Economic Security Changes in job availability, cost of food and housing all affect people’s feeling of Economic Security We will be looking at the Canadian Economy, perspectives on wealth distribution, challenges of living in poverty, and how to achieve economic security

Canada’s Economy Today Based on goods & services being distributed through buying and selling. No limit to individual wealth This kind of economy is know as CAPITALISM

Socialism What’s best for the group is more important than individual freedom Production of goods & services is Gov’t run Everyone should get enough to meet their needs Co-operation is important for creating wealth & improving society

Capitalism Individual freedom is highly valued Production of goods & services is in the hands of individuals Meeting wants & needs depends on your wealth Competition is important to help create wealth & improve society

Business & Community Wealth Capital – The money (and other things) that have to be invested in a business to start it and keep it going. Profit – The money a business owner makes after being repaid for the investment and other expenses.

Business & Community Wealth Some people are employed by a large company, business, or government. Others see a need for a product or service and develop their own business. New businesses help to create wealth and economic security for individuals & the community Business closures can cause economic insecurity.

Understanding Poverty It is estimated that in 2002 one out five children in Canada lives with poverty. Standard of Living – How much buying power a family has with $$. (Food, home, clothes, entertainment, transportation)

Understanding Poverty Poverty – When a family has a lower standard of living than most in society. Also when a family cannot survive on the money they make and the cost of their basic needs is higher than income.

Understanding Poverty In some parts of the world living in poverty can lead to death. In Canada the government & communities help those living in poverty. Economic Security– When your income is greater than the cost of your basic needs. Extra income can either be spent on wants or used to build toward the future.

Why is there Poverty? No easy answer or there would be none. Business shutdown may lead to unemployment & not finding a new job could find you in the “Poverty Cycle”. Poverty Poor Health Can’t Work Poverty No Transportation Can’t get To Interviews

Building Personal Capital Personal Capital – Anything you have that can help improve your economic situation. (savings, property, skills, hard worker) Building personal capital can help to break the poverty cycle for those living in it.

Building Personal Capital Using your money wisely is important for building personal capital and breaking the poverty cycle. Buying products on sale leaves extra money to be saved and increase personal capital. Other options: work extra job, gain new skills,

Building Personal Capital Owning a home is usually a families largest capital investment. First a “down payment” is needed. (a portion of the cost of the home) The rest of the cost is borrowed from the bank and paid back over time. This is called a “mortgage”. Families will make payments each month on the mortgage increasing the amount of the home they own and increasing personal capital (can be sold or mortgaged again).

Breaking the Poverty Cycle Not easy but possible Get training or education to improve job skills. This costs $ so applying for scholarships (for good grades) and bursaries in high school can help Community working together can help break the poverty cycle. (Food banks, car share, community garden, apprenticeships, sharing wealth (takes societal/government change)