• Activity 1………………Saving vs. Investing• Activity 2……….….Saving for a Rainy Day• Activity 3……………………..1 + 1 = Saving• Activity 4…..Investing for the Long Term

Money Management - Activity 1

ACTIVITY 1

Saving vs. Investing

Overview

• Saving vs. investing• Information on a paycheque• Making a financial plan• Budgeting

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Slide 1 - Do You Save? Do You Invest?

Lesson Reference: Money Management, Activity 1 – Overhead 1

DO YOU SAVE?

DO YOU INVEST?

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Slide 2 - Saving vs. Investing Lesson Reference: Money Management, Activity 1 – Overhead 2

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.

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TAKE A GOOD LOOK AT A PAYCHEQUE

Slide 3 – Paycheque Lesson Reference: Money Management, Activity 1 – Handout 1 5

Slide 4 – Making a Successful Financial Plan Lesson Reference: Money Management, Activity 1 – Handout 2

MAKING A SUCCESSFUL FINANCIAL PLAN

1. Start as early as possible.

2. Set goals.

3. Include both short- and long-term strategies.

4. Support the plan with a practical, working budget.

5. Review the plan on a regular schedule.

6. Do your homework while working on your plan.

7. Put the plan in writing.6

Slide 5 - Financial Plan Assistance

Lesson Reference: Money Management, Activity 1 – Overhead 3

FINANCIAL PLAN ASSISTANCE

•Bankers

•Certified Financial Planners

•Schools and Courses

•Peer Groups and Investment Clubs

•The Media

•The Internet

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• Savings & Investments

• Fixed Expenses

• Periodic Fixed Expenses

• Variable Expenses

• Debts

BUILDING MYMONTHLY BUDGET

Slide 6 – Building my Monthly Budget

Lesson Reference: Money Management, Activity 1 – Handout 4 8

Money Management - Activity 2

ACTIVITY 2

Saving for a Rainy Day

Overview

• Reasons to save• Concerns and issues with saving• Where to save

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Slide 1 - Saving for a Rainy Day

Lesson Reference: Money Management, Activity 2 – Overhead 1

SAVING FOR A RAINY DAY

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Slide 2 - Reasons to Save Lesson Reference: Money Management, Activity 2 – Overhead 2

REASONS TO SAVE •Provide for unexpected emergencies.

•Purchase expensive items in the future.

•Ensure retirement.

•Plan for investment opportunities.

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Slide 3 – Concerns and Issues When Saving Lesson Reference: Money Management, Activity 2 – Handout 1

CONCERNS AND ISSUES

WHEN SAVING

• Safety

• Restrictions

• Liquidity

• Earnings

• Taxes

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Slide 4 – Places to Save Lesson Reference: Money Management, Activity 2 – Handout 2

PLACES TO SAVE

• Savings Accounts

• Money Market Accounts

• Guaranteed Investment Certificates

• Registered Savings Accounts

• Savings Bonds

• Insurance

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Slide 5 - Looking at Places to Save

Lesson Reference: Money Management, Activity 2 – Overhead 3

LOOKING AT PLACES TO SAVEOn a scale of 1 to 5 (with 1 being low and 5 being high),

rate the following places to save your money.

Based on the above ratings, where would you save your money? Why?

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Money Management - Activity 3

ACTIVITY 3

1 + 1 = Saving

Overview

• Types of interest• The impact of saving• Savings regulations

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Slide 1 - Types of Interest

Lesson Reference: Money Management, Activity 3 – Overhead 1

TYPES OFINTEREST

Which type of return on

your money would you

prefer?

What’s the difference?

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Slide 2 – Returns on Savings Lesson Reference: Money Management, Activity 3 – Handout 2

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.

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Slide 3 - Savings Regulations

Lesson Reference: Money Management, Activity 3 – Overhead 2

SAVINGS REGULATIONSFederal Government InsuranceCDIC (Canada Deposit Insurance Corporation): Deposits are potentially insured up to $100,000.

Provincial Government InsuranceStabilization funds or deposit insurance programs for Credit Unions and Caisse Populaires (vary by province)

Disclosure provisions in Bank ActFinancial institutions must disclose the following information about their consumer savings accounts:• Fees on accounts• Interest rate• General terms and conditionsDefines the year as 365 days for purposes of determining the annual percentage rate of interest.18

Money Management - Activity 4

ACTIVITY 4

Investing for the Long Term

Overview

• Historical Performance of the S&P/TSX• Reasons to Invest• Investing Considerations

Investment ConcernsPlaces to Invest

• Online Money Management

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Slide 1 - Savings vs. Investing Lesson Reference: Money Management, Activity 4 – Overhead 1

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.

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Slide 2 - Saving vs. Investing, Historically

Lesson Reference: Money Management, Activity 4 – Overhead 2

SAVING VS. INVESTING, HISTORICALLY

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Slide 3 - Places to Invest Lesson Reference: Money Management, Activity 4 – Overhead 3

PLACES TO INVEST

• Stocks

• Bonds

• Mutual Funds

• Retirement Plans/RRSPs

• Real Estate

• Collectibles/Valuables

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QUESTIONS TO ASK BEFORE MAKING AN INVESTMENT

1. How safe is the investment?

2. What types of returns can I expect?

3. What kind of risk is involved?

4. 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?

5. Are my investments in a variety of places to spread my risks (diversification)?

Slide 4 – Questions to Ask Lesson Reference: Money Management, Activity 4 – Handout 2 23

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 emails with unsolicited offers that sound too good to be true.

• Do not open emails that pretend to come from a financial institution and ask you to reset your password. Slide 5 – Internet Privacy & Security

Lesson Reference: Money Management, Activity 4 – Overhead 4 24