1. Review Old Assignments – Friday! Printouts Keyanna Burgher Anti Bully Day Feedback Letter home Self Assessment

2. The TALK

3. Stats – Investor Education Fund Youth Financial Literacy Study 2012 http://www.getsmarteraboutmoney.ca/en/research/Our-research/Documents/infographic- 2012-financial-literacy-study.pdfhttp://www.getsmarteraboutmoney.ca/en/research/Our-research/Documents/infographic- 2012-financial-literacy-study.pdf Stats: –9 out of 10 have a financial product –7 out of 10 have a savings account as a primary financial product –½ have debit and 1/3 have a chequing account –2 out of 10 have RESP –3 out of 10 actively saving for post-secondary –Parents - financial information then banks and friends –High interest but relatively low levels of knowledge: buying a car, living costs after college, moving out, managing debt –¼ of students say their school taught them what they needed to know about finances

4. Psychographic Segments Conscientious Consumers –Traditional cautious, researching things before they buy them and looking for value for money, worry about finances and social issues, environmentally and socially responsible, even split Trendy Techies –Friends and advertisers both have a big effect on how this group buys, cutting edge, latest gadgets, buy things on a whim, “important to treat myself on a regular basis”, even slip – males edged out a bit higher Stylish Spenders –Loves to shop and style is important, clothing, mainly female

7. Money Management Unit 3 – Life Transitions

8. Outline for Money Management: Lifestyle choices and values Challenges, joys and problems of independent living Financial goals, lifestyle goals and financial planning Income, Expenses and Budgets Banking Savings and Investments Credit and Debit Insurance Income Tax Action Plan Research Project –Car (new vs old, all costs!!!!), Wedding, Dream House, Post Secondary

9. Assessment and Evaluation: Journals Assignments –Money Tracking and Banking –City Sheets –Savings –Income Tax –Insurance Guest Speaker: –INSURANCE –BANKER and/or INVESTOR –LOANS –I WISH I KNEW THEN WHAT I KNOW NOW Exam and Action Plan

10. Financial Planning The saying “Money can’t buy happiness is likely very true. It is also true that the lack of money can cause problems and limit your personal and career options. The world of money is one area where people, especially young people, often feel that they are not in control. They may at times even feel that they are out of control. You can an now to take control of your financial affairs. Perhaps you have already started to do so. Financial planning will help you to get the most from your spending, to save for the future and to avoid debt problems.

11. Decision Making Styles – Review Lifestyle – Is quite simply the way you live. You have a current lifestyle and you also have visions of a lifestyle that you aspire to live in the future. Lifestyle choices are influenced by a number of factors including: – Discussion: $500, lottery, extra $20, leisure time/cost, any job? Lifestyle choices reflect your VALUES!

12. Level A – Variety of lifestyle choices and clarify personal values to lifestyles Lifestyle Choices Organizer - groups of two (teacher selected) Time, Life Cycles – Affect Goals Lifestyle Possible challenges, joys and problems Clarifying Lifestyle Priorities –Reality Check How do you balance out your reality check? –Surplus or deficit –Is it easier to make more money or cut back on expenses –Priorities?

13. Needs, Wants, Priorities Why is it important to separate your needs and wants? What is an example of a need and want in your life? What do you want to know about managing your needs or wants in your own life? Shopping – group, put three on the board from each group – 2 minutes (bought recently) Needs: a necessity, something required, something essential for life Wants: a desire, something wished for, something non- essential

14. Go through SHOPPING LIST – Categorize –You will soon learn that needs and wants vary from person to person and from time to time 1-2-3 System –1- essential for healthy living (basic food, clothing,shelter) –2 – are not essential but important (bike, transit pass, entertainment, education, etc.) –3 – not essential and not important (popcorn at the movies, the new music, video games, etc.) Shopping List – Rank based on the 1-2-3 system –Cost and amount spent on non essential purchases – what else could you have done with the money (winners vs losers)

15. Point Out What students define as a need or want influences the lifestyle you may have and that influences how much money you’ll need. Because needs are essential, they are necessary expenses, but expenses for wants can be reduced or even eliminated. Distinguish needs from wants and to set priorities is an important skill that will help you start managing your money now and throughout your life. Use this skill immediately to start managing your money and plan their transition from secondary school.

16. Quick Quiz Handout Journal: #8 –Identify a need or want a recent purchase filled, and whether or not the purchase was necessary. –Discuss with your parents how they distinguish between needs and wants and how they set priorities. –Discuss with your parents how they learned about finances and if they believe their high school education helped prepare them or how the school could have helped more.

17. Examples – Needs vs Wants $2.50 coffee a day = $912.50 Pack of cigarettes a day $10 x 365 = $3650 Movies twice a month = $240 no food Tips on Saving Money - http://www.dumblittleman.com/2011/06/30-easy-ways- to-save-money-and-no-you.html http://www.dumblittleman.com/2011/06/30-easy-ways- to-save-money-and-no-you.html

18. Income, Expenses, Budgets Money Management

19. Budgeting The first step in managing your money is knowing where it’s coming in and where it’s going out – and making sure the “in” exceeds the “out” so you have enough for your needs, and can save and invest for your future. Budgets aren’t difficult! Budgeting doesn’t mean doing without. It’s just an organized way to manage your money. Step 1: NEED TO KNOW WHAT YOU MAKE Step 2: NEED TO KNOW WHAT YOU SPEND

20. Income What types of income do you have?

21. Types:  Allowances  Gifts  Wages  Tips  Occasional work  GST rebates  Bonuses  Social Assistancebusiness  Investmentsrentals  Grants and Scholarships Child Tax Benefit The Canada child tax benefit (CCTB) is a non-taxable amount paid monthly to help eligible families with the cost of raising children under 18 years of age. Universal Child Care Benefit The universal child care benefit (UCCB) is a taxable benefit paid monthly to help eligible families provide child care for their children under six years of age. Quebec

25. What do these words mean? $$$$$$$$$$$$$$$$$$$ YTD Income Gross income Net Income How much do you save for yourself? $$$$$$$$$$$$$$$$$$$ YTD means Year to Date- the amount of money you have made from January 1 st to the date of payment. Income money you receive from work, gifts, business, investments, etc. Gross income total income before any taxes or other costs are deducted Net income is the amount you actually get to deposit….after all deductions have been subtracted. ( Remember to pay yourself first Try to save at least 10% of your income!

26. Many paycheques are bi-weekly (every two weeks) or semi-monthly (twice a month), and other types of income may be monthly, quarterly, annual or irregular. You can convert income to a monthly amount using the following formulas: a) Semi-monthly income x 2 = monthly income b) Weekly income x 4.33 (or 52/12) = monthly income c) Bi-weekly income x 2.17 (or 26 / 12) = monthly income d) Quarterly income / 3 = monthly income e) Yearly income / 12 = monthly income Is everyone paid the same?

27. What deductions can I expect? Your pay statement must identify each deduction taken from your pay.

28. Your wages CAN ONLY be deducted for: Statutory requirements such as Income Tax, Canada Pension Plan, Employment Insurance, pension plans or union dues. Voluntary deductions such as Canada Savings Bonds, charitable contributions and social funds where the employee gives specific consent. Voluntary employee purchases. Deductions agreed to by a majority of employees for items such as group insurance or other employee benefits.

29. Income Tax a) A percentage of gross income sent to the Governments of Canada and the province or territory to pay for federal, provincial and territorial government services Income tax is not always deducted at source; e.g., if you do occasional or contract work that is not regular employment. If you have this kind of income, you still have to report it and pay tax on it.

30. 2012 Tax Rates Federal Tax RateProvincial Tax Rate 15% on the first $42,707 of taxable income, + 22% on the next $42,707 of taxable income (on the portion of taxable income over $42,707 up to $85,414), + 26% on the next $46,992 of taxable income (on the portion of taxable income over $85,414 up to $132,406), + 29% of taxable income over $132,406. Manitoba 10.8% on the first $31,000 of taxable income, + 12.75% on the next $36,000, + 17.4% on the amount over $67,000 Saskatchewan 11% on the first $42,065 of taxable income, + 13% on the next $78,120, + 15% on the amount over $120,185 Alberta 10% of taxable income

31. Employment Insurance b) A percentage of gross income paid by employees and employers to provide temporary payments if workers become unemployed Your employer remits this payment and adds to it by making a similar-sized contribution on your behalf. Self-employed people are generally ineligible to collect employment insurance and so do not have to contribute to it. YearRateMax. Annual EE Premium Max. Annual ER Premium 20121.83$839.97$1175.96

32. Canada Pension Plan c) A percentage of gross income paid by employees and employers to provide income when workers retire or become disabled In 2008, employees contributed 4.95% to a maximum of $2,049.30 per year. Your employer remits this payment and matches it, for a combined contribution to CPP of 9.9% of your income. (Self-employed people pay both the employee's and employer's share.)

33. Certain factors will make an employee exempt from Canada Pension Plan. Employees under 18 are exempt from paying CPP. However, once they turn 18, an employer must start deducting CPP the month after the employee turns 18. As with the employee contribution, the employer must also match the CPP contribution. On the other side, once an employee turns 70, and employer must stop deducting CPP the first month after the employee’s birthday. This means that the employer does not have to contribute as well. Once an employee applies for their CPP retirement pension, the employer must stop deducting CPP contributions the month before the employee receives their first payment. An employer may not be notified in time to stop the CPP deductions, therefore internal adjustments would have to be made. Employment insurance has its own set of rules. ALL working employees, regardless of age must contribute to the employment insurance Source: http://blog.peocanada.com/2009/10/cpp-and-ei-%E2%80%93- general-information-and-year-end-by-sonia-sgarbossa-grech/http://blog.peocanada.com/2009/10/cpp-and-ei-%E2%80%93- general-information-and-year-end-by-sonia-sgarbossa-grech/

34. Other deductions d)Deductions the employer makes under an agreement with the employee or the employee's union or other agent, including: – private pension plans – health insurance premiums – union dues and professional fees – food and clothing deductions – transfers to the employees' Registered Retirement Saving Plan – purchases of investments like bonds or shares – charitable donations

35. Are these deductions lost? These deductions are not lost, but pay for social and personal benefits: a) Social benefits such as employment insurance, public pensions, health, education and other benefits paid for by government b) Personal benefits such as private pension plans, union and similar membership dues, voluntary savings, etc.

36. Your wages CANNOT be deducted for: Actions taken by others. For example: - A customer leaves a bar or restaurant without paying their bill - A driver leaves the gas station without paying

37. Your wages CANNOT be deducted for: Mandatory Training Improper use of company equipment Breaking equipment (plates) Cash Shortages  However, if there are repeated errors, you could lose your draw. (Wilful destruction – garnish wages)  Responsibility  Respect

38. Other Government of Saskatchewan –Major changes to labour laws and standards in the near future! Overtime –After 8 hours a day or 40 hours a week (32 hours in a week with a public holiday), overtime is payable at a rate of 1.5 times your regular wage. Vacation Pay –Casual and part-time employees often receive their vacation pay on each paycheque. –How many annual holidays do employees get? a) Employees get a minimum of three weeks of annual holidays after each year of employment. b) Employees who complete 10 years of work with the same employer get a minimum of four weeks of annual holidays.

39. Stat Holidays –There are 10 public holidays per year: New Year’s Day, Family Day, Good Friday, Victoria Day, Canada Day, Saskatchewan Day, Labour Day, Thanksgiving Day, Remembrance Day and Christmas Day. –Excluded: teachers, sitters, immediate family, ranchers and farmers –Other special conditions depending on industry

40. Replacing lost income If your work income stops – for example, if you lose your job or can’t work for some other reason – you need other sources of income. Suggestions: –Employment Insurance –Insurance (mortgage, credit card, disability, workers compensation) –Savings –Property (rent or sell) –Loans Plan ahead—before a crisis hits—so you can handle the unexpected. Experts recommend putting aside at least three months’ worth of household expenses for an emergency fund. Know where you can turn for assistance if your income drops.

41. Expenses Know what you spend! HOW? –Keep every receipt –Smart phones/Record/Software –Bank and credit statements –Do this for at least three months –Illregular expenses (gifts, donations, car/home repairs, vacations) –Total expenses at the end of the month

42. Expenses and Spending Discretionary spending: Spending on wants rather than needs; includes items like restaurant meals, video games and concerts Impulse spending: Spending decisions that are made on the spur of the moment, as opposed to planned spending decisions Fixed expenses: Are expenses that’s don’t generally change from month to month, like rent, most utilities, transit passes and car payments. Variable expenses: Are expenses that can easily change, like the amount spent on food, entertainment or clothing. Irregular expenses: Expenses that don't come up regularly or often, like car repairs or new appliances. To estimate irregular expenses, review your bills or expense records for the previous year, total the cost of irregular expenses in various categories, and divide by 12 to arrive at an average monthly cost.

43. Cook at home Make your own coffee Make a list before shopping Go grocery shopping while you are in a hurry Pay attention to expiration dates to perishable goods Buy in bulk Buy generic Land lines or just cell Borrow books instead of buying or buy used Price check before buying anything Coupons Avoid impulse buying Movie Theatre deals (cheap night) Regulate electric us Plan vacations ahead of time Keep distance from lavish, high-roller friends Use grocery store bags to line trash cans / reuse them. Consolidate and pay off debt as soon as possible. Pay bills on time to avoid fees (automatic) Bank balance and avoid over draft fees Avoid ATM fees Avoid credit cards with annual fee Bottle your own water Avoid vending machines (markup) Keep your car as long as possible (balance b/w the money spent on repairs vs monthly payments – keep while repair costs are low) Avoid buying a new car Ride bike or carpool DVD – online memberships/libraries 30 Tips for Saving Money

44. EXTREME COUPONING http://tlc.howstuffworks.com/tv/extreme- couponing/videos/coupon-stockpiles-videos.htmhttp://tlc.howstuffworks.com/tv/extreme- couponing/videos/coupon-stockpiles-videos.htm http://www.ovguide.com/tv_season/extreme- couponing-season-1-219591http://www.ovguide.com/tv_season/extreme- couponing-season-1-219591

45. What is a budget? A budget is a written document or electronic file that helps you take control of your personal finances. It is an excellent money management tool that helps you achieve your financial goals. It is especially important if: –You find that money is tight –You don’t know where your money is going –You have problems paying off your debt –You don’t save regularly –You want to find ways to make your dollar stretch

46. Budgeting What does a budget include? –A budget compares expenses with income to show whether income will exceed expense (a surplus) or expenses) will exceed income (a deficit). Value of doing a budget? –Helps people keep their expenses lower than their income and live within their means. –Allows people to find out where they can reduce spending. –Allows people to plan accurately for their future. How do you get your budget in balance? Surplus – Deficit

47. The budgeting process? Phase 1 –Assess your personal and financial situation (needs, wants, 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

48. Action Plans Well-written personal and financial goals should be……SMART –Realistic Student wouldn’t be able to buy brand new car. –Specific: To save $15 000 for a down payment –Time Frame: Pay off credit card within the next 18 months –Action to be taken: To start an automatic deposit savings account with monthly withdrawals from my chequing account.

49. Till Debt Do Us Part Video – Till Debt Do Us Part –Sharon and Brad (Second Marriage, six kids, Season 8 Episode 100) –Dream House Disaster (Season 9 Episode 1) –Liz and Will (Engaged and spending, Season 8, Episode 95) –Julia and Guy (two teachers Season 8 Episode 92) JOURNAL 8 –Summary and Principle 15

50. Income Tax

51. Banking

52. Savings

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