Ainsley CunninghamEducation and Information CoordinatorApril 11, 2006

Agenda•Start when you are young

• You have money

• You have time

• Statistics

•Power of Compounding

•Set some goals• Use a budget

• Pay yourself first

• Reward yourself

Money Challenge Prize QuestionWould you rather have $10,000 or a penny a

day doubled for 30 days?

START WHEN YOU ARE YOUNG

Do you know how much money you have?

•Canadian Tweens (ages 9-14) spend $1.9 billion annually. (YTVmedia.com)

•Canadian teens (ages 13-19) spend $14 billion annually. (YTVmedia.com)

•Tweens influence $20 billion in household purchases annually. (YTVmedia.com)

•You spend your money on food, clothing and entertainment.

HOOK YOU WHEN YOU ARE YOUNG

Time is on your side

•To learn good habits

•To recover from market ups and downs

•To benefit from few financial obligations

•You have the money

START WHEN YOU ARE YOUNG

Some of the hard facts

•Divorce rates on the rise

•Debt is at an all time high

•Money matters affect every aspect of our lives

•Cost to achieve our dreams

Power of Compounding

Compound Interest

•Interest earned not only on your original investment, but on your accrued earnings as well.

Short Term Pain Long Term GainAge Invested Value19 $2000 $2,20020 $2000 $4,62021 $2000 $7,28222 $2000 $10,21023 $2000 $13,43124 $2000 $16,97425 $2000 $20,87226 $2000 $25,1592765 $1,035,161Total Invested $16,000!0% rate of return

Short Term Pain Long Term Gain

Age Investment Value

27 $2,000 $2200

35 $2,000 $29875

40 $2,000 $61545

45 $2,000 $112550

50 $2,000 $194694

55 $2,000 $326988

60 $2,000 $540049

65 $805,185

Total Invested $78,000!0% rate of return

SETTING GOALS

What is a goal?

•Short term – Spend (weekly)

•Medium term – Save (six months – one year)

•Long term – Invest (many years)

•Giving – Donate (giving to help others)

TOOLS TO REACH YOUR GOALS Budget

• A budget is like a road map. If you don’t know where you are going, how are you going to get there?

• Income (Earnings) – Expenses (bills) = Savings (thrills)

Pay yourself first

•Pretend you are a bill that comes due at the end of each month

•Saving $10 a week gives you $580

•Save loose change by:• Bring your lunch to school

• Take the bus, ride your bike or car pool

• Cut down on double lattes or number of movies you go to

• Borrow books from the library

TOOLS TO REACH YOUR GOALS

TOOLS TO REACH YOUR GOALS

Build in room for rewards

•Don’t quit spending all together.

•When you have reached your goal reward yourself

Key

•Identify your goals

•Set a plan

•Follow through

1

.01

2

.02

3

.04

4

.08

5

.16

6

.32

7

.64

8.

1.28

9

2.56

10

$5.12

11

$10.24

12

$20.48

13

$40.96

14

$81.92

15

$164

16

$328

17

$655

18

$1311

19

$2621

20

$5243

21

$10486

22

$20972

23

$41943

24

$83886

25

$167772

26

$335544

27

$671089

28

$1342177

29

$2684354

30

$5638709

31

?

$10737418

Play the Games•Review the four games

• The Thing That Ate my Paycheque

• Honey I Shrunk the Money

• Kids and Cash

• Future Fortune

•Prizes to be won

•Parental consent form