2. Employment Standards Act:  All employees must be paid minimum wage  Exception: Training Wage ($6.00 for the first 500 hours work)  Employers must make deductions from an employees pay cheque on their behalf  Canada Pension Plan  Unemployment Insurance  Income Tax

3.  Most employers will pay either bi-weekly or bi- monthly  Bi-weekly = every two weeks (usually on a Friday) Usually done with jobs paid by the hour  Bi-monthly = twice a month (usually on the 15 th and the 30 th of each month) Usually done with salary positions  There is usually a cut-off date for getting paid  For most jobs, it is the Friday before you get paid – time worked after that Friday would be on your next pay cheque

4.  Gross vs. Net Income:  Gross Income = money earned before deductions Ex. You make $10/hour and you worked 30 hours in the last pay period: 10 x 35 = $350  Net Income = money earned after deductions (commonly called your “take-home pay”) -deductions depend on how much you make

5.  Canada Pension Plan – not deducted until you are 18 years old  Amount determined by how much money you make during each pay period Ex. If you make between $375.28 - $375.48, you would pay $15.25 on your pay cheque You pay half and your employer pays half – so you would actually pay $7.13  Can be paid out in the form of: Retirement benefit Disability benefit Survivor benefit  Maximum amount in Canada: $50,100 per person/per year

6.  Provides temporary financial assistance to unemployed Canadians who have lost their job through no fault of their own, while they look for work or upgrade their skills.  Sick, pregnant or those caring for a sick family member can also apply  Amount deducted is 1.8% of your gross income earned during that pay period  Ex. $350 x 1.8% = $6.30  There is no age limit for deducting unemployment insurance  Must be deducted during any employer-employee relationship

7.  Started during WWI as a way to pay for the war – temporary measure!  Payments by Canadians to the government to help cover the costs of a variety of services such as Education and Health Care  Two Types:  Federal Tax  Provincial/Territorial Tax

8.  Federal Tax Rates - depends on your salary  Set up so the those taxed the most are those who make the most amount of money 15% on the first $42,707 + 22% on the next $42,707 (up to $85,414) + 26% on the next $46,992 (up to $132,406) + 29% on any income over $132,406  Provincial Tax Rates – calculated much the same as Federal rates  5.06% on the first $37,013 +  7.7% on the next $37,015, +  10.5% on the next $10,965, +  12.29% on the next $18,212, +  14.7% on the amount over $103,205

9.  Every year, each working Canadian is required to file a tax return  Summary of their earnings  Helps the government ensure that each working individual in Canada has paid the appropriate amount of tax  When filing, many individuals can apply for a variety of tax benefits which give them access to rebates for money spent throughout the year  Ex. Child Care Tax Benefit, Child Fitness Tax Credit, Tradesperson’s Tax Credit

11.  Reality is expensive!!  Getting a part-time job while attending school is a great way to earn money to spend on extra items such as clothes and entertainment  Known as ‘disposable income’  Getting a job is also a great time to start thinking about saving your money

12.  Reasons To Save:  To have more ‘disposable income’  To buy a big item such as a new car  To pay for a monthly bills that you have agreed to such as a cell phone bill  To have emergency funds  To build funds to invest  When you’ve made the decision to start saving, you need to consider the best place to put your money  Want to “put your money to work for you”

13.  Want to earn more money by investing any amount in an account that will pay you interest  Two Types of Interest: 1. Simple Interest:  Interest that is paid only on the initial deposit 2. Compound Interest:  Interest that is paid on the initial deposit and on any future interest that is earned

14.  Simple Interest Ex. You invest $100 in an account that pays 5% simple interest $100 x 5% = $5 each year Year 1: $100 + $5 = $105.00 Year 2: $105 + $5 = $110.00 Year 3: $110 + $5 = $115.00  Compound Interest Ex. You invest $100 in an account that pays 5% compound interest Year 1: $100 x 5% = $105.00 Year 2: $105 x 5% = $5.25 (total = $110.25) Year 3: $110.25 x 5% = $5.51 (total = $115.76)

15. 1. Savings Accounts  Can be simple or compound interest  Usually have an interest rate of 3-5%  Be aware of withdrawal limitations and penalties 2. Guaranteed Investment Certificate (GIC)  Fixed deposit amount and fixed term  Interest rate can be fixed or variable (changes throughout the length of your investment)  Most are locked in or have limited withdrawals 3. Term Deposits  Fixed term – cannot remove money before the end of the term (aka ‘reaching maturity’)  Higher interest rate than a savings account

16. 4. Canada Savings Bond:  Only offered between end of October and the beginning of December each year  Backed by the Canadian government – interest rate is connected to the rates announced by the Canadian government each year  Can be withdrawn whenever but are worth the most when left for 10 years 5. Stock Market Investments (High-risk)  Use your savings to purchase stocks or shares in a company  Earn money by selling shares as their value increases  Extremely risky – can make big money or lose it all!

17. 6. RRSP – Registered Retirement Savings Plan  Can set up with your bank for any amount – even $10 is a great help in the long run  Can be locked in or accessible – better interest rate if you lock in (don’t touch it)  Based on your salary, you can use your contributions to your RRSP as a tax credit at the end of the year If you end up owing taxes, you can claim your RRSP and you’ll owe less 7. RESP – Registered Education Savings Plan  Often set up by parents to save for their children’s education  Gives them access to possible scholarships, grants and bursaries offered by the government (free money!)