Download - Introducing…the NBSC
INTRODUCING…THE NBSC
Crown corporation Investor Protection Fostering Capital Markets
Education and Market Development Enforcement Regulatory Affairs General Counsel
SO WHAT DO WE KNOW ABOUT YOU?
You are the wealthiest generation of 16 – 24 year olds ever to exist.
You don’t realize the cost of your everyday life.
You’re highly educated You don’t have many siblings, so your social
lives (real or virtual) are very important You’re popular with big companies You have yet to form long-term
brand loyalties.
WHY SHOULD YOU CARE?
1. Credit cards2. Job market is changing3. Higher taxes4. Multiple Jobs5. Cost of energy6. Education costs
But despite that – you’re in the best place to take responsibility for your financial situation as it is right now, and keep making it better!
SET GOALS
Values drive almost every financial decision you make!
Values are what you consider to be the most important things in life. They are intangible.
Goals are accomplishments you work toward that fulfill your values.
Goals can be short term or long term.
Make them S.M.A.R.T.
SMART SPENDING
Double Check – “Do I need this or do I want this?”
Use cash – plastic tricks your brain!
Pack a lunch – I save $150 a month
Get a hobby
Don’t be stingy
Pay your bills on time
SAVE THE MONEY YOU DIDN’T KNOW YOU HAD!
How much should I save each month? 10% Adjust it with your income Build it into your budget Set challenges Pay off debt vs. saving
What are you saving for? Tuition? Rent? Personal spending?
SMART SAVING
Find free money: Scholarships, bursaries and grants
www.studentawards.com www.scholarshipscanada.com
Buy used text books Recycle binders/bookbags from last year
Food / Entertainment / Personal Items Don’t do groceries when you’re hungry Wait for sales to go shopping Don’t take the credit or debit card – just cash Buy CDs or rent movies online.
HOW TO MAKE A BUDGET
Gather pay stubs, bills, receipts, bank statements
Budgets are for saving too!
Ask yourself: How can I even out my income if it goes up and
down a lot? How can I spend less at times when my income
is lower? If I need to borrow money, how can I reduce
the cost of my debts?
WHY MOST BUDGETS DON’T WORK
We give up too quickly We expect too much We don’t adapt our budget We become:
A budget miser A half-way budgeteer A carved in stone budgeteer
HOW TO MAKE A BUDGET WORK
Think of it as a GPS for your financial life. Where the money comes from and where it goes.
Be honest and realistic
Allow for change
Give it a chance
STICK TO IT
HOW TO MAKE A BUDGET WORK
Start with how much you’re spending on:
Fixed Costs These are not flexible and you have to pay them
(tuition, student feeds, rent etc) Needs
These are things you have to buy, but what you pay for them is flexible (power bill, groceries, personal items)
Wants These can have the most impact on your budget.
These are things that you can live without so you can trim the costs or even eliminate them (entertainment, shopping, phones etc)
BUT I WANT IT NOW!Jennifer Megan Mark
iPad Cost: $650 $650 $650
How did they pay?
Paid balance right away
Paid $50/month
1 yr 3 months
Paid $78 interest
Chose to pay back by paying only monthly minimum payments of $10.
21 years
Paid $1827 interest
REAL cost $650 $728 $2,477
18% interest rate32gb iPad wifi about $650 with tax
BE CREDIT SMART
Always read and keep all paperwork Sign the card immediately Don’t lend your card to anyone Pay your monthly bill, in full. You’re the ideal customer – shop around!
No/Low annual fee Good grace period Low long-term interest rate Rewards programs
A few months of credit card abuse can lead to years of repayments
REMEMBER THE BASICS!
Set goals based on your values.
Distinguish between needs and wants.
Be a smart spender.
Create a realistic budget.
Saving money doesn’t mean going without.
Use credit wisely.