1. Adapted from Financial Consumer Agency of Canada’s Financial Basics workshop presentation Savings & Credit Street Smarts

2. Do I need to save money when I’m just starting out? If so, with a modest income, how do I do it? When is it okay to use credit or take out a loan?

3. OBLIGATIONS WANTS EMERGENCIES DREAMS NEEDS DEBTS OBLIGATIONS WANTS EMERGENCIES DREAMS PLANS DEBTS Is it important to save money when I’m just starting out?

4. Baby steps! It takes time to saving money Make it both necessary and fun! Make your savings goals specific! Set a dollar amount and deadline. Break your goal into smaller goals. But How Do I Save?

5. Q: Strong or weak saving goal? Save for a vacation and start an emergency fund A: Weak!

6. Q: Worse or better saving goal? Save $250 for a summer camping trip and build an emergency fund of $500. A: Better!

7. Q: Worse, better or best? Over the next 10 months (Sept to June), save $75 each month so that I’ll have $500 in my emergency fund and $250 for a summer camping trip. A: Best--The goal is broken into baby steps with a specific amount & timeline

8. Write a savings goal for yourself that is: Amount specific Time specific Realistic & fun! Your Turn

9. Ways to save: Looking back Have you fallen victim to the “latte factor”?

10. Review the amount spent on communications Review credit card and banking fees Consider homemade lunches and beverages vs. purchased. These expenses can add up over the course of a year. Ways to save: Little expenses can add up!

11.  We need furniture, but does it have to be new furniture?  We need to get to work, but, do we need to drive rather than walk, cycle, use public transit or car pool?  We might NEED to spend time socializing with our friends, but, does it need to be at a restaurant or nightclub? Ways to save: the blurred line between needs & wants

12. Limit or avoid trips to stores/shopping malls & online buying sites. Sleep on it and see if you still want the item in question the next day. Leave credit cards at home & only carry the cash you are willing to spend. If you choose to have a credit card, take the minimum credit limit. Ways to save: avoid impulse buying

13.  Will this purchase make my life easier? Happier? More complicated? More costly?  If this is a want, how will it bring me happiness: in the long-term? Short-term?  Can I live without it?  Is there a cheaper, comparable alternative? Ways to save: ask yourself questions before buying

14. How might you save for your goal? My Goal (time/amount specific, realistic and fun): CategoryBehaviour ChangeMonthly Savings ($) Food Transportation Cell phone/data plan Media/Recreation Clothing Grooming/cosmetics Other: Total savings per month ????

15. When is it okay to use credit or take out a loan?

16. Wise use of credit or a loan requires:  Having the means to repay on a regular basis, and,  Having the self-discipline to do so.

17.  Pay the balance in full each month.  Pay a few days before the due date.  Keep within your budget!  Be wary of “Rewards Programs” which exist to encourage you to use your credit card! How to stay out of trouble with credit cards:

18.  Switch to automatic/online bill payments.  Switch to less expensive credit cards.  If debt gets out of control, seek advice from someone you trust. How to stay out of trouble with credit cards:

19. Using credit cards out of convenience vs necessity. Using credit or cash advances for daily living expenses. Missing payments or due dates. Credit danger signals

20. Nearing the credit limit on your card(s). Borrowing from one card to pay another. Transferring balances every few months just before the introductory offer expires. Credit danger signals

21.  Bad credit rating = deemed credit risk by lenders.  Inability to get out of debt = declaring bankruptcy. CONSEQUENCES OF NOT USING CREDIT WISELY:

22.  Protect your personal information.  Account for all transactions that appear on your credit card statements.  Make sure websites are secure before transmitting personal information.  Practice computer smarts: protect passwords, maintain firewalls and spyware.  Destroy old documents that contain identity information.  Be skeptical: if an offer sounds too good to be true, it’s most likely a scam! Avoiding credit card fraud

23. Credit Card Street Smarts! Credit Card Selector Tool Which credit card is right for you? Credit Card Payment Calculator How much does it cost if you only pay the minimum on your credit card balance?