Being smart with your money

Banks: Owned by private corporations Government licensed Examples: royal bank, HSBC Credit Unions: Owned by members and account holders Similar services to banks Examples: coast capital, Envision financial MONEY, AND WHAT TO DO WITH IT:

Loan Companies: Where you go for a loan or mortgage Not used for day to day banking Examples: alpine credit, money mart Investment Companies: An institution that helps you decide how to invest your savings No day to day banking only investing Examples: Meridian trust

Trust companies: Like an investment company but manages money for companies, estates, wills and inheritances Examples: Olympia trusts, peoples trust Wealth Managements: Wealth= extra money Management-invest extra money to make more money High net worth individuals, small businesses. Examples: Goldman Sachs

Chequing: Used for day to day banking- paying bills, debit cards, ATM machine, deposits. Low fees Low interest Savings: Not to be used often High fees Higher interest then chequing

TFSA: Tax free saving account- Don’t have to pay tax on earned interest Harder to withdraw money- restrictions Must be 18+ years Debit Cards: Can pay bills, purchase items, withdraw cash, and transfer money. Be careful with ATM fee’s can be $ per transaction at a different banks atm. Can use debit card worldwide, but may have to pay exchange rates. advantages vs disadvantage?

AdvantagesDisadvantages Straight from accountMust keep track of purchases ConvenientWhat if you need cash? Safer then cashATM withdraw fees DEBIT CARDS

Talk to a partner and discuss what you think the benefits of online banking are versus the disadvantages ONLINE BANKING

AdvantagesDisadvantages 24/7 bankingNo personal interaction No line upsSecurity Instant banking/convenience Learning to use it Sometimes fasterDifficult transactions ONLINE BANKING

Passwords: identify theft and hacking make sure your password is not easy to guess (birthday, name, address, phone number) a good password has letters numbers characters some capital letters

Your assignment with a partner use the internet to search for a bank to choose. Compare three different banks and their chequing, savings, and TFSA accounts. Make a chart showing the three banks selected and the differences between charges, fees, interest rates, etc. Which bank will you choose for each of the accounts and why? Please hand in when done with both names on it. FINDING A BANK YOU LIKE

Take 2 mins to write down what you think a budget is and why you should have one. WHAT IS A BUDGET

Simply put, a budget is a itemized summary of income and expenses for a given period of time. BUDGET

phase 1: Assess your personal and financial situation (needs, values, life situation). phase 2: Set personal and financial goals. phase 3: Create a budget for fixed and variable expenses based on projected income. phase 4: Monitor current spending (saving, investing) patterns. phase 5: Compare your budget to what you have actually spent. phase 6: Review financial progress and revise budgeted amounts. CREATING A BUDGET:

Well-written personal and financial goals SHOULD: be realistic A student working part-time is not likely to be able to afford a new car every couple of years. be stated in specific, (I plan/want to…) measurable terms “To save $5,000 for a down payment to buy a house.” have a time frame “To pay off my credit card within the next 18 months.” state the action to be taken “To start an automatic deposit savings account with monthly withdrawals from my chequing account.” GOAL SETTING GUIDELINES

Think of one short term and one long term goal, that you would like to accomplishing. How will a budget reflect you working towards these goals. You will use these goals soon when making your own budget. So please be realistic. MAKING YOUR OWN GOALS

BUDGETS Fixed expenses: Bills you have to pay the same amount every month Variable expenses: Bills that can change every month Recurring expenses: Bills that happen over and over (but not necessarily every month)