1. Activity 1………………Saving vs. Investing
Activity 2……….….Saving for a Rainy Day
Activity 3…………………… = Saving
Activity 4…..Investing for the Long Term
These slides are derived from the Citi Financial Education Curriculum.
For additional background and information, you may find the complete set of lessons at
It is advised that you complete the following steps before you present any activity:
Review the Facilitator’s Guide of the Citi Financial Education Curriculum, which can be found on its CD-ROM or at
For information regarding online facilitator training, please contact
3. Review the materials thoroughly and be prepared with copies of the presentation or from the lesson. Determine for yourself whether or not you are truly comfortable presenting any activity. If you are not, you should ask for assistance, team teach with a colleague who is comfortable with the material, or teach a different lesson.
4. Each of the activities in this presentation may take up to minutes.

2. Money Management - Activity 1
Saving vs. Investing
Overview
Saving vs. investing
Information on a paycheque
Making a financial plan
Budgeting
Presentation opening
• Welcome the participants.
• Introduce yourself briefly.
• If this is the first meeting with the class or group, do a brief round of
introductions by everyone.
• When introducing yourself, print your name where the participants
can see and refer to it during the session. For whatever reason, some
people may be a little nervous and may not remember your name.
Just as you want to use their names, encourage them to call you by
your name.
Review the topics for discussion in this activity:
• Saving vs. Investing
• The Items on a Paycheque
• Making a Financial Plan
• Budgeting 2
Money Management - Activity 1

3. DO YOU SAVE? DO YOU INVEST?
Use “Slide 1: Do You Save? Do You Invest?” to ask for a show of hands of those individuals who save and then those who invest.
• Record the number of responses.
• Explain that individuals can raise their hands for both categories.
• Save the slide to use in closing the activity. 3
Slide 1 - Do You Save? Do You Invest? Lesson Reference: Money Management, Activity 1 – Overhead 1

4. SAVING VS. INVESTING Saving Short-term. Postpones spending.
Has safety precautions.
Investing
Long-term.
Exchanges money for something with the future expectation of receiving a profit.
Has risk factors.
Ask a volunteer to define the term “saving.” Accept several responses.
Then ask a volunteer to define the term “investing.”
Use “Slide 2: Saving vs. Investing” to reinforce the difference between the two financial terms. 4
Slide 2 - Saving vs. Investing Lesson Reference: Money Management, Activity 1 – Overhead 2

5. TAKE A GOOD LOOK AT A PAYCHEQUE
Consider providing copies of this handout, which can be found in the Citi Financial Education Curriculum:
“Money Management”, p. 21.
Display “Slide 3: Take a Good Look at a Paycheque" to illustrate the
format, information, and codes found on a typical paycheck.
• Point out the payee name.
• Review the deductions for Canada Pension Plan (CPP), Employment Insurance (EI), company pension plan, income tax, and other taxes.
• Point out the bank routing number and account number.
Discuss why a pay stub is a valuable reference for preparing taxes, making financial decisions, and record keeping.
Emphasize that many employers rely on direct deposits and it is therefore important to establish a bank account into which your pay can be deposited. Further, direct deposits offer several benefits:
• The funds from your pay are available at the bank on the date of your pay stub. You do not have to go to a bank or cheque-cashing business to get your pay.
• Your funds can be withdrawn from an ABM or at the bank, and they can also be used to pay bills over the Internet.
Remind the students that for every opportunity (e.g., the convenience of direct deposit, online bill paying, ABMs), there is a responsibility (e.g., protecting privacy, avoiding fraud, preventing theft). Briefly discuss safety and privacy issues associated with paying bills and managing money on the Internet:
• Most bank websites are secure, but it is still important to protect your passwords. They give you — and anyone who might know them — access to your money.
• Change your passwords often and use different passwords for different accounts.
Discuss how electronic banking and online banking can be used to help track
spending and saving. Also, discuss when and how ABMs and the Internet can
be misused or promote careless spending. 5
Slide 3 – Paycheque Lesson Reference: Money Management, Activity 1 – Handout 1

6. MAKING A SUCCESSFUL FINANCIAL PLAN
Start as early as possible.
Set goals.
Include both short- and long-term strategies.
Support the plan with a practical, working budget.
Review the plan on a regular schedule.
Do your homework while working on your plan.
Put the plan in writing.
Introduce the concept of a financial plan. Explain that a financial plan is like a road map. When established and followed, it allows individuals to reach their short- and long-term financial goals. (Short-term goals would cover purchases such as a vacation, a DVD player, sporting equipment, or large clothing purchases like sturdy winter boots and a warm coat. Long-term goals would be set to cover more substantial items, such as a car, a home, or education.)
Ask for a show of hands of those who have a financial plan. Have participants keep their hands up while asking a second, related question: Of those who have a financial plan, how many have plans in written format?
Use the following questions to engage the participants in an informal discussion. The goal of the discussion is to build consensus on the critical ingredients of a financial plan. If none of the participants has a financial plan, adjust the questions to reflect this.
Questions for participants who have written plans:
1. How long have you had a written financial plan?
2. Did you have an informal, unwritten financial plan prior to the written plan?
3. What caused you to move from the unwritten to the written format?
4. What are the advantages of having a written financial plan?
Questions for all participants:
1. Should family members be included in the discussion about the financial plan? Why? Why not?
2. When should people develop their financial plans?
3. How often should a financial plan be reviewed and possibly revised?
4. Should a financial plan include both short-term (saving) and long-term (investing) strategies?
With these questions, participants should realize that financial plans are not established in one sitting, nor are they permanent. Congratulate participants on their participation in the discussion.
Display “Slide 4: Making a Successful Financial Plan” as a summary of the previous discussion. Encourage participation about the slide’s seven points.
• Encourage participants to make personal notes about the slide for later review.
• Check to see whether there are there additional points that the participants feel should be added to the list.
• As closure, emphasize that a financial plan is only as good as its active status.
• Stress the value of a working financial plan toward achieving a person’s short- and long-term goals in life. 6
Slide 4 – Making a Successful Financial Plan Lesson Reference: Money Management, Activity 1 – Handout 2

7. FINANCIAL PLAN ASSISTANCE
Bankers
Certified Financial Planners
Schools and Courses
Peer Groups and Investment Clubs
The Media
The Internet
Use “Slide 5: Financial Plan Assistance” to introduce the types of
financial planning resources available.
• Reinforce the slide’s contents by sharing with the participants the collection of resources gathered.
• Consider allowing participants to take the materials home for further study.
• Be sure to emphasize the need to always study any financial decision
before taking any action (i.e., “Look Before You Leap”). Make sure
participants know they should always make sure that a financial planner is certified, just as a stock broker should be licensed to sell investments. Plus, participants want to be sure they’re comfortable with the person they go to for assistance. 7
Slide 5 - Financial Plan Assistance Lesson Reference: Money Management, Activity 1 – Overhead 3

8. BUILDING MY MONTHLY BUDGET
Savings & Investments
Fixed Expenses
Periodic Fixed Expenses
Variable Expenses
Debts
Consider providing copies of this handout, which can be found in the Citi Financial Education Curriculum:
“Money Management”, pp
Next, share that a critical ingredient to any successful financial plan is a budget. To achieve their short-term and long-term goals and objectives, they need to understand their current spending patterns.
Display “Slide 6: Building my Monthly Budget” and distribute copies of the full budget handout to each participant.
• Explain that a working budget takes time to establish—more time than is available in the session. However, by reviewing what is involved is establishing a budget, each person will be able to go home, gather the necessary dollar figures, and complete a budget.
• Remind participants that it is okay to use estimates in their first budgets. Only with time and careful tracking of spending patterns can they have an accurate accounting of how they spend their income.
• Focusing on a monthly budget should help participants visualize their current spending.
Using the slide, walk through the categories and entries.
• Encourage discussion while reviewing the slide.
• Encourage participants to estimate what they spend on each area.
Encourage the participants to take time to develop a budget.
• Encourage those who do not have budgets to set aside time to develop budgets that will allow them to achieve their financial plan.
• Encourage those who do have a budget to review their existing budget and identify ways in which they can improve their budget, in order to achieve their financial plan.
Bring closure to the budget discussion by asking what relationship participants see between a financial plan and a budget.
• Responses may vary but should include that maintaining a budget allows individuals to track their spending. By doing so, individuals (or families) can reduce their expenses to avoid going over budget.
• Maintaining a budget also allows individuals to identify places to cut expenses in order to reach short-term and long-term goals. 8
Slide 6 – Building my Monthly Budget Lesson Reference: Money Management, Activity 1 – Handout 4

9. Money Management - Activity 2
Saving for a
Rainy Day
Overview
Reasons to save
Concerns and issues with saving
Where to save
Review slide. 9
Money Management - Activity 2

10. SAVING FOR A RAINY DAY
Use “Slide 1: Saving for a Rainy Day” to give an overview of the session topics. Review the circular flow of the three topics for discussion.
• Ask for a show of hands as to how many people have heard the saying, “Saving for a Rainy Day.”
• Ask if anyone can share the meaning of the quote with the group.
• Responses may vary, but should reflect that a person postpones spending so he or she will have something “for a rainy day”—when one might not be able to work or might have an unexpected cash need (for whatever reason).
• Ask participants if they are willing to share ways they have found to save some of their income.
• Encourage participation, but don’t pressure anyone. Stress that we can all learn from one another.
Ask each participant to note on a slip of paper two reasons why they save
some of their money (income).
• Allow a few minutes to complete the task.
• Ask participants to share their reasons.
• Record responses on a flipchart, blank transparency, or whiteboard. 10
Slide 1 - Saving for a Rainy Day Lesson Reference: Money Management, Activity 2 – Overhead 1

11. REASONS TO SAVE Provide for unexpected emergencies.
Purchase expensive items in the future.
Ensure retirement.
Plan for investment opportunities.
Use “Slide 2: Reasons to Save” to correlate individual participant
responses to slide items.
• Ask participants whether they can associate their individual reasons with the four categories in the list.
• Move around the group, and put tally marks on the slide to indicate the correlation.
• Discuss each of the categories, allowing participants to provide input. Pay special attention to categories that do not receive a tally mark. 11
Slide 2 - Reasons to Save Lesson Reference: Money Management, Activity 2 – Overhead 2

12. CONCERNS AND ISSUES WHEN SAVING
• Safety
• Restrictions
• Liquidity
• Earnings
• Taxes
Ask the participants what kinds of questions they ask themselves before they decide to save some of their money. Responses will vary but might reflect a lack of confidence in turning money (income) loose.
Use “Slide 3: Concerns and Issues When Saving” as the basis for a
group discussion.
• Ask participants to identify the concern that is most important to them.
• Record the responses, and make a general comparison about the most important and least important concern.
Safety: Having savings insured through government backing.
Restrictions: Limits placed on a saving option. May involve such things as making a large initial deposit or maintaining a minimum balance.
Liquidity: Being able to withdraw savings quickly with little or no cost.
Earnings: Receiving returns on saving options. Two examples are interest and dividends.
Taxes: Payments to the government based on the amount of interest income received. 12
Slide 3 – Concerns and Issues When Saving Lesson Reference: Money Management, Activity 2 – Handout 1

13. PLACES TO SAVE • Savings Accounts • Money Market Accounts
• Guaranteed Investment
Certificates
• Registered Savings Accounts
• Savings Bonds
• Insurance
Use “Slide 4: Places to Save” to review the six examples.
Savings Accounts
• May be protected by the CDIC (Canada Deposit Insurance Corporation), which insures up to $100,000 of all savings in Canadian banks from the government.
• Low rate of return.
• Easy access to money.
• Simplest way to save.
• May require a minimum balance to open or maintain the account.
Money Market Accounts
• May be protected by the CDIC.
• Type of savings account, usually called High Interest Savings or Enhanced Savings account, depending on the institution.
• Usually higher interest rates than regular savings accounts.
• Minimum balance requirements.
• Easy access to money through a limited number of cheques.
Guaranteed Investment Certificates (GICs)
• Timed deposits. (You choose the length of time to leave your money in the account.)
• Penalty if withdrawn prior to maturity date.
• Usually a higher rate of return than other forms of savings.
Registered Savings Accounts
• May be protected by the CDIC
• Deposits are tax-deductible and tax exempt until funds are withdrawn.
• Simplest way to save for a home, further education, or retirement, and claim a deduction on income tax.
Savings Bonds
• Government issued, but available through banks.
• Risk free; backed by the government.
• Nontransferable.
Insurance
• Provides protection against loss; policies available for health, life, auto, fire, theft, income, or credit card protection.
• Long-term policies may include a cash value or savings provision.
• Costs vary widely.
• Available through licensed insurance agents and other sellers. 13
Slide 4 – Places to Save Lesson Reference: Money Management, Activity 2 – Handout 2

14. LOOKING AT PLACES TO SAVE
On a scale of 1 to 5 (with 1 being low and 5 being high), rate the
following places to save your money.
Use “Slide 5: Looking at Places to Save” as a summary of the types of savings. Use the descriptions provided in “Slide 4: Places to Save” to help rate each place to save. Ratings will be subjective.
Encourage the participants to gather as much information as possible about
their various saving options before making any decisions.
Based on the above ratings, where would you save your money? Why? 14
Slide 5 - Looking at Places to Save Lesson Reference: Money Management, Activity 2 – Overhead 3

15. Money Management - Activity 3
1 + 1 = Saving
Overview
Types of interest
The impact of saving
Savings regulations
Review the topics for discussion in this activity:
Returns on Savings
• Interest
❂ Rule of 72
❂ Simple
❂ Compound
• Impact
❂ Interest Rates
Savings Regulation
• Federal Government Insurance
❂ CDIC
• Provincial Government Insurance
❂ Stabilization funds or deposit insurance programs for Credit Unions and
Caisse Populaires (vary by province)
• Disclosure provisions in Bank Act
Remind participants that most of the time the term “interest” means how much we have to pay someone else for the use of a good or service.
• For example, we borrow money from the bank, and we have to pay them interest for the privilege of having the money.
• If we buy a television set from an appliance store, we may agree to pay the store “interest” for the privilege of using the television set before it is paid for.
However, in today’s session, we want to switch and look at interest from our vantage point. If we put our money in a savings account or some other type of savings instrument, we are loaning our money to someone else, and for that, we expect to receive interest for the use of our money.
Note that interest is called dividends if you save your money at a credit union. 15
Money Management - Activity 3

16. TYPES OF INTEREST Which type of return on your money would you prefer?
What’s the difference?
Begin by sharing with participants The Rule of 72. This is a formula to use if
they ever wonder how long it will take to double a sum of money.
Rule of 72: Divide 72 by the expected interest rate to determine the number of years it will take for an amount of money to double.
Example: Assume you get 5% interest.
72 divided by 5 = 14.4 years
Use “Slide 1: Types of Interest” to introduce the two types of interest.
Remind the participants that financial institutions have varying ways of calculating interest rates (daily, monthly, etc.).
• Although banks are required to explain their interest calculation process, it is always best to ask the bank staff, in the beginning, how they calculate interest. The bank staff should be more than willing to illustrate what would happen to your money using their calculation system.
• Remind the participants that it is not only the interest rate that matters but also how the interest rate is calculated (daily, monthly, annually, or some other method). 16
Slide 1 - Types of Interest Lesson Reference: Money Management, Activity 3 – Overhead 1

17. IMPACT OF RETURNS ON SAVINGS
This chart shows what happens at several different rates to $100 in an account when no money is withdrawn and interest is compounded yearly.
Use “Slide 2: Impact of Returns on Savings.”
Stress that the key to any growth in savings is to treat it as special. One should not withdraw money from the account unless absolutely necessary. 17
Slide 2 – Returns on Savings Lesson Reference: Money Management, Activity 3 – Handout 2

18. SAVINGS REGULATIONS Federal Government Insurance
CDIC (Canada Deposit Insurance Corporation): Deposits are potentially insured up to $100,000.
Provincial Government Insurance
Stabilization funds or deposit insurance programs for Credit Unions and Caisse Populaires (vary by province)
Disclosure provisions in Bank Act
Financial institutions must disclose the following information about their consumer savings accounts:
Fees on accounts
Interest rate
General terms and conditions
Defines the year as 365 days for purposes of determining the annual percentage rate of interest.
Use “Slide 3: Savings Regulations” to explain various government
regulations that govern financial institutions and provide assurance that our
money will be managed with the utmost care.
If participants wonder why the year had to be defined as 365 days, you can let them know it was so all financial institutions would count the same number of days, including holidays. 18
Slide 3 - Savings Regulations Lesson Reference: Money Management, Activity 3 – Overhead 2

19. Money Management - Activity 4
Investing for the Long Term
Overview
Historical Performance of the S&P/TSX
• Reasons to Invest
• Investing Considerations
Investment Concerns
Places to Invest
• Online Money Management
Review the topics for discussion in this activity:
• The Historical Performance of the S&P/TSX
• Reasons to Invest
• Investing Considerations
❂ Investment Concerns
❂ Places to Invest
• Online Money Management 19
Money Management - Activity 4

20. SAVING vs. INVESTING SAVING Short-term. Postpones spending.
Has safety precautions.
INVESTING
Long-term.
Exchanges money for something with the future expectation of receiving a profit.
Has risk factors.
As a review, use “Slide 1: Saving vs. Investing” (shown in a previous activity) to distinguish between the two financial terms.
• Introduce the idea that although it is important for everyone to save a percentage of their income, many people really want to move to the next step—investing.
• Ask for a show of hands of participants who agree.
• Ask for reasons why they believe this. 20
Slide 1 - Savings vs. Investing Lesson Reference: Money Management, Activity 4 – Overhead 1

21. SAVING VS. INVESTING, HISTORICALLY
Display “Slide 2: Saving vs. Investing, Historically.” Have students study the slide and then share their reactions to the data on it.
Review the major concepts illustrated by the graph:
• Over time, stocks show a higher return than money market or savings.
• However, the return on stocks is NOT guaranteed; some stocks rise in
value over and over, while others lose their value completely.
• Investing is a useful tool for long-term needs when someone has
the time to allow the investment plan to produce positive results,
earnings, or profits.
Briefly discuss the concept of diversification. Most people need to have a
combination of savings and investments to meet their short- and long-term
financial goals. The exact amount of each and the balance among types are
up to each individual or family.
Emphasize that investing is not “betting” and growth or profits are not the
result of “luck.” Instead, the careful choice of savings, stocks, insurance,
annuities, and other financial instruments should be based on facts and
judged by reasonable expectations for growth or profit. It is strongly
encouraged that investors consult a licensed investment professional before
making an investment. 21
Slide 2 - Saving vs. Investing, Historically Lesson Reference: Money Management, Activity 4 – Overhead 2

22. Retirement Plans/RRSPs Real Estate Collectibles/Valuables
PLACES TO INVEST
Stocks
Bonds
Mutual Funds
Retirement Plans/RRSPs
Real Estate
Collectibles/Valuables
Use “Slide 3: Places to Invest” to establish baseline knowledge among participants about investments. Use the list on the slide to ask participants to talk about what they know about the various investments.
Stocks
• Ownership in a corporation.
• Individuals that hold shares of the corporation are shareholders.
• Returns from the shares are called dividends.
• Returns can be volatile, making this a more risky investment.
• Historically, returns are higher than other investment types.
• Should be used only for long-term goals.
Bonds
• Represent a loan, an IOU.
• Money loaned to the government or a business for a limited time, with established terms of repayment.
• Bonds can be corporate, provincial, or federal government.
• Returns are more stable than with stocks.
• Typically risks are less than with stocks.
Mutual Funds
• Professionally managed.
• Pool the money from many investors to purchase stocks, bonds, or other types of investments.
• Investors pay a fee for the professional service.
• Can sell or buy easily.
• Returns and risk depend on the types of investments in the mutual fund.
• The investments most funds purchase are usually diverse.
Retirement Plans
• Allow individuals to set aside part of their income for use when they no longer work.
• Includes a wide variety of options such as a company pension program, Registered Retirement Savings Plans, and others.
• Risk depends on the type of retirement plan and the type of investments held in the retirement plan.
Real Estate
• Homeownership is generally less volatile than stocks, but there is risk of loss.
• Provides protection against inflation.
• Not very liquid. Cannot access money quickly. Ease of selling depends on local market conditions.
Collectibles/Valuables
• Purchasing and selling is subject to availability and the desire of buyers and sellers.
• Includes such things as cars, antiques, sports memorabilia, and many others. 22
Slide 3 - Places to Invest Lesson Reference: Money Management, Activity 4 – Overhead 3

23. QUESTIONS TO ASK BEFORE
MAKING AN INVESTMENT
How safe is the investment?
What types of returns can I expect?
What kind of risk is involved?
Can I get my money back if I need it? How long will it take and how much will it cost to get it back quickly?
Are my investments in a variety of places to spread my risks (diversification)?
Use “Slide 4: Questions to Ask Before Making an Investment” for
group discussion.
• Stress the need to identify your investment goals first.
• Stress the need to study all investments carefully before making a
commitment. Never invest in something you do not understand.
• Match one’s investment goals to the appropriate type of investment. 23
Slide 4 – Questions to Ask Lesson Reference: Money Management, Activity 4 – Handout 2

24. INTERNET PRIVACY & SECURITY
Avoid passwords or screen names that are easy to guess.
Change passwords often.
Read privacy policies.
Check online accounts often. Report unfamiliar transactions.
Do not open s with unsolicited offers that sound too good to be true.
Do not open s that pretend to come from a financial institution and ask you to reset your password.
Briefly discuss the use of the Internet for managing savings and investments. Most banks and many investment firms have websites where users can immediately access their personal financial information, research savings and investment options, and even move their investments around.
Display “Slide 5: Internet Privacy & Security,” and review the privacy and security issues that apply to managing your money and investments online.
Wrap up this discussion by explaining that millions of people use the Internet on a daily basis and only a small percentage become victims of fraud or identity theft. It is important to be aware of potential problems so that you can avoid them or, in the rare case that they do occur, get help immediately.
Encourage participants to look for further savings and investment information from reliable sources, on the Internet and in the community. Banks and credit unions are good places to start researching savings and investment choices.
Thank everyone for their participation, and encourage them to return for
additional sessions. If such sessions are scheduled, you might provide a
“sneak preview” of any activity to come. 24
Slide 5 – Internet Privacy & Security Lesson Reference: Money Management, Activity 4 – Overhead 4