. www.theccfl.ca A division of What kind of Bank Account is for me? What is the feature you like best about your bank?

70. www.theccfl.ca A division of What Kind of Bank Account is for Me? Convenience Low fees ATM, phone, internet or in-branch Monthly transaction limit Cheques Statements or passbooks Interest Youth or Senior No fees for maintaining monthly balance

71. www.theccfl.ca A division of Other Banking Features Hold Direct Deposit Direct Payment Cheques Post dated cheque NSF (penalty fees) Blank cheque Certified cheque Stop payment

72. www.theccfl.ca A division of To open a bank account: Dont need to have a job Open an account at a bank, a trust company, or a credit union. Opening a Bank Account

73. www.theccfl.ca A division of You will need 2 pieces of identification Drivers license issued in Canada Canadian passport Certificate of Canadian Citizenship Certification of Naturalization Permanent Resident card Citizenship and Immigration Canada Form IMM 1000 or IMM 1442 Birth certificate issued in Canada Social Insurance Number Old Age Security card Certificate of Indian Status Provincial health insurance card handout

74. www.theccfl.ca A division of Reasons Why a Person May Be Declined a Bank Account… Possible illegal or fraudulent purposes History of illegal or fraudulent financial activity in past 7 years Believes you made false statements Believes employees would be subjected to harm Refuse to consent to bank verifying identification

75. www.theccfl.ca A division of Banking Tips! Things to think about… handout

76. www.theccfl.ca A division of What are the PROS and CONS of internet banking? Internet Banking

77. www.theccfl.ca A division of Sending Money Abroad How do you send money abroad?

78. www.theccfl.ca A division of Goal Setting Set goals to apply what you learned today. Remember, goals should be SMART Specific Measurable Achievable Realistic Timeframe Attached

79. www.theccfl.ca A division of Educated Consumer

80. www.theccfl.ca A division of Consumerism - Module 5 Introduction Sales Techniques Frauds and Scams How to Handle a Consumer Problem Goal setting and Resources

81. www.theccfl.ca A division of Educated Consumer Can you find an ad that has made you want to buy a product? Handout Flyers/Activity

82. www.theccfl.ca A division of Surrounded by Messages

83. www.theccfl.ca A division of Surrounded by Messages

84. www.theccfl.ca A division of

85. www.theccfl.ca A division of

86. www.theccfl.ca A division of

87. www.theccfl.ca A division of

88. www.theccfl.ca A division of

89. www.theccfl.ca A division of Recognizing The Tricks of the Trade 1.What promises are they making? 2.Is the advertising misleading at all? 3.Would you buy the previous advertised item based on the information provided? Activity-Flyers

90. www.theccfl.ca A division of Sales Techniques What is the difference between advertising and a sales technique? Handout

91. www.theccfl.ca A division of Sales Techniques Guarantees Scarcity Contrast & Compare Scientific/Numerical Claims Negative option

92. www.theccfl.ca A division of Frauds& Scams What are some common types of FRAUD? handout

93. www.theccfl.ca A division of How to Handle a Consumer Problem If you get ripped off or scammed… What should or can you do? Where can you go for help? handout

94. www.theccfl.ca A division of Goal Setting As a consumer, is there something you can do to make better choices? Is there a situation you would like to resolve using some of the smart consumer strategies? Write it down! Handout activity

95. www.theccfl.ca A division of Goal Setting Goals should be SMART Specific Measurable Achievable Realistic Timeframe Attached

96. www.theccfl.ca A division of CREDIT & CREDIT CARDS

97. www.theccfl.ca A division of Credit/Credit Cards – Module 6 Credit 101: Types of Credit Good & Bad things about credit Consequences of Misuse Interest Rates How much can you afford? Credit cards Goal setting and Resources

98. www.theccfl.ca A division of Types of Credit/Debt Credit cards Charge accounts Consumer loans Mortgage loans Business loans Installment buying

99. www.theccfl.ca A division of Sources of Credit Family and friends Financial institutions Mortgage and loan companies Retailers Yourself Credit unions

100. www.theccfl.ca A division of Building Credit History In small groups discuss: How can someone build a credit history? Handout/activity

101. www.theccfl.ca A division of The Good Things about Credit… Handout/activity

102. www.theccfl.ca A division of The Bad Things about Credit… Handout/activity

103. www.theccfl.ca A division of Credit How can credit use turn ugly or get out of control etc? How do you know when you are in over your head?

104. www.theccfl.ca A division of Before… and AFTER!

105. www.theccfl.ca A division of over your head… Collection agencies Repossession of Goods Garnishment of Wages Bankruptcy

106. www.theccfl.ca A division of Bad Credit Rating Negative credit rating at the credit bureau will affect your ability to be approved for the following: – credit card – personal loan – small business start-up loan – lease or rent to own a product – buy a house/get a mortgage. – landlord can do a credit check and deny your residence. – can affect your chances of getting certain jobs if your prospective employer does a credit check.

107. www.theccfl.ca A division of Interest Rates - rate which is charged or paid for the use of money. -annual percentage of the principal (which is the amount of a debt on which interest is calculated). -calculated by dividing the amount of interest by the amount of principal.

108. www.theccfl.ca A division of Interest Rates For example, if a lender (such as a bank) charges a customer $90 in a year on a loan of $1000, 90 divided by 1000 =.09.09 x 100 = 9%

109. www.theccfl.ca A division of Before taking a loan…consider: make sure your debts and the interest you pay do not get out of control. Find out how much total interest you will pay How much will the item cost you over time once you add interest and fees and charges. Ask what the interest rate is.

110. www.theccfl.ca A division of What else affects the costs of credit? The amount of money you put down on a purchase affects how much money it costs you to borrow money

111. www.theccfl.ca A division of For Example: purchase a $3,000 car $1,200 as a down payment borrow $1,800 ( pay interest on the $1,800). The cost to repay the loan will be $1,800 plus the cost of credit. The higher your down payment, the less you will need to borrow and the less your total cost will be.

112. www.theccfl.ca A division of Tips For Smart Credit Use Once you get credit, you still need to think about how to best make it work for you. Consider credit a tool to help you reach your goals. Here are some tips around credit use:

113. www.theccfl.ca A division of Credit Cards Watch impulse buying. Compare price and value Dont use too many credit cards. Keep track of all credit card purchases Pay off your credit card balance in full every month.

114. www.theccfl.ca A division of Loans/Lines of Credit Pay attention to loan prices Make large down payment Be careful of co-signing or guaranteeing a loan on behalf of others.

115. www.theccfl.ca A division of SHOPPING FOR A CREDIT CARD What are the key considerations you should look for when shopping for a credit card? Handout/activity

116. www.theccfl.ca A division of Tips - Credit Card Dos and Donts Shop around Look at various sources, such as banks, credit unions, retailers Read the contract carefully; understand the terms and the fine print Dont rush into signing anything Once signed, get a copy of the contract and keep for your records

117. www.theccfl.ca A division of Tips - Credit Card Dos and Donts Know the penalties for missed payments Figure out the total price when paying with credit Make the largest payments you comfortably can Buy on installment credit only after evaluating all other possibilities Dont be misled into thinking small payments will be easy

118. www.theccfl.ca A division of

119. www.theccfl.ca A division of Goal Setting Goals should be SMART Specific Measurable Achievable Realistic Timeframe Attached

120. www.theccfl.ca A division of Debt & Financial Woes

121. www.theccfl.ca A division of Debt/Financial Woes - Module 7 Warning signs of trouble Activity: Turn it Around/Get out of Debt Dos and Donts: Debt Strategies Dealing with Creditors Collection Agencies Goal setting and Resources

122. www.theccfl.ca A division of Warning Signs of Trouble Who knows exactly how much money they owe?

123. www.theccfl.ca A division of Turn it Around: Paired Activity In pairs or groups, make a list of things that you can do to improve your financial situation………not personal stuff please! As a large group, share answers and creative ideas

124. www.theccfl.ca A division of Dos and Donts: Smart Debt Strategies Do take steps towards improvement Dont feel you are alone – get help Do focus on spending less, saving more Dont let others make you feel bad Do focus on what you can do to improve Do pay attention to your spending habits Do keep a money journal Do spend 10 minutes per day reviewing finances

125. www.theccfl.ca A division of Dos and Donts: Smart Debt Strategies Do contact your creditors if you will miss a payment – be proactive Do be honest with creditors Dont borrow anymore money Do consider a consolidation loan Do consider a second job Do consider cashing in some investments or savings to cover high debt More……..

126. www.theccfl.ca A division of Tips for Dealing with Creditors On the Phone: Talk to someone in charge supervisor/manager Keep accurate record of the person you talked with, company name, date, time, phone number, and what was said and how it was said. Keep in touch with the person you talk with until the problem is solved.

127. www.theccfl.ca A division of Tips for Dealing with Creditors On the Phone: Avoid making promises you cant keep. An agreement over the phone is not a legitimate contract. Put it in writing! Keep your temper and be polite. Ask for your creditors help, rather than telling them what to do.

128. www.theccfl.ca A division of Tips for Dealing with Creditors By Mail: Write a letter outlining any of the following: – Your reason for the letter.. – Your employment status.. – Your intentions on the debt.. – Your reduced repayment terms.. – Your request for interest relief.. – Your offer on a settlement amount.. – Your condition as to why you cannot make payment.. – Your request for the termination of the debt (e.g. medical reasons) – Your request for the creditor to pull the account back from collections

129. www.theccfl.ca A division of Tips for Dealing with Creditors By Mail: Never mail cash Keep a receipt/copy of all your cheques/money orders/letters. Photocopy what income you are receiving (pay stub/slip) Create a monthly expense sheet (to be included in the package to creditors)

130. www.theccfl.ca A division of Collection Agencies- Know Your Rights What are your rights when dealing with Collection Agencies and what do they have the right to do? Handout/activity

131. www.theccfl.ca A division of Tips for dealing with Collection Agencies Remember: Dealing with your debt may reduce your stress! This is good for BOTH your personal and financial health!!!

132. www.theccfl.ca A division of Goal Setting Goals should be SMART Specific Measurable Achievable Realistic Timeframe Attached

133. www.theccfl.ca A division of Exploring Credit Bureaus, Ratings, Scores and Reports

134. www.theccfl.ca A division of Credit Report / Credit Rating- Module 8 The Credit Bureau Credit Ratings Credit Score Your Credit Report – How to get it; what it means Common errors and how to resolve them Goal Setting and resources

135. www.theccfl.ca A division of The Credit Bureau Houses and collects the information about an individual Collects activity or transactions and translates them into a personal score, called a credit score A lender may look at this score before considering extending someone credit

136. www.theccfl.ca A division of The Credit Bureau The transactions and information collected by the Credit Bureau is recorded on a credit report This report also evaluates the details of your credit transactions and gives you a credit rating (R0 to R9)

137. www.theccfl.ca A division of The Credit Bureau Provides a credit profile of consumers based on their repayment record of outstanding debts Monitors information provided by credit card and other lenders whether consumers repay loans regularly and on time Provides information to lenders to make decisions on loans

138. www.theccfl.ca A division of The Credit Bureau In Canada, there are two major credit bureaus: Equifax Canada TransUnion Canada

139. www.theccfl.ca A division of Credit Bureau Facts They are private, not public institutions Errors do happen Obtain a copy of your credit report from both credit agencies Suggested that you check the report once a year and ensure accuracy Credit history is used to predict how you might manage credit in the future Responsible credit practices over time can improve a poor credit history After disputing an inaccuracy, you have the right to make a personal statement and have it included in your credit report

140. www.theccfl.ca A division of Credit Ratings If you were to purchase something from a store on a credit card not pay the charges on the card (or late) institution will notify the credit bureau credit bureau will record that information and make it available to other creditors that contact the bureau.

141. www.theccfl.ca A division of Credit Rating R0-Too new to rate: approved but not used R1-Pays within 30 days of billing, or pays as agreed R2-Pays in more than 30 days but less than 60 or one payment past due R3-Pays in more than 60 days but less than 90 or two payments pas R4-Pays in more than 90 days but less than 120 or three or more payments past due R5-Account is at least 120 days past due but is not yet rated R9 R6-No rating exists R7-Paid through a consolidation order, consumer proposal or credit counseling debt management program R8-Repossession R9-Bad debt or placed for collection or bankruptcy

142. www.theccfl.ca A division of Credit Ratings What are some benefits of having good credit rating? What happens if you have poor credit rating? Activity

143. www.theccfl.ca A division of Credit Score What is a credit score? What kind of information do you think is used to calculate your score?

144. www.theccfl.ca A division of Credit Score A calculation based on personal information from your credit report Scores range from 300 to 900 This score indicates how likely you are to pay your creditors Called FICO or Beacon Score

145. www.theccfl.ca A division of Calculating your Credit Score Payment history (35%) Amounts owed (30%) Length of time in file (15%) New credit (10%) Type of credit (10%)

146. www.theccfl.ca A division of Improve your Credit Score Pay all of your bills on time. Try not to run your balances up to your credit limit. Avoid applying for credit unless you really need a new account.

147. www.theccfl.ca A division of Your Credit Report Credit reports have 6 main sections: 1. Personal Identification 2. Inquiries 3. Public Record Information 4. Third-party Collection Agency 5. Trade Information 6. Consumer Statement

148. www.theccfl.ca A division of Your Credit Report Who can access my credit report? A company or individual may only obtain a copy of your credit report with your consent or after informing you that they will be reviewing your report.

149. www.theccfl.ca A division of Your Credit Report When you apply for a loan or credit card you are usually asked to complete and sign an application form. An application normally includes written consent giving permission to the credit grantor to check your credit report when you first apply and throughout the life of the account.

150. www.theccfl.ca A division of Common Errors The same account appears on your credit report more than once. Uninvited inquiries. Items that should no longer be listed Inquiries older than 2 years should be removed Delinquencies, garnishees, repossessions, court orders, unpaid child support stay on your credit report for 7 years. Bankruptcy stays on your report for 6 - 10 years depending on the credit bureau. A second bankruptcy stays on for 14 years.

151. www.theccfl.ca A division of Correcting Errors Copy your credit report Highlight the error Write a letter of dispute that includes an explanation of the error Locate and copy any additional information that can help establish that the item is an error Send the highlighted copy of your credit report, the dispute letter and the copy of additional information to the credit bureau. If you are correct, the credit bureau will remove the error. If the creditor does not believe there is a mistake you will need to address the issue with the creditor BE SURE TO FOLLOW UP WITH THE CREDIT BUREAU.

152. www.theccfl.ca A division of Tips to Build Good Credit Record Pay your bills promptly, especially credit cards Borrow only what you need and what you can afford Try to pay off loans on time and as quickly as possible Get reference letters from landlords and creditors and add them to your file. Make sure incorrect information is removed quickly If you are having difficulty paying a bill, contact the creditor immediately.

153. www.theccfl.ca A division of Tips to Build Good Credit Record If you are ill or disabled, find out if you have insurance on the loan or credit card that will make the payments when you cant. Establish a steady work record Open a chequeing account and dont bounce cheques Open a savings account and make regular deposits Apply for a local store credit card and make regular monthly payments. Apply for a small loan using your savings account as collateral. Get a co-signer on a loan and pay back the loan as agreed.

154. www.theccfl.ca A division of Goal Setting Goals should be SMART Specific Measurable Achievable Realistic Timeframe Attached

155. www.theccfl.ca A division of Investing Basics

156. www.theccfl.ca A division of Investing Basics – Module 9 BASIC overview Topics: -Stocks, Bonds, TFSA -Mutual Funds -RRSPs, RESPs Tips to Avoiding Investment Fraud Goal Setting and Resources

157. www.theccfl.ca A division of Investing Basics How do you grow your money? 1.You work for your money 2.Your money works for you -examples? Activity

158. www.theccfl.ca A division of Types of Investments Term Deposits GICs Bonds Mutual Funds Real Estate Stocks

159. www.theccfl.ca A division of Term Deposit Fixed amount of money, fixed amount of time, fixed amount of interest Very low risk, simple, no fees Higher interest rate than savings account but less than GIC. Locked in for fixed term (usually less than year) Penalty if cashed out early

160. www.theccfl.ca A division of Term Deposit Example: Conditions: 1 year Term, 0.15% interest Deposit: $1,000 How much will your money earn after one year? Activity

161. www.theccfl.ca A division of Term Deposit After one year, your money will earn you $1.50

162. www.theccfl.ca A division of GIC (Guaranteed Investment Certificate) Your original deposit (principle) is guaranteed Fixed amount of time, fixed amount of interest (or variable) Most common – Between 1 – 5 years Minimum deposit (e.g. $500 at most banks) Very low risk, no fees, simple. Higher interest rate than savings account or term deposit. Locked in for fixed term Penalty if cashed out early

163. www.theccfl.ca A division of GIC (Guaranteed Investment Certificate) Example: Conditions: 3 year Term, 2% interest Deposit $1000 How much will your money earn after 3 years? Activity

164. www.theccfl.ca A division of GIC (Guaranteed Investment Certificate) After 3 years, your money earned $20.00

165. www.theccfl.ca A division of Bonds Fixed amount of time, fixed amount of interest Some have floating interest rates and variable terms Buyer may purchase a bond at a discount or a premium. Buyer may redeem the bond at face value when matured Investing in bonds can be complicated. Many people use an advisor to help them.

166. www.theccfl.ca A division of Types of Bonds Government Corporate Canada Savings Bonds (Very Low Risk)

167. www.theccfl.ca A division of Mutual Funds A group of stocks or other investments picked and managed by a professional investor. Offers a wider range of investments than you would be able to buy on your own. Based on buying units of a fund. The price of your units will go up or down – not guaranteed Choose investments based on risk tolerance

168. www.theccfl.ca A division of Real Estate Ways to buy real estate 1. Buy a house, live in it, and sell it later at a profit. IF the market is good. (You can also lose money in real estate.) 2. Buy income property (such as an apartment house or a commercial building) and rent it. 3. Buy land and hold it until it rises in value. (Again, some risk if property value decreases.)

169. www.theccfl.ca A division of Stocks Stock represents ownership of a corporation. Company profits may be divided among shareholders in the form of dividends. Many investors buy and sell stocks through a stockbroker If the market value goes up, gain can be considerable. If market value goes down, loss can be considerable. Selecting and managing stock often requires study and the help of a good brokerage firm.

170. www.theccfl.ca A division of Making Money Now you know WHAT investments you can buy… WHERE can you put your investments?

171. www.theccfl.ca A division of Where can you put your Investments? Some places where you can put your investments to grow for you: Non Registered RRSP – Registered Retirement Savings Plan RESP – Registered Education Savings Plan TFSA – Tax Free Savings Account

172. www.theccfl.ca A division of Non RegisteredRRSPRESPTFSA Save for AnythingRetirement, FTHB, LLLPEducation onlySave for Anything Fairly LiquidNot so Liquid Fairly Liquid Short, Mid, Long TermMid and Long TermMid TermShort, Mid, Long Term Tax deduction Contribution limit $ government match Contribution limit $5000 Grows tax advantage, only taxed on portions that are sold Grows Tax Free Taxation based on Gains only: Depends on type of investment (Interest, or Capital Gains) Taxation: Every penny is taxed at Marginal Tax Rate Taxation: Child is taxed on the interest earned and grant money at their MTR when they use it for Education Taxation: No Tax Handout

173. www.theccfl.ca A division of Scenarios Single mother of 1 child Makes $55,000/year Taxed at 30% MTR Rents but would like to own a place one day Wants to pay less tax Save for childs education Have an emergency fund Activity

174. www.theccfl.ca A division of Scenarios 19 year old student Makes under $20,000/year Taxed at 20% MTR Wants to save for a car one day Can afford to save $200/m Activity

175. www.theccfl.ca A division of Scenarios Husband & Wife – no children Make $200,000 combined Taxed at 40% MTR Have their own home Dont have much saved for retirement Would like to pay less tax Have an emergency fund Activity

176. www.theccfl.ca A division of Canada Learning Bond Eligibility: must be receiving the National Child Benefit Supplement (usually for families with a net income less than $38,882) Child born in 2004 or after

177. www.theccfl.ca A division of Canada Learning Bond Heres how it works… You open an RESP Government deposits $500 into the RESP And $100 each year that family remains eligible until the child is 15 years old

178. www.theccfl.ca A division of Canada Education Savings Grant Every plan gets a 20% match… But depending on the net family income: 40% match if income is $38,832 or less on the first $500 saved each year 30% match if income is 38,832 - $77,664 on the first $500 saved each year.

179. www.theccfl.ca A division of Opening an RESP Any bank or credit union Group plan dealers Before you open an RESP you will need to: Have a birth certificate or PR card for your child Get a SIN # for your child Have your ID and SIN# for yourself Know what you need/want in an RESP

180. www.theccfl.ca A division of Educate yourself Learn the basics of investing for yourself Have a clear goal what you want your money to do for you Understand and manage your risks The more informed you are the better decisions you make

181. www.theccfl.ca A division of Investment Fraud Illegal pyramids, insider trading, and unlicensed investment brokers High-risk penny stocks and fraudulent opportunities. Internet services, 900-numbers, and high-tech investments promising high profits and minimal risk Opportunities to invest in movie deals and other entertainment ventures with promises of guaranteed profits and failure to disclose risk

182. www.theccfl.ca A division of Tips to Avoiding Investment Fraud Be informed – investigate and research! Talk with others who have made similar investments Obtain information from provincial and federal regulatory agencies Never buy over the phone Avoid to good to be true deals!

183. www.theccfl.ca A division of Warning Signs You hear about it from a stranger You cant check that the information is right or they wont give you the info in writing A promise that you can make lots of money fast with no risk Its a hot tip that you are not supposed to tell anybody about You feel pressured

184. www.theccfl.ca A division of Goal Setting Set goals to apply what you learned today. Remember, goals should be SMART Specific Measurable Achievable Realistic Timeframe Attached

185. www.theccfl.ca A division of Questions? CONTACT INFO:

186. www.theccfl.ca A division of Thank You!