Facilitator’s Guidebook

Facilitator’s Guidebook Indigenous Financial Literacy Training: Journey to Empowerment

Version 2 | June 2021

Victoria Native Friendship Centre (VNFC)

Journey to Empowerment | 2

ACKNOWLEDGMENT Curriculum VERSION 2

June 2021

The Victoria Native Friendship Centre (VNFC), in partnership with Roundtable Consulting, developed Version 2 of Journey to Empowerment Indigenous Financial Literacy Curriculum.

This updated version includes edits allowing the curriculum to remain current by switching to the use of the term Indigenous rather than Aboriginal, editing posters and scenarios to reflect increases in minimum wage and expenses, as well as new facilitator notes to support online delivery.

The VNFC and Roundtable were part of the original curriculum development team, and we acknowledge our partners and all their hard work; the BC Association of Aboriginal Friendship Centres, Prince George Native Friendship Centre, and Arrive Consulting.

We will always be grateful to the TD Financial Literacy Grant Fund and Prosper Canada for their financial support in developing this curriculum, as well as the Canadian Centre for Financial Literacy and the Prince George Aboriginal Business and Community Development Centre for the use of their financial literacy materials and facilitator guidebooks.

Indigenous financial literacy helps to strengthen and heal individuals, families, and communities. We hold up our hands to the facilitators and frontline workers who seek to bring this knowledge to our Indigenous community members.

Thank you.

All my relations.

Project funding provided through the TD Financial Literacy Grant Fund


Table of Contents Introduction ............................................................................................................................. 5

A: How to Use This Facilitator’s Guidebook ................................................................................ 5

B: Worksop Facilitation ........................................................................................................... 6

C: Setting Up for Workshops ...................................................................................................11

D: Evaluation ........................................................................................................................12

E: Goal Setting ......................................................................................................................13

F: Coaching Follow-up ............................................................................................................13

G: Getting Started! ................................................................................................................14

Money, Values and Culture .......................................................................................................17 A: Your Relationship with Money .............................................................................................20

B: Indigenous History, Culture and Wealth ................................................................................24

C: Values, Needs, Wants .........................................................................................................27

D: Money and Your Energy, Environment and Community...........................................................29

E: Moving Forward – Goal Setting ............................................................................................32

Activity Materials ..................................................................................................................35

Budgeting Basics ......................................................................................................................62 A: What is a Budget and Why is It Useful? ................................................................................65

B: Income and Expenses ........................................................................................................66

C: Creating a Budget .............................................................................................................68

D: Budget Busters .................................................................................................................70

E: Adapting Your Budget ........................................................................................................71

F: Tracking Income and Expenses ............................................................................................73

Activity Materials ..................................................................................................................75

Creating Your Budget................................................................................................................97 A: Setting Your Budgeting Goals............................................................................................ 100

B: Making Your Budget ........................................................................................................ 103

C: Agreeing on a Family Budget ............................................................................................ 108

D: Staying on Track with a Budget ......................................................................................... 112

Activity Materials ................................................................................................................ 113

Financial Basics ...................................................................................................................... 123 A: Identification .................................................................................................................. 126

B: Bank Account Basics......................................................................................................... 127

C: Income basics.................................................................................................................. 130

https://d.docs.live.net/26c99b333a4cd658/Roundtable%20PROJECTS/VNFC%20-%20Financial%20Literary/VNFC%20-%20Fin%20Lit%20Train%20the%20Trainer/Final%20Course%20Materials%20-%20Spring%202021/Curriculum%20Materials/J2E_Facilitator's%20Guide%20Final_VNFC%20update_June%202021.docx#_Toc72298700






D: Income Tax ..................................................................................................................... 132


Being a Wise Consumer........................................................................................................... 148 A: Being a Wise Consumer ................................................................................................... 151

B: Planning for Purchases ..................................................................................................... 155

C: Your Rights ..................................................................................................................... 158

D: Fraud ............................................................................................................................. 160

F: Moving Forward .............................................................................................................. 163


Credit and Debt...................................................................................................................... 170 A: What is Credit?................................................................................................................ 173

B: The Cost of Credit ............................................................................................................ 175

C: Types of Credit ................................................................................................................ 176

D: Using Credit Wisely .......................................................................................................... 179

E: Debt Management ........................................................................................................... 182

F: Moving Forward .............................................................................................................. 190


Saving ................................................................................................................................... 204 A: The Benefits of Saving ...................................................................................................... 207

B: Types of Saving................................................................................................................ 208

C: Strategies for Saving......................................................................................................... 209

D: Savings Goals .................................................................................................................. 216


APPENDIX ................................................................................................................................. 225 Dreams, Goals … Action! ...................................................................................................... 226

Follow-up Coaching Guidelines.............................................................................................. 228

Participant Pre-Workshop Form ............................................................................................ 230

Consent and Release Form ................................................................................................... 231

Workshop Entrance Survey ................................................................................................... 232

Workshop Evaluation Form................................................................................................... 234

Workshop Follow-up Survey ................................................................................................. 235

Workshop Debrief Summary Form ......................................................................................... 236

Certificate of Achievement ................................................................................................... 236









About this Financial Literacy Training Program

Purpose of Curriculum The Indigenous Financial Literacy curriculum was designed by the BC Association of Aboriginal Friendship Centres in partnership with the Prince George Native Friendship Centre and Victoria Native Friendship Centre, and through the support of Prosper Canada and the TD Financial Literacy Grant Fund.

This curriculum explores the topic of financial literacy through an Indigenous lens by starting with peoples’ relationship with money and exploring how history and culture have affected financial literacy among Indigenous peoples. While hard skills like expense tracking and budgeting are foundational pieces to financial literacy, the overall goal of this curriculum is to help people create a positive relationship with money in order to empower them to make wise and effective financial choices.

By providing culturally grounded and engaging curriculum, participants will progress along the learning continuum towards an action-oriented approach to personal finances. This program is not a quick fix solution but a long-term investment in creating new personal habits and making permanent lifestyle changes.

Access to Curriculum Although this program was designed by Friendship Centres for Friendship Centres, the BCAAFC and its partners give open permission for any organization or person to use all or parts of this curriculum for the betterment of Indigenous people. Acknowledgement of this material is appreciated.

This curriculum is intended for both the staff and clientele of Friendship Centres. Providing this training to staff will allow them to become familiar with the content and enable them to incorporate it into their own regular programming for clients. In this way we can achieve the biggest and likely most effective impact.

A: How to Use This Facilitator’s Guidebook This facilitator’s guidebook has been developed to support the delivery of culturally grounded financial literacy training in BC’s Native Friendship Centres. It was created by the BC Association of Aboriginal Friendship Centres (BCAAFC) and partner Friendship Centres through extensive collaboration and review of existing training materials and wise practices. The facilitator’s guidebook contains seven core modules, plus introduction and coaching follow-up materials. It also offers additional resources in the appendices. The guidebook covers a range of topics and sub-topics relevant to developing essential skills and healthy financial management behaviours.

Introduction


This curriculum: • Is designed to be flexible. The full curriculum can be covered or only those modules that are

most relevant to participants’ groups. • Can be delivered over one or multiple sessions, and for workshops of various lengths. • Allows facilitators to pick and choose the topics, sub-topics, and activities that best fit the

available time and the needs and interests of participants. The curriculum is dynamic, and activity based, with a view to making learning fun and engaging for participants. It provides opportunities to see, hear, and interact with the material. The learning format varies from large group to small group activities, as well as participants working on their own. It is also grounded in sound adult education principles. Most modules have a goal-setting activity, or one can be included using the goal setting sheet in the appendix. Goal setting encourages participants to translate what they have learned in the workshop into direct action in their lives. Each module includes:

• Brief overview of the module. • Goal of the module and learning objectives. • Delivery approach, including list of subtopics and estimated time frames.

Each activity includes: • Activity name and instructions on how facilitator will guide activity. • Guiding questions to process the exercise on what was learned. • Key points of learning and essential takeaways. • Approximate duration. • List of materials required for activity. • Participant handouts and activity sheets.

Building financial literacy skills is generally most successful if individuals first consider how they perceive wealth and their relationship with money. An understanding of the historical and cultural factors that have impacted Indigenous communities and their relationship with money is also essential. As such, all participants should have an opportunity to cover module 1, “Money, Values, and Culture” which can be delivered in as little as 1.5 hours, or considerably longer.

B: Worksop Facilitation Financial literacy trainers use facilitation techniques to deliver training. Facilitation comes from the French word ‘facile’ which means “to make easy”. The facilitator’s objective is just that: to design and manage a process that unfolds smoothly towards a common outcome. In the case of this training, the common outcome is an opportunity for all participants to learn basic skills about effective financial management in a safe, engaging, and respectful environment.


It is the job of the financial literacy trainer and group facilitator to make this material meaningful to the community. By the end of the workshop sessions, participants should be able to connect the material to their own lives, reflect on its meaning, grasp the concepts of healthy money management, and apply them. Some important elements for facilitators to address:

• Participants: Who are they? How will they learn about the workshop and the registration process?

• Topics and Materials: Selecting relevant topics and activities based on participants and available time and space; preparing materials in advance (e.g. worksheets, flip charts, videos, etc.).

• Set-up needs: Knowing how the workshop space can be used for learning activities. • Protocol: Having an understanding of how to conduct opening/closing prayers,

acknowledgement of the territory and observing traditions and values of local peoples. • Tracking: Keeping track of workshop details such as the date and number of participants, topics

covered, as well as who completed entrance/follow-up surveys, coaching, etc. (See the appendix for survey questionnaires and follow-up materials such as debrief form.)

Whenever possible, facilitators are encouraged to learn in advance who will be attending the FL workshops. This will assist in selecting the most effective topics and activities. For example, young parents will have different needs and interests than a group of Youth or Elders. Participants can be asked what they would like to learn at the beginning of the workshop, or in advance through a form such as the Participant Information Form (see appendix).

Success factors for financial literacy training and adult learning

Studies have shown that financial literacy training and interventions are most effective when they: • Offer appropriate, accurate content. • Are tailored to the audience. • Are delivered by trusted persons. • Are delivered in ways that are consistent with principles of adult learning for adult clients. • Are part of programs with sustainable capacity.

To engage adults in the learning process, we are guided by what we know about how adults learn and facilitation best practices.


How Adults Learn • They learn because they want to or feel they need to. • They are results oriented. They need to see the value in what they are learning. • They have life experiences and knowledge in many areas. • They have values and beliefs that are established and must be respected. • They prefer active learning. They are willing to share their ideas and experiences. • They are independent and self-directed. • They like to be involved in deciding what and how they will learn. • They often resent being lectured and prefer participatory learning. • They appreciate respectful learning settings. • They want to know the practical application of what is being learned. • They like to solve problems. • They are often tired and preoccupied when they attend class. • They have diverse learning styles, education levels, and cultural backgrounds. • They retain some of what they hear and see, much of what they say, and most of what they do.

Factors that facilitate learning

• Assessing the needs of participants and checking for assumptions. • Clearly explaining the purpose of what is being learned. • Helping participants to overcome things that are getting in the way of learning. • Look for ways to provide 'hands on' experience. • Offering a wide range of activities and learning tools. Accommodating different learning styles -

visual, audio, kinesthetic, and emotional. • 'Check in' with participants often for comprehension. Clarifying when needed.

Tips and tricks that facilitate participation

Good facilitators…

• Create an open and trusting atmosphere. They are supportive and caring. • Respect the values and beliefs of participants. • Remain neutral and judgment-free. • Speak in simple and direct language. Keep discussions focused and productive. • Make use of participants' experience, knowledge, and skills. • Listen carefully and encourage others to do so. Reflect back on what they’ve heard, ask

questions for clarity, and summarize participants' points (e.g. verbally or on a flip chart). • Encourage participants to take an active part in decisions, discussions, and the creation of

knowledge. • Stay flexible and open to change. • Have all materials prepared in advance. • Keep things moving and clearly introduce new topic areas. • Always have a 'Plan B' or alternative, in case the unexpected happens.


Effective facilitators/trainers monitor group dynamics, asking themselves:

• Does my group feel safe with me? Are they interested in the topic? Is it time to move on? • Who are the individuals doing most of the talking and asking most of the questions? How can I

get the others involved?

A good facilitator is expected to:

A facilitator avoids:

• Establish the purpose for the workshop, introduce the format and guidelines, and confidently manage expectations.

• Select the topics and activities that will engage and benefit participants.

• Maintain objectivity, focusing on the process and not on the specific opinions of participants.

• Ensure ALL participants have the opportunity to contribute.

• Listen and reflect back what they have heard.

• Respects the protocols and traditions of territory where they are facilitating.

• Dominating the conversation. • Taking things personally or getting

emotionally entangled in the issues. • Taking a strong stance on the issues or

topics being discussed. • Sounding judgmental or preachy. • Going off on tangents which detract from

the flow of the workshop.

Remember...

This toolbox is designed to provide a strong basic foundation for participants to build their financial literacy.

Customize it. It is up to you, as the facilitator, to modify the content to be most relevant to the group. This can be done by focusing more attention on the topics that interest participants and using examples, stories, and anecdotes that the audience will relate to.

Don't give advice. Financial literacy trainers should have the ability and confidence to facilitate FL training but they are not paid financial experts. Avoid providing financial advice unless you have a professional designation in the financial industry. When asked a question for which you lack an answer, do not hesitate to say, 'I don't know' and put it in the 'parking lot'. You can do research after the workshop and get back to the person who asked the question at a later point.

Be a resource. The curriculum covers a range of money issues that people in the community may be experiencing. Trainers are encouraged to learn about the resources available online and in their communities so they can provide participants with relevant information about where to access services or learn more about financial management.


Be non-judgmental. Participants will bring a variety of experiences, feelings, and perceptions about money. There is no right or wrong answer. Trainers ought to be supportive and encourage a range of perspectives.

Encourage self-care. For many people talking about finances can be very emotional. Prepare yourself and have strategies in place to adequately support participants. Here are a few suggestions:

• Acknowledge that finances are often one of the biggest stressors for people, and that it is normal to be emotional or feel a lack of control. Remind them knowledge is power. Having a better understanding of finances and how to manage them will result in immediate stress relief.

• Include cultural support people such as Elders or counsellors or identify a safe person they can speak with.

• Utilize opening and closing prayers and hold space for debriefs and group discussions to help participants process their emotions and be uplifted by others.

• Remind them to be gentle with themselves after the workshop, to practice their own forms of self-care (smudging, a nice walk or bath, cup of tea, etc.).

• Tell them to reach out to you or someone else if they need to talk or provide telephone numbers for local support lines.

Culturally sensitive facilitation

This guidebook is meant to support individuals in delivering financial literacy training in Indigenous Friendship Centres. It is likely that a majority of participants in these workshops will have First Nations, Métis, or Inuit Ancestry.

For non-Indigenous facilitators, there are a number of things to consider.

• You have been invited to deliver the training in this environment. If you come from a place of caring, humility, and demonstrate a willingness to learn, you will generally be welcomed.

• Discussing Indigenous culture, history, and values may not come as easy to you. Consider doing additional research and getting advice from Elders beforehand.

• Remember that you can always ask the group to provide input, tackling the topic of wealth and Indigenous culture, history and values by getting participants to share their stories and knowledge.

• Rather than speak of key learnings as facts, you can ask guiding questions and see if the group agrees with certain statements. If you are unsure about things, just ask your group!

As a general rule, trainers delivering Indigenous financial literacy training should remember to:

• Keep language straight-forward • Explain everything fully and speak at a measured pace • Embrace silence and wait for participants to answer questions • Take breaks when necessary • Open and close with a prayer • Acknowledge the territory and local peoples • Use Indigenous approaches such as circles and story telling • Acknowledge the contributions of participants, especially Elders


Include a territorial acknowledgement

Territorial acknowledgments are used by First Nations peoples in Canada to identify which Nation’s laws and customs will govern interactions. They are also done as a sign of respect and a way to acknowledge the local nations, territory and people.

To do a territorial acknowledgement, find out which First Nation’s territory you will be on at the time of the acknowledgment. Note that a territorial acknowledgment is NOT a welcome to the territory. A welcome can only be performed by designated members of the local Nation.

Tips for performing a territorial acknowledgement:

• Be as Specific as Possible. Learn the specific Nation on whose territory you will be standing during your acknowledgment. Sometimes you may need to cover a large geographic area and identify several Nations.

• Learn Pronunciation. The best way to learn the proper pronunciation is to spell out the name phonetically. First Peoples’ Cultural Council (www.fpcc.ca/language/language-map/) is an excellent resource for pronunciation of BC First Nations. You can also ask an Elder, call the band office or phone a nearby Friendship Centre to ask.

• Personalize the Acknowledgment. Share why it is important to you. This will make it feel like something you want to do rather than must do.

• Practice Humility. Be willing to accept corrections to your practice, pronunciation, or whatever, and express gratitude for those teachings.

• Intent Matters Most. It is ok to tell people you are new to offering a territorial acknowledgment and it is ok to make mistakes. If you are sincere and humble, people will respond positively.

C: Setting Up for Workshops Workshop Venue and set-up

• Make sure you have enough chairs and the venue is large enough to accommodate the number of participants you are expecting. If the room is too large, consider setting up on one side or in a corner and divide the space to make it more comfortable and intimate.

• You can set-up the room in work stations using tables (e.g. 4 people per group unless it is a very small group, then 2-3 people per station).

• You can also start things off with chairs in a circle. • It is useful to have a table to house supplies and handouts. • Look for a wall or structure on which to affix posters, papers, and answer keys. • Have a wall or screen on which to project Power Point, videos, etc. if necessary.

Supplies and materials

• Typical supplies for workshops include: • LCD projector, laptop, speakers • Facilitator’s Guidebook • Flip chart(s) and markers • Participant activity sheets • Entrance survey sheets or posters

http://www.fpcc.ca/language/language-map/


• PowerPoint presentation (optional) • Pens, paper, pencils, erasers, masking tape, stapler, etc. • Folders for participants to store materials (optional)

The workshop utilizes a number of materials such as posters, a cultural mural, PowerPoint Deck, and t-shirts. For high quality files of these materials please visit the Indigenous Financial Literacy webpage of the Victoria Native Friendship Centre: https://vnfc.ca/journey-to-empowerment

Online Delivery

If you deliver the curriculum in an online environment (e.g. Zoom or Microsoft Teams), you will need to take some additional steps to ensure a good learning experience for all participants. This includes:

• Making sure that everyone receives a confirmation email with the link for online participation ahead of time (ideally at least one week) which includes information about which platform will be used. Meeting calendar invites (e.g. Outlook) are also highly encouraged so that participants have the workshops in their calendars.

• Emailing worksheets and activity hands outs ahead of time. • Providing instructions about online participation, such as:

o Muting the microphone when not speaking o Joining with a computer or mobile device (rather than by telephone alone) so

participants can see each other and the Presentation Slides shared by facilitators o Turning their camera on, if they are comfortable/able, especially for group discussions o To be present and not be doing other work tasks online

• Learning and utilizing the functions of the online tool to make the experience as engaging as possible, such as ‘break out rooms’, polls or whiteboards, and screen sharing for slides but also videos.

• Obtaining consent ahead of time if the sessions are being recorded and giving participants the option to refuse being recorded or to turn off their camera.

• Joining early to give everyone a chance to test their connection, video, and audio.

D: Evaluation Evaluation is a key activity to ensure that workshops are having positive effects on participants. It ensures that important lessons from the workshops are being captured and helps improve future financial literacy training. There are three evaluation components to this training, namely:

1) A workshop entrance survey: This survey asks a dozen basic questions which provide a baseline of information about candidates taking the workshop, which can then be compared to answers to the same questions after the training in the follow-up survey.

2) Workshop evaluation: This workshop evaluation questionnaire is administered at the end of

each workshop or training session. It asks participants to assess the workshop and comment on what they liked and what could be improved.

https://vnfc.ca/journey-to-empowerment


3) A workshop follow-up survey: The follow-up survey is administered approximately three months after the training and after the one-on-one coaching session (for those who participate).

Your role as a facilitator and FL trainer comes with the expectation that you will record basic information about your workshops (such as the number of participants, topics covered…. which can be done using the Workshop Debrief Summary Form in the appendix) and that you will take steps to monitor participant progress. All three questionnaires are provided in the appendix. Allow enough time in the first and last workshops of your series for participants to fill out all required feedback forms. The forms have been developed at a basic reading level. However, if your participants are not native-English speakers or have literacy issues, it would be helpful to read the questions out loud. This will enable you to clarify the questions and help ensure that answers are accurate.

E: Goal Setting Encouraging participants to take steps that will promote healthy financial behaviour is your ultimate objective. The new information they learn in the workshop will have the most impact if it is applied and influences their behaviour.

A great way to get participants to take concrete action in their lives is to have them set goals that they commit to. This can be done at the end of the workshop(s) after completing several modules, or at the end of every module with a goal specific to the topic area (e.g. savings goal).

When helping participants set goals, reinforce the concept of SMART goals:

Specific Measurable Achievable Relevant Time-bound

SMARTER goals are also: Evaluated and Reviewed on an on-going basis or

Ecological Rewarding

A participant goal setting sheet, “DREAMS, GOALS… ACTION!” is available in the appendix.

F: Coaching Follow-up This financial literacy curriculum was developed to provide effective experiential learning. The vision for the training includes a combination of dynamic participant-focused instruction and follow-up one-on-one coaching. Offering individualized coaching is highly effective. It can also be time consuming. If you will be offering coaching as part of your program, see the coaching guidelines in the appendix for helpful information.


Always remind participants that you are not a financial planner and that they should seek professional advice if they are looking for more detailed information about what to do with their finances.

G: Getting Started! Indigenous Financial Literacy: Journey to Empowerment The curriculum has been designed to take anywhere between 2.5 hours to 2 days to deliver. Facilitators must decide how long the workshop will be based on participant abilities and availabilities. For example, the training can be delivered:

• In a 3-4 hour session (e.g. 1-5 pm, or 6-9 pm) • Over multiple session (e.g. 4 x 2 hour sessions, or 2 x 3 hour sessions) • Over 1-2 days

The more time you have to dedicate to the material the better the results will be. Intensive full day or two day workshops are a large investment in time, yet they allow participants to bond and immerse themselves in the material. It can be beneficial to deliver the material over multiple sessions, since participants have a chance to process the material and do work on their own (e.g. list of expenses). Intensive 3 or 4 hour sessions can also have lasting impacts on participants. Facilitators will be challenged to identify priority material and spend less time on certain topics, while keeping it fun for participants. It is usually better to do less but have a greater impact in the areas you cover with your group. Facilitators are encouraged to develop their own agendas and deliver the material and activities which they feel will resonate most with participants and the allotted time. And while agendas are helpful guidelines, facilitators should be responsive to pacing cues and suggestions from their audience. Preparing for your Workshop In addition to having a good understanding of the curriculum, including the activities you will utilize and the materials you’ll require, it’s important to adequately promote your workshop to participants and keep them coming back. Valuable tips to ensure adequate attendance include:

o Promotion – using posters, social media posts and frequent emails and reminders for participants to know about your workshops and reminders about when they are occurring. Prior to the workshop(s) be sure to send a welcome email with any key information they need.

o Registration – have a clear process in place for people to register, such as by email, telephone or online registration forms. Online systems like Google forms make it easy to set up a registration process for participants to sign up and collect their basic info automatically.

o Attendance – remember to track who shows up using an attendance sheet.

o Incentives – you can incentivize your workshops by doing prize draws (small gifts or e-gift cards) which are fun for participants. If your organization, community or funding partner has the budget, you can match the ‘savings’ contributions of participants over the duration of a multi-session course, or provide them with a gift card upon completion of the learning.

o Understanding of your group – the best way to keep your participants coming back is to offer them a learning experience that they value. One that is relevant to them because they see the benefits of participating, and because they have a good experience as participant.


o Encouragement – Providing participants with a safe learning environment, positive reinforcement and a sense of accomplishment is a great way to keep participants engaged and motivated to complete the learning.

Typical Start

Below is a typical workshop introduction.

• Welcome participants to the workshop.

• Facilitator introduction - introduce yourself to participants.

• Provide Opening Prayer to open the day (facilitator or participant-led).

• Ask participants to introduce themselves o If workshop is short, you can encourage brief introductions or play a name game. You can

also ask participants one thing they are hoping to learn. o If you have more time with the group, you can do a circle and have full introductions.

• Cover housekeeping, including: o Washroom locations. o Breaks and refreshments. o Smoking areas and emergency exits (if applicable). o Awarding of certificates (if applicable).

• Establish group norms and code of conduct, including: o Listen to others and respect whomever is talking. o Feel free to excuse yourself but just try not to be disruptive in doing so. o Refrain from judging others.(Finances are very personal!) o Cell phone and text messaging etiquette.

• Provide an overview of the workshop and agenda including: o What is Financial Literacy: refers to having the knowledge, skills, and ability to

understand, analyze and use information to make informed financial decisions. o Basically, financial literacy refers to having the skills, confidence and knowledge to make

informed financial decisions. o Today’s workshop will cover topics such as your relationship with money, Indigenous

history and culture and wealth, managing your money, banking, saving money, and debt management and credit.

o This workshop is meant to be interactive and conversation-based so please feel free to contribute your thoughts and ask questions as they come up.

o I am not a financial advisor or credit counsellor so I may not have all of the answers, but I will do my best to either find the answer for you, or point you in the right direction.


• Administer the entrance survey (this can be done when participants first come in and are getting settled). Be sure to explain the purpose (improve workshop and measure impacts in participants) and that information will remain confidential and won’t be shared with others.

• Participant introductions: o If you haven’t done so earlier, have each participant introduce themselves and share

one thing they would like to learn from the workshop. You can also ask participants to answer a fun question like, “as a child, what did you want to be when you grew up” or, “if you could have lunch with anyone, dead or alive, who would it be?”

o Make note of these areas participants wish to cover on a flip chart or elsewhere and do your best to address some or all of these.

• Icebreaker Games – in addition to introductions, consider doing an icebreaker to help participants feel more comfortable and grounded.

Have fun!

Workshop’s Close

Closing off your workshops well is important. It leaves participants feeling like they invested their time well and ensures you are able to complete the tasks you set out to accomplish. It’s also an opportunity to set the tone for future sessions and reinforce concepts that were shared. Below are some tasks you can use at the end of your facilitated FL workshops to realize these outcomes. Note that participants will appreciate workshops that finish on time.

• Conduct a wrap-up activity to determine what participant retained and liked most. • Talk about the coaching follow-ups and what participants can expect and get out of these one-

on-one sessions (if your Friendship Centre offers this option). • Make sure participants fill-out:

o Consent forms (authorizes you to call them for the follow-up survey). o The workshop evaluation questionnaire.

• Provide an overview of what will be covered during the next session (if applicable). • Assign exercises or tasks participants can do before the next session (e.g. make list of expenses). • Closing prayer; closing circle. • Thank participants for their attention, participation, and stories. • Fill-out the Workshop Debrief Summary Form which captures information about your workshop.


MODULE 1

Money, Values and Culture


Summary This module on money, values, and culture is the foundation of the Indigenous Financial Literacy curriculum. It examines participants’ relationship with money, how their values impact their financial choices and behaviours, and how history and culture have affected financial literacy for Indigenous people. Goal of Module

• Encourage participants to identify their values related to money and to develop a positive relationship with money that will empower them to make wise and effective financial choices.

Learning Objectives Participants will:

• Recognize how their values related to money affect their financial choices, and the impact of those choices on themselves and others.

• Identify their own perceptions of money and where those perceptions originate. • Distinguish between financial needs and wants. • Understand what money stands for (including energy, time, effort, and life force). • Set clear goals and plans related to their overall relationship with money.

Subtopics

A. Your Relationship with Money B. Indigenous History, Culture and Wealth C. Values, Needs, Wants D. Money and Your Energy, Environment and Community E. Moving Forward – Goal Setting

Timing This module lasts from around two to five hours depending on which activities are selected.

A B C D E Total1hr50min to

5hrs20 - 60

min30 - 90

min20 - 45

min20 - 65

min20 - 40

min

NOTE: Activity handouts are included at the end of the module.

“Since taking the workshop, I'm more cautious about what I spend money on. I learned to think about needs and wants. I think my purchases through first and consider what I could use that money for in the future.” - Indigenous Financial Literacy workshop participant

Module 1 | Money, Values and Culture


Overview: Module 1 – Money, Values and Culture

Subtopic Activity Type Tools & Materials Time

A. Your Relationship with Money

1-1: Introduction Presentation None 10 minutes

1-2: What Word Best Describes Money for You?

Entrance activity Poster 1-2; stickers 5 minutes

1-3: Find Someone Who…

Group Copies of Handout 1-3; pens

5 – 10 minutes

1-4: Rate Your Financial Knowledge

Individual Copies of Handout 1-4; pens

15 minutes

1-5: Money and Me Individual; drawing; group discussion

Large paper; markers; flip chart

20 minutes

B. Indigenous History, Culture and Wealth

1-6: Journey to Empowerment

Group discussion Mural Poster 1-6 30 minutes

1-7: Sharing Our Stories

Group discussion None 30 minutes

1-8: Drawing a Prosperous Community

Small groups; drawing

Large paper; markers 20 – 30 minutes

C. Values, Needs, Wants

1-9: Needs vs. Wants Interactive; group discussion

Needs vs Wants catalogue; Need sign; Want sign

20 minutes

1-10: Just Imagine Individual; group discussion

Copies of Handout 1-10; pens

20 – 25 minutes

D. Money and Your Energy, Environment and Community

1-11: Money Machine Small group; drawing; group discussion

Flip chart; multi-colour markers; masking tape

25 minutes

1-12: The Value of Your Time

Group discussion Poster 1-12 20 minutes

1-13: The Cycle of Money

Individual or small group; drawing; discussion.

Large paper; pens or markers

20 minutes

E. Moving Forward

1-14: Future Self Individual; writing or drawing

Lined paper; pens and markers

20 minutes

1-15: Goal Setting Individual; optional discussion

Paper; lined paper; pens; markers; DREAMS, GOALS… ACTION! Handout

20 minutes


A: Your Relationship with Money Activity 1-1: Introduction to the Workshop Key Point:

• Learning about your values and relationship with money is the foundation of financial literacy. Duration: 10 minutes Description:

a) Each facilitator should introduce themselves. Introductions should include: cultural heritage, work position, reason for being involved in the workshop, and a brief reflection on why financial literacy is important.

b) Explain that financial literacy means having the basic skills and knowledge to understand money. It is important because:

• Financial literacy means having the knowledge, skills and confidence to make responsible financial decisions.

• Just like learning to read or write, learning about money is a process and an essential skill.

• Money plays a huge role in our lives, our communities, and our planet.

c) Explain that we have chosen to start with exploring each person’s relationship with money because:

• Each person relates to money in their own way. People are influenced by messages about money by the media, advertising, and other external factors, and by their own personal experiences.

• Each person’s history, culture, community, parents, role models and family unit impact their perceptions of money.

• Financial decisions are about values as much as knowledge and it is important for everyone to have an understanding of their own values and goals in order to make decisions about money that fit with those values and goals.

• Having a positive relationship with money will make it easier for people to learn about money and make the financial decisions that are right for them.


Activity 1-2: What Word Best Describes Money For You? Key Point:

• People can have very different feelings about money.

Duration: 5 minutes Description:

a) Give participants a sticker as they enter the room.

b) Ask participants to place sticker on the section of the What Word Best Describes Money For You? Wall poster (Poster 1-2) that best reflects how they feel about money. Poster options include: “Obstacle”; “Freedom”; “Confusing”; “Never thought about it”.

c) Optional: Ask: “What word did you choose and why?”

Materials:

• What Word Best Describes Money For You? Wall poster (Poster 1-2) • Stickers

Activity 1-3: Find Someone Who… Key Points:

• People have different perceptions of, and experiences with, money and finances. Duration: 5 – 10 minutes Description:

a) Distribute Handout 1-3: Find Someone Who… to each participant.

b) Instruct participants to walk around the room, introduce themselves to others, and find a person who fits each description on the sheet. Participants can only ask one question at a time of each person they meet.

c) Optional: Create energy in this activity by setting a time limit for participants to fill in as many descriptions as they can.

Materials:

• Copies of Handout 1-3: Find Someone Who… • Pens


Activity 1-4: Rate Your Financial Knowledge Key Points:

• Everyone has different amounts of knowledge when it comes to finances. • There is always something one can learn or improve. • Improving one’s financial situation begins with an understanding of wise practices.


a) Distribute Handout 1-4: Rate Your Financial Knowledge.

b) Ask participants to work on their own and fill out the worksheet. They do not have to share their responses.

c) Remind participants to keep their sheet and use it to inform their goal-setting during the workshops.

d) Ask: “How familiar are you with the terms and concepts presented?”

e) Ask: “Is there anything you would like to learn or change about your finances as a result of this exercise?”

Materials:

• Copies of Handout 1-4: Rate Your Financial Knowledge • Pens

Activity 1-5: Money and Me Key Points:

• There are many external and personal factors that affect people’s relationship with money. • Thinking about the factors that affect people’s relationships with money is an important step

towards financial literacy. Duration: 20 minutes Description:

a) Explain that each person’s relationship with money is influenced by many factors. • Personal factors may include financial goals or concerns, feelings about money, good or

bad financial habits, or personal experiences.


• External factors may include media and advertising, materialism and consumerism, history, culture, family role models, poverty and wealth, and family or community successes or challenges.

b) Explain that each person is going to make a “Money Family Tree.”

c) Distribute a sheet of poster paper and some markers to each person.

d) Ask them to draw a picture of themselves at the middle of the page.

e) Then explain that around the picture of themselves, they should draw and label factors that have affected their relationship with money. Factors may include: specific family members, experiences from their past, community and culture, the media and advertising, historical factors, etc. For example, they could have:

• A picture of Uncle Harry with the words “always broke and trying to borrow money from my parents”.

• A picture of their sister with the words “started saving early and now has her own home at age 27”.

• A picture of a TV with the words “commercials try to convince me to spend money on stuff I don’t need”.

• A picture of their parents with the words “always fighting about money”.

f) After participants have created their drawings, invite them to pair up with another person and share. They should discuss with the other person:

• What are the factors that have influenced your relationship with money? How do these impact your financial values and decisions?

Option: If the information feels too personal to share, participants can reflect on the above questions privately, or speak to their experience doing this activity (and not its content).

g) Bring the whole group back together and ask: • What did you learn about how your relationship with money is shaped? • What are the main factors that influence your relationship with money?

h) Acknowledge participant responses. You can also record answers on flip chart paper.

Materials:

• Blank poster-sized paper • Markers • Flip chart


B: Indigenous History, Culture and Wealth Activity 1-6: Journey to Empowerment Key Points:

• Pre-contact indigenous societies were strong and self-sustaining peoples with well-established systems of wealth and trade.

• Wealth was demonstrated through caring and sharing with others and through economic systems such as potlatch.

• The history of Indigenous people and colonization have affected their relationship with money. Duration: 30 minutes Description:

a) For this activity, you will need a copy of the Journey to Empowerment mural poster (Mural Poster 1-6) Note: As much as possible, this presentation should be done by asking questions of the participants. This activity involves information that could be emotionally sensitive to participants. It is a good idea to acknowledge this at the start of this activity and to have a counsellor on hand just in case (especially Elders).

b) Review each section of the mural poster and ask participants: Pre-Contact: How was Indigenous people’s relationship with money pre-contact?

• Before contact with Europeans, what kind of economic systems did Indigenous peoples have?

• What were the benefits of these traditional, pre-contact systems of production and wealth?

• What are some of the traditional practices in your community that illustrate the exchange or sharing of wealth?

Colonial Policies: How did colonial policies impact Indigenous people’s relationship with money?

• What were the colonial policies that affected Indigenous people’s wellbeing and prosperity?

• How did these policies and practices affect Indigenous people’s wellbeing and prosperity?

• Note: It is important to stress here that colonial policies put Indigenous people in a double bind because at the same time that traditional ways of life were being disrupted,


colonialism made it next to impossible for Indigenous people to participate and earn money in ‘White’ society.

The Present: What is the current state of affairs for Indigenous people in terms of their relationship with money (in general, recognizing that this would vary for each person and community)?

• What are some current challenges that affect Indigenous people’s wellbeing and prosperity?

• What are some current opportunities for Indigenous people to become more prosperous and improve their relationship with wealth and money?

The Future: What would a positive future look like for Indigenous people in terms of their relationship with money?

• What kind of economic system do you think Indigenous communities should have in the future?

• What do prosperous Indigenous communities look like? What kind of economic system should Indigenous people have in the future?

c) Any points that are not brought up can be covered by the facilitator using Handout 1-6: Background Information for Facilitators.

Materials: • Journey to Empowerment mural poster (Mural Poster 1-6) • Handout 1-6: Background Information for Facilitators

Activity 1-7: Sharing Our Stories Key Points:

• Before contact, Indigenous peoples had their own successful wealth creation systems. • Colonial policies disrupted these healthy systems.


a) After discussing key points on pre-contact, colonial policies, and the present, ask participants to quickly form groups of 2 or 3 people with those they’re sitting next to. Have them discuss:

• How do you think this history has affected Indigenous people’s relationship with money?

• What stories can you share about pre-contact traditional systems, and how colonial policies affected your nations, communities, families, and yourselves?


b) Ask people to share what they talked about with the larger group: • Ask: “What have we learned from this discussion and from each other’s stories about

how history has impacted the present state of Indigenous people’s relationship with wealth?”

Activity 1-8: Drawing a Prosperous Community Key Points:

• There are many ways that a community can be prosperous. • Envisioning a positive future is the first step to making it happen.

Duration: 20 – 30 minutes Description:

a) Divide participants into small groups. Give each group a large, blank paper and several markers.

b) Ask each group to draw their vision of a prosperous community of the future. Encourage participants to illustrate the factors and components that contribute to the prosperity of the community they envision.

c) Ask each group to present their drawing to the workshop, describing the factors and

components that make up their community.

d) Ask the entire group:

• What do you think a prosperous community is like? • What are the factors that contribute to the prosperity of the community?

Materials:

• Large paper • Markers (coloured if possible)


C: Values, Needs, Wants Activity 1-9: Needs vs. Wants Key Points:

• The ability to distinguish needs from wants allows people to make decisions about what they can live without so they can reach their financial goals.


a) Explain that: • A need is something you can’t live without. • A want is something you would like to have. It may make your lives more comfortable,

convenient, or fun, but you can survive without it. • You might think of certain things as being needs, but when you take a closer look, you

might find you could live without them. Knowing about needs and wants can make you more aware of the choices you can make in light of your values and goals.

• Needs and wants will not be the same for everyone. You cannot be a good judge of someone else’s spending.

• Our values and circumstances affect what we perceive as needs and wants. • Making good financial decisions requires us to distinguish needs from wants.

b) Divide the room in two sides, one side for “Need” and the other for “Want”. Show

participants images from the Needs vs. Wants Catalogue (PowerPoint or Worksheets 1-9) one at a time. As participants who think the image depicts a need to move to the “Need” side of room; participants who think the image depicts a want move to the “Want” side. You can ask participants to share why they chose need or want. Option: For small rooms or groups with mobility challenges, participants can choose “Need” or “Want” by raising their hands, and then discuss their choices.

Materials:

• Needs and Wants Catalogue (PowerPoint or Worksheets 1-9) • “Need” sign and “Want” sign


Activity 1-10: Just Imagine Key Points:

• Thinking about what we would do with extra money can tell us something about what we value – our wants, needs, and financial goals.

• Thinking about financial goals helps people plan and start taking concrete steps to achieve their goals.


a) Give each participant a copy of Handout 1-10: Just Imagine.

b) Read the three questions out loud.

• You have just been given $10 million. What will you do with it? • You have just been given $25,000. What will you do with it? • You have just been given $1,000. What will you do with it?

c) Give participants 5 minutes to answer the questions.

d) Participants can share their answers in small groups or with the whole group.

e) Ask participants:

• “What values are reflected in your spending choices?” • “How did your goals or plans change depending on the amount of money you had?”

Materials:

• Copies of Handout 1-10: Just Imagine • Pens


D: Money and Your Energy, Environment and Community Activity 1-11: Money Machine Key Points:

• Different people view money and economics in unique ways. • Money is merely a paper, metal or digital representation of something else (the value of one’s

effort, trade, commodities, etc.) • Money is part of the current dominant economic system that most people are a part of.


a) Divide participants into small groups and ask them to develop a money machine, with one important condition – the machine cannot print or create money! Do not give any other instructions. Let them interpret what is meant by “money machine”.

b) Allow the groups 10 minutes to discuss and draw their machine.

c) Post the drawings on the wall as a reference point.

d) Ask groups to present what they’ve developed.

e) Discuss the following questions as a large group:

• What concepts or ideas did the groups use to develop their money machines? • Are there similarities? How are they different? • What does this exercise tell us about money and our perceptions?

Materials:

• Flip chart paper • Markers (multiple colours if possible) • Masking tape


Activity 1-12: The Value of Your Time Key Points:

• Spending money involves trading our time and energy for something of value. • Seeing money as our energy is crucial because while we work we are trading off other things we

could be doing (for example: spending time with family, learning, travelling, etc.) • Being mindful of the impact of our spending decisions on our time allows us to make better

choices that reflect what we value most.


a) Explain that: • Every dollar you spend and product you buy represents an amount of hours worked and

time in your lives that you will never get back. • Wealth is very often generated through extraction of resources (for example: fish,

minerals, lumber) from the natural environment. Healthy economic systems seek to minimize their impacts on the environment and maintain a balance between how much is taken and given back.

• Spending money in your community strengthens the local economy and means wealth is circulated to the benefit of all those around you.

b) Give participants copies of Handout 1-12: The Value of Your Time or show them The Value of Your Time wall poster (Poster 1-12).

c) Ask participants:

• Before you purchase something, do you stop and consider how many hours or days you need to work to afford it?

• What happens when you look at your money in relation to the time and effort you had to sacrifice to afford a purchase? Does it make you more conscious of your spending?

• What are the impacts of not honouring your effort and time?

Materials: • Handout 1-12: The Value of Your Time or The Value of Your Time wall poster (Poster 1-12)


Activity 1-13: The Cycle of Money Key Points:

• The exchange of money in a society is a complex web of interactions that involves many people. • It takes a lot of energy to create and move goods for consumption in today’s societies.


Note: This exercise can be done individually or in a group.

a) Ask participants to choose an item they might purchase (such as a shirt) and attempt to follow the money trail by drawing the many relationships involved with that purchase (who made the shirt, where the materials came from, how they were shipped, sold in the store, etc.). Participants can also consider their “income” and where their money comes from.

b) Ask participants:

• Was this exercise easy or difficult? • What did you reflect on or realize in doing this exercise? • Will these reflections influence your future behaviour? How?

Materials:

• Regular or larger white paper (Flip chart paper can also be used for small groups) • Pens or markers


E: Moving Forward – Goal Setting Activity 1-14: Future Self Key Points:

• It’s important to have big dreams to strive for and plan for them. • Having a strong vision for the future helps us to set goals and stick to them.


a) Ask participants to imagine how they would like their financial situation to be in the future. They could choose a time from one year in the future to 30 years in the future. Once they have decided upon a time, ask them to visualize answers to the following questions:

• Imagine yourself at this point in the future. What is your relationship to money? • Do you have enough money to meet your needs? • What is your lifestyle like? • How do you make decisions about money? • What are you proud of related to money? • What do you wish you had done differently related to money? • What financial goals did you set and how did you achieve them? • What steps did you take to get to where you are today?

b) After leading them through the visualization, pass out lined paper and ask participants to write a

letter from their “future self” to their “present self.” The letter can speak to the ideal vision each participant is hoping to achieve from the perspective of the future self who was successful in building their financial skills, knowledge and confidence to accomplish great things. Participants can also choose to draw a picture of their future self.

c) Instruct participants that in the letter or drawing they should:

• Describe your future self. What did you accomplish? • What are the biggest differences between your current and future self? • What advice do you have from your future self to your current self?

Materials:

• Paper • Lined paper • Pens


Activity 1-15: Goal Setting Key Points:

• Building on the concepts in this module, participants reflect on what they have learned and set personal goals related to money, values, and culture.


a) Explain that: • Every person has areas they would like to improve or focus on. • You can improve your circumstances by changing your perceptions and habits. • It takes courage, resolve … and action to make change and realize your goals. • Setting goals, writing them down and/or sharing them with others builds accountability.

b) Review the concept of SMART goals (see DREAMS, GOALS… ACTION! In appendix). Remind

participants to put specific times next to their goals.

c) Optional: Share some sample goals that are relevant to this module: • Speak with my family about my relationship with money and explore similarities and

differences at the dinner table this week. • Make a list of the factors and experiences that have influenced my relationship with

money or my “financial blue print” before the end of the month. • Speak with my family, Elders or friends about notions of wealth in Indigenous

communities. • Speak with my family, Elders or friends about history and the impact of colonialism on

Indigenous people and their relationship with money. • Write down an affirmation such as “The past is the past, I can be successful in managing

my finances” and repeat it daily. • Meet with a mentor you look up to that has been successful in managing their finances. • Make a list of my common purchases and determine which are needs and which are

wants. • Stop purchasing an item that I regularly buy which is a ‘want’. • Purchase something in my community instead of going to a big box store.

d) Ask participants to reflect individually on what they have learned in this module and write down

or draw their personal goals related to money, values, and culture. • Option: Have them fold up the paper with their goals and write their name on the

outside. Explain that you will return their goals to them at the end of the training so they can see how far they’ve come, or at the end of the timeframe they’ve selected (you


can mail or email them their goals). If they want, they can take a picture or write out a copy of their goals to take with them.

• Option: Have them write their goals on a nice/colourful piece of paper. Recommend that they stick this paper in a place they will see it often (such as on the fridge, or the bathroom mirror, or above their bed).

e) Optional: Ask participants who are willing to share their answers to the following questions:

• What goals did you set in relation to this module (money, values, and culture)? • Why did you select that goal? What benefits are you hoping to gain from accomplishing

it? • How / when will you realize this goal?

Materials:

• Paper • Lined paper • Pens • Markers • Review of SMART goals (see DREAMS, GOALS… ACTION! In appendix).


Activity Materials This section contains the following supporting materials:

• Poster 1-2: What word best describes money for you? • Handout 1-3: Find Someone Who… • Handout 1-4: Rate Your Financial Knowledge • Mural Poster 1-6: Journey to Empowerment • Handout 1-6: Background Information for Facilitators • Worksheets 1-9: Needs vs Wants Catalogue • “Need” Poster • “Want” Poster • Handout 1-10: Just Imagine • Handout 1-12: The Value of Your Time

Module 1 | Activity Materials


Poster 1-2


Handout 1-3 Find Someone Who… Walk around the room and introduce yourself to people. Your goal is to find a person who can relate to each of these sentences. Write their name in the space.

RULE: You can ask a person only one question at a time. Then move on to someone else.

Find Someone Who… Name

Often compares prices before buying

Has a bank account

Is saving for a purchase

Has received advice about their finances

Has moved from on reserve and now lives in the city

Has borrowed money to go to school

Has a credit card

Rents an apartment

Hates shopping

Has bought a lottery ticket this month

Has been to the bank this week

Has donated money to charity in the past 6 months

Has borrowed money to buy a car

Keeps track of their expenses

Buys takeout coffee almost everyday

Plans and follows a household budget

Loves shopping


Handout 1-4 Rate Your Financial Knowledge

Rate yourself on a scale from 1 (low) to 10 (high).

Keep this quiz to use later in the workshop.

Skill or Knowledge Area Rating: 1 -10

I keep track of my income and expenses each month.

I find ways to save money for things I want to buy.

I have clear financial goals for my future.

I think about my purchases before I buy them. I know what my priorities are.

I know what to think about when choosing a bank account.

I understand the details of the bank account and banking services I currently use.

I understand some of the different saving and investing tools that are available to me.

I understand the concept of compound interest.

I understand what a credit report is.

I know how to increase my credit score.

I know what the interest rate is on my credit card and how it is calculated monthly.

I can figure out how much money I will actually pay for an item I buy on credit, including interest.

I know some ways to reduce my debt.

There are certain things a collection agent can and cannot do. I know what my rights are.

I can recognize a scam or fraud.

I know some of the techniques advertisers use to get me to buy their products.

I feel my math skills are strong enough to manage my money.

I feel confident in my ability to manage my money.

Mural Poster 1-6

Handout 1-6 Background Information for Facilitators

Introduction

Financial literacy means knowing how to manage your money and feeling in control of your money. In this presentation we are going to lead you through the journey that Indigenous people have taken from the time before Europeans came to Canada to today, and talk about how that history has impacted financial literacy. The purpose of this presentation is to show you where Indigenous people are today with financial literacy as a direct result of what happened with colonization. The challenges Indigenous communities face with money are no accident, and they are not something that individual Indigenous people face in isolation. History has forced Indigenous communities into a cycle of poverty and dependence that affects us today. In this workshop we are trying to change that by giving you the tools to break this cycle.

Stage One: Pre-Contact Indigenous people had their own systems of exchanging goods and resources. These systems were developed over many generations and met the needs of all members of the community. They were based on a close connection with and knowledge of the land, and a value of interdependence.

Content: Prior to contact with Europeans, First Nations didn’t use money in the same way people do today. But they had a richly developed system of gathering and exchanging resources, planning ahead, and trading. Thus they created and managed their wealth through their own systems. Examples include:

• Potlatch. The word “Potlatch” comes from the Nuu-Chal-Nulth People’s language of the west coast of Vancouver Island and means “to give or giving”. Lineage Chiefs could host Potlatches for the transfer of marriage privileges, the assumption of a new name by a youth or the giving of a new rank, the new use of a family crest, and/or the initiation of a new dancer into the dancing societies. Extended family members would assist with gathering the materials needed to support the event. Mats, baskets, bentwood boxes, and canoes were made for the gift-giving, which served as payment for witnessing the event. The Potlatch made possible a wide distribution of vast amounts of goods and kept them moving as various forms of wealth, both material and non-material.

• Seasonal Rounds. People would move from one area to another depending on the seasons to gather resources. People would harvest food in the summer and fall that they would save for winter. People planned ahead for how to manage their resources.

• Trade routes. There were numerous trade routes all over Canada. The trade routes in BC extended to the prairie regions of Alberta and Saskatchewan and were well traversed for 4, 000 years. Trade routes were about more than just exchanging resources that had been gathered. Items that were made, like canoes, baskets, etc., were very valuable in trade. One example is the Grease Trail in which coastal nations brought oolichan grease to the interior. These trails were used so often that they were maintained constantly and were more than two meters wide.


Stage Two: Colonial Policies Colonial policies interrupted Indigenous traditions and practices, making it harder and harder to live the way Indigenous people did pre-contact. At the same time, colonial policies and mindsets made it almost

impossible for Indigenous people to participate equally in the mainstream society. Indigenous people became stuck between their disrupted traditional systems and the system of the settlers, which they

were restricted from fully joining.

Content: Colonialism disrupted Indigenous systems of wealth so that people were no longer able to take care of themselves and their communities in the same way they did before Europeans came. This was done in a number of ways, including:

• Taking land. The land is at the centre of Indigenous economies and culture. When Indigenous people were made to leave their land (due to treaties or simply being kicked-off) this had a severe negative impact on financial well-being. Indigenous people were required by law to live on reserves, which are tracts of land held by the Federal government for use by Indigenous people. This law was not lifted until after the Second World War. There are approximately 200 distinct First Nations in BC, and until the 1970s Indigenous people lived primarily on reserve. The reserves are usually far smaller than a First Nation’s traditional territory, and were sometimes far away from where they lived previously and had different resources available. The land on reserves often was not the best land and was not ideal for growing or gathering food.

• Alcohol. In 1778 alcohol was introduced to the Haida Nation. The Haida People did not understand what alcohol was and thought it to be a powerful medicine. Consequently, it was given to children and the elderly. Through trading, within a very short period of time, alcohol caused widespread death, sickness and exploitation of the Indigenous population in BC.

• Disease. The settlers brought widespread disease. Sometimes this was unintentional, but in some cases Europeans deliberately gave Indigenous people blankets infected with smallpox so the disease would spread throughout their communities. Many people, especially Elders and young people, died in a very short time. This made trading, gathering resources, and passing on knowledge from generation to generation difficult. By 1864, almost two thirds of the entire Indigenous population of BC is gone due to disease or alcohol.

• Residential Schools. In residential schools Indigenous children were deliberately denied knowledge of their traditional indigenous culture and economic systems. Many students emerged at grade twelve age levels without basic reading skills and were ill-prepared to deal with life both on and off-reserve upon graduating from the schools. Indigenous children were often physically, sexually and emotionally abused. The ongoing trauma from these experiences made it hard for them to take care of themselves and their families. The last residential school closed in 1996.

• Banning Potlatch. The potlatch and other ceremonial practices were banned for 67 years (from 1884 to 1951) and people who practiced them could be arrested. As this was a key aspect of First Nations governance and finance, it made a significant impact on the well-being of Indigenous communities.

• Changing trade routes. Trade with settlers was at first financially beneficial to Indigenous communities, but it ended up reducing the amount of resources available and interfering with traditional trade practices. For example, in some areas furs that settlers demanded became so valuable that entire species almost became extinct.

At the same time that traditional ways of life were being disrupted, colonialism made it next to impossible for Indigenous people to participate and earn money in White society. This was done through:


• Indian Act and other laws. There were many laws which prohibited Indigenous people from earning a living or accumulating wealth. For example, under the Indian Act, Indigenous people could not own their own land and certain other types of property, they could not go to post-secondary school without giving up their Indian Status, they could not become lawyers and fight for their rights. Other laws made it impossible for Indigenous people to take out loans, sell the fish that they gathered (one of their most in-demand resources), buy a farm, or get a water license to irrigate their farm land.

• Racism. Even when they were well-qualified, many employers did not want to hire Indigenous people because of racism and stereotypes.

The result? Capitalism and colonialism transformed Indigenous societies from collective, independent production to dependent, single-family subsistence.

Stage Three: The Present The impact of colonialism has created many challenges with money for Indigenous people. Knowing about this impact helps us to understand that challenges with money are not a personal issue (something someone is just “not good at”) but a systemic issue that has a long and difficult history. At the same time, Indigenous people are reaching a turning point where more and more opportunities are arising, as individuals and communities, for them to take control over their finances and be in charge of their money. Content: So where are we at now? What are some of the challenges that Indigenous people face with money?

• Poverty • Lack of understanding about finances • Impulse spending • Welfare/dependency • Not completing education • Addictions • Gambling

What are some of the opportunities that Indigenous people are developing?

• There are more and more Indigenous-run businesses • More Indigenous self-government and court challenges means that Indigenous people are

taking back control of resources • Many of the laws in the Indian Act and other racist laws have changed • The education system is trying to do a better job of educating Indigenous youth • The population of Indigenous people is increasing and more and more youth are knowledgeable,

skilled, and able to create wealth for themselves and their communities


Stage Four: The Future What is the vision that Indigenous people have for the future? They are working towards a healthy relationship with money that balances traditional values with the ability to be successful in the mainstream economy. This is a process of bringing back what was lost and at the same time creating something new that works in today’s world. Content: What could the future hold in terms of Indigenous people’s relationship with money?

• Create wealth for future generations (break cycle of poverty) • Feel in control of money • Make money from their resources, land and culture in a way that is sustainable and protects the

land for the long-term (examples: Osoyoos has a golf course, vineyard and hotel; First Nations mining, gas and hydro companies; Indigenous artists and performers who blend traditional culture with modern life; Indigenous banks and finance institutions; eco-tourism.)

• Greater and greater opportunities to enter all types of careers that involve a range of skills and education

Through this workshop and the follow up afterwards, we hope to give you the skills you will need to make this future a reality.


Worksheets 1-9 Needs vs Wants Catalogue


NEED


WANT


Handout 1-10 Just Imagine

Q: You have just been given $10 million. What will you do with the money?

Q: You have just been given $25,000. What will you do with it?

Q: You have just been given $1000. What will you do with it?


Handout 1-12


MODULE 2

Budgeting Basics


“Before taking the workshop I was spending money erratically here and there. Now I keep a budget and I plan ahead and think about spending choices. This helps me not to overspend, and also to leave money for emergencies.” - Indigenous Financial Literacy workshop participant

Summary This module introduces the skill of budgeting. It discusses why budgeting is useful, how budgeting can be used to achieve one’s goals, and covers specific issues to watch out for with budgeting.

Goal of Module

• Introduce participants to the concept of budgeting and demonstrate how it can be used to help achieve personal goals and improve financial stability.

Learning Objectives

• Understand what a budget is and the meaning of “income” and “expenses” in a financial context. • Be able to create and use a budget. • Know how to change a budget in order to deal with new life circumstances, respond to unexpected

situations, or accommodate new goals. • Know how to track expenses and why it is important to do so.

Sub-topics

A. What is a Budget and Why is It Useful? B. Income and Expenses C. Creating a Budget D. Budget Busters E. Adapting Your Budget F. Tracking Income and Expenses

Timing

This module lasts from two to three-and-a-half hours depending on which activities are selected.

A B C D ETotal

1hr55min to

3hr25min15 min

10 min

30 - 75min

10 – 15 min

20 – 30 min

F 30 – 60 min


Module 2 | Budgeting Basics


Overview: Module 2 - Budgeting Basics

Subtopic Activity Type Tools Time

A. What is a Budget and Why is It Useful?

2-1: What is a Budget?

Discussion; video clip

Optional: computer with internet connection; projector; flip chart; markers

15 minutes

B. Income and Expenses

2-2: What are Income and Expenses?

Discussion Optional: flip chart; markers

10 minutes

C. Creating a Budget

2-3: Budgeting Scenarios

Interactive group work

Handouts 2-3 (#1-6); envelopes; Monopoly money; Pencils

20-60 minutes

2-3A: Sample Budgets

Preparation for (optional) later exercises

Handout 2-3A; sample budgets; pencils

10 - 15 minutes

D. Budget Busters

2-4: Budget Busters Group discussion; optional video

Handout 2-4; scissors; pencils; erasers. Optional: computer with internet; projector

10-15 minutes

E. Adapting Your Budget

2-5: Budget Surprises

Game; optional video

Handout 2-5; scissors; pencils; erasers; optional: computer with internet; projector

20-30 minutes

F. Tracking Income and Expenses

2-6: Track Your Money Methods

Role play or group presentations

Handouts; envelopes; notebooks; pens; Monopoly money; CDs with budget template. Recommended: computer with budget template; cell phone or tablet with apps.

30 – 60 minutes


A: What is a Budget and Why is It Useful? Activity 2-1: What is a Budget? Key Points:

• A budget is tool to keep track of and plan for income and expenses. • A budget can help a person to achieve personal goals and improve financial stability.


a) In order to assess current knowledge, ask participants: • Do any of you use, or have you ever used, a budget? • What was it like using a budget? Was easy or difficult? • What did you learn from the experience? • How did it benefit you? • What worked and what didn’t?

b) Explain that you are going to show a 5-minute clip from the TV Series “The Cosby Show,” in which Bill

Cosby uses Monopoly money to teach his son a lesson about budgeting. https://www.youtube.com/watch?v=nFY0HBkUm8o

c) Ask participants: • For those of you that have used a budget before, or have even just heard of budgeting, how

would you describe what a budget is? Some possible answers include:

• A way to keep track of your money. • A list that compares a person’s or family’s income and expenses over a certain period of time. • A document that lists all the income you expect to come into your household and all the

expenses you expect to pay out. • A tool that tells you how much money you have, how much money you need, and what you

spend your money on. • A plan to help you manage your money and plan for the future.

d) Ask what the benefits of using a budget are. Facilitators should introduce any answers that

participants don’t come up with on their own. • Be more aware of where you get money and what you spend your money on. • Find areas where you can spend less and save money. • Take control of your finances and feel more confident. • Pay bills on time and avoid late fees. • Reduce your stress around money. • Reduce or pay off your debt. • Save for short, medium, and long-term goals.

Materials (Optional): Flip Chart; Marker; Computer with internet connection; Projector

https://www.youtube.com/watch?v=nFY0HBkUm8o


B: Income and Expenses Activity 2-2: What are Income and Expenses? Key Points:

• Income is the money that people earn or attain through various means. • Expenses is the money people spend. • Income and expenses can be fixed or variable.


a) Ask participants to suggest examples of income. Facilitators could introduce any answers that participants don’t come up with on their own. Examples include:

• Money that you earn from regular employment (a steady job). • Money that you earn from irregular employment (unpredictable income like babysitting, doing

odd jobs, on-call shift work, tips). • Benefits from the government: child tax credit, GST rebate, childcare subsidies, Canada

Pension Plan, Guaranteed Income Supplement, social assistance, disability benefits. • Scholarships, bursaries, and student loans. • Private pension benefits or RRSP withdrawals. • Rental income (if you have tenants in your home). • Gifts of money or support from relatives. • Inheritance. • Investment income (savings accounts that pay interest or gains on investments). • Income earned from selling things you own.

b) Ask participants to suggest examples of expenses. Facilitators could introduce any answers that

participants don’t come up with on their own. Examples include: • Fixed expenses such as rent/mortgage payments, utilities (including gas, hydro, water, etc.),

telephone, internet, and insurance. • Variable expenses such as groceries, transportation, socializing, dining out, coffee, cigarettes,

alcohol, and lottery tickets. • One-time expenses such as vacations, emergencies, and large purchases. • Ongoing expenses such as car maintenance, home repair, prescription drugs or health care not

covered by your insurance of Medical Services Plan. • Child care and/or pet care. • Gifts and donations. • Debt that you are paying off. • Savings (Please note: for the purposes of your budget, savings should be listed as an expense—

even though you don’t spend the money, you are putting it aside and it is not available for spending on other items in your budget).


c) Explain that expenses can be fixed or variable: • “Fixed expenses” are the same every time and can be predicted exactly (ex: monthly rent,

annual car insurance fee). For the purposes of a budget, you will need to know what your fixed expenses are.

• “Variable expenses” are different every time and cannot be predicted exactly (ex: groceries, socializing, and transportation). For the purposes of a budget, you will need to estimate your variable expenses. In order to do this you need to have a good idea of how much you usually spend on each item in your budget.

Materials (Optional):

• Flip chart • Markers


C: Creating a Budget Activity 2-3: Budgeting Scenarios Key Points:

• Each person’s budget will be different according to their income, needs, and wants. • Those who live with other people will need to agree upon a household budget that works for

everybody.

Duration: 20-60 minutes Description:

a) Divide participants into groups of no more than five. Assign each group a different budgeting scenario. Choose budget scenarios that most closely mirror the financial situation of the participants. Each scenario describes an individual’s or family’s level of income and several of their expenses.

b) Give each group Monopoly dollars in the amount of one month’s income for their budgeting scenario. Provide each group with ten envelopes – 9 labelled and 1 marked “Other.” Give each group pencils and paper. Instruct the groups to discuss the income and expenses described in their scenario and then decide how to allocate their Monopoly dollars among the envelopes. Expenses cannot exceed income, however income could exceed expenses.

c) Ask each group to briefly present their budget. As an option for larger workshops, groups with the same scenario can come together to compare their budgets and choices. Note: It is important to stress that there is not one right answer for each scenario. Also, participants might need to guess or infer information where it is not provided in the scenario. Guessing is fine, as long as they don’t make things up that drastically change the person’s situation.

d) De-brief each presentation. Ask all participants: • Is there anything you would have done differently in this budget? • What challenges might this person find in meeting their expenses and/or savings goals? • What do you think about their spending choices?

Note: Facilitators can refer to sample budgets in their de-brief in to point out categories that may be missing, unrealistic amounts, savings opportunities, and best practices. However, sample budgets should not be reviewed line-by-line with the group as this level of detail is not required for this activity.

Materials:

• Budgeting scenario handouts: o Handout 2-3 #1 o Handout 2-3 #2 o Handout 2-3 #4 o Handout 2-3 #5 o Handout 2-3 #6

• 10 labelled envelopes per group, with the following titles: Housing, Food, Communication, Utilities, Insurance, Transportation, Clothing, Entertainment, Health and Hygiene, Other.


Activity 2-3A: Sample Budgets Description:

a) After the de-brief, ask each group to fill in a budget template for their scenario. They can stick to their original allocation, or they can change things according to ideas that arose during the discussion. This must be done in pencil. Explain that they will use these templates in the next activity.

Duration: 10-15 minutes Materials:

• Handout 2-3A: Budget Template • Sample Budgets • Pencils • Erasers


D: Budget Busters Activity 2-4: Budget Busters Key Points:

• Budget busters are small costs that add up over time. Eliminating or reducing budget busters can save a lot of money.


a) Introduce budget busters. Explain that budget busters are: • Expenses that don’t fit into our budget. • Small expenses that add up over time. • Some examples include: lottery tickets, coffee, soft drinks, take-out, gambling, magazines,

loaning money to friends on a regular basis, gifts, etc. • If you can’t eliminate budget busters, try to reduce them. Otherwise, add them to your budget

so that they are planned costs. b) Optional: Show this humorous 2-minute video about budget busters:

Track-o-matic video: https://www.youtube.com/watch?v=7EheCbT1iU4 c) Ask participants to review their group’s scenario and identify budget busters. If they get stuck, hand

out the budget busters from their scenario. Then ask them to try to adjust the budget (using the template they filled out) to reduce or eliminate budget busters. Encourage them to think of appropriate substitutions. For example, if the budget buster is buying coffee on the way to work, they could make coffee at home instead—at least some of the time.

d) Explain that: • Addressing budget busters doesn’t mean people should only include their basic needs in their

budget. • It’s important to build in room for the things you like to do. • Budgeting means being aware of and in control of your spending, not deprivation!

Materials:

• Budgeting scenario handouts • Handout 2-3A: Budget Template • Handout 2-4: Budget Busters • Pencils • Erasers • Scissors • Optional: Computer with access to internet and projector

https://www.youtube.com/watch?v=7EheCbT1iU4


E: Adapting Your Budget Activity 2-5: Budget Surprises Key Points:

• Budgets need to be adjusted as a person’s life changes. • If possible, it is best for budgets to include money for emergencies and other unexpected costs.


a) Explain that: • Budgets are always working documents and need to be adjusted as life changes. • Major transitions in life will change budgets drastically. • If possible, it is important to plan ahead for these transitions and save up if needed.

Ask participants: “What are some major life transitions?” After each one they suggest, ask, “How would that transition affect someone’s budget? What could they do to plan ahead?”

b) Explain that participants are going to a play a game where they have to adjust their budget to a number of new scenarios. The goal is to balance the budget in a way that all essential needs are met, without going beyond the time limit allowed.

c) Give each group the “transition” that goes along with their scenario. Ask them to adjust their budget template in response to this transition. Suggested time limit: 2-5 minutes.

d) Congratulate the groups that finished and ask if anyone would like to share their approach.

e) Explain that: • A budget is an estimation of your income and expenses based on past experience. • It relies on information that is fairly predictable and steady. • Sometimes unpredictable events or emergencies occur. • These can affect your budget significantly.

f) Give each group the “emergency” that goes along with their scenario. Ask them to adjust their budget

in response to this emergency. Suggested time limit: 2-5 minutes.

g) Ask participants: How did the emergency affect your budget? What did you do about it?

h) Ask participants: How could you adjust your budget to plan ahead for emergencies? Possible answers include:

• Having a category in your budget for emergencies. • Creating a special savings account for emergencies. • Having insurance (for your house, disability insurance, life insurance, pet insurance, etc.).


i) Optional: Show this 2-minute video about setting up an emergency fund: Emergency fund video: https://www.youtube.com/watch?v=rGGLmoCWJbI

j) Optional: Give out small prizes to all the teams (candy, pens, etc.) There will be no winner as all the

answers are different.

Materials: • Budgeting scenario handouts • Handout 2-3A: Budget Template • Handout 2-5: Budget Surprises • Pencils • Erasers • Scissors • Optional: Computer with access to internet and projector • Optional: Small prizes

https://www.youtube.com/watch?v=rGGLmoCWJbI


F: Tracking Income and Expenses Activity 2-6: Track Your Money Methods Key Points:

• Tracking income and expenses is an important step to making a realistic budget. • There are many ways to track income and expenses. • Participants can choose a way to track income and expenses that works for them.

Duration: 30 - 60 minutes Description:

a) Introduce the importance of tracking income and expenses to participants by sharing the following key points:

• Keeping track of where your money comes from and where it goes is the most important step in understanding your spending habits.

• Have you ever found yourself asking the question, “Where did all my money go?” Through tracking your money you will be able to answer that question exactly.

• Tracking will help you to estimate your variable income and expenses so that you can create a budget that is realistic for you.

• The more accurately your budget reflects your current situation, the easier it will be to stay on track and meet your financial goals.

b) Explain the activity: “You will be given a handout that summarizes one method of tracking expenses. You will need to learn about this method and then demonstrate this method to the rest of the group by developing a short skit to act out how this method would be used.” Adaptation: If you have a very shy group or a group that has mobility challenges, participants could simply explain the method they were assigned to the rest of the group.

` c) Break participants into 4 groups (creating different groups than the previous activity) and give each

group one of the “Track Your Money Methods” handouts. You may need to adjust the number and size of groups depending on the number of participants you have. For example, if you have a large number of participants, you could have 2 groups doing each method, or if you have a small number of participants, you could give each group 2 methods to review. Give participants approximately 10 minutes to plan their skit.

d) Present skits. After each skit, ask all participants: What do you think are the benefits of that method? What could be challenging about it? Answers include:

• 2-6A: Spending Journal o Pro: It is low-tech and doesn’t require any special equipment o Pro: It is easy to input your income and expenses. o Con: You will have to do some math once a week to add everything up.

• 2-6B: Envelopes o Pro: It is very easy to put the receipts away in the right envelope. o Con: You have to do the math once a week.


• 2-6C: Spreadsheet o Pro: Does the math for you. o Pro: Easily transferrable to a budget template. o Con: Requires regular access to a computer. o Con: You will need to remember to enter your expenses into the spreadsheet

regularly. o Con: You must have basic knowledge of Excel.

• 2-6D: Cell Phone App o Pro: Does the math for you o Pro: You can input amounts right away if you have your phone with you o Con: You need to have regular access to a smartphone

e) Optional: Ask participants to choose a method that they think would work best for them. Explain that

you will be asking them to track their income and expenses for a set amount of time (one-month minimum). Important: Before participants leave the room, make sure that they have all the tools that they need to put their method into action. For example, provide them with envelopes, notebooks, pens, or a copy of the budget template on a CD. If they are using phone apps, ask them to download the app before they leave the workshop and play around with it for a few minutes to make sure they can figure it out.

f) Explain that: • It is normal to sometimes forget to track your income and expenses, but don’t give up. • Try your best to input everything you earn and spend, but if you forget a few expenses, then go

back and try to estimate them. Even if you can’t get it exactly right, move on and try to get in the habit of writing it down every time.

• The more careful you are about including all of your income and expenses, the more realistic your budget will be. A realistic budget will be easier to follow and will help you plan ahead.

Materials:

• Track Your Money Methods handouts o Handout 2-6A o Handout 2-6B o Handout 2-6C o Handout 2-6D o Handout 2-6E o Handout 2-6F

• Envelopes • Little notebooks • Pens • Recommended: Computer with budget template • Recommended: Cell phone or tablet with budgeting apps loaded on it • Monopoly money (for skits) • CDs or data stick with budget template



• Handout 2-3 #1: Budget Scenario 1: Sylvia and Michael • Handout 2-3 #2: Budget Scenario 2: Craig • Handout 2-3 #3: Budget Scenario 3: Mary • Handout 2-3 #4: Budget Scenario 4: Jean and Matthew • Handout 2-3 #5: Budget Scenario 5: Victor • Handout 2-3 #6: Budget Scenario 6: Shalina • Handout 2-3A: Budget Template • Sample Budget 2-3 #1 – Budget Scenario 1: Sylvia and Michael • Sample Budget 2-3 #2 – Budget Scenario 2: Craig • Sample Budget 2-3 #3 – Budget Scenario 3: Mary • Sample Budget 2-3 #4 – Budget Scenario 4: Jean and Matthew • Sample Budget 2-3 #5 – Budget Scenario 5: Victor • Sample Budget 2-3 #6 – Budget Scenario 6: Shalina • Handout 2-4: Budget Busters • Handout 2-5: Budget Surprises • Handout 2-6A: Track Your Money Method: Spending Journal • Handout 2-6B: Track Your Money Method: Envelopes • Handout 2-6C: Track Your Money Method: Spreadsheet • Handout 2-6D: Track Your Money Method: Cell Phone App • Handout 2-6E: Track Your Money Method: Online Banking & Tools • Handout 2-6F: Track Your Money Method: Print Bank Statements



Handout 2-3 #1 Budget Scenario 1: Sylvia and Michael

Sylvia is a single mom who lives with her five-year-old son, Michael, in a

small apartment in Prince George. Sylvia is currently unemployed and

receives income assistance of $1,270 per month plus a Family Bonus of

$560, for a total of monthly income of $1,830.

Sylvia’s rent does not include electricity, cable TV, or internet. Sylvia has a

cellphone with a basic monthly plan.

Sylvia usually has a take-out fast food meal once a week, smokes about two

packs of cigarettes a week, and plays bingo twice a month. This month,

Sylvia decided to buy herself a nice new pair of shoes. Sylvia prepares most

meals for her and Michael at home, and enjoys cooking for family members

who come over to visit.


Handout 2-3 #2 Budget Scenario 2: Craig

Craig is 20 and lives in Duncan with his parents and does not pay rent. He

works 40 hours per week at a fast food restaurant, earning around $2,400

per month.

Craig recently bought a used car on credit and has to make monthly

payments. He also likes to spend a lot on new clothes. Craig has a cell phone

and he usually uses far more minutes and data than are covered in his plan.

Craig likes to visit the casino or play poker with his friends on weekends,

even though he rarely wins.


Handout 2-3 #3 Budget Scenario 3: Mary

Mary is a third-year, full-time nursing student at the University of Victoria.

She and two other nursing students rent the main floor of a house. Their

rent does not include any utilities. They all like to go out dancing together at

least once a month.

Mary has so far avoided student debt by working during the summers and

saving carefully. While in school she also works three nights a week at a

busy pub, and her wages and tips usually add up to about $2,300 per month.

She’s not sure how she will pay for next semester, which will cost close to

$4,000 if she does a full course load. Mary isn’t sure whether she should

take out a student loan, or enroll in fewer courses next semester and work

more shifts at the pub.


Handout 2-3 #4 Budget Scenario 4: Jean and Matthew

Jean and Matthew are a married couple with two children, Kallie and

Johnson, living in Salmon Arm, BC. Jean works full-time as a technician in

the hospital and earns $3,850 per month. Matthew does on-call work for a

local construction company and earns between $2,100 and $3,500 per

month. Kallie is in school and after-school care, and Johnson is in daycare.

Jean and Matthew rent a 2-bedroom apartment near the center of town.

Jean’s hobby is scrapbooking, and she likes to buy supplies at various craft

stores and online. Matthew enjoys playing hockey in the recreational

league. Both children do after-school sports. On the weekends they like to

treat the kids by going to McDonalds for a family dinner.

Jean and Matthew are hoping to save up to purchase a new car in the next

year, as their old car has been breaking down often. Jean needs the car to

drive to her work, which is 40 miles away.


Handout 2-3 #5 Budget Scenario 5: Victor

Victor is 67 years old and lives in Mission, BC. He is a retired truck-driver

and earns a pension of $3,850 per month.

Victor is a widower who lives alone with his dog, Buddy, in the house he and

his wife bought 40 years ago. His mortgage is paid off, but his house has

some large repairs that will be needed in the next few years.

Victor enjoys drinking a few beers every evening, and playing Bingo once or

twice a week. He travels to Vancouver at least once a month to visit his

grandchildren there. He likes to bring them small gifts when he visits.


Handout 2-3 #6 Budget Scenario 6: Shalina

Shalina is 45 years old and lives on her own in subsidized housing in

Kelowna. She used to work in a factory but injured her back a few years ago

and is now unable to do manual labour, so she has been on disability ever

since. She earns $1,358 per month on disability. She used to work as a

secretary and for a while tried to find secretarial work again, but she was

unable to find a job. She has a savings account with $5,000 that she was

planning to use for her retirement.

Her two children are now grown up and living on their own.

She likes to go to the movies and she often buys lottery tickets. She has a

cat named Ginger who is 17 years old, whom she is very attached to. She

does not own a car and uses public transit to get around.


Handout 2-3A Budget Template Budget Template

Income: Amount Notes

Income 1:

Income 2:

Income 3:

Total Income:

Expenses:

Housing

Food

Communication

Utilities

Insurance

Transportation

Clothing

Entertainment

Health and Hygiene

Other 1:

Other 2:

Other 3:

Other 4:

Total Expenses:


Sample Budget 2-3 #1 – Budget Scenario 1: Sylvia and Michael Income: Amount Notes Income Assistance $1,270 Family Bonus $560 Total $1,830 Expenses: Rent $800 No tenant insurance; laundry included Utilities (heat, hydro, internet)

$130 Has credit rating, so she is able to pay heat and hydro on an equal payment plan

Cell Phone $50 No land line Groceries $320 Uses food bank if necessary to augment; Michael gets

free hot lunch at school Savings $90 Usually recommend 10%, but on low income 5% is a

good start. $25 goes into an RESP for Michael Cigarettes $110 It’s a good idea to take a look at how much we are

spending on non-essential items over a whole year – in this case $1,320.

Bingo $80 Again, almost $1,000 a year Take Out $85 Pizza; MacDonald’s gives her a break and Michael a

treat without being extravagant Bus Fare $25 She walks Michael to school, he rides free on the

weekends; saves by buying a card of 10 bus tickets Clothing $50 She sets aside half of any extras like cash gifts to

herself, GST or tax refunds, for clothes Sundry $50 This covers things like haircuts, cosmetics, and music,

etc. Gifts, Christmas $25 Puts this aside in a separate account; makes food

gifts for family Total Expenses $1,815

As you can see, Sylvia only has $15 in discretionary income left each month. She could, however, buy a new pair of shoes if she allocates her first GST refund in her clothing fund.

Basic dental is covered by NIHB; they don’t have cable, but watch shows on the computer or rent movies from the public library.


Sample Budget 2-3 #2 –Budget Scenario 2: Craig Income: Amount Notes

Employment $2,400

Expenses: Car Payment $495 Used car

Cell Phone $ 215 ($45 basic plan with 300 extra minutes & 550 MB extra

data)

Extra minutes = $90; extra data = $30. Unlimited minutes and 1 GB data plan =$65 (over $1,000 savings per year!)

Auto Insurance $200 Gas, Maintenance $150 Savings $240 Clothing $500 Poker/Casino $400 Convenience Food/Snacks $65 He often eats for free at work or

at home Miscellaneous $60 Haircuts, movies, etc. Total Expenses: $ 2,325

Assuming no credit card or other debt.

Sometimes the cheapest plan isn’t the cheapest. Going over on data or minutes can be very expensive. If you go over on a regular basis, talk to your provider about a plan that matches your usage. You could actually save money by buying a more expensive plan. Craig is putting away 10% of his salary and still has $75 per month in discretionary income. He could increase that to $215 per month by changing cell phone plans. If Craig wants to move out of his parents’ home, he will have to make some drastic changes in his earnings and/or his spending habits. He could save another $200 per month to save up for moving out.


Sample Budget 2-3 #3 – Budget Scenario 3: Mary Income: Amount Notes Pub Wages & Tips $2,300

Expenses: Rent $550 No tenant insurance; no laundry Utilities (heat, hydro, cable)

$125 Everyone pays contributes each month & the bills are paid as they come in. If there is a shortfall, everyone pays 1/3

Cell Phone $65 No land line Groceries $420 They save money by taking turns cooking for everyone

3 nights per week Savings $240 Bank Charges $12 By paying this fee monthly, all transactions are free School Costs $333 One semester spread over the whole year Dentist $25 Two visits per year, no major work Go Out Dancing $80 $720 per year Household Supplies $60 Shared expense with the 2 roommates Clothing & Shoes $85 Does a lot of second-hand shopping Personal Care $120 This covers things like haircuts, cosmetics. Miscellaneous $120 Laundry, occasional cab Gifts, Christmas $65 Saves extra $ like GST and gift money Total Expenses $ 2,300

Mary is managing sufficiently in her current situation, with no discretionary income each month. By taking a full course load she will be finished school sooner and be able to earn a nursing salary.

Bus fare is included in tuition.


Every dollar of their budget is accounted for based on the low estimate of Matthew’s salary. When he has more work, they might splurge on something extra, but most of it goes into a fund so that they might buy a home one day.

Sample Budget 2-3 #4 – Budget Scenario 4: Jean and Matthew Income: Amount Notes Income 1: Jean $3,850 Income 2: Matthew $2,100

Income 3: Child Tax Benefit $325

Total Income: $6,275 Expenses: Housing Rent $1,600 Groceries $1,200 Phone $140 Internet $85 Cable $120 Utilities (heat, water, utilities) $180 Car Insurance $100 Car Gas $200 Car Repairs $125 Budgeting for estimated cost of repairs every month, even if

they do not happen every month, means that money is available when repairs need to be done.

Daycare $200 Childcare costs are necessary for both parents to work, but is something that will decrease once they pass through this stage of life

After School Care $75 The daycare and after school amounts are after subsidy

Health and Hygiene $100

Clothing $300

Miscellaneous $100

Dining Out $250 Dining out is a large amount of discretionary spending, accounting for almost 1/3 of their food budget, for only one night out of dining per week. This works out to $3,000 over the course of the year.

Children’s Sports $200

Recreational Hockey $75

Scrapbooking $75

Entertainment $150

Savings for Car $300 Putting aside savings each month for a car is advantageous because it will reduce, or maybe even eliminate, their need to borrow money for a newer car

Other Savings $700 It is good that they set aside money each month for an emergency savings fund

Total Expenses: $6,275


Victor has $400 of discretionary income – regular income that is not accounted for in his budget. Since he buys gifts every month when he visits his grandkids, he might want to put an extra $100 away towards Christmas. He could also increase both his home maintenance fund and his emergency savings.

Sample Budget 2-3 #5 – Budget Scenario 5: Victor Income: Amount Notes Income 1: Victor $ 3,850 Total Income: $ 3,850 Expenses: Property Tax $300 Home Maintenance $500 Budgeting for estimated cost of repairs every month, even if

they do not happen every month, means that money is available when repairs need to be done. When issues arise they often are large expenditures and it helps to have an allocation saved for them.

Groceries $500 Phone $70 Internet $55 Cable $85 Utilities (heat, water, utilities) $300 Car Insurance $100 Car Gas $175 Car Repairs $125 Budgeting for estimated cost of repairs every month, even if

they do not happen every month, means that money is available when repairs need to be done

Dog Food and Care (Annual Vet, Flea Pills)

$120 It's good to set aside a monthly allocation for dog food and care, even if these amounts are not purchased monthly

Health and Hygiene $100 Victor might want to consider whether these costs will increase over time as he continues to age

Clothing $75 Bingo $280 Beer $200 Bingo and beer combined add up to 12% of the monthly

budget - $5,760 per year.

Gifts $125 Dining Out $100 Emergency Savings $100 Miscellaneous $140 It is useful to have a miscellaneous line item in your budget,

since expenditures arise that are not regular and are hard to predict. Examples include paying for parking, a driver’s license renewal, getting keys cut, etc.

Total Expenses: $3,450


* Saving $480 a year might be a better bet than the lottery tickets.

Shalina can keep $1,200 per month of earnings without reducing her disability payments. She has no savings, and not much room in her budget for any. A part-time job would enable her to save a cushion for emergencies. If Shalina is eligible for the Federal Disability Tax Credit, she can open an RDSP. If she puts her $5,000 into it, the government will match her contribution with a $15,000 grant. They will also deposit $1,000 per year from the start of her disability, for a maximum of 10 years, and until age 49. This will greatly increase her retirement income.

Sample Budget 2-3 #6 – Budget Scenario 6: Shalina

Income: Amount Notes

Income 1: Shalina Disability $ 1,358

Total Income: $ 1,358

Expenses:

Rent $660 Rent is a big portion of her budget and it may be difficult to find ways to reduce this cost as a proportion of her budget

Groceries $370

Phone $50

Utilities (heat, water, utilities) $78

Clothing $40

Cat Food and Care $40

Lottery Tickets $40 * Although it doesn't seem like much, a few lottery plays per month add up to 3% of her budget, as much as she spends on clothing.

Entertainment $80

Total Expenses: $ 1,358


Handout 2-4 Budget Busters With scissors, cut along the lines and distribute the budget busters to each scenario group.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Scenario 1 Budget Buster: Cigarettes - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Scenario 2 Budget Busters: Cell phone; gambling - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Scenario 3 Budget Buster: Magazines - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Scenario 4 Budget Buster: Fast food - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Scenario 5 Budget Busters: Bingo, beer - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Scenario 6 Budget Buster: Lottery tickets - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -


Handout 2-5 Budget Surprises With scissors, cut along the lines and distribute to each scenario group its Transition and then its Emergency.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Scenario 1 Transition: Sylvia finds out she is pregnant. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Scenario 1 Emergency: Sylvia’s brand-new cell phone is ruined when Michael spills a glass of milk all over it. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Scenario 2 Transition: Craig decides to move out on his own. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Scenario 2 Emergency: While his insurance was expired, his car gets completely ruined in an accident. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Scenario 3 Transition: Mary graduates and gets her first job as a nurse. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Scenario 3 Emergency: Mary breaks her leg dancing and cannot work. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Scenario 4 Transition: The family decides to move to Vancouver. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Scenario 4 Emergency: Jean loses her job at the hospital. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Scenario 5 Transition: Victor receives a settlement payment of $16,000 due to the time he spent in residential school. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Scenario 5 Emergency: Victor’s roof begins to leak and needs to be replaced. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Scenario 6 Transition: Shalina decides to go back to college to train to be a legal administrative assistant. She will be taking online courses through Vancouver Community College for the next three years. The program costs about $4,000 per year. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Scenario 6 Emergency: Ginger gets sick and requires a treatment that costs $1500. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -


Handout 2-6A Track Your Money Method: Spending Journal Description: Write down everything you earn and everything you spend in a small notebook. Every week add up what you earned and what you spent.

Materials: Small notebook and a pen or pencil. Instructions: Make a chart in your notebook that looks like this:

Date Spending Category Amount Notes March 1, 2015 Rent -$150 March 1, 2015 Eating Out -$14.27 Dinner at Maxime’s with friends March 2, 2015 Income +$26 Babysitting for Kate and Luke March 3, 2015 Groceries -$127.18 Includes shopping for camping trip March 3, 2015 Miscellaneous/

Random -$5 Firewood for camping trip

Every time you get money or spend money, add a row to the chart and write down the amount you spent, spending category, and any notes so you can remember where the money was from and what you spent it on. Starting from the back of the book, make a chart that looks like this:

Total Spending for Week of March 1st-6th, 2021 Spending Category Amount Notes Groceries $ XX (add up all the spending in this

category for this week) More than usual this week due to camping trip

Eating out $ XX (add up all the spending in this category for this week)

Total Expenses $ XX (add up all the above rows) Total Income for Week of March 10th-16th, 2021 Income $ XX (add up all the income in this

category for this week) Didn’t get much work this week

Include all the spending categories you use. Add up your income and expenses in each category for each week. After a month add up all of your income and expenses for one month. You will be able to see if your income is more or less than your expenses.

Tips: It’s a good idea to save all your receipts. That way, if you forget to write anything down you can go back to your receipts.


Handout 2-6B Track Your Money Method: Envelopes

Description: Keep envelopes for each spending category and put the amount of money you plan to spend in or on each envelope.

Materials:

• Envelopes • Money

Instructions:

• Use the envelopes to collect your receipts. Then add up the receipts each week to see how much you spent per week on each category.

• Don’t forget to include things you may not get a physical receipt for, like rent, lending money to friends, buying something at a farmer’s market, buying an item online, etc.

• You could keep a piece of note paper in each envelope for writing down expenses that you didn’t get a receipt for.

• If you put cash in the envelopes it will be apparent when you have spent what you set aside for the week in that category. Think about what you will do with the cash if you spend money in a different way (for example if you buy something online with your mom’s credit card, give the cash to your mom).

At the end of the week, compare your receipts to the amount you were planning to spend if you didn’t use cash in the envelopes.


Handout 2-6C Track Your Money Method: Spreadsheet

Description: Enter your income and expenses into a spreadsheet on your computer.

Materials:

• Computer with Excel • Spreadsheet template (provided)

Instructions:

• Save the template on your computer. Review the examples to see how it works. There are three pages: Expenses, Income, and Balance. Once you understand how it works, delete the examples. Don’t delete cells with formulas.

• On the “Expenses” page, label each category with things you actually spend money on.

Feel free to add more columns with additional categories, change the names, etc. As you spend money, enter the date and the amount under the appropriate category. As you earn money, enter the date and the amount on the “Income” page.

Tips:

• If you spend money when you’re out and about, try to enter it into the spreadsheet that same day so you don’t forget about it.

• Most banks will allow you to download your transactions as a .csv file which will open in a spreadsheet. You can copy these to your master spreadsheet.

• Save your receipts so you can make sure you don’t forget to enter anything.

Remember to include things you may not get a physical receipt for, like rent, lending money to friends, buying something at a farmer’s market, buying something online, etc.


Handout 2-6D Track Your Money Method: Cell Phone App Description: Use an app on your cell phone to track your income and expenses. Materials:

• Smartphone • App (many free options are available)

Instructions: Depending on what type of phone you have, download one of the following apps:

• Any phone: Spending Tracker – A free expense tracking app for iPhone and Android phones. An upgrade to the Pro version is $2.99, and allows expenses to repeat, and has other useful features. It looks like this:

• iPhone only: Quick Money Recorder: Also free and allows you to enter repeat income and expenses. Sends you daily reminders to input your expenses. It has an icon like this:

Play around with the app to make sure you know how to enter income and expenses and see records of your tracking and graphs. Try entering examples to test how it works. Delete the examples before you start using it. Alternative: There are many other apps available if you do not like the ones suggested above. Tip: This method works best if you enter income and expenses right away, immediately after you pay for something or earn money.


Handout 2-6E Track Your Money Method: Online Banking & Tools

Some banks automatically categorize your expenses as you spend. Check online or ask at your branch to see what features are offered by your bank or credit union. Here are some examples.


Handout 2-6F Track Your Money Method: Print Bank Statements

Print your bank and credit card statements for a period of 3 to 6 months. Determine the categories you want to break down your spending into. Choose a highlighter pen colour for each category. Go through the statement, line by line or colour by colour until all expenses are categorized. (See example below.) Now add up the amounts in each colour. Divide your totals by the number of months to get a monthly average. What was surprising?


MODULE 3

Creating Your Budget


“I began making a monthly budget and putting money into a savings account every month. Now I even budget for my groceries. I have also set up a savings account for my children that I contribute to regularly.”

- Indigenous Financial Literacy workshop participant Summary This module walks participants through the process of creating a budget for their own lives. Using participants’ personal goals as a starting point, this module helps them to create a budget to reach their goals, either on their own or as members of a family. Note: This module is more effective if participants have had an opportunity to track their income and expenses for a while, as well as gather personal information to help them calculate their fixed expenses. Goal of Module

• Create a personalized budget that is realistic and promotes sound financial planning, including avoiding debt, saving when possible, and working towards short, medium and long-term goals.


• Create and use a budget in their own lives. • Relate their budget to personal goals. • Be able to adapt their budget as life circumstances change. • Engage in family discussions to agree on an appropriate budget.

Sub-topics

A. Setting Your Budgeting Goals B. Making Your Budget C. Agreeing on a Family Budget D. Staying on Track

Timing This module lasts from one to five-and-a-half hours, depending on which activities are selected.

A B C D Total1hr to

5hrs40min30 - 50

min20 - 150

min20 - 110

min 10 min


Module 3 | Creating Your Budget


Overview: Module 3 – Creating Your Budget


A. Setting Your Budgeting Goals

3-1: Future Self Individual Lined paper; paper; pens; markers

20 minutes

3-2: Creating Budget Goals

Individual; group discussion

Handout 3-2; pens; flipchart; marker

30 minutes

B. Making Your Budget

3-3: Making Personalized Budgets

Individual Handout 3-3A,B,C; pencils;

30-60 minutes

3-4: Holding Accounts Presentation Handout 3-4; Handouts 3-3; pencils

30 minutes

3-5: Wise Practices for Budgets

Presentation; individual

Handouts 3-3; calculators; flip chart; marker; pens

20 minutes

3-6: Reviewing Your Budget

Coaching Handout 3-2: My Budgeting Goals; Handouts 3-3; Coaching Guidelines; pencils

30 – 60 minutes

C. Agreeing on a Family Budget

3-7: Budgeting as a Couple

Presentation n/a 15-20 minutes

3-8: Budgeting as a Household

Presentation n/a 10 minutes

3-9: Family Budget Negotiations

Video; Group discussion

Computer with internet; projector

10 – 20 minutes

3-10: Role Play Family Budgeting

Small group; role play

Handout 3-10

45-60 minutes

D. Staying on Track

3-11: How to Stay on Track

Individual Handout 3-2; Pens

10 minutes


A: Setting Your Budgeting Goals Activity 3-1: Future Self Please Note: This activity is also included in Module 1 of this curriculum. If participants have not completed this activity, you may want to introduce it now. If they have already completed this activity, you may want to begin this session by having them refer to their future self they created and financial goals they set at that time. Key Points:

• It’s important to have big dreams to strive for; plan for them! • Having a strong vision for the future can help us to set goals and stick to them.


a) Ask participants to imagine how they would like their financial situation to be in the future. They could choose a time from one year in the future to 30 years in the future. Once they have decided upon a time, ask them to visualize answers to the following questions:

• Imagine yourself at this point in the future. What is your relationship to money? • Do you have enough money to meet your needs? • What is your lifestyle like? • How do you make decisions about money? • What are you proud of related to money? • What do you wish you had done differently related to money? • What financial goals did you set and how did you achieve them? • What steps did you take to get to where you are today?

b) After leading them through the visualization, pass out lined paper and ask participants to write a letter

from their “future self” to their “present self.” The letter can speak to the ideal vision each participant is hoping to achieve from the perspective of the future self who was successful in building their financial skills, knowledge, and confidence to accomplish great things. Participants can also choose to draw a picture of their future self.

c) Instruct participants that in the letter or drawing they should: • Describe your future self. What did you accomplish? • What are the biggest differences between your current and future self? • What advice do you have from your future self to your current self?

Materials: • Lined paper • Paper • Pens • Markers


Activity 3-2: Creating Budget Goals Key Points:

• Making and using a budget will help you to meet your financial goals. • When setting financial goals, it is important to consider your income, expenses, and savings goals. • There are three kinds of savings: short, medium, and long-term.


a) In this activity you will lead participants, as a group, through the process of setting goals for their budget. Please refer to Handout 3-2: My Budgeting Goals.

b) Begin by reviewing or introducing SMART goals. (See DREAMS, GOALS… ACTION! in appendix) Remind participants not to set goals that will be very difficult to achieve. For example, if they love going out for coffee with friends, they might not want to completely eliminate coffee. Encourage them to set goals they think you can stick to.

c) Begin with the box labelled “income” in Handout 3-2. Ask participants to brainstorm ideas for

increasing income. You may want to write their answers on a flip chart. Many people will initially think of earned income from employment, but there are many other sources of income. If not suggested by participants, some examples you may want to include are:

• Getting additional work or changing work • Doing odd jobs • Claiming a tax refund • Applying for benefits (such as daycare subsidy, etc.) • Applying for a scholarship or loan • Getting a tenant or homestay student • Having a yard sale or selling things you don’t use

d) Instruct participants to fill out the “income goals” box on Handout 3-2.

e) Now refer to the box labelled “expenses” on Handout 3-2. Ask participants to brainstorm ideas for

reducing expenses. You may want to write their answers on a flip chart. If not suggested by participants, some examples you may want to include are:

• Eliminating budget busters like coffee, soft drinks, takeout, etc. • Get a roommate • Carpool • Reduce bank fees by getting a free chequing account • Ask your cell phone provider if there are better options • Buy used clothes or exchange clothes with friends, rather than buying new clothes • Make homemade gifts instead of buying gifts • Share childcare with another family


f) Instruct participants to fill out the “expenses goals” box on Handout 3-2.

g) Now refer to the box labelled “savings”. Explain that savings can be divided into three categories: short, medium, and long-term savings.

• Short-term savings are for things you will purchase in the next year or so. • Medium-term savings are for things you will purchase in the next few years. • Long-term savings are for the future; the principal should never be spent.

Ask participants to brainstorm examples of things people might want to save for. You may want to write their answers on a flip chart. Some examples may include:

• A large item you want to buy (TV, furniture, bike, etc.) • A trip you want to go on • Expenses related to a ceremony or cultural event • A new car • Visiting a family member • A gift you want to make or buy someone • An emergency fund • Retirement • Your own or your children’s education • A life transition that you are planning for • Buying a home • Regalia • Moving out of parents’ home

h) Instruct participants to fill out the “savings goals” box.

i) The last box on Handout 3-2 is “putting my plan into action.” For this category, ask participants for

ideas about how to stick to their budget. This is discussed in more detail in section D of this module, so you may want to complete this section of the handout after you have done section D. It also makes a good closing activity for this module.

Materials:

• Handout 3-2: My Budgeting Goals • Pens • Flipchart • Marker


B: Making Your Budget Activity 3-3: Making Personalized Budgets Key Points:

• Each person’s budget is unique. • Having your budget written down will help you stick to your goals. • Making and sticking to a budget is a life-long process. Your life will change over time and so will

your budget! Duration: 30-60 minutes

Description: Please Note: For this activity to be successful, participants must be familiar with their income and expenses. It is recommended that this activity be completed after participants have had an opportunity to track their income and expenses for a while, as well as gather personal information to help them calculate their fixed expenses. Reviewing bank and credit card statements for the past few months can also be a good way to get an estimate of their expenses. Fixed expenses can come from copies of bills. Income amounts can be drawn from paystubs. If that has not occurred, it may be better to simply introduce the budget template but have them fill it out for homework.

a) Pass out Handouts 3-3: Budget Templates to participants. Please note that there are several versions of the budget for different age groups. Select the budget template that you think would be most useful to your participants.

b) Instruct participants to fill out the “estimated” column. If they have tracked their expenses, they can make an estimate by averaging the amounts they spent in previous months in each category. Make sure that participants put after-tax income in the income line. Participants will have to estimate irregular income.

c) Explain to participants that the amounts in each line for variable expenses (see Module 2) are averages. For example, they may have $100 per month for clothing. That doesn’t necessarily mean they spend $100 each month. They may spend $200 one month and $0 the next. But over the course of a year, they should only spend $1200 on clothing.

d) Suggest that participants bring their completed budgets home and share them with their families. It is also a good practice to continue (or begin) tracking their income and spending so that they know whether they are staying on track. They may need to make adjustments to their budget (or income, or spending) if actual amounts differ greatly from estimated amounts.

Materials: • Handouts 3-3: Budget Templates • Pencils


Activity 3-4: Holding Accounts Key Points:

• For expenses that occur irregularly throughout the year, it is a good idea to set up a separate savings account.

• You can contribute to this account regularly. • This will help you to avoid going off budget when these irregular expenses occur.


a) Ask participants to identify their irregular expenses. Examples may include: • Gifts for birthdays and holidays • Car repairs • Vacations • Clothing • Cultural activities • Summer camps

b) Ask participants to estimate the amount they spend per year on each of their irregular expenses.

Divide that amount by 12. That will give them the monthly amount they should budget for that expense.

c) Introduce the concept of a holding account: • A holding account is an account where you can put aside money to be spent on irregular expenses • In order to know how much to put in your holding account, add up the monthly cost for all of your

irregular expenses. This is the amount you should put in your holding account. • Alternatively, set up separate accounts for each expense; your bank or credit union may allow

several accounts to be linked as one. • Every time you need to pay for one of those irregular expenses, take the money from the holding

account. Try to only use this account for irregular expenses, and not take money from your primary account.

d) Distribute Handout 3-4: Irregular Expenses – Set Up a Holding Account

e) Walk participants through the following example:

Item Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

(annual) Clothes $100 $300 $300 $100 $800 Gifts $50 $100 $50 $200 $400 Vacations $600 $600 $1200 Amount to Put Aside

200 200 200 200 200 200 200 200 200 200 200 200 $2400


In this case, $200 goes in the holding account each month. Any time clothes, gifts or vacations are purchased, it comes out of this account.

f) Have participants add a line item to their Handout 3-3: Budget Template for a holding account. They should write a note on this line to specify what item(s) the holding account includes.

Materials:

• Handout 3-4: Irregular Expenses – Set Up a Holding Account • Handouts 3-3 • Pencils

Activity 3-5: Wise Practices for Budgets Key Points:

• The 50/20/30 guideline and housing guideline are recommendations that are generally accepted by financial experts.

• Following these guidelines will set you up for financial success. • While these guidelines may not be achievable for everybody, they are useful to know about when

making budgeting choices and are worthwhile goals to strive for. Duration: 20 minutes Description:

a) Introduce the 50/20/30 guideline to participants: • This is a general best practice for budgets. Remember that everyone’s budget is different and

so this guideline may not apply exactly. But if you can follow it, it will put you in a strong financial situation over the long-term.

• The 50/20/30 guideline recommends that:

o 50: No more than 50% of your income goes to “needs.” These include things like housing, transportation, utilities, and groceries.

o 20: At least 20% of your income should go to financial priorities like retirement savings, paying off debt, and other savings.

o 30: No more than 30% of your income should go to “wants,” including things like cable, internet, cell phone, socializing, shopping, sports, etc.

• While the “wants” are the last things you should buy in your budget, you should never feel

guilty about them. As long as you’ve taken care of your needs and your financial priorities, there is no problem with enjoying the “wants” as well!

b) Introduce the “housing guideline:”

• It is recommended that no more than 30% of total household income should be spent on housing. This includes rent, mortgage payments, property taxes, condo fees and utilities.


• The reality is that many Canadians spend more than this on housing. However, if you have the ability to follow this guideline by reducing your housing costs (moving, getting a roommate or tenant) or increasing your income, it is a useful practice to follow.

c) Distribute calculators and then ask participants to calculate the percent of their budget that goes to

each category. If they are not following the 50/20/30 guideline or the housing guideline, how could they adjust their budget to do so? If changes can’t be made immediately, they may want to incorporate these adjustments into their goal setting.

d) Draw the following formula on a flip chart as a reminder of how to calculate percentages: (amount spent on each category ÷ total expenses) X 100 = percent spent on that category

Materials: • Handouts 3-3 • Calculators • Flip chart • Marker • Pencils

Activity 3-6: Reviewing Your Budget Key Points:

• It is a good idea to get feedback on your budget. Don’t be afraid to ask others for financial advice! Duration: 30-60 minutes Description:

a) If you have enough facilitators, have participants work with facilitators one-on-one, or even in groups of two, to review their budgets. Note: This conversation is meant to be a coaching conversation, meaning that facilitators don’t offer answers, suggestions, or critique. Instead, simply ask questions to get participants to think their budget through. Refer to both Handout 3-2: My Budgeting Goals and the Handouts 3-3: Budget Templates that participants have made. Helping them add up the budget may be useful at this stage. Questions to ask include:

• Is there any type of income that you may have left out (e.g. money people give you as gifts, odd jobs, government benefits, or tax refunds, etc.)?

• Are there any expenses that could be reduced? How would these reductions be achievable? • Is the amount you’ve allocated for savings realistic? Could you save more, or is your savings

goal too high? Where will you put the money you save? • What will help you to stick to your budget? What challenges do you anticipate? How can you

address these challenges? Optional: You may want to include these questions on PowerPoint slides for display.


b) If you don’t have additional facilitators, have participants form groups of two or three and share their

budgets with each other. Instruct them to ask each other the above questions.

c) Option: If you are offering follow-up services to participants, you may want to schedule one-on-one meetings with each of them to review their budgets. (See Follow-up Coaching Guidelines in appendix.)

Materials:

• Handout 3-2: My Budgeting Goals • Follow-up Coaching Guidelines (see appendix) • Handouts 3-3: Budget Templates • Pencils • Erasers • Optional: Computer, projector


C: Agreeing on a Family Budget Activity 3-7: Budgeting as a Couple Key Points:

• Conversations with your partner about budgeting can be challenging. Try to stay respectful and focus on shared goals.


a) Acknowledge that talking about money with your partner can be challenging at times.

b) Ask participants to form groups of 2-3 and share what strategies they have found that make conversations about money go smoothly. Let them discuss for 5 minutes and then have them share their answers with the group.

c) If participants don’t suggest the following answers, facilitators may want to introduce them: • Find the right time to talk to your partner. Don’t bring up your concerns about finances when

he or she is busy or tired. • Keep the conversation respectful and do not blame. • If you feel frustrated about your partner’s past decisions, don’t focus on the frustration.

Instead, focus on creating a plan to move forward. • Find goals that you both can agree on. Working towards a common goal will make it seem

more like a choice than a sacrifice. • Use “I” statements to communicate your feelings. For example: “I feel frustrated that we are

often broke. I wonder if you feel the same way? What can we do together to change this situation?”

• If things get heated, acknowledge the frustration and try to get back on track. • Sometimes it helps to have a short break if emotions are running high. • You don’t have to agree about everything. If possible, you can set aside an “allowance” for

each of you in your budget. Each person can spend their “allowance” however they want.


Activity 3-8: Budgeting as a Household Key Points:

• Talking about budgeting with the other members of your household and involving them in making a budget will make it easier to stay on track.

• Budgeting as a family is a great way to teach children about budgeting. • A family budget meeting can be a good way to get everyone to agree to a budget.


a) Explain that • If you live with other people, it is important to agree upon a household budget. • This can be tricky when different members of your household have different values, goals, and

priorities. • Talking about budgeting with the other members of your household and involving them in

making a budget will make it easier to stay on track. • This may take some negotiation. • A regular household budgeting meeting is a good idea.

b) Introduce the concept of a household budget meeting.

What it is:

• A household budget meeting is a scheduled time when your entire household sits down to talk about money, planning, goals, and needs vs. wants.

How to do it:

1. Create some regular standing items so the meetings have structure. For example, at the start of each meeting, you may want to have everyone check in with a money goal that they set for the month or, if you have a family goal, you might provide a status report of where the family stands in terms of reaching that goal.

2. Share only what you need to share. Provide a general overview of the family finances and talk in general, easy-to-understand terms. For example, “We have $45 in our family fun fund. Would you like to go bowling on Saturday or put it towards purchasing a new DVD player?”

3. Set family goals and monitor progress at every meeting. For example, you could plan for a

family vacation and discuss how much it will cost and how you can save the money to go.

4. Involve your children. Family budget meetings are a great way to teach your children to be financially fit. If you don’t teach your children about money someone else will, and you may not like the lessons they learn. You can ask them what is important to them and if possible include their preferences in the budget. If your children want to save up for something, have a coin jar where they can see the savings build up each week.


When to do it: • It is a good idea to schedule this meeting on a regular basis. Ideally once a month or once a

week. Set a regular date and time for your meetings so people can think ahead about the topics they’d like to discuss.

Who should be involved: • It is a good idea to involve everyone in your household, even elders and children.

Activity 3-9: Family Budget Negotiations Key Points:

• Families need to work together to put their budget into practice. Duration: 10-20 minutes Description:

a) Show participants the following 2-minute video clip of an Indigenous family negotiating budgeting decisions together: Budgeting—Good Decision: http://vimeo.com/27301108 Optional: If you have time, show this video clip first, of the same family that demonstrates what can happen when the family does not work together on budgeting: Budgeting—Poor Decision: http://vimeo.com/27302761

b) After viewing the video(s), ask participants: • What helped (or didn’t help) the family to stay on budget? • How did the family negotiate budgeting decisions together? • What did you like, or not like, about how they communicated with each other?

Materials:

• Computer with internet connection • Projector

Activity 3-10: Role Play Family Budgeting Key Points:

• Families need to work together to put their budget into practice. Duration: 45-60 minutes (depending on the size of your group) Description:

a) Divide participants into groups of 3 to 5.

b) Explain that each group is a family. Ask each group to make up roles for themselves and then create a situation related to money that the family needs to discuss. Each group will need to put

http://vimeo.com/27302761


together a 2-3 minute skit that shows their family having a positive discussion about finances. They should try to model the tips learned in the above activities. Give them 15 minutes to develop their skit.

c) Have each group present their skit to the other groups. After each presentation, ask all the participants: • What did you see this family do that worked well for them? • What could they have done differently to achieve even better results? • How realistic was this situation?

d) After each group has presented their skit, discuss the following questions as a large group:

• What skills and practices for talking about money did you learn that you could put into place in your own family?

• What do you think are the benefits of involving your family in budgeting discussions? • What, if anything, do you plan to do differently as a result of this learning?

e) Optional: Give participants homework to have a discussion with their family about money and report back. Distribute Handout 3-10: Discussing Money with Your Family. At the next session, ask participants to share feedback about their discussions. You could ask them: What went well? What was tricky? What would you do differently next time?

Materials:

• Handout 3-10: Discussing Money with Your Family


D: Staying on Track with a Budget Activity 3-11: How to Stay on Track Key Points:

• The more realistic your budget is, the easier it will be to stay on track. • Tracking income and expenses will help you to create a realistic budget. • If you get off track, don’t give up—make adjustments and keep trying. If possible, pay yourself back for

any extra money you spent last month, but if not, just move forward with trying to stay on budget.


a) Explain that: • Making a budget is a good first step, but staying on budget is harder. • The more accurately your budget reflects your current situation, the easier it will be to stay on

track. • Tracking income and expenses will help you to create a realistic budget.

b) Ask participants: What do you think could help a person to stay on track with their budget?

Possible answers include: • Paying bills and savings immediately after getting paid. • Ensuring other members of your household agree with the budget. • Continuing to track expenses to make sure you stay on budget. • Having friends who support you and remind you to stay on budget. • Planning ahead for ways to participate in activities you enjoy while spending less (for example

eating a snack before going out to eat with friends so you can just order something small).

c) If they have not already done so, get participants to fill in the last section of Handout 3-2: My Budgeting Goals called “Putting my plan into action.”

Materials:

• Handout 3-2: My Budgeting Goals • Pens



• Handout 3-2: My Budgeting Goals • Handout 3-3A: Budgeting Template – Family • Handout 3-3B: Budget Template – Youth • Handout 3-3C: Budget Template – Elder • Handout 3-4: Irregular Expenses – Set Up A Holding Account • Handout 3-10: Discussing Money With Your Family



Handout 3-2 My Budgeting Goals Remember SMART Goals: S-Specific (Avoid general goals like, “Save more money.” Instead, try something like, “Save $100 each month for 6 months.”) M-Measurable (It should be clear when you have achieved your goal or how well you have done.) A-Achievable (Your goal should be something you can actually do.) R-Relevant (Your goal should help you to achieve your financial vision.) T-Time-Bound (You should have a specific deadline to achieve your goal.)

Income: What can I do to increase my income?

Expenses: How can I reduce my expenses? Savings: What am I trying to save for? How much money will I save for each of these goals and how often will I put money into savings?

Goal Amount of money How often Short-term goal:

Medium-term goal:

Long-term goal:

Putting my plan into action: What will help me to reach my goals?


Handout 3-3A Budget Template—Family

INCOME (monthly) Estimated Actual

Salary and Wages After tax (net) Self-Employment Income Government Benefits Other Income 1: (gifts from family members, rental income, tips, etc.)

Other Income 2: TOTAL INCOME

EXPENSES (monthly) Estimated Actual Housing Rent or Mortgage Home Maintenance/Repairs Home Insurance Property Taxes / Strata fees Other Utilities Cable Telephone Cell Phone Internet Electricity Gas Other Transportation Public Transit Car Payment Car Insurance Repairs Taxis Fuel Other Day-to-Day Groceries Clothing Pets Prescription Drugs Health Expenses Not Covered by MSP or Insurance Health insurance Toiletries Laundry Baby Needs (diapers, etc.)


Child Care Other Financial Bank Fees Credit Card Payments Loan Payments Other Expenses Restaurants Entertainment Cigarettes Alcohol Fun Clothing Fitness Memberships Lottery/Gambling/Bingo Household Items (furniture, linens, kitchen) Cultural Items (attending events, regalia, gifts) Sports Donations Kids Classes Gifts Vacation Salon Services (haircuts, manicures) Children’s allowance Babysitting Hobbies Miscellaneous Other School Expenses School Supplies Tuition Future Savings Short-term Savings Medium-term Savings Long-term Savings (RRSP, RESP, etc.) Emergency Fund Holding Account Other TOTAL EXPENSES TOTAL BALANCE (TOTAL INCOME – TOTAL EXPENSES)


Handout 3-3B Budget Template—Youth


Salary After Tax (net) Other Income 1: (gifts from family members, tips, etc.)


EXPENSES (monthly) Estimated Actual Housing and Utilities Rent Cable Cell phone Internet Electricity Gas Other Transportation Public Transit Car Payment Car Insurance Car Repairs Fuel Other Day-to-Day Groceries Clothing Toiletries Laundry Other Financial Bank Fees Credit Card Payments Loan Payments Other Expenses Restaurants Socializing/ Going Out Entertainment Cigarettes Alcohol Fun Clothing Cultural Items (attending events, regalia, gifts) Fitness Memberships


Lottery/Gambling/Bingo Sports Gifts Vacation / Visits Home Salon Services (haircuts, manicures) Hobbies Other School Expenses School Supplies Tuition Future Savings Short-term Savings Medium-term Savings Long-term Savings (RRSP, RESP, etc.) Emergency Fund Holding Account Other TOTAL EXPENSES TOTAL BALANCE (TOTAL INCOME – TOTAL EXPENSES)


Handout 3-3C Budget Template—Elder


Pension Plans (CPP, RRSPs, private pension plans) Employment income Government benefits Other Income 1: (gifts from family members, rental income, etc.)


EXPENSES (monthly) Estimated Actual Housing Rent or Mortgage Home Maintenance/Repairs Home Insurance Property Taxes / Strata Fees Other Utilities Cable Telephone Cell phone Internet Electricity Gas Other Transportation Public Transit Car Payment Car Insurance Repairs Taxis Fuel Other Day-to-Day Groceries Clothing Pets Prescription Drugs Health Expenses Not Covered by MSP or Insurance

Health Insurance Toiletries Laundry


Other Financial Bank Fees Credit Card Payments Loan Payments Other Expenses Restaurants Entertainment Cultural Items (attending events, regalia, gifts) Cigarettes Alcohol Donations Fitness Memberships Lottery/Gambling/Bingo Household Items (furniture, linens, kitchen items) Gifts Vacation Hobbies Miscellaneous Other Future Savings Short-term Savings Medium-term Savings Financial Assistance to Children/Grandchildren Emergency Fund Holding Account Other TOTAL EXPENSES TOTAL BALANCE (TOTAL INCOME – TOTAL EXPENSES)


Handout 3-4 Irregular Expenses – Set Up A Holding Account

Item Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total (annual)

Clothes $100 $300 $300 $100 $800 Gifts $50 $100 $50 $200 $400 Vacations $600 $600 $1200 Amount to Put Aside

200 200 200 200 200 200 200 200 200 200 200 200 $2400

NOTES:

_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________


Handout 3-10 Discussing Money with Your Family If you live with other people, it is important to agree upon a household budget. This can be tricky when different members of your household have different values, goals, and priorities. But it can also be rewarding to work towards a common goal. Talking about budgeting with the other members of your household and involving them in making a budget will make it easier to stay on track because it creates shared accountability and financial responsibility. The adults of the household should work together first to come to a shared agreement on the budget. Then the younger family members can be invited to the conversation, the younger the better. Create Safe Space

• Find the right time. Make sure people are well rested, well fed, and not rushed. • Be respectful, do not blame. Do not focus on past mistakes but on creating a plan to move forward. • Use “I” statements to communicate feelings. • Self-monitor. Take short breaks if emotions run high. • Find goals all parties can agree on, but also, you do not have to agree about everything.

Safe space can also be created in your budget by assigning each member of the household a personal amount, or allowance, for which no external values must be observed, and no reporting of the funds is necessary. This will provide independence and privacy the individual while also requiring each person to take responsibility for the own discretionary spending. This works equally well for adults and children. Discussion Topics Start by discussing each person’s values and goals related to money. You can try some of these questions.

• What is one thing you like to spend money on? • What is one thing you do not like to spend money on? • What would you do if you won a million dollars? Why? • What would you do if you won $1,000? Why? • How does talking about money make you feel? • What is your desired financial situation in 5 years? 10 years? 25 years? What can you do to make

those things happen? • Is there anything we can do to increase our household income? • Is there anything we can do to decrease our household expenses? • What do we want to save money for in the short-term? • What do we want to save money for in the medium-term? • What do we want to save money for in the long-term? • How can we support each other in sticking to our budget? • What can each of us do to make our financial goals a reality?


MODULE 4

Financial Basics


Summary This module covers foundational financial information including: bank accounts, paystubs, and taxes. Goal of Module

• Help participants understand the importance of having a bank account, reviewing their paystub, and filing taxes.


• Understand what forms of identification are needed to access basic financial services. • Understand what a bank account is, why it is important to have one, and why it is generally a better

way to access financial services than alternative financial services providers (e.g. payday loans, cheque-cashers).

• Understand the information on a basic pay stub. • Understand the concept of income tax and why it is important to file a tax return.

Subtopics

A. Identification B. Bank Account Basics C. Income Basics D. Income Tax

Timing This module lasts from one to two hours, depending on which activities are selected.

A B C D Total1hr to

1hr50min10 min 10 - 65

min20 min 20 - 25

min


Module 4 | Financial Basics

10 - 45 min

2h10min


Overview: Module 4 - Financial Basics


A. Identification 4-1: Identification Needed for Bank Accounts

Presentation Handout 4-1 10 minutes

B. Bank Account Basics

4-2: Banking Services Matching Game

Small groups; game

Handout 4-2; scissors

10-15 minutes

4-3: Benefits of a Bank Account

Group discussion Optional: flip chart; marker

10 minutes

4-4: How to Open a Bank Account

Group discussion; video


15 minutes

4-5: Goal Setting – Getting Started with Bank Accounts

Individual; partner Handout 4-5; pens

20-25 minutes

C. Income Basics 4-6: Reading a Pay Stub Presentation;

group; quiz Handouts 4-6A,4-6B,4-6C; pencils

20 – 25 minutes

D. Income Tax

4-7: What is Income Tax & Why File Your Taxes?

Facilitated group brainstorming activity.

Handouts 4-7A, 4-7B; flip chart; marker

20 – 25 minutes

4-8: Payroll forms when you start a job

Individual activity Handout 4-8; TD1s, pens or pencils

10-20 minutes


A: Identification Activity 4-1: Identification Needed for Bank Accounts Key Points:

• The first step to accessing basic financial services is acquiring the necessary forms of identification. • Identification is necessary to access financial services as well as other services that can help your

financial wellbeing. Duration: 10 minutes Description:

a) Distribute Handout 4-1: Identification Needed to Open a Bank Account

b) Explain to participants that in order to open a bank account, you will need to have identification. You have three options for identification:

1. You can show 2 pieces of I.D. from List A below 2. You can show 1 piece of I.D. from List A and 1 piece of I.D. from List B 3. You can show 1 piece of I.D. from list A and have someone the bank knows confirm your

identity

List A List B • Certificate of Indian Status • Canadian driver’s license • Canadian passport • Canadian birth certificate • Social Insurance Number (SIN) card • Old Age Security Card • Provincial or territorial health card • Certificate of Canadian Citizenship or

Certification of Naturalization • Permanent Resident Card or Citizenship

and Immigration Canada form IMM 1000, IMM 1442, or IMM 5292

• Employee I.D. card • Debit card or bank card with your name

and signature • Canadian credit card with your name

and signature • Current foreign passport • Canadian National Institute for the Blind

(CNIB) client card with your photo and signature

Materials:

• Handout 4-1: Identification Needed to Open a Bank Account


B: Bank Account Basics Activity 4-2: Banking Services Matching Game Duration: 10-15 minutes Description:

a) Split group into pairs and give each person the set of cards from Handout 4-2: Banking Services Matching Game, with names of banking services and their definition.

b) Ask groups to try to match the cards with their definitions.

c) Review the answers as a large group. (Answers: 1-G, 2-D, 3-H, 4-F, 5-B, 6-E, 7-C, 8-A) Materials:

• Handout 4-2: Banking Services Matching Game • Scissors

Activity 4-3: Benefits of a Bank Account Key Points:

• Having a bank account is an essential step in building financial wellbeing and can save you money if you use it carefully.

Duration: 10 minutes. Description:

a) Ask participants to suggest their answers to the following questions. Facilitators can bring up any key points that are missing. As an option, facilitators can record answers on flip charts.

• What are the benefits of having a bank account? o Opening an account at bank or credit union is an essential step in building financial

wellbeing. o Banks and credit unions are places where you can safely deposit your money, cash

your cheques, pay your bills, and access other financial services. o Having an account at a bank or credit union helps you build a solid base for good

money management and enables you to create savings that grow. • What financial services are accessible with a bank account?

o The two basic types of bank account are chequing and savings. o A chequing account is used for everyday banking and paying bills. The bank will provide

you with a debit card and cheques you can use to pay bills (there may be a fee for these cheques).

o A savings account is used to set aside money for short to medium-term savings.


• What advantages are there to accessing financial services through a bank account rather than an alternative financial services provider, like cheque cashers?

o Bank accounts offer a variety of basic financial services at fees that are usually far lower than alternative financial services providers.

• How can you avoid extra charges when using a bank account? o To avoid extra charges, do not exceed the number of monthly transactions permitted

with your account, do not overdraw your account, and don’t withdraw cash from ATMs that are not your bank’s.

Materials (Optional):

• Flip chart • Marker

Activity 4-4: How to Open a Bank Account Key Points:

• Opening a bank account is a simple process. • It is important to ask questions and to be informed.


a) Watch this short video that shows an Indigenous person opening a bank account: http://vimeo.com/27343193 To reduce time, the video could be shown from 1:45-6:50 minutes.

b) Discuss the following questions as a group: • What are the important factors to consider when opening a bank account? (Some answers may

include: fees, convenience, savings goals, interest rates, and spending habits). • What kind of questions might you want to ask when opening a bank account? • What is the benefit of setting up an RESP? • What is the benefit of an automatic withdrawal from your chequing account into savings?

Materials:

• Computer with internet • Projector


Activity 4-5: Goal Setting—Getting Started with Bank Accounts Key Points:

• Opening a bank account is an important step for financial success. • Having a plan for opening a bank account will help participants to make good decisions.

Duration: 20 – 25 minutes. Description:

a) Give each participant a copy of Handout 4-5: Opening a Bank Account. Ask them to fill this out on their own.

b) Have each person review their answers with a partner to get feedback on their plan. Materials:

• Handout 4-5: Opening a Bank Account • Pens


C: Income basics Activity 4-6: Reading a Pay Stub Key Points:

• Employment income is usually received in the form of a cheque with an attached pay stub. • Being able to read a pay stub is an important skill related to understanding your income.


a) Give each participant a copy of Handout 4-6A: Reading a Pay Stub, Handout 4-6B: Sheena’s Pay Stub, and Handout 4-6C: Quiz – Reading Sheena’s Pay Stub.

b) As a group, walk participants through all of the terms on Handout 4-6A: Reading a Pay Stub explaining and answering questions as you go along.

c) Ask participants to form groups of 2 or 3. Have them work together to answer the questions on Handout 4-6C: Quiz – Reading Sheena’s Pay Stub.

d) Review the questions from 4-6C: Quiz – Reading Sheena’s Pay Stub as a group. Quiz Answers:

1. March 1 to 15, 2013 2. March 15, 2013 to September 15, 2013 (from the date on the cheque to 6 months later) 3. SIN (Social Insurance Number) is a form of government ID that is used to track your income and

government benefits 4. $10/hour 5. Sheena works 35 hours per week (70 hours/2 weeks) 6. $1,400 GROSS 7. Total tax $56.74 ($41.32 + $15.42) 8. Canada Pension Plan 9. CPP is 4.95% percent of GROSS amount 10. Employment Insurance 11. Total Income $1,118.90 ($559.45 x 2 paycheques) 12. Sheena should file it away safely for a year until her T4 slip comes. 13. Sheena should not throw it in the garbage. It has personal information that could be used to

steal her identity

e) Ask participants: • Why is it important to review your paystub?

o Answers: there may be errors; you will know how much you made and how much is deducted.

• Who should you ask if you don’t understand your paystub? o Answer: Your employer.


Materials: • Handout 4-6A: Reading a Pay Stub • Handout 4-6B: Sheena’s Pay Stub • Handout 4-6C: Quiz – Reading Sheena’s Pay Stub • Pencils • Erasers


D: Income Tax Activity 4-7: What is Income Tax & Why File Your Taxes? Key Points:

• It is important to understand what income tax is. • There are many financial benefits to filing taxes.

Duration: 20 – 25 minutes. Description:

a) Ask participants: Who can explain what taxes are?

b) Explain that: • Both the federal and provincial governments collect income tax and use it to pay for things we

all use like schools, hospitals, and roads. • We pay tax on most forms of income, such as money from employment and self-employment.

This is called taxable income. • You do not pay tax on some kinds of income. Examples include some government benefits and

most gifts and inheritances (money that someone leaves to you when you die). This is called non-taxable income.

• In order to file your taxes your employer must give you a T4 slip before the end of February each year. This slip shows how much money you made the year before. It also shows how much you paid in income tax, Employment Insurance (El), and Canada Pension Plan (CPP).

c) Distribute or read out the cards from Handout 4-7A: Taxes True or False. In small groups or as a large

group, have participants answer the questions.

d) Ask the group: • Did you learn anything new about filing taxes? If so, what? • Do you have any other questions about filing taxes?

e) Optional: Give participants a copy of Handout 4-7: Filing your taxes

Materials:

• Handout 4-7A: Taxes True or False • Handout 4-7B: Filing your taxes • Flip chart • Marker


Activity 4-8: Payroll Forms When you Start a Job Key Points:

• Employers have certain rights and responsibilities when they hire an employee. • The employer is obligated to record your social insurance number and to remit taxes and other

amounts to the government on your behalf. • Every employee is asked to complete a TD1 form when they start a new job. This ensures that the

employer is taking off the correct amount of tax.

Duration: 10 – 20 minutes.

Description:

a) Give each participant a copy of Handout 4-8; TD1s. Ask if anyone recognizes the form, has filled one out before, etc. Ask if anyone knows what the various sections of the form are.

b) As a group, walk through the Handout 4-8; TD1s, explaining and answering questions as you go along. Or have participants complete relevant sections as though they were completing it as a new employee.

c) Depending on the group, point out the areas relating to Seniors, persons with disability, students, etc. d) Explain that:

• There are two forms; one for Federal Tax and one for Provincial Tax. Each province has its own provincial TD1.

• Front page: For many people, you just copy the Basic Personal Amount at the top to the Total Claim Amount at the bottom, if none of the other sections are applicable.

• There are specific sections for students, seniors, persons with disabilities, single parents, and caregivers of the disabled. Read through these to see if any of them apply. These categories all reduce the tax that is deducted from your pay by increasing your Personal Deduction.

• If you don’t complete a section that applies to you, the employer will deduct tax from your pay based on the Basic Personal Amount, which will likely be more than necessary. You will get a refund when you file your Income Tax Return if you pay too much tax.

• Although the provincial and federal forms are slightly different, the sections are the same. The amounts to use are shown in each section.

• Back page: The back page explains the circumstances when you should complete a new TD1. • You can also use the Federal Form to request having extra taxes deducted from your pay. You might

want to do this if you have income that does not have tax deducted at source, such as self-employed income.

• The most important thing to know is a small check box on the back of the Federal form, regarding multiple employers. If you have more than one job at the same time, you do not want both employers to credit you for the Personal Exemption amount because you could end up not having enough tax deducted and then you will owe money when you file your Income Tax Return.

• Only complete the TD1 as above for your first employer. For all other employers, check the box.

Materials: • Handout 4-8: TD1s • Pens or pencils



• Handout 4-1: Identification Needed to Open a Bank Account • Handout 4-2: Banking Services Matching Game • Handout 4-5: Opening a Bank Account • Handout 4-6A: Reading a Pay Stub • Handout 4-6B: Sheena’s Pay Stub • Handout 4-6C: Quiz – Reading Sheena’s Pay Stub • Handout 4-7A: Taxes True or False • Handout 4-7B: Filing Your Taxes • Handout 4-8: TD1s



Handout 4-1 Identification Needed to Open a Bank Account

To open an account at a bank or credit union, you have three options for identification:

1. You can show 2 pieces of I.D. from List A below

2. You can show 1 piece of I.D. from List A and 1 piece of I.D. from List B

3. You can show 1 piece of I.D. from list A and have someone the bank knows confirm your identity

List A List B

• Certificate of Indian Status

• Canadian driver’s license

• Canadian passport

• Canadian birth certificate

• Social Insurance Number (SIN) card

• Old Age Security Card

• Provincial or territorial health card

• Certificate of Canadian Citizenship or

Certification of Naturalization

• Permanent Resident Card or Citizenship

and Immigration Canada form IMM

1000, IMM 1442, or IMM 5292

• Employee I.D. card

• Debit card or bank card with your name

and signature

• Canadian credit card with your name

and signature

• Current foreign passport

• Canadian National Institute for the Blind

(CNIB) client card with your photo and

signature


Handout 4-2 Banking Services Matching Game With scissors, cut along lines to create cards for Activity 4-2.

1. Account for short-term saving needs

A. Direct deposit

2. Card that allows you to access money electronically

B. Chequing account

3. Account with low fees for services and transactions

C. Credit union

4. Account that allows you to save money and write cheques

D. Debit card

5. Account for day-to-day transactions

E. Not Sufficient Funds (NSF) fee

6. Name of fee charged if you write a cheque and there is not money in your account to cover it

F. Combined chequing/savings account

7. Type of financial institution that is owned by its customers

G. Savings account

8. Service that allows employer to deposit your pay into your account

H. Low-cost account


Handout 4-5 Opening a Bank Account Why do you want to open a bank account? (If you already have a chequing account, you may want to consider opening a savings account as well. If you already have both, maybe consider opening an RRSP or RESP for your children.)

______________________________________________________________________________________________________________________________________________________________________ What documents or pieces of ID do you need to open a bank account? If you don’t already have these documents, when will you attain them? ______________________________________________________________________________________________________________________________________________________________________ What banks will you look into? (It is recommended you try at least two banks to see which one better suits your needs and has the best rates.)

______________________________________________________________________________________________________________________________________________________________________ What questions will you ask at the bank? Here are some suggestions: Chequing Account

• What are your ATM fees? • What are your fees for writing

cheques? • What are the fees for using debit cards? • What are the fees for bouncing checks

of having insufficient funds? • What other service fees exist? • Is there a minimum balance? • Do the terms of the account change

after a while? (Some account offer an introductory rate for 1 year and then raise the rates)

Savings Account • What is the interest rate of the

account? • What other service fees exist? • Is there a minimum balance? • Do the terms of the account change

after a while? (Some account offer an introductory rate for 1 year and then raise the rates)

Convenience

• Where are ATMs available? • Is online banking included for free?

When will you go to each bank? Bank #1 _____________________ Bank #2 _____________________ Bank #3 _____________________


Handout 4-6A Reading a Pay Stub

Pay Period: This is the date range you are being paid for. It is usually biweekly (every two weeks). It could also be semi-monthly - that is, the 15th and 30th of the month. Sometimes the pay period is monthly.

Pay Date: This is the date that you can cash the cheque. The cheque is no longer valid six months from that date.

SIN: This is your Social insurance Number. You must keep it very private, to protect yourself from identity theft. DO NOT carry your SIN card in your wallet! If your pay stub includes your SIN file it safely, and then shred it before throwing it away.

Pay Rate: This is the amount you are paid per hour. Some people make a salary that does not depend on their hours worked. On their pay stubs, they see only the amount of pay in the pay period, but not an hourly rate of pay.

#of Hours: This is the number of hours in this pay period. Check to make sure it is correct. If you have worked more hours, speak with your employer. If your employer uses a time clock, always remember to punch in and out so your hours are recorded.

Gross Pay: This is the amount you have earned before any deductions.

Year to Date: Many pay stubs will keep a running total of your earnings and deductions for the year.

Federal Income Tax: Your employer will calculate the amount of federal income tax to deduct from your earnings. The tax system in Canada is 'progressive'. This means that the more income you make, the higher percentage of your income will go toward taxes. The tax rate is 15% on the first $43,953 of taxable income, 22% on the next $43,954 of taxable income.

Provincial income Tax: Your employer will also calculate the amount of provincial income tax to deduct from your earnings. This amount will be lower than the federal tax and is different in each province.

Canada Pension Plan (CPP): For those 18 years old and over. Employers will deduct 4.95% from your gross earnings over $3,500 until you reach the maximum contribution. The 2014 maximum is $2,425.50.

Employment Insurance (El): Employers deduct 1.88% from your gross earnings until you reach the maximum contribution. The maximum is $913.68 in 2014.

Net Pay: This is the Gross Pay minus the deductions- the amount you take home.

Your employer must provide you with a pay stub to show your earnings and deductions. Check to make sure that the information is correct!


Handout 4-6B Sheena’s Pay Stub

Sheena’s pay stub

Ric’s Fish and Chips 715 Vancouver Street Victoria BC V8V 4C7

Pay Period: 01/03/2013 Pay Date: 15/03/2013 Cheque No: 007613

SIN: 123-456-789 Sheena Williams 1977 Radner Road Victoria BC V8V 7B6

Earnings Pay Rate: $10/hr

# of Hours: 70

Gross Pay: $700.00

Year to Date: $3500.00

Deductions

Federal Income Tax $41.32 $206.6

BC Provincial Tax $15.42 $77.10

Canada Pension Plan (CPP) $34.65 $173.25

Employment Insurance (EI) $13.16 $65.80

Total $104.55 $522.75

Net Pay: $559.45 $2613.75


Handout 4-6C Quiz - Reading Sheena’s Pay Stub

1. What is the pay period on Sheena's paystub? _________________________________________

2. When can Sheena cash her paycheque? _______________________________________________

3. What is the Social Insurance Number used for? _________________________________________

4. How much does Sheena make an hour? _______________________________________________

5. How many hours does Sheena work in a week? _________________________________________

6. What is Sheena's monthly GROSS PAY amount? ________________________________________

7. What is the total tax taken off Sheena's cheque? _______________________________________

8. What does CPP stand for? _________________________________________________________

9. What percentage of her GROSS PAY is the CPP amount? _________________________________

10. What does El stand for? __________________________________________________________

11. What is Sheena's total NET income for the month? ____________________________________

12. What should Sheena do with this pay stub? __________________________________________

13. What should Sheena NOT do with this pay stub? Why not? ______________________________


Handout 4-7A Taxes True or False

Question Answer

If you’re status you don’t need to file your taxes. False. People who are status don’t need to pay some taxes, but there are other taxes they do need to pay and also other benefits they can receive.

If you don’t have any income you don’t need to file your taxes.

False. In fact, if you have not had any income, there is even more reason to file! No-income or low-income individuals and families may qualify for a number of credits.

It costs money to file a tax return. False. There are free options to help you file. The Community Volunteer Income Tax Program assists those unable to complete an income tax return by themselves. The Volunteer Tax Preparation Clinics are generally offered between February and April of each year; however, some tax clinics operate year-round and, best of all, the service is free.

By filing your tax return you could receive a number of benefits.

True. The following benefits may be available to people who file a tax return:

• GST/HST Credit BC HST Credit • BC Low-Income Climate Action Tax Credit • Canada Child Tax Benefit • National Child Benefit Supplement • Universal Child Care Benefit • Working Income Tax Benefit

If you don’t file your tax return, you could be fined by the government.

True. If you don’t file your taxes you can be charged a late filing fee, which is based on the amount that you owe.

If you file taxes, you could receive money from the government.

True. The government might owe YOU a refund on taxes paid, which you won’t get unless you file taxes.

You only need to file one set of taxes. False. Both the federal and provincial governments collect income tax and you must submit to both of these. Usually the forms come together.

If you’re self-employed or do casual work you don’t need to file taxes.

False. If you own a business, work as a contractor, or collect rent money on property you own, you must send in the taxes owing yourself, as well as the CPP payments. Failure to do this can result in a fine.


Handout 4-7B Filing Your Taxes

There are many government benefits that you can only get by filing a tax return, including the following:

• Canada Child Tax Benefit • National Child Benefit Supplement • Universal Child Care Benefit • Child Disability Benefit • Working Income Tax Benefit • GST/HST Rebate • Canada Learning Bond • BC HST Credit • BC Low Income Climate Action Credit

Where do I get the tax forms?

Once you start filing taxes, your income tax forms come in the mail each year from the Canada Revenue Agency. Between February and May each year, you can get them at the post office, from a Service Canada location, or online from the Canada Revenue Agency. More and more people use software that allows them to do the forms on their computers.

How do I get help with doing my taxes?

If you are on a low income, you can get free help with doing your taxes at a community tax clinic. If you have problems with your taxes, it is best to call the Canada Revenue Agency.

There are tax professionals who can help you with your taxes for a fee. Some tax preparation services charge very high fees, even on a simple tax return.

You are responsible for your tax return even if someone has prepared it for you. Never sign a blank tax return.

Deductions and credits

Your tax return includes a range of deductions from your gross income. These are amounts that will lower the amount of income you must pay tax on. Deductions include things like child care expenses and transit passes -you must keep your receipts for these.

The tax return form also has credits. This is an amount you can deduct from the tax you owe. For example, if your employer has been taking taxes out of your pay all year, those taxes are a credit on your tax return.

When you subtract your tax credits and deductions from your gross income, you find out if you owe taxes or if you will receive a refund.


Handout 4-7B, continued

Keeping records to use when you file your return

It is important to keep all papers that support your income tax return for a period of six years. Here are some examples of things you should keep:

• Information slips from your employer (T4). • Information slips from the bank (TS). • Post-secondary education information slips (T2202A). • Any tax-related papers you receive from the government. • If you are self-employed, keep a record of your income and all expenses paid to create that income. • Receipts for employment expenses: You can claim expenses if you have to spend your own money for

equipment, tools, and supplies to do your work, and your employer does not reimburse you (pay you back).

• Union or professional dues (money you pay to be a member). • Public transit monthly passes. • Registered Retirement Savings Plan (RRSP) contribution slips. • Child care receipts. • Moving expenses, if you moved to be at least 40 km closer to work (or to college or university if you

are a student). • Medical expenses (such as prescription medicine, dentist, glasses, private health insurance). • Receipts for children's sports or arts activities. • Receipts for income tax you paid in another country. • Receipts for donations to Canadian charities or Canadian political parties.

There may be other slips and receipts you need to keep to support your income tax return. Ask for advice from your local Community Tax Preparation Volunteer or a tax professional.

Getting your Notice of Assessment

After you file your taxes, you will receive a Notice of Assessment from the Canada Revenue Agency. The notice confirms your tax amounts and explains any changes the government made to your return. If you have questions about this notice, call the Canada Revenue Agency toll-free: 1-800-959-8281

Getting a refund

You can receive a refund by direct deposit to your bank account or by cheque in the mail. Follow the instructions on your tax return to set up the way you want to receive your refund.

Remember: If you move, you must inform the Canada Revenue Agency to get your refund!

Warning: Some businesses advertise 'instant refunds' when they do your tax return. These are not really refunds. They are a kind of loan. They can also come with high fees and NO guarantee that the refund amount is correct. You might still end up owing money.


Handout 4-8: Payroll Forms When you Start a Job – TD1s

Protected B when completed

2021 Personal Tax Credits Return Read page 2 before filling out this form. Your employer or payer will use this form to determine the amount of your tax deductions. Fill out this form based on the best estimate of your circumstances. If you do not fill out this form, your tax deductions will only include the basic personal amount, estimated by your employer or payer based on the income they pay you.

TD1

Last name First name and initial(s) Date of birth (YYYY/MM/DD) Employee number

Address Postal code For non-residents only – Country of permanent residence

Social insurance number

1. Basic personal amount – Every resident of Canada can enter a basic personal amount of $13,808. However, if your net income from all sources will be greater than $151,978 and you enter $13,808, you may have an amount owing on your income tax and benefit return at the end of the tax year. If your income from all sources will be greater than $151,978, you have the option to calculate a partial claim. To do so, fill in the appropriate section of Form TD1-WS, Worksheet for the 2021 Personal Tax Credits Return, and enter the calculated amount here.

2. Canada caregiver amount for infirm children under age 18 – Either parent (but not both), may claim $2,295 for each infirm child born in 2004 or later, that resides with both parents throughout the year. If the child does not reside with both parents throughout the year, the parent who is entitled to claim the "Amount for an eligible dependant" on Line 8 may also claim the Canada caregiver amount for that same child who is under age 18.

3. Age amount – If you will be 65 or older on December 31, 2021, and your net income for the year from all sources will be $38,893 or less, enter $7,713. If your net income for the year will be between $38,893 and $90,313 and you want to calculate a partial claim, get Form TD1-WS, Worksheet for the 2021 Personal Tax Credits Return, and fill in the appropriate section.

4. Pension income amount – If you will receive regular pension payments from a pension plan or fund (excluding Canada Pension Plan, Quebec Pension Plan, Old Age Security, or Guaranteed Income Supplement payments), enter $2,000 or your estimated annual pension income, whichever is less.

5. Tuition (full time and part time) – If you are a student enrolled at a university or college, or an educational institution certified by Employment and Social Development Canada, and you will pay more than $100 per institution in tuition fees, fill in this section. If you are enrolled full time or part time, enter the total of the tuition fees you will pay.

6. Disability amount – If you will claim the disability amount on your income tax and benefit return by using Form T2201, Disability Tax Credit Certificate, enter $8,662.

7. Spouse or common-law partner amount – If you are supporting your spouse or common-law partner who lives with you and whose net income for the year will be less than Line 1 (Line 1 plus $2,295 if they are infirm), enter the difference between this amount and their estimated net income for the year. If their net income for the year will be Line 1 or more (Line 1 plus $2,295 if they are infirm), you cannot claim this amount. In all cases, if their net income for the year will be $24,604 or less and they are infirm, go to Line 9.

8. Amount for an eligible dependant – If you do not have a spouse or common-law partner and you support a dependent relative who lives with you and whose net income for the year will be less than Line 1 (Line 1 plus $2,295 if they are infirm and you cannot claim the Canada caregiver amount for children under age 18 for this dependant), enter the difference between this amount and their estimated net income. If their net income for the year will be Line 1 or more (Line 1 plus $2,295 or more if they are infirm), you cannot claim this amount. In all cases, if their net income for the year will be $24,604 or less and they are infirm and are age 18 or older, go to Line 9.

9. Canada caregiver amount for eligible dependant or spouse or common-law partner – If, at any time in the year, you support an infirm eligible dependant (aged 18 or older) or an infirm spouse or common-law partner whose net income for the year will be $24,604 or less, get Form TD1-WS and fill in the appropriate section.

10. Canada caregiver amount for dependant(s) age 18 or older – If, at any time in the year, you support an infirm dependant age 18 or older (other than the spouse or common-law partner or eligible dependant you claimed an amount for on Line 9, or could have claimed an amount for if their net income were under $16,103) whose net income for the year will be $17,256 or less, enter $7,348. If their net income for the year will be between $17,256 and $24,604 and you want to calculate a partial claim, get Form TD1-WS and fill in the appropriate section. You can claim this amount for more than one infirm dependant age 18 or older. If you are sharing this amount with another caregiver who supports the same dependant, get the Form TD1-WS and fill in the appropriate section.

11. Amounts transferred from your spouse or common-law partner – If your spouse or common-law partner will not use all of their age amount, pension income amount, tuition amount, or disability amount on their income tax and benefit return, enter the unused amount.

12. Amounts transferred from a dependant – If your dependant will not use all of their disability amount on their income tax and benefit return, enter the unused amount. If your or your spouse's or common-law partner's dependent child or grandchild will not use all of their tuition amount on their income tax and benefit return, enter the unused amount.

13. TOTAL CLAIM AMOUNT – Add Lines 1 to 12. Your employer or payer will use this amount to determine the amount of your tax deductions.

TD1 E (21) (Ce formulaire est disponible en français.) Page 1 of 2


Page 2 of 2

Filling out Form TD1 Fill out this form only if any of the following apply:

• you have a new employer or payer and you will receive salary, wages, commissions, pensions, employment insurance benefits, or any other remuneration

• you want to change amounts you previously claimed (for example, the number of your eligible dependants has changed) • you want to claim the deduction for living in a prescribed zone • you want to increase the amount of tax deducted at source

Sign and date it, and give it to your employer or payer. If you do not fill out this form, your tax deductions will only include the basic personal amount, estimated by your employer or payer based on the income they pay you.

More than one employer or payer at the same time If you have more than one employer or payer at the same time and you have already claimed personal tax credit amounts on another Form TD1 for 2021, you cannot claim them again. If your total income from all sources will be more than the personal tax credits you claimed on another Form TD1, check this box, enter "0" on Line 13 and do not fill in Lines 2 to 12.

Total income less than total claim amount Check this box if your total income for the year from all employers and payers will be less than your total claim amount on Line 13. Your employer or payer will not deduct tax from your earnings.

Non-residents (Only fill in if you are a non-resident of Canada.) As a non-resident of Canada, will 90% or more of your world income be included in determining your taxable income earned in Canada in 2021?

Yes (Fill out the previous page.)

No (Enter "0" on Line 13, and do not fill in Lines 2 to 12 as you are not entitled to the personal tax credits.)

If you are unsure of your residency status, call the international tax and non-resident enquiries line at 1-800-959-8281.

Provincial or territorial personal tax credits return If your claim amount on Line 13 is more than $13,808, you also have to fill out a provincial or territorial TD1 form. If you are an employee, use the Form TD1 for your province or territory of employment. If you are a pensioner, use the Form TD1 for your province or territory of residence. Your employer or payer will use both this federal form and your most recent provincial or territorial Form TD1 to determine the amount of your tax deductions. If you are claiming the basic personal amount only, your employer or payer will deduct provincial or territorial taxes after allowing the provincial or territorial basic personal amount.

Note: If you are a Saskatchewan resident supporting children under 18 at any time during 2021, you may be able to claim the child amount on Form TD1SK, 2021 Saskatchewan Personal Tax Credits Return. Therefore, you may want to fill out Form TD1SK even if you are only claiming the basic personal amount on this form.

Deduction for living in a prescribed zone If you live in the Northwest Territories, Nunavut, Yukon, or another prescribed northern zone for more than six months in a row beginning or ending in 2021, you can claim any of the following:

• $11.00 for each day that you live in the prescribed northern zone • $22.00 for each day that you live in the prescribed northern zone if, during that time, you live in a dwelling

that you maintain, and you are the only person living in that dwelling who is claiming this deduction Employees living in a prescribed intermediate zone can claim 50% of the total of the above amounts. For more information, go to canada.ca/taxes-northern-residents.

Additional tax to be deducted You may want to have more tax deducted from each payment, especially if you receive other income, including non-employment income such as CPP or QPP benefits, or old age security pension. By doing this, you may not have to pay as much tax when you file your income tax and benefit return. To choose this option, state the amount of additional tax you want to have deducted from each payment. To change this deduction later, fill out a new Form TD1.

Reduction in tax deductions You can ask to have less tax deducted on your income tax and benefit return if you are eligible for deductions or non-refundable tax credits that are not listed on this form (for example, periodic contributions to a registered retirement savings plan (RRSP), child care or employment expenses, charitable donations, and tuition and education amounts carried forward from the previous year). To make this request, fill out Form T1213, Request to Reduce Tax Deductions at Source, to get a letter of authority from your tax services office. Give the letter of authority to your employer or payer. You do not need a letter of authority if your employer deducts RRSP contributions from your salary.

Forms and publications To get our forms and publications, go to canada.ca/cra-forms-publications or call 1-800-959-5525.

Personal information (including the SIN) is collected for the purposes of the administration or enforcement of the Income Tax Act and related programs and activities including administering tax, benefits, audit, compliance, and collection. The information collected may be used or disclosed for purposes of other federal acts that provide for the imposition and collection of a tax or duty. It may also be disclosed to other federal, provincial, territorial, or foreign government institutions to the extent authorized by law. Failure to provide this information may result in interest payable, penalties, or other actions. Under the Privacy Act, individuals have a right of protection, access to and correction of their personal information, or to file a complaint with the Privacy Commissioner of Canada regarding the handling of their personal information. Refer to Personal Information Bank CRA PPU 120 on Info Source at canada.ca/cra-info-source.

$

$

Certification I certify that the information given on this form is correct and complete.

Signature

It is a serious offence to make a false return. Date

YYYY/MM/DD


2021 British Columbia Personal Tax Credits Return

Read page 2 before filling out this form. Your employer or payer will use this form to determine the amount of provincial tax deductions. Fill out this form based on the best estimate of your circumstances.

Last name First name and initial(s) Date of birth (YYYY/MM/DD) Employee number

Address Postal code For non-residents only – Country of permanent residence

Social insurance number

1. Basic personal amount – Every person employed in British Columbia and every pensioner residing in British Columbia can claim this amount. If you will have more than one employer or payer at the same time in 2021, see "More than one employer or payer at the same time" on page 2.

11,070

2. Age amount – If you will be 65 or older on December 31, 2021 and your net income from all sources will be $36,954 or less, enter $4,964. If your net income for the year will be between $36,954 and $70,048 and you want to calculate a partial claim, get Form TD1BC-WS, Worksheet for the 2021 British Columbia Personal Tax Credits Return, and fill in the appropriate section.

3. Pension income amount – If you will receive regular pension payments from a pension plan or fund (excluding Canada Pension Plan, Quebec Pension Plan, Old Age Security, or Guaranteed Income Supplement payments), enter $1,000, or your estimated annual pension income, whichever is less.

4. Tuition (full time and part time) – If you are a student enrolled at a university, college, or educational institution certified by Employment and Social Development Canada, and you will pay more than $100 per institution in tuition fees, complete this section. If you are enrolled full time or part time, enter the total of the tuition fees you will pay less your Canada Training Credit.

5. Disability amount – If you will claim the disability amount on your income tax and benefit return by using Form T2201, Disability Tax Credit Certificate, enter $8,303.

6. Spouse or common-law partner amount – If you are supporting your spouse or common-law partner who lives with you and whose net income for the year will be $948 or less, enter $9,479. If their net income for the year will be between $948 and $10,427, and you want to calculate a partial claim, get Form TD1BC-WS and fill in the appropriate section.

7. Amount for an eligible dependant – If you do not have a spouse or common-law partner and you support a dependent relative who lives with you and whose net income for the year will be $948 or less, enter $9,479. If their net income for the year will be between $948 and $10,427, and you want to calculate a partial claim, get Form TD1BC-WS and fill in the appropriate section.

8. British Columbia caregiver amount – You may be supporting an infirm spouse or common-law partner, or an infirm eligible dependant (age 18 or older) who is either your or your spouse’s or common-law partner’s:

• child or grandchild • parent, grandparent, brother, sister, uncle, aunt, niece or nephew who resided in Canada

If this is your situation and the infirm person’s net income for the year will be less than $21,238, and you want to calculate a claim, get Form TD1BC-WS and fill in the appropriate section.

9. Amounts transferred from your spouse or common-law partner – If your spouse or common-law partner will not use all of their age amount, pension income amount, tuition amount, or disability amount on their income tax and benefit return, enter the unused amount.

10. Amounts transferred from a dependant – If your dependant will not use all of their disability amount on their income tax and benefit return, enter the unused amount. If your or your spouse's or common-law partner's dependent child or grandchild will not use all of their tuition amount on their income tax and benefit return, enter the unused amount.

11. TOTAL CLAIM AMOUNT – Add lines 1 to 10. Your employer or payer will use this amount to determine the amount of your provincial tax deductions.


Filling out Form TD1BC Fill out this form only if you are an employee working in British Columbia or a pensioner residing in British Columbia and any of the following apply: • you have a new employer or payer and you will receive salary, wages, commissions, pensions, employment insurance benefits, or any other

remuneration • you want to change amounts you previously claimed (for example, the number of your eligible dependants has changed) • you want to increase the amount of tax deducted at source

Sign and date it, and give it to your employer or payer. If you do not fill out Form TD1BC, your employer or payer will deduct taxes after allowing the basic personal amount only.

More than one employer or payer at the same time If you have more than one employer or payer at the same time and you have already claimed personal tax credit amounts on another Form TD1BC for 2021, you cannot claim them again. If your total income from all sources will be more than the personal tax credits you claimed on another Form TD1BC, check this box, enter "0" on line 11 and do not fill in lines 2 to 10.

Total income less than total claim amount

Check this box if your total income for the year from all employers and payers will be less than your total claim amount on line 11. Your employer or payer will not deduct tax from your earnings.

Additional tax to be deducted If you wish to have more tax deducted, fill in "Additional tax to be deducted" on the federal Form TD1.

Reduction in tax deductions You can ask to have less tax deducted on your income tax and benefit return if you are eligible for deductions or non-refundable tax credits that are not listed on this form (for example, periodic contributions to a registered retirement savings plan (RRSP), child care or employment expenses, charitable donations, and tuition and education amounts carried forward from the previous year). To make this request, fill out Form T1213, Request to Reduce Tax Deductions at Source, to get a letter of authority from your tax services office. Give the letter of authority to your employer or payer. You do not need a letter of authority if your employer deducts RRSP contributions from your salary.

Forms and publications To get our forms and publications, go to canada.ca/cra-forms-publications or call 1-800-959-5525.

Personal information (including the SIN) is collected for the purposes of the administration or enforcement of the Income Tax Act and related programs and activities including administering tax, benefits, audit, compliance, and collection. The information collected may be used or disclosed for purposes of other federal acts that provide for the imposition and collection of a tax or duty. It may also be disclosed to other federal, provincial, territorial, or foreign government institutions to the extent authorized by law. Failure to provide this information may result in interest payable, penalties, or other actions. Under the Privacy Act, individuals have a right of protection, access to and correction of their personal information, or to file a complaint with the Privacy Commissioner of Canada regarding the handling of their personal information. Refer to Personal Information Bank CRA PPU 120 on Info Source at canada.ca/cra-info-source.

Page 2 of 2

Certification I certify that the information given on this form is correct and complete.

Signature It is a serious offence to make a false return.

Date


MODULE 5

Being a Wise Consumer


Summary

This module addresses what it means to be a wise consumer, including factors to consider when making spending choices, the importance of planning ahead, consumer rights, and fraud. Goal of Module

• Provide participants with strategies to become wise consumers and avoid being taken advantage of financially.


• Learn what it means to be a wise consumer and be able to identify strategies to save money on purchases.

• Learn about the importance of planning ahead and comparing prices when making a purchase, and practice the skills needed to do so.

• Be aware that they have rights as a consumer, employee, and tenant. • Be aware of common types of fraud and how to avoid fraud.

Subtopics

A. Being a Wise Consumer B. Planning for Purchases C. Your Rights D. Fraud E. Moving Forward

Timing This module lasts from one to three-and-a-half hours depending on which activities are selected.

A B C D E Total1hr to

3hrs20min5 – 40

min30 - 95

min5 – 30

min10 - 25

min 10 min


Module 5 | Being a Wise Consumer


Overview: Module 5 – Being a Wise Consumer


A. Being a Wise Consumer

5-1: What Does it Mean to be a Wise Consumer?

Group discussion

n/a 10 minutes

5-2: How Have You Saved on Expenses?

Group discussion

Optional: flipchart; marker

5 -10 minutes

5-3: What Kind of Consumer Are You?

Group; pairs Handout 5-3; pens; signs; tape

20 minutes

B. Planning Your Purchases

5-4: Pop Can Presentation Handout 5-4 5 minutes

5-5: Getting the Best Deal

Small group Computer with internet; phones; prizes

60 minutes

5-6: Cell Phone Plans

Small groups; discussion

Handout 5-6; brochures

30-45 minutes

C. Your Rights

5-7: Know Your Rights

Group discussion

n/a 5 minutes

5-8: Tenant Survival Guide

Small group; discussion

Tenant Survival Guide (online)

15 minutes

5-9: Employee Rights

Presentation; video


5-10 minutes

D. Fraud

5-10: Types of Fraud

Group discussion; video


10 minutes

5-11: Avoiding Fraud

Group discussion

n/a 15 minutes

E. Moving Forward

5-12: Reflection Individual Paper; pens; markers

10 minutes


A: Being a Wise Consumer Activity 5-1: What Does it Mean to be a Wise Consumer? Key Points:

• It is important to think carefully about your spending decisions in order to save money. • Advertisers and sales people will try to get you to spend money, but you can avoid this if you are

a wise consumer. Duration: 10 minutes Description:

a) Explain that being a wise consumer means planning ahead, getting the right product to match your needs, finding good value for money, and using strategies to save money on expenses.

b) Ask participants: • Have you ever felt pressure to buy something that wasn’t a good deal? • What caused you to feel this pressure?

c) Explain that our society emphasizes spending money and buying things as a way to be happier.

Advertising tries to convince people that if they buy a specific product it will improve their lives.

d) Ask participants to brainstorm techniques that advertisers and salespeople use to get people to buy things. Some answers may include:

• Lifestyle sales: It could be a picture of a happy family in an expensive home. Or a beautiful couple on a private yacht. These ads are selling the lifestyle shown in the ad. They lead us to believe that if we buy the product, we can have that lifestyle.

• Sex appeal: Good-looking men or women in sexy poses send the message that we will be sexy too if we buy the product.

• Special deals: These are the ads urging us to “Hurry! Buy now!” because it is a “Limited time offer!” These might not be deals at all. Sometimes sellers inflate the price and then offer a “sale.”

• Star power: Ads that use celebrities to sell their product. They’re also known as ‘celebrity endorsements’. Famous people are paid a lot of money to appear in these ads. The advertiser’s hope is that if we like and trust the celebrity, we will buy the product they endorse. Many celebrities never use the products they promote.

• Science and statistics: Ads that have a “doctor” or “scientist.” Often these “experts” are really actors and models. Does the ad use numbers and percentages, or make claims about research? These statistics might only be part of the whole story.

• Better than: These ads claim that their product is better than their competitors. The famous ‘Coke versus Pepsi’ ads are an example of this. These ads rarely say how or why their product is better, other than that people (usually actors) like it more.


• Put downs: Ads sometimes try to make us feel bad and then try to sell us something. They tell us we are too fat, too old, too dull, that our house is too dirty, our car is too old. Then they tell us how their product will improve our lives. But will it?

• ‘Weasel’ words: Advertisers are not allowed to outright lie. But they can twist words around or use language that misleads. When an ad for sugary cereal tells us it is “part of a healthy breakfast”, they are not telling us about the other, healthier part of that breakfast. For instance, there are many products that claim to be ‘green’ or environmentally friendly. Just what do they mean by ‘green’?

• Safety and security: All of us have a basic need to feel safe and secure. Ads will often play on this need by claiming that their product will make our lives more secure. For example, ads for insurance and certain car safety features may do this. Worse, some ads claim that we could be in danger without it.

• ‘Bandwagon’ appeal: We as people have a basic need to feel that we belong. Bandwagon appeal ads tell us that if we don’t buy something, we will be left out. These ads often target children and teens, who have a strong need to belong.

• Sales tactics to watch for: o They offer one very low cost item to get you into the store, hoping you will then

also buy other goods. o They ask you questions about yourself and then offer a range of products they

think you may buy. o They compliment you. For instance, they tell you how great something looks on

you, or what great taste you have. o They try to convince you that you need the product. o They “upsell” you. This means they try to convince you that you will need extra

features for the product you are buying. o They throw in free items. This can sometimes seem like a good deal. But are

these items of good quality? Will you use them? o They rush you. They tell you someone else wants to buy it, or you can only get it

right now, “Today only!” o They make you feel guilty or bad for not buying.

e) Ask participants to brainstorm ways to avoid the pressure of these advertising and sales techniques. Answers may include:

• Plan ahead what you will buy and stick to your plan. Don’t get convinced by advertising or “special offers.”

• Compare prices of products and quality to find the best value for money. • Wait for sales or discounts. For example, buy clothes at the end of the season. • Read the fine print on any products you buy. • Ask questions about the products that you buy.


Activity 5-2: How Have You Saved on Expenses? Key Points:

• To achieve financial literacy we must understand how to conserve our money. • We all try to be wise consumers, and we can all learn from each other’s experiences.


d) Explain that part of being a wise consumer is saving money on the products you buy.

e) Ask the group to share ways they have saved money and where people can get a bargain in their community. Some examples may include:

• Using coupons, flyers and store offers. o Clipping coupons, and reading flyers/e-flyers can save you money. o You can sign up for coupons to be emailed to you. o Many stores have a promise to give you the sale price on an item you recently

purchased for full price. • Buying in bulk and sharing with other families. • Second-hand shopping. This can save you up to 90% off the purchase price for goods in

great condition. • Using a community “swap shed” with free items, a free clothing room, or Facebook

boards offering free items. • Borrowing popular music and movies for free at public libraries. • Attaining free or discounted passes that many communities offer for low-income

families for bus fares, pool admission, etc. f) Optional: Record ideas on flipchart

Materials:

• Flipchart (optional • Marker (optional)


Activity 5-3: What Kind of Consumer are You? Key Points:

• Planning ahead and thinking through spending decisions can save you money. Duration: 20 minutes Description:

a) Label one side of the room “Always” and the other side “Never.” Ask each question on Handout 5-3: What Kind of Consumer Are You? Have participants move to the side of the room that reflects their answer. They can stand in the middle of the room for “Sometimes.” Option: If the group is very shy or has mobility issues, this could be done on paper, with the facilitator reading the questions aloud and participants writing down their answers.

b) Have participants form groups of two. In their groups they should discuss: • What are my strengths as a consumer? • What can I do to be a smarter shopper? • What is the first thing I will change after this exercise?

Materials:

• Handout 5-3: What Kind of Consumer Are You? • Pens • “Always” and “Never” signs • Masking tape


B: Planning for Purchases Activity 5-4: Can of Juice Key Points:

• People often spend more than they need to for convenience. • Thinking ahead can save you money.


a) Explain that: • Planning for the expenses you will have can save you money, and help you avoid debt.

One way to save money by planning ahead is to buy things in bulk to save on the unit price, meaning the cost per individual item or unit.

g) Show Handout 5-4: Can of Juice showing the cost of a can of juice from a vending machine, a

Juice at a restaurant, and the cost of a case of juice from a grocery store.

h) Explain that often retailers think you will not notice changes in unit price. For example, sometimes the cost of a product will be reduced so it seems cheaper, but the size of the container is also smaller so it actually costs the same or is more expensive.

Materials:

• Handout 5-4: Can of Juice Activity 5-5: Getting the Best Deal Key Points:

• You can save money by shopping around and comparing value. Duration: 60 minutes Description:

a) Explain to participants that they are going to play a game where they have to find the best deal on a TV. Give them the following guidelines

• They have 30 minutes each. • They can use a computer, a phone, or a smartphone to do research. They can call

stores or look online at websites where TVs are advertised. • They have a budget of $1000, but they do not have to spend it all. • They have to decide what television to purchase by considering features of the TV (size,

picture quality, sound, etc.), as well as cost, to find the best value for money.


Option: If you do not have access to the internet or phones for each group, you can do some research ahead of time and get print-outs of TV specifications and their costs. Try sites like futureshop.ca and bestbuy.ca. You can also check out used sites like craigslist. Participants can decide by looking at the printouts.

b) After 30 minutes have passed, ask each group to share their decision and explain why the TV they found is the best value for money. Ask them to share:

• What questions did you ask about the TV? • What factors did you consider? • Is the TV new or used? • How much did prices vary amongst the places you researched?

c) After each group has presented, a panel of judges will choose the team that they feel had the best rationale for their spending decision to be the winner. Option: If you do not have enough people to make up a panel of judges, you could also have the whole group applaud for each team and the winner is the team that gets the loudest applause. Option: If you feel competition would not benefit your group, you can explain that there is no winner, because each person is going to have different values for decision making. The important thing is that spending decisions should be made carefully and researched over time, rather than on impulse or because of emotion.

d) De-brief questions: • What does “value for money” mean? • What are the benefits of shopping around and doing research before making a

purchase? Materials (Optional):

• Computers or tablet with internet connection • Phones • Prizes

Activity 5-6: Cell Phone Plans Key Points:

• Buying a cell phone plan can be very complicated because they are so many options. • If you are aware of your needs and ask the right questions, you can save a lot of money on your

cell phone bill. Duration: 30-45 minutes


Description: a) Explain that:

• Cell phone plans are one of the easiest ways to rack up charges and overspend. • You can save money on a cell phone if you research plans to find the best one for you. • Cell phone plans can also usually be changed. • If you are using a lot of additional fees on your cell phone, call your provider and see if

there is a plan that better meets your needs. • When you buy a cell phone, retailers will often try to upsell you by convincing you to

buy a plan that is more expensive than you need. • You can get a plan that better suits your needs if you have thought carefully about how

and when you will use your cell phone. • It is also important to read the fine print and ask a lot of questions.

b) Distribute Handout 5-6: Cell Phone Checklist. Ask participants to review the list and fill it out

with their preferences.

c) Divide participants into groups of two or three. Ask them to brainstorm questions to ask when purchasing a cell phone plan. Some examples may include:

• What is the basic monthly charge? • How many “anytime” minutes are included? • How many free evening and weekend minutes are included? • What is per minute airtime rate if included minutes are exceeded? • What is the long distance charge? • Are there roaming charges when you are outside your local area? If so, how much

per minute? • What are the hours per day for peak versus off-peak minutes? • What is the charge for text messages? • How much data use is included in the plan? • What are the charges for additional data use? • How long is the initial contract period? • Can you make changes to the plan during the contract period? • What is the cost of termination during the contract period? • What happens if the phone breaks or is faulty?

d) After groups have completed brainstorming, explain to participants that you are going to play

the role of a cellphone salesperson. You can make this interesting by acting super slick and offering special details. Invite participants to pretend they are shopping around for cell phones and ask you questions.

Materials:

• Handout 5-6: Cell Phone Checklist • Cell phone plan brochures for the role play (optional)


C: Your Rights Activity 5-7: Know Your Rights Key Points:

• Knowing your rights is part of being a wise consumer. • Employees, tenants, and consumers have rights. • You should be familiar with your rights so that your rights are not abused.


a) Ask participants to brainstorm examples of consumer rights. Some examples may include: • There is a window on certain contracts where you can change your mind within a

certain amount of time. This is called a cooling-off period. • Businesses are not allowed to give you false information. • You can report ‘bad businesses.’

b) Ask participants to brainstorm examples of renter rights. Some examples may include:

• You are entitled to live in a safe home, and your landlord is responsible for repairs. • Your landlord must give you notice and a reason to evict you.

c) Ask participants to brainstorm examples of employee rights. Some examples may include:

• Being paid at least the minimum wage. • Being paid for a minimum number of hours if called in. • Being paid overtime. • Having meal breaks. • Having safe working conditions.

Activity 5-8: Tenant Survival Guide Key Point:

• Tenants have rights and responsibilities. Duration: 15 minutes Description:

a) Hand out copies or sections of the Tenant Survival Guide and give participants 5-10 minutes to look through the guide. Ask them to try to find one thing they didn’t already know.

b) Have participants form groups of two. Ask them to discuss: • What is something new I learned by reading this guide?

c) Ask each group to share what they learned.


Materials:

• The Tenant Survival Guide www.tenants.bc.ca/ckfinder/userfiles/files/English%20TSG%202012%20-%20Web%20Version%20with%20Bookmarks(1).pdf

Activity 5-9: Employee Rights Key Point:

• Employees have rights and these rights are protected by law. Duration: 5-10 minutes Description:

a) Explain that employees have rights which are protected by law. b) Watch one or two videos on worker’s rights from this webpage:

http://www.labour.gov.bc.ca/esb/videos/welcome.htm

c) Ask participants to share anything new they learned. Materials:

• Computer with internet connection • Projector • Videos: http://www.labour.gov.bc.ca/esb/videos/welcome.htm

http://www.tenants.bc.ca/ckfinder/userfiles/files/English%20TSG%202012%20-%20Web%20Version%20with%20Bookmarks(1).pdf

http://www.tenants.bc.ca/ckfinder/userfiles/files/English%20TSG%202012%20-%20Web%20Version%20with%20Bookmarks(1).pdf




D: Fraud Activity 5-10: Types of Fraud Key Points:

• Fraud is when a person or organization tricks you into giving your personal information or money in order to steal from you.

• There are many different kinds of fraud to watch out for. Duration: 10 minutes Description:

a) Explain that there are many different types of fraud. Fraud involves people stealing your bank information or identity to steal money from you, or tricking you into giving your money to people who will not pay you back.

b) Watch this short video on fraud: http://www.fcac-acfc.gc.ca/Eng/resources/educationalPrograms/ft-of/Pages/fraud-1-8.aspx

c) Ask participants to share examples of fraud they may have experienced or heard of. Some examples of fraud you could bring up if not mentioned include: • Lottery scam. "Congratulations! You've won the lottery/sweepstakes/big prize! All you have

to do to claim your prize is send a small fee or tax payment." This is how scammers get you to send cash or obtain your chequing account or other financial information. Of course, the winnings never arrive. Legitimate contests don't charge fees for you to collect your prize.

• Employment scams. Employment fraud happens in various ways: you are promised a job, but only if you pay a fee for processing, administration or uniforms; your identity may be stolen through fraudulent job applications; or you may be recruited for an illegal job (for example, "reshipping" stolen goods and sending them overseas). Employment fraudsters often ask for personal information like your Social Insurance Number. Give out only the minimum information required until you are sure the organization is legitimate.

• Consumer fraud. "A pill that can cure diabetes!"; "A revolutionary new software program that will help you earn thousands of dollars at home!"; "Get low prices on pre-paid renovations!” You send in your money, and the product or service either doesn't arrive, or it doesn't deliver the promised benefits. Check that a business has a real history and a good track record before sending money.

• Online fraud. Someone contacts you from another country saying they need your help or they have a great investment opportunity. Don’t believe it. This is fraud and they are trying to trick you into sending them money.

• Telemarketing/email fraud. Beware of phone calls or emails asking for your personal/banking information. Reputable companies do not operate in this way. Ask questions and be suspicious.

http://www.fcac-acfc.gc.ca/Eng/resources/educationalPrograms/ft-of/Pages/fraud-1-8.aspx


• Calling/app purchases. Beware of phone numbers that will charge you for calling, ringtone or entertainment text numbers that are actually a subscription service, or buying apps that trigger a monthly fee. When you see charges on your phone bill you don’t recognize, call your carrier to find out more about them.

Materials:

• Computer with internet access • Projector

Activity 5-11: Avoiding Fraud Key Points:

• It is important to recognize the signs of fraud and know how to avoid fraud. • You can avoid fraud by keeping your personal information safe and secure, and never giving

money to an organization that is not legitimate. Duration: 15 minutes Description:

a) Ask participants: What are the warning signs that something may be fraud? Some answers include:

• The offer is too good to be true. • You are pressured to make a decision fast or on the spot. • You are asked to give financial information (PINs, credit card numbers, passwords,

banking account information, etc.) or personal information (Social Insurance Number, date of birth, address, mother's maiden name, etc.) over the phone, by email or on a website you do not know.

b) Ask participants: How can you protect yourself from fraud? Some answers may include: • Share your personal information only with companies you know and trust. • Keep your wallet or purse out of reach in public places, in crowds and on public

transportation. • Don't carry ID you don't need with you, such as your social insurance card, birth

certificate or passport. Keep it in a safe and secure area. • Lock your household mailbox if possible. If you are going to be away, ask a trusted

neighbour to pick up your mail or arrange for Canada Post's hold mail service. • Check your bank and credit card statements each month. Correct any errors or

unfamiliar transactions immediately. • Shield the keypad when you are entering your PIN at a bank machine or store. • Make sure any website you are using is secure before transmitting passwords or

personal information. (Look for “https” in the address bar and the locked padlock symbol.)

• Delete any email that asks for personal information.


• Don't keep all of your PINs and passwords in one place on your computer or in your desk.

• Hang up on telemarketers who seem to be fishing for personal information, such as your birthday.

• If you are told you are a lottery winner, ensure it is a draw you actually entered. • Never send a fee or give financial information to collect a lottery or sweepstakes prize.


F: Moving Forward Activity 5-12: Reflection Key Point:

• Everyone can do something to be a wiser consumer. • Identifying behaviour changes related to this module can save you money and protect you from

being taken advantage of. Duration: 10 minutes Description:

a) Ask participants to reflect individually on what they have learned in this module and write down or draw their personal goals related to being a wise consumer.

b) The facilitator has the option to lead a group discussion with participants who are willing to share

some of their goals. Materials:

• Paper • Pens • Markers



• Handout 5-3: What Kind of Consumer Are You? • Handout 5-4: Can of Juice • Handout 5-6: Cell Phone Checklist



Handout 5-3 What Kind of Consumer Are You?

What kind of consumer are you?

1. Before making a major purchase, I research the product, the company that makes it, and find reviews from people who've purchased it.

2. I bring a list when I grocery shop so I won't be tempted to buy things I do not need.

3. I check a store's return and refund policy before I buy things.

4. I use coupons or look for sales before I shop.

5. I stock up on things I need during sales or at bulk stores.

6. If I am not satisfied with something I bought, I return it for a replacement or refund.

7. When I shop for food, I compare the quantity to the price (the unit price) to make sure I get the best deal.

8. I try not to make impulse buys, or buy things for emotional reasons, for example, "I deserve it!"

9. I compare products before I buy to find the best price.

10. If I have a question about a product, I ask a salesperson about it until my question is answered.

11. I keep my receipts to keep track of the things I buy, and so that I can return them if needed.

12. Name brands do not affect my buying choices. I buy whatever is the best quality at the best price.

If you answered mostly “Always” You are a smart shopper. You think about your purchases and educate yourself before buying. You do not buy just for the sake of spending. You make the most of your shopping dollar. You know your rights as a consumer and you make sure you do not get cheated. While you may already know a lot of what this workshop covers, there is always room to learn more. If you answered mostly “Sometimes” You have a good head on your shoulders when it comes to shopping. But paying a bit more attention to how you are spending your money could help you save more. You may want to learn more about your consumer rights. Perhaps you need to track your spending more often. This workshop will give you some ideas about areas where you can improve when it comes to your consumer habits. If you answered mostly “Never” This is a great workshop for you! You might want to rethink some of your spending and shopping habits. You could likely save money if you took the time to research deals before you buy. You also might want to learn more about your rights as a consumer to make sure you are not getting cheated. This workshop has tips that can help you improve in all these areas.


Handout 5-4 Juice Can

Restaurant $4.50/can Vending Machine $1.75/can Grocery Store $0.55/can


Handout 5-6 Cell Phone Checklist

Step 1 – Cell Phone Basics

What geographic areas will you be using the phone in?

Does the service provider provide coverage in those areas?

What are the add-on fees?

System access fees?

911 access fee?

Step 2 – Minutes and Data

Minutes:

How many minutes will you use each month?

Time of Use:

Weekdays (for instance, Monday – Friday 7am to 6pm)

How many minutes?

Weekday evenings (for instance, Monday – Friday 6pm to 7am)

How many minutes?

Weekends

How many minutes?

Total minutes per month

Data:

Do you want to text message?

How many?

Outgoing?

Incoming?

Would it be better to pay a flat fee for unlimited text messaging?

Do you want to send and receive e-mail?

Do you want to use the internet from your cell?


Handout 5-6, continued Cell Phone Checklist

Step 3 – Features

Long distance:

Will you use the cell phone for long distance?

How many minutes?

Roaming:

Will you use your cell phone when you travel?

How often are you out of your coverage area?

Do you think you will need:

Caller ID or call display?

Voicemail?

Call waiting?

Applications or games?

Other features?

Step 4 – The Cell Phone

• Battery Life – How many hours will the battery last before it needs to be recharged? How

often will it need to be replaced?

• Durability – Is the phone fragile or can it handle wear and tear?

• Keypad – Is it easy to use?

• Screen – Is it easy to see?

• Size – How big is the phone? How heavy is it?

• Other – Are there other things that are important to you in a cell phone?


Handout 5-6, continued Cell Phone Checklist

Step 5 – Prepaid Cards or Contract?

Prepaid Cards:

Advantages Drawbacks

• Can pay in advance, no unexpected

charges

• No long-term commitments

• Can stop using phone without fees or

charges

• Convenience; can buys cards at many

stores without a credit card

• Higher cost per minutes than contract

• Minutes expire after 30 days

• Have to buy new minutes before expiry

date or you lose minutes you paid for

• Have to keep track of minutes so you

don’t run out

Contracts:

Advantages Drawbacks

• Can check bill to review use

• Can get reduced price on cell phone

• Can chose a plan that best suites you

• May be able to bundle with other

services to get discounts

• Contract is long-term, there are penalties

for breaking them

• Contract means ongoing financial expense

• Can’t update cell phone

• If you use more minutes than the plan

allows, there can be costly charges

Step 6 – Your Cell Phone Bill

Are you using your minutes as expected?

Are your long distance charges high?

Are you sending and receiving text messages as much as you

expected?

Would you be better off with a prepaid card or different service

provider when you contract ends?


MODULE 6

Credit and Debt


“Since the workshop I have taken control of my finances and have now almost paid off my student debt.” - Indigenous Financial Literacy workshop youth participant

Summary

This module reviews credit and debt, including the pros and cons of credit, types of credit, predator creditors, the cost of credit, using credit wisely, and how to manage existing debt. Goal of Module

• Empower participants to make wise and effective financial choices related to credit and debt. Learning Objectives Participants will:

• Know what the advantages and disadvantages of credit use are. • Learn about different types of credit and the costs associated with each. • Learn strategies for managing credit effectively. • Know how to obtain both their credit report and their credit score and how to use them. • Learn strategies for paying down existing debt.

Subtopics

A. What is Credit? B. The Cost of Credit C. Types of Credit D. Using Credit Wisely E. Debt Management F. Moving Forward – Goal Setting

Timing This module lasts from one-and-a-half to four hours depending on the activities selected.

A B C D Total1hr25min to

4hr10min10 - 35

min10 - 20

min15 - 45

min

E F20 - 50

min20 - 100

min10 min


Module 6 | Credit and Debt


Overview: Module 6 – Credit and Debt


A. What is Credit

6-1: Fear in a Hat Icebreaker Small slips of paper; pens; box or hat

10 - 15 minutes

6-2: Pros & Cons of Credit

Group discussion

Flipchart or whiteboard; markers

10 - 20 minutes

B. Cost of Credit

6-3: The Costs of Credit

Presentation with discussion

Handouts 6-3A; 6-3B

10 – 20 minutes

C. Types of Credit

6-4: Types of Credit Small group; discussion

Handouts 6-4A, 6-4B

30 minutes

6-5: Predator Creditors

Presentation Handouts 6-5A, 6-5B, 6-5C, 6-5D

15 minutes

D. Using Credit Wisely

6-6: Tips for Using Credit Wisely

Presentation with discussion

Optional: computer with internet; projector

20 minutes

6-7: Credit Cards Presentation Credit card brochures

30 minutes

E. Debt Management

6-8: Managing Debt Presentation; individual

Handout 6-8 15 minutes

6-9: Warning Signs of Debt Problems

Small group Pens; paper; flipchart; markers

10-15 minutes

6-10: Strategies for Managing Debt

Video Computer with internet; projector

10-15 minutes

6-11: Debt Do’s and Don’ts

Game Handout 6-11 20 minutes

6-12: Ways to Improve Your Credit Score

Presentation Slides 10 – 15

minutes

F. Moving Forward 6-13 Reflection Individual Paper; pens; markers

10 minutes


A: What is Credit? Activity 6-1: Fear in a Hat Key Points:

• Participants meet each other and learn about each other’s relationship with money as it relates to this module.


• Each person writes down a fear they have about the topic of credit or debt. • Without showing anyone, they fold the paper once and put it into a hat, box, or envelope. • Shake it up and ask everyone to take a piece of paper out and read it aloud. • Discuss common themes.

. Materials:

• Small slips of paper • Pens • Box, hat, or envelope

Activity 6-2: The Pros and Cons of Credit Key Points:

• Credit has advantages and disadvantages. • Being informed about credit and using it responsibly will help you to succeed financially.


a) Explain that:

• Credit is the ability of a customer to obtain goods or services before payment, based on trust that that payment will be made in the future.

• All types of credit are different forms of loans. A bank, private organization, or business loans you money. Usually you will have to pay back the money you borrowed, plus interest.

• Interest is a percentage of the money you borrowed. The longer you have a debt, the more interest you will pay.

• Charging interest is how the lender makes money.


b) Explain that credit can be good or bad. Write "+” and "-" on either side of a piece of flipchart paper or whiteboard and draw a line down the middle. Record positive things on the “+” side and negative things on the “-” side.

c) Ask participants: “What are the positive things about credit? What does it allow you to do?” If the following points are not mentioned by participants, make sure that they are covered:

• Convenient. • Can be safer than carrying cash. • Emergency money. • Rewards points, air miles, and cash-back programs. • Use it to track purchases. • To buy goods over the internet. • To use as security for a rental car, hotel room, etc. • To build a strong credit history, which can lead to lower interest rates and ease of

borrowing in the future. • Loans can pay for expensive items like a house, a car, or going to school.

d) Explain that while credit has many benefits, it can also be risky. Ask participants: “What are the

negative things about credit? What can go wrong when using credit?” If the following points are not mentioned by participants, make sure that they are covered:

• Temptation to overspend. • Interest rates increase the cost of things bought on credit. • Money needed to pay debts means less money for needs, wants, or savings. • Late payments lead to a bad credit history. • Bad credit history restricts access to credit and makes credit more expensive. • Collections / garnished wages. • Bankruptcy. • Potential for fraud and identity theft.

Materials:

• Flipchart • Markers


B: The Cost of Credit Activity 6-3: The Costs of Credit Key Points:

• Buying on credit means you will pay back the money you borrowed plus the interest on that money; buying items on credit will cost you more than buying them upfront.

• The higher the interest rate and the longer it takes you to pay off your credit, the more you will end up paying.


a) Explain that: • Buying on credit means you will pay back the money you borrowed plus the interest. • Buying things on credit will usually cost you more than buying them upfront.

b) Optional: Show participants this short, humorous video about the costs of buying on credit:

https://www.youtube.com/watch?v=83wtyEqD1fc

c) Give each participant a copy of Handout 6-3A: Buying with Cash vs. Credit or show participants the Buying with Cash vs. Credit wall poster (Poster 6-3).

d) Ask participants what they notice about the potential costs of credit.

e) Distribute and review Handout 6-3B: Cost Comparison.

f) Explain that: • Credit isn’t always bad. • Credit can be very useful and can actually be financially beneficial because it can allow

you to invest in something that can create more wealth in the long run. • For example, starting a business, buying a home that will grow in value over time, or

financing your education so you can earn a higher income. • Credit can work to your advantage if you use it wisely.

Materials:

• Handout 6-3A: Buying with Cash vs. Credit • Handout 6-3B: Cost Comparison • Optional: Computer with internet, projector

https://www.youtube.com/watch?v=83wtyEqD1fc


C: Types of Credit Activity 6-4: Types of Credit Key Points:

• Credit can take many different forms and there are different costs associated with each. • Each type of credit has different uses and different rules or conditions. • Some forms of credit can be very expensive. • Before borrowing, decide what form of credit best suits your needs.


a) Explain to participants that there are many different options for credit. If you are going to use credit, it is important to consider the options and find the one with the lowest cost and best terms and conditions to meet your needs.

b) Divide participants into groups of 2 or 3. Give each group a copy of Handout 6-4A: Types of Credit and a copy of Handout 6-4B: Credit Scenarios.

c) Ask participants to identify which type of credit the person in each scenario should use. There is no right answer, but they should be able to justify why they made their decision.

d) After they are done, ask the following questions: • What kinds of credit might each person use? • Why did you select this option? • What would be the potential risks of this type of credit? • Are there any types of credit that nobody (or very few) participants suggested? Why is that? • Are there some types of credit that should be avoided?

Optional: If you have a group with lower literacy rates, facilitators can explain the types of savings tools rather than having participants read them. It may be a good idea to explain the ones you think participants are most likely to use, so that only 3 or 4 tools are presented instead of all of them. Then participants can talk through the scenarios based on the facilitator’s presentation. Optional: Give the participants only one or two scenarios each.

Materials:

• Handout 6-4A: Types of Credit • Handout 6-4B: Credit Scenarios


Activity 6-5: Predator Creditors Key Points:

• Predator Creditors have high interest rates and fees. • It is best to avoid these types of creditors.


a) Explain that some types of credit providers are what we call “Predator Creditors.” This describes the practice of loaning money at very high rates to people who have limited options. Predator Creditors take advantage of people’s need for cash by offering high-interest loans that usually do more harm than good.

b) Give participants copies of the following: • Handout 6-5A: Payday Loans vs. Short-Term Loans, which demonstrates the high cost of

payday loans one type of predator creditor. • Handout 6-5B: The Cost of Payday Loans, which shows the potential risks of using

payday loans. • Handout 6-5C: Types of Predator Creditors with participants.

c) Give participants copies of Handout 6-5D: Practice Safe Spending, and explain the following:

• When you were in school, depending on your age, you may have been taught about safe sex practices, but were you taught about safe spending practices?

• Making poor financial choices can have devastating long-term effects in your life just like poor sexual choices can.

• We developed this graphic to help people learn how to avoid some common “Spending Transmitted Dysfunctions”.

• Cheque-cashing outlets, payday loans companies, rapid-refund tax services, pawn shops and rent-to-own or lease-to-own programs are examples of “Predator Creditors”.

• These services usually target low income earners and people who do not have bank accounts; they are used by people who need fast access to cash or credit.

d) Ask Participants: • “What are some of the risks related to Predator Creditors?” • “What can you do to avoid Predator Creditors?” • “Have you or someone you know had experiences with Predator Creditors?”

e) Optional: Record answers on a flip chart


Materials: • Handout 6-5A: Payday Loans vs. Short-Term Loans • Handout 6-5B: The Cost of Payday Loans • Handout 6-5C: Types of Predator Creditors • Handout 6-5D: Practice Safe Spending • Optional: Marker • Optional: Flip chart


D: Using Credit Wisely Activity 6-6: Tips for Using Credit Wisely Key Points:

• Credit can be a good thing if you use it wisely. Duration: 20 minutes Description:

a) Explain that despite the risks of Predator Creditors, credit can be safe if used wisely. The first step to safe credit is deciding what you can afford to pay back, and choosing a type of credit that you can manage.

b) Explain that if you only make the minimum payment on a credit card, you will mostly be paying off the interest on the card, not the money that you originally borrowed (which is called the principal). For example, if you have a balance of $1000 and a 12% interest rate, if you only pay the $20 minimum payment each month, it would take you over 25 years to pay off the debt and you would be paying over $3000 in interest.

If you pay the 2% minimum payment of $20, the first $ 16.67 goes towards interest, the balance of $ 3.33 goes towards the principle.

It would take more than 25 years to pay off the debt with a total interest paid over $3,000!

c) Show the following video on how to use credit cards wisely:

http://www.fcac-acfc.gc.ca/Eng/resources/educationalPrograms/ft-of/Pages/credit-3-11.aspx

d) Ask participants to summarize what they have learned about using credit wisely. If not covered by participants, mention the following points if they :

• Only use as much credit as you can afford to pay back. • Do not treat credit like free money – it can be very expensive money. • Shop around for the lowest interest rate. • Understand your agreement. Make sure you know the payment deadlines and the

penalties for late payments. • Avoid “maxing-out” or using all your available credit. Calculate the total price you are

Month Payment interest Principal Balance 1st month $ 20.00 $ 16.67 $ 3.33 $ 996.67 2nd month $ 19.93 $ 16.61 $ 3.32 $ 993.35 3rd month $ 19.87 $ 16.55 $ 3.32 $ 990.03



paying when you use credit. How much will it cost with interest? • Read your credit card statements. Make sure the charges and purchases listed are

correct. If they are not correct, call your credit card company right away. • Mark your payment deadlines on a calendar. Make your payments two or three days

ahead of their due dates to allow for processing time and ensure on-time payments. • If you can, pay your full balance by the due date every month. • Do not miss payments. If you cannot pay the full amount, always make at least the

minimum payment. • Tell your creditor if you cannot make a payment on time. Many lenders will be willing to

help you manage your payments if you ask them. • Use pre-authorized payments if possible. These are automatic payments that go to

paying off your loan. Materials:

• Optional: Computer with internet, projector Activity 6-7: Credit Cards Key Points:

• When choosing a credit card you must consider your needs and spending habits and the fees and conditions of the card.

• There are many options for credit cards. It is best to do your research and shop around.


a) Explain that credit cards are one of the most common forms of credit. Give an overview of the differences between debit cards, credit cards, and pre-paid cards: • With a debit card, you transfer money immediately from your banking account to the

seller's account. You can’t spend more than you have in your account (unless you have overdraft protection). For this reason, some people prefer to use debit cards as a way to limit their own spending. This can work, as long as your debit card is not linked to a line of credit, which would allow you to continue withdrawing funds until you had reached the limit of the line of credit. Transactions with debit cards have fees, unless your banking account agreement includes a number of free transactions.

• With a credit card, you borrow money from the credit card issuer to pay the vendor. You can continue to use your credit card to make purchases until you reach your credit limit. You have to pay back what you've borrowed by the due date to avoid or minimize interest charges. Credit cards often have annual fees. For individual transactions, there are no fees for using the card for purchases made in Canada. There are fees for using the card for cash advances or making purchases for foreign currency transactions. These fees may vary for different credit cards.


• Prepaid cards are not credit cards, but they can often be used in the same way. You deposit funds to "load them up" before you use them to pay for purchases in stores or online, or to withdraw cash at automated banking machines and other locations. Prepaid cards can be useful if you are not able or do not want to get a credit card. Some prepaid cards are "reloadable", meaning you can add more money to the card and keep on using it. Some prepaid cards charge fees. The fees and the rules for using the cards vary, so investigate them carefully to find the prepaid card that is right for your needs.

b) Explain that when choosing a credit card, it is important to consider several factors: • Interest rates. Are the interest rates competitive compared to other cards? • Fees. What fees exist? Read the fine print to find hidden fees. • Introductory offers. Some cards offer a low-rate for the first year but then the rate

increases. Make sure you know that the terms of the card will change, as this could cost you a lot more money.

• Rewards and Benefits. Some cards offer benefits like insurance, cash back, and points. Make sure that these benefits outweigh the costs of the card.

c) Distribute brochures for different credit cards. Invite participants to look through the brochures and identify the following:

• Interest Rates • Fees • Introductory Offers • Rewards and Benefits

Facilitators should circulate and answer any questions. It may be challenging to find all this information, but the point isn’t that each participant completes every question correctly. Rather, it’s to think about the various issues you should consider when choosing a credit card. Optional: Walk participants through the following website, which provides information on how to read a credit card statement: http://www.fcac-acfc.gc.ca/Eng/resources/educationalPrograms/ft-of/Pages/credit-3-9.aspx

Materials:

• Credit card brochures • Optional: Computer with internet, projector


E: Debt Management Activity 6-8: Managing Debt Key Points:

• Debt can be “good” debt or “bad” debt. • There are guidelines for how much debt a person can have and still be financially fit.


a) Explain that: • Debt is the amount of money that a person owes to his or her creditors • There is nothing inherently right or wrong about debt. • Financial experts often distinguish between "good debt" and "bad debt." • Good debt is an investment in something that creates value or produces more wealth in

the long run. Examples: a mortgage on a home, a student loan to pursue education for a career, a loan to launch a business, a purchase made to accomplish your job, or for your health.

• Bad debt is debt taken on to buy something that immediately goes down in value or to buy something that you can't repay on time and in full, thus incurring interest charges and more debt. Examples: charges on a store credit card at a high rate of interest, a personal loan to pay monthly expenses, or anything you don't need or that is not a necessity.

• A debt may be "good" or "bad" depending on the circumstances. For example, a mortgage is usually considered a good debt because it's an investment in property that is expected to increase in value—but it could be a bad debt if you can't afford the payments.

• Debt is OK if you can afford to pay the debt off without spending too much money on interest or getting overwhelmed by debt.

b) Explain that there are guidelines about how much debt a person should have.

• Your debt payments (not including mortgages) should add up to no more than 10% of your monthly take-home pay.

• Your total debt (not including mortgages) should be no more than 20% of your annual salary.

• If your debt repayments amount to more than these percentages, you have a debt ratio that is higher than recommended by most experts. This might indicate that your debt load is becoming unmanageable, and with your current income you will not be able to meet the payments as they come due. This debt load might also discourage lenders from loaning you more money.


c) Have participants use the charts in Handout 6-8: Debt Guidelines to calculate how much debt is right for them.

d) Optional: If you have access to computers with internet, participants can use this debt calculator: http://www.fcac-acfc.gc.ca/Eng/resources/educationalPrograms/ft-of/Pages/credit-1-7.aspx

Materials:

• Handout 6-8: Debt Guidelines


Activity 6-9: Warning Signs of Debt Problems Key Points:

• Debt can be OK if it is manageable, but can become problematic and end up damaging a person’s financial situation.


a) Break participants into groups of three to five. Ask each group to brainstorm and write down several ideas on how to know if a person has too much debt.

b) List each group’s ideas on a flipchart. The following ideas that should be covered if they are not mentioned by participants are:

• Using credit because you don’t have the money to pay for something. • Paying only the minimum monthly payment. • Missing payments or making late payments. • Using a cash advance from one creditor to pay another creditor. • Applying for a second credit card at another branch or bank. • Requesting an increase on spending limits on credit cards, overdrafts, etc. • Taking add-on loans or consolidation loans while continuing to use your credit cards. • Borrowing from a friend or family member to make ends meet each month. • Borrowing money when you know you don’t have the money to pay it back. • Rotating payments to creditors because you can’t afford to pay them all. • Charging more than the monthly amount you pay on your accounts.

Materials:

• Pens and paper • Flipchart • Markers


Activity 6-10: Strategies for Managing Debt Key Points:

• Debt can be useful when managed correctly. • A person with too much debt must take action and create a plan to manage their debt. • There are established strategies for dealing with debt and resources to help those facing this

challenge. Duration: 10-15 minutes Description:

a) Ask participants: “What are some strategies for dealing with debt?” Record answers on a flip chart. Debt management strategies that should be introduced if not mentioned be participants are:

• Stop using credit. This is important so your debt will stop growing. • Knowledge is power. Gather all of your debt and information. For each debt, write

down: total amount; minimum monthly payment; interest rate; due dates; and, terms of repayment.

• Rework your budget. Look closely at your budget for ways to increase income or decrease expenses.

• Negotiate and Consolidate. Speak with your creditors to see if you can get a lower interest rate or combine all of your individual balances into one loan with a lower interest rate (a debt consolidation loan).

• Make a debt repayment plan. Pay off your debt with the highest interest rate first; pay minimum amounts on everything else and pay them on time; when one debt is paid off, add the amount you were paying on it to the next highest interest rate debt.

• Stick to your plan. This is the most important part of the process! Consider setting up automatic payments from your bank account so that you do not accidently miss payments.

Other options to consider as a last resort: • Credit Counselling, Debt Repayment Program. A Debt Repayment Program, through a

non-profit credit counselling organization, will negotiate with your creditors for you. You will make one payment to the program each month that will be divided among your creditors. This will have a negative effect on your credit rating.

• Consumer Proposal. A bankruptcy trustee will help you to put together a consumer proposal offer to your creditors. The offer reduces your balances owing to an amount that allows you to pay them off within five years. Each creditor has one vote on whether to accept or reject your proposal. If accepted you are protected from any further legal action to collect on the debts. A fee is included in your instalment payments. You must also attend credit counselling. This has a negative effect on your credit history and lasts for three years from the date of your last payment.


• Bankruptcy. The rules of bankruptcy are complex. Bankruptcy is a legal process where you declare yourself unable to pay back your debts. A licensed bankruptcy trustee may force you to sell your assets. The money, and a portion of your income, is used to partially pay your creditors. The process will “discharge” you from paying most of your debts, however some debts are not covered. It prevents creditors from being able to take legal action against you. You must also attend credit counselling. Bankruptcy has a severe and long lasting effect on your credit.

b) Optional: Watch the following video on dealing with debt:

http://www.fcac-acfc.gc.ca/Eng/resources/educationalPrograms/ft-of/Pages/credit-6-5.aspx Ask participants to summarize what they learned about debt.

Materials:

• Flip chart • Marker • Optional: computer with internet connection, projector

Activity 6-11: Debt Do’s and Don’t Key Points:

• Debt can be useful if we manage it correctly. • There are established strategies for dealing with debt.


a) Label one side of the room “Do” and the other side “Don’t.” The middle can be “Use with caution.”

b) Read debt Do’s and Don’ts aloud. Ask participants to go to the side of the room that they think corresponds which each statement. Debt Do’s:

• Review your monthly expenses. • Consider selling any assets you may have.* • Order your credit report. • Contact your creditors. • Create a monthly spending plan. • Look into Credit Counselling Services as an option. • Make a list of your debts. • Be honest with yourself. • Try to figure out how you got into debt in the first place.



• Consider a consolidation loan. • Reduce how much you spend in banking fees. • Put needs before wants.

Debt Don’ts: • Let others make you feel bad about your situation. • Use credit cards. • Use your rent to pay your debts. • Borrow more money. • Keep your spending habits the same.* • Feel hopeless, frustrated, and defeated. • Assume dealing with your debt will be quick and easy. • Close paid off accounts.* • Pay down your debts with the lowest interest rates first.* • Sign-up for “Buy Now, Pay Later” offers. *These activities are the most likely to spark debate. A few of them, such as closing paid off accounts, can be argued either way.

c) After each statement, discuss why people chose the side they did.

Option: For small rooms or groups with mobility challenges, participants can choose “Do” or “Don’t” by a show of hands, and then discuss their choices.

Materials:

• “Do” sign and “Don’t” sign Activity 6-12: Ways to Improve your Credit Score Key Points:

• There are several ways to improve and maintain your credit score. • There is a difference between a credit report and a credit score. • You can access your credit report or credit score.


a) Explain that: • Your credit report is a summary of your credit history. It is created when you borrow

money or apply for credit for the first time. • Your credit report tells lenders how well you have paid off your credit in the past. • Your credit score is a number – reached by an algorithm.


• Your credit score and history are important because they are the main tools lenders use when deciding whether or not to lend you money and how much they will charge you to borrow.

b) Ask participants: What information is included in your credit report? Record answers on a flip

chart. Ensure the following answers are covered in the discussion: • Your personal information. Name, date of birth, address, telephone number, Social

Insurance Number, driver’s licence, and employers. • Your credit products: loans, credit cards, etc. • Your payment history. Whether or not you make your payments on time - paying on

time is crucial for a good credit rating. • How much you owe. Your outstanding balances compared to your credit limits - you

shouldn’t use the full available limit on an ongoing basis. • How long your credit file has been open. The longer your credit file has been open, the

more likely it is that you will be able to obtain credit. • How many times you have applied for new credit. How many inquiries are registered

on your credit file and the nature of those inquiries. • The type of credit you have. Different forms of credit impact your credit score

differently. • Collections items or judgements. These items will affect your credit score negatively. • Cell phone and internet accounts. These accounts may be reported even though they

are not credit accounts, for instance if you have an unpaid account and changed providers or if you are consistently late with your payments.

c) Ask participants: “What can you do to improve you credit score?” Record the answers on a flip

chart. Ensure the following answers are covered in the discussion: • Use credit. Sometimes a poor credit score means that a person has not used credit

much. You cannot build a credit history without using credit. Make sure that when you use it, you do so wisely.

• Pay your bills on time. This is a great way to show that you can manage credit wisely. Late payments or accounts sent to collections can really hurt your score. Utility bill payments are not recorded in your score monthly; cell phones, credit cards, and loan payments are. Keep track of your due dates and manage your money so you can pay all your bills on time.

• If you cannot pay on time, take action. Get in touch with the creditor and ask to work something out, so that it does not go on your credit record. If you become ill or disabled, ask if you are insured so that your payments will be covered.

• Pay your credit card balances in full. This shows you have money to cover the credit you use. It is also a good way to prevent debt from getting out of control. If you can't pay in full, be sure to at least make the minimum payment and make it on time


• Pay your debt as fast as you can. The longer your debt remains, the more it appears that you are unable to handle it, and this will hurt your score. Take on only the amount of credit that you can manage.

• Stay within your credit limit. Do not go over your credit limit on your cards or other sources of credit. The higher your balance, the more it affects your score. Try to keep your balance well below your credit limit.

• Do not apply for credit too often. Applying for too much credit in a short period of time can be seen as a sign of financial instability. Each application shows as an inquiry to the credit bureau. Too many inquiries on your record will hurt your score.

• Correct errors. Get a copy of your credit report. Make sure there are no errors. Mistakes may not be your fault, but it is your responsibility to fix them.

d) Optional: Help participants apply for their credit reports. This should only be done if you or

someone else will be available to help them understand their credit reports. • Explain that you can access your credit report at any time for free. This is useful

information to know because if you know what your credit report is you will know how to improve it.

• Have participants fill out a request for their credit report. In Canada there are two organizations that can provide credit reports:

o Equifax o TransUnion

• Provide for photocopying of ID, envelopes, address stickers, and postage. • You can also find your credit score through your online banking; some sites also provide

access to your credit score at no cost. e) How to get your credit score. If you use online banking, or access your credit card statement online, there is usually an option Materials:

• Flip chart • Markers • Optional: Request for credit report forms, access to photocopier, addressed envelopes, postage • Access to the internet


F: Moving Forward Activity 6-13: Reflection Key Point:

• Identifying behaviour changes related to this module can save you money and protect you from being taken advantage of.


a) Explain that: • Every person has areas they would like to improve or focus on. • You can improve your circumstances by changing your perceptions and habits. • It takes courage, resolve, and action to make change and realize your goals. • Setting goals, writing them down and/or sharing them with others builds accountability.

b) Review the concept of SMART goals (see DREAMS, GOALS… ACTION! in appendix). Remind them

to put specific times next to their goals.

c) Optional: Share sample goals that are relevant to this module: • Make a list of everything I owe: include due dates and interest rates. • Make a list of regular payments along with their due dates; create a reminder to pay

them five days before the due date. • Write down an affirmation such as “The past is the past, I can be successful in managing

my finances” - repeat it daily. • Stop purchasing one item that I regularly buy which is a ‘want’ and use the extra money

to pay down some of my debt. • Make an appointment with a debt counsellor.

d) Ask participants to reflect individually on what they have learned in this module and write down

or draw their personal goals related to credit and debt. • Option A: Have them fold up the paper with their goals and write their name on the

outside. Explain that you will return their goals to them at the end of the training so they can see how far they’ve come. If they want to, they can take a picture or write out a copy of their goal to take with them.

• Option B: Have them write their goals on a nice/colourful piece of paper. Recommend that they stick this paper in a place they will see it often (such as on the fridge, or the bathroom mirror, or above their bed).


e) Optional: Ask participants who are willing to share their answers to the following questions: • What goals did you set in relation to this module? • Why did you select that goal? What benefits are you hoping to gain from accomplishing

it? • How / when will you realize this goal?

Materials:

• Paper • Pens • Markers • DREAMS, GOALS… ACTION! (in appendix)


Activity Materials The section contains the following supporting materials:

• Handout 6-3A: Buying with Cash vs. Credit • Handout 6-3B: Cost Comparison • Handout 6-4A: Types of Credit • Handout 6-4B: Credit Scenarios • Handout 6-5A: Payday Loans vs. Short Term Loans • Handout 6-5B: The Cost of Payday Loans • Handout 6-5C: Types of Predator Creditors • Handout 6-5D: Practice Safe Spending • Handout 6-8: Debt Guidelines



Handout 6-3A


Handout 6-3B Cost Comparison

Example 1 Buy on Visa at 12% interest and make the minimum payment of 2 % per month $ 1,000 x 2 % = $ 200 / 12 months = $16.67 interest per month If you pay the 2% minimum payment of $20, the first $ 16.67 goes towards interest, the balance of $ 3.33 goes towards the principle

It would take more than 25 years to pay off the debt with a total interest paid over $ 3,000! Example 2 Receive a $ 1,000 loan at 12% interest, to be paid over a two-year period with equal monthly instalment payments of $ 47.07

The loan will be fully paid in 2 years with a total interest cost of $130.16

Example 3 Imagine you were very disciplined and made the same monthly payment to your Visa. Here’s what the payments would look like:

In this case you would pay off the credit card in 27 months with a total interest cost of $244.63.

Paying the same amount monthly on a loan, rather than your credit card, saves you $114. What could you have done with that money? When making a large planned purchase that you won’t be paying off right away, you might be better off with a bank loan rather than putting it on your credit card.

Month Payment Interest Principal Balance 1st month $ 20.00 $ 16.67 $ 3.33 $ 996.67 2nd month $ 19.93 $ 16.61 $ 3.32 $ 993.35 3rd month $ 19.87 $ 16.55 $ 3.32 $ 990.03




Handout 6-4A Types of Credit

Type of Credit What it is Uses Pros and Cons Credit Cards A card which allows you to

borrow money from the financial institution and pay it back over time.

Accepted at most retail institutions. Allows you to pay for anything right away, and also can provide cash advances.

Pro: Convenience and flexibility. Allows you to build credit history. If you pay off the entire balance every month you will not pay any interest (except for cash advances which start to build up interest immediately). Con: If you only make the minimum payment (or don’t pay off cash advances right away), your debt will add up very fast.

Department Store Card A card for a particular store that works like a credit card but only for that store.

Allows you to buy anything at that store.

Pro: Can have incentive programs like points and discounts. Con: Usually a higher rate than a regular credit card.

Overdraft Protection A service that financial institutions offer on chequing accounts, which allows you to spend more money than you have in your account, provided you pay it back before the next statement.

For a short-term cash crunch—for example you need cash a few days before your payday.

Pro: Convenient for short-term cash shortages Con: Interest charges and penalties can be very expensive.

Line of Credit A pre-approved loan from a financial institution that allows you to borrow up to a certain amount.

To make any type of purchases.

Pro: Can be less costly than other credit products. Repayment terms are very flexible since you only have to pay the interest. Con: The minimum payment is interest only, so it could take longer to pay back the money you owe.

Pay Day Loans A short-term loan that gives you an advance on your next pay cheque.

Useful when you are in a cash crunch and need money to make it until the next payday

Pro: Quick access to cash. Con: One of the most expensive loans you can get—high interest rates and hidden fees. Can easily get a person into serious debt.


Type of Credit What it is Uses Pros and Cons Buy Now, Pay Later Loans You buy an item from a store

and don’t have to start paying for it until later.

Useful for items like furniture or appliances.

Pro: Allows you to have the item immediately Con: Usually has very high interest fees. Some plans offer 0% interest for a period of time but after that time the interest rate is very high and if you don’t pay for the item right away it will cost you a lot more than buying it upfront.

Rent-to-Own You rent an item from a store and pay for in gradual installments.

Useful for items like furniture or appliances.

Pro: Allows you to have the item immediately. Con: Can take a long time to pay off and ends up costing you a lot more than the original item (sometimes more than double).

Consumer Loan A loan from your financial institution directly to you.

Useful to make larger purchases such as a car or home renovations.

Pro: The terms of the loan may allow you to pay off the loan early to avoid paying much interest. Con: Will cost more than saving up first to buy the item.

Mortgage A loan from a financial institution to buy a home or property.

Buying property. Pro: Allows you to buy a home—something most people cannot do without credit. Provides a range of options for repayments. Con: If you cannot afford your mortgage payments you can end up in serious debt and even lose your home.

Student Loan A loan from the government to pay for education.

Paying for post-secondary education.

Pro: Interest rates are low and you don’t have to start paying it until you graduate Con: You can graduate with a lot of debt which may be hard to pay off with an entry-level salary. Interest rates kick in 6 months after graduation.

Informal Loan Money that you borrow from a friend or family member.

Can be used for anything. Often used for emergencies or short-term cash crunches.

Pro: Can have no or little interest. Con: Can cause relationship problems. If there is no written agreement may cause misunderstandings.

Handout 6-4A , continued


Handout 6-4B Credit Scenarios

Judy is going to post-secondary school and needs a loan to pay her tuition.

Mark ran out of grocery money and he doesn’t get paid for one more week.

Susan wants to buy a new couch for her apartment and she doesn’t have the money to pay for it

upfront.

Cam and Hugh are ready to buy their first house. They have saved up for a down-payment.

Jeanette’s car crashed and she can’t afford to fix it. She needs it to get to work.

Greg wants to make some repairs to his home in order to increase the value of the house before he sells

it.

Helen wants to go on vacation but she can’t afford to pay for all the costs.

Mary needs a new washing machine and she found one she liked on sale for 0% interest during the first

year.


Handout 6-5A Payday Loans vs. Short Term Loans

The chart below demonstrates the very high cost of payday loans, one type of Predator Creditor.


Handout 6-5B The Cost of Payday Loans The following infographic shows the potential risks of using payday loans.


Handout 6-5C Types of Predator Creditors

Cheque-cashing outlets

• These are places you can cash cheques if you do not have a bank account. They usually charge a percentage of your cheque, plus a service fee.

• Cost Example: On an $ 800 cheque, they could charge a 3% fee ($ 24) plus a $ 3 service fee, for a total charge of $27. All you get for this is your own money - EXPENSIVE!

Payday loans

• A payday loan is a short-term loan of two to four weeks against your next paycheque. • You can usually borrow up to 5O% of your next paycheque amount. To get the loan, you must: Show proof of income, such as a month or two of pay stubs Provide a copy of your bank statement Show proof of your identity Give the lender a post-dated cheque or permission to take the money from your bank

account • Pay day loans are a very expensive way to borrow money • Cost Example: For a two-week $400 loan the fee is over $90; an annual interest rate of 550% • There are even higher fees if you do not pay the loan back on time – and there could even be

fees for paying it back early! • Make sure you review the loan agreement and understand its terms before you sign it and keep

a copy for yourself.

Rapid-refund tax services

• These are services used to file income tax returns. They claim to provide "instant refunds", but

these are not tax refunds, they really are expensive loans – and it is your money that they are lending you.

• Cost Example: There are high fees for these services - preparation fees, electronic filing fees, cheque cashing fees, and loan charges – which can add up to hundreds of dollars.

• You get the refund amount right away, less those fees and charges. The government sends your refund to the tax service, and that pays off your loan.

• If the government denies your tax refund, or if it is smaller than expected, you still have to pay back the loan to the tax service.

Pawn shops

• Pawn shops loan cash in exchange for valuable objects, called "collateral", such as jewellery and electronics; if you don't repay the loan, the pawn shop sells the item to someone else.

• You will need to show identification and the pawn shop may run a check to see if the item has been reported stolen.

• Cost Example: Pawn shops often charge high interest and fees; they also hold your possession for collateral, and the loans they provide are a fraction of the true value of the object.


Rent-to-own programs

• These are programs that allow people to purchase household items (such as electronics, appliances, or furniture) by paying a weekly fee.

• The price of the item may be inflated before even considering the fees and interest. • There may be a charge for setting up a rental plan, a damage deposit, an insurance fee, a buy-

out fee, and a cancellation fee. • Cost Example: Interest rates are high, as much as 28-40% a year. By the time you pay it off, the

total cost of the item can be more than double the original cost. • If you miss a payment, you may have to return the item to the store, or it may be taken away:

when this happens, you may lose any payments you have made so far.

Alternative ideas to using rent-to-own

• Consider layaway until you can save the money. You may not have the item right away but paying a portion up front to get the store to hold it for you while you save up the rest of the money needed to buy the item can be financially rewarding, and give you something to look forward to.

• Wait and build a credit rating, then borrow from a trusted financial institution. Being able to borrow at a reasonable rate is a gift to yourself that keeps on giving.

• Buy the item used or find a less expensive alternative that you can afford. • Rather than paying instalments to the loaner, pay yourself into your savings account until you

can afford to buy the item. • If you budget your money each month and set some aside for emergencies, you are less likely to

have a need for predator creditors.


Handout 6-5D Practice Safe Spending


Handout 6-8 Debt Guidelines

Annual take-home pay (after taxes)

Total debt you should have (20%

of your pay) $ 10,400 $ 2,080 $ 15,600 $ 3,120 $ 19,500 $ 3,900 $ 23,400 $ 4,680 $ 26,000 $ 5,200 $ 27,430 $ 5,486 $ 31,200 $ 6,240

Monthly take-home Pay

Your monthly debt payments should be less

than this (10% of monthly pay)

$ 867 $ 87 $ 1,300 $ 130 $ 1,625 $ 163 $ 1,950 $ 195 $ 2,167 $ 217 $ 2,286 $ 229 $ 2,600 $ 260 $ 3,250 $ 325


MODULE 7

Saving


Summary This module explores the subject of saving, including ways to save, savings goals, and how to get started on saving. Goal of Module

• Prepare participants to save for short, medium or long-term goals, even if they have limited financial resources.


• Think about the possibilities of saving. • Consider their motivation for saving. • Learn about saving accounts. • Learn why starting to save early pays off.

Subtopics

A. The Benefits of Savings B. Types of Savings C. Strategies for Saving D. Savings Goals

Timing This module lasts from 30 minutes to two-and-a-half hours depending on which activities are selected.

A B C D Total30min to

2hrs30min5 min 5 - 10 min

10 - 130 min 10 min


Module 7 | Saving


Overview: Module 7 - Saving


A. The Benefits of Savings

7-1: Experiences of Saving

Small group; discussion

Optional: pens; sticky notes; computer with internet; projector

5 minutes

B. Types of Savings

7-2: The Three Types of Savings

Group discussion Flip chart; markers

5 – 10 minutes

C. Strategies for Saving

7-3: Getting Started with Saving

Group discussion Flip chart; markers

10 – 20 minutes

7-4: Strategies for Short-Term Savings

Presentation; group discussion; video

Optional: computer with internet; projector

10-20 minutes

7-5: Strategies for Medium and Long-Term Savings

Presentation; group discussion

Optional: computer and internet access

20-40 minutes

7-6: Types of Savings Accounts

Small groups Handouts 7-6A, 7-6B

30 minutes

7-7: Questions About Saving

Group Paper; pens; box 20 minutes

D. Savings Goals 7-8: Setting Savings Goals

Individual; group discussion

Handout 7-8; pens

10 minutes


A: The Benefits of Saving Activity 7-1: Experiences of Saving Key Points:

• Saving means putting money away for the future. • Saving takes planning, time, and effort. • When you are saving, you will need to curb your impulse to buy. • Reaching your savings goal can be very rewarding.


a) Divide participants into groups of 2 or 3. b) Ask them to share their answers to the following questions:

• What was the first thing you ever saved for? What do you remember about the experience?

• What was the best thing you ever saved for? Why? • If you haven’t saved for something before: What is something you would really like to

save for? Why? c) De-brief as a larger group. Ask participants:

• What are the benefits of saving? • What are the challenges of saving? • How did you manage to stick to your saving and meet your goal? • Are there different kinds of saving?

Alternative: Participants write their answers to the first set of questions on sticky notes, and explain their answers to the group as they put them up on the wall. If not mentioned by participants, facilitators should introduce the following benefits of savings:

• You will have a cushion to protect you if there is an emergency, or an unexpected event. • If your money is invested or gaining interest, it can grow over time. • You will be able to pay for things up front, rather than using credit and going into debt. • Your will be able to afford more things (for example, down-payment on a car, home,

etc.). • Your money will be safe and protected (in the bank).

d) Optional: Watch this short video on benefits of savings and savings strategies:

http://www.fcac-acfc.gc.ca/Eng/resources/educationalPrograms/ft-of/Pages/saving-1-8.aspx Materials (Optional): Pens; Sticky notes; Computer with internet connection; Projector


B: Types of Saving Activity 7-2: The Three Types of Savings Note: You may have already done this activity as part of “Creating Budget Goals” in module 4. If so, skip this exercise and simply have participants recall and review their understanding of the three kinds of savings. Key Point:

• There are three kinds of savings: short, medium, and long-term. Duration: 5-10 minutes. Description:

a) Explain that savings can be divided into three categories: short, medium, and long-term savings. • Short-term savings are for things you will purchase in the next year or so. • Medium-term savings are for things you will purchase in the next few years. • Long-term savings are for things far in the future.

b) Ask participants to brainstorm examples of things people might want to save for, and whether they feel these are short, medium, or long-term goals. Acknowledge that answers will vary for participants, as what might be a short-term goal for one person could be a long-term goal for another. You may want to write their answers on a flip chart. Some examples may include:

• A large item you want to buy (TV, furniture, bike, etc.) • A trip you want to go on • A new car • A gift you want to buy someone • An emergency fund • Retirement • Your own or your children’s education • A life transition that you are planning for • A new home

Materials:



C: Strategies for Saving Activity 7-3: Getting Started with Saving Key Points:

• Anybody can start saving, no matter what their income is. • The best time to start saving is now.


a) Explain to participants: • It might seem like saving is something you do if you have extra money, and is not an

option for people who are spending most of their income to meet essential expenses. However, almost everybody can save a little bit. Even if you are starting with small amounts, it is better to start saving than to put it off until you have more income.

• Being able to save depends on distinguishing needs from wants. Almost everybody spends some of their money on wants, and that’s OK. But some of the money spent on wants could be used for savings instead.

• Saving is not the same as reducing your expenses. You may need to reduce your expenses to save, but if you “save money” on coffee by buying a cheaper brand, and then you spend that money you “saved” on something else (like a muffin to go with your coffee), you have not really saved any money.

• Saving means taking the money out of your cash flow and putting it somewhere safe, where it remains unspent. You should place your savings somewhere safe, such as a bank account, so that you can see how much money you have saved.

b) Ask participants to suggest strategies for saving when they don’t have much money. They may come up with examples that are related to reducing expenses, and that’s fine—you can simply remind them that saving means setting the money aside. Try to make sure the following savings methods are also brought up:

1. Track your spending and create a budget. The first step to saving money is an awareness of your spending habits and planning how you use your money.

2. Get a savings account so that your savings won’t be mixed in with your spending money, and it will be harder to access.

3. Keep a change jar and put a dollar away every day. If you can, put more. Every once in a while take your money to the bank and deposit it. You don’t have to save a lot—even a little bit can add up over time.

4. Every time you get paid, put whatever you think you can afford in your savings account right away, before you spend any. This could be a small amount ($10 or so), but that’s OK.


5. Once you have a savings account, consider setting up an automatic transfer from your chequing account to your savings account. For example, you could have it set up so every two weeks $10 is transferred from your chequing account to your savings account. If you start small, chances are you won’t even notice the money that is taken from your chequing account until you see how your savings is building up.

6. Rather than using your bank card, try only using cash for purchases. Put your change into a jar – your change can really add up fast!

Materials:


Activity 7-4: Strategies for Short-Term Savings Key Points:

• If possible, it’s a good idea to save up for something before you buy it. • Saving a little at a time will make saving easier.


a) Explain the following points to participants: • Short-term savings is good for something that you want to purchase in the near future. • Rather than buying an item that is not a “need” on credit and then paying back the cost of

the item plus the interest and other fees, consider waiting to buy the item by paying yourself on an instalment plan by setting aside savings every week or every month.

• For example, if you want to buy a new TV and the payments for buying on credit are $50 per month, set aside $50 per month in your savings until you have enough to buy the item. The downside is you’ll have to wait, but the upside is that you’ll stay out of debt and save yourself a lot of money by avoiding interest.

• In the meantime, you can shop around for the cheapest options for the item you want to purchase. Make sure to also check out used items—they might be cheaper and still in great condition.

• This strategy will work best if you keep track of how much you are putting aside for the item you are saving up for. One option is to open a separate savings account for the item you are saving for. Another option is to simply write down or track the amount you are saving for the item you want to purchase. Or, if it’s not a large amount, you can simply keep the money in a jar or envelope, as long as it’s in a safe place.

b) Optional: Show Saturday Night Live video called “Don’t Buy Stuff You Cannot Afford.” http://vimeo.com/50044167

http://vimeo.com/50044167


c) Optional: Show 1950’s video illustrating how to save up for a desired purchase: https://www.youtube.com/watch?v=FWQsBnzUvkQ

d) Discuss with participants: • When might it make sense to save up before you buy something? When would it not

make sense? (For example, when you need the item right away—like having a car to get to work. Or if the item is an investment—like a house—that you will earn money on in the long run.)

• What strategies can you think of that would support short-term savings? Materials (Optional):

• Computer with internet • Projector

Activity 7-5: Strategies for Medium and Long-Term Savings Key Points:

• Earning interest on savings will help your savings grow. • With compound interest your money can grow over time. • The sooner you start saving, the more money you will earn from interest.


a) Explain to participants that if you are saving for something far in the future, your money can really grow over time. This is because of interest. Explain that:

• When we put our money in a savings account, we are lending our money to the bank. The bank pays us interest for the use of our money. Interest is a percentage of the money, usually based on a yearly rate.

• Simple interest is when the bank pays interest only on the money we put in. • Compound interest is when the bank pays interest on what we put in plus the interest

we have already earned. Interest can be compounded annually or monthly. The more frequently it is compounded, the faster your money will grow.

• Compound interest can make a big difference to our savings over the long term. The earlier we start saving, the more compound interest helps our money grow. A little bit can turn into a lot!

b) Give participants copies of Handout 7-5: Why it is Smart to Save, and explain the following:

• Imagine you have $10 per month to set aside for savings. You could put it in a jar at home and save it that way, or you could put it in a guaranteed savings bond at 3% interest. The longer you leave the money in this account, the more interest you earn – it multiplies because you earn money on the interest plus the money you put in.

https://www.youtube.com/watch?v=FWQsBnzUvkQ


Year Saving the money at

0% interest (investment)

Saving the money at 3% annual interest

(simple)

Saving the money at 3% annual

compound interest Year 1 120 123.60 123.60 Year 5 600 618.00 649.00 Year 10 1,200 1236.00 1,389.00 Year 25 3,000 3,708.00 4,369.00

c) Explain that:

• Because of compound interest, it is important to start saving early so that your money will have longer to grow.

d) Share the example of two sisters, Lily and Kelsie, who are saving for their retirement:

Lily Kelsie Started Saving at age: 20 30 Puts $1000 into savings at 6% interest until age:

35

65

Total amount she put into savings: $15,000 $35,000 Total amount she has at age 65: $141,700 $116,100

Ask the following questions:

• How many years did each of the sisters save? (Lily: 15 years; Kelsie 35 years) • How much more money did Kelsie put into savings? ($20,000) • Why did Lily end up with more money? (Interest earned on her money for 30 years) • What are the advantages of starting to save early?

a) Optional: If there is access to a computer with internet, use the following website to calculate

compound interest: http://www.moneychimp.com/calculator/compound_interest_calculator.htm

b) Optional: If participants are ready, bring up the topic of investments. Explain that: • Investments are similar to loaning money to a company, a group of companies, or even

the government. • Investments are a way to get a higher rate of growth than you would in a savings

account. • Your bank or an investment advisor can advise you on options for investments, but it’s

important to consider that some investments guarantee a certain interest rate while others may go up and down.

• While you can gain a lot of money through interest, you can also lose money if you don’t invest wisely.

• It is important to discuss with the bank what your financial goals are in order to find the right balance of risk and safety for your investments.

http://www.moneychimp.com/calculator/compound_interest_calculator.htm


Materials: • Handout 7-5: Why it is Smart to Save • Optional: computer with internet

Activity 7-6: Types of Savings Accounts Key Points:

• There are many different types of savings accounts, and they are used for different reasons. • It is important to consider which type of savings account is best for your needs. • When deciding upon a savings account, you should consider the interest paid, possible tax

benefits or top-ups from the government, the flexibility of the account, risk vs. reward, and other terms and conditions.


a) Explain that when deciding upon saving strategies, there are four considerations you should take into account: 1. What type of saving tool will make your money grow the fastest? 2. What type of saving tool will provide the flexibility to meet your needs? 3. What type of saving tool will have the minimum taxes that you need to pay on the money

that you grow through interest? 4. What type of saving tool will have the right balance of financial risk vs. reward?

b) Divide participants into groups of 2 or 3. Distribute Handout 7-6A: Types of Savings Tools to

each group. Also distribute Handout 7-6B: Saving Scenarios. Explain that the savings tools are in three categories: Tax-advantage savings programs. These programs (including RESP, RRSP, and TFSA) are programs that allow you to pay no or reduced tax on whatever money that your savings earn through interest or other gains. This can save you a lot of money over time. Within any of these programs, you can hold as many investments as you want (including GIC, bonds, mutual funds and stocks). In the case of an RESP, the government will also add money to your savings for free. Investments. Investments are when you loan money to the government or a corporation or set of corporations. You can get a higher rate of return this way, but some investments carry risk because if the company does not do well you can actually lose money. It is important to balance the risks you are willing to take with the potential rewards of higher interest rates and gains. Accounts. There are many types of savings accounts but generally it makes sense to ask for the highest interest account possible. Savings accounts are different than chequing accounts in that


there are sometimes service fees to withdrawal money. But the payoff is that you earn more interest with a savings account than you would with a chequing account.

c) Ask participants to identify which type of saving tool the person in each scenario should use. There is not a single right answer, but they should be able to justify why they made that decision.

d) After groups have finished all the scenarios, ask each group to share their answer for one scenario. Encourage them to choose a scenario that another group has not already shared, or a different interpretation of a scenario that has already been shared. Optional: If you have a group with lower literacy rates, facilitators can explain the types of savings tools. It may be a good idea to explain just the ones you think participants are most likely to use, so that only 3 or 4 tools are presented instead of all of them. Then participants can talk through the scenarios based on the facilitator’s presentation. Optional: Give the participants only one or two scenarios each.

Materials:

• Handout 7-5: Why it is Smart to Save • Handout 7-6A: Types of Savings Tools • Handout 7-6B: Saving Scenarios

Activity 7-7: Questions About Saving Key Points:

• There are a variety of different savings tools to suite different saving goals. Duration: 20 minutes Description:

a) After sharing and discussing the types of savings tools available, explain that while the concept of saving is very simple—putting money aside in a separate place—it can sometimes be confusing to decide which is the best type of savings tool. It is important to ask questions to be sure that you are making a savings decision that is best for your needs.

b) Have each person write down a question about saving and put it into a box.

c) Pull out questions and answer them. Questions that are beyond the knowledge of the facilitator or relate to specific financial products can be referred to a bank.

Optional: Invite a representative from a local bank or credit union to come in and answer the questions.


Materials:

• Paper • Pens • Box


D: Savings Goals Activity 7-8: Setting Savings Goals Key Points:

• Everyone can save. • Saving will be easier if you have a clear goal in mind.


a) Remind participants about SMART goals (see DREAMS, GOALS… ACTION! in appendix).

b) Ask participants to fill out Handout 7-8: Savings Goals. Note that there are two versions of this handout, depending on the level of your group.

c) Invite participants to share ideas about their savings goals. Materials:

• Handout 7-8: Savings Goals • Pens

Activity 7-9: Savings Tree Key Point:

• Everyone can save. • Saving will be easier if you have a clear goal in mind.


• Before the workshop, put some branches in a jar or vase to make a small “tree.” • Invite participants to write one or two of their goals down on a coloured piece of paper cut out

in the shape of a leaf. • Tie the paper with string and attach them to the tree. • Explain that this “savings tree” captures our collective goals for savings. • Display in a visible place so participant can see the tree and be reminded of their goals.


Materials:

• Paper cut into leaf shapes with a hole in the corner • String • Scissors • Branches • Vase



• Handout 7-5: Why it is Smart to Save • Handout 7-6A: Saving Scenarios • Handout 7-6B: Types of Savings Tools • Handout 7-8: Saving Goals



Handout 7-5 Why it is Smart to Save

Imagine you have $10 per month to set aside for savings. You could put it a jar at home and save it that way, or you could put it in a guaranteed savings bond at 3% interest. The longer you leave the money in this account, the more interest you earn – it multiplies because you earn money on the interest plus the money you put in.

Year

Saving the money at 0% interest

(investment)

Saving the money at 3% annual interest

(simple)

Saving the money at 3% annual

compound interest Year 1 120 123.60 123.60 Year 5 600 618.00 649.00 Year 10 1,200 1236.00 1,389.00 Year 25 3,000 3,708.00 4,369.00

If you manage to put just $10 per month away for 25 years, at just 3% interest, you would have earned half your money over again! Most financial institutions pay compound interest these days, but that wasn’t always the case. Because of compound interest, it is important to start saving early so that your money will have longer to grow. Look at this example of two sisters, Lily and Kelsie, who are saving for their retirement:

Lily Kelsie Started Saving at age: 20 30 Puts $1000 into savings at 6% interest until age:

35 65

Total amount she put into savings:

$15,000 $35,000

Total amount she has at age 65: $141,700 $116,100


Handout 7-6A Saving Scenarios

Gary is a 19-year-old who is working at a gas station. He wants to begin saving for his retirement.

Susan is a 36-year-old mother who wants to save up for a vacation for her family in the next year or two.

Brian wants to save up for a new car that he hopes to buy in about 3 years.

Melodie is a 22 year old with 2 young children who works part-time as a daycare provider. She wants to start saving for her children’s education.

Grant and Amy are a couple who want to save up to buy their first house.

Jacob is 14 years old and is in grade 9. He wants to start saving for post-secondary education.

Carey is 27 years old and works as a receptionist and wants to start saving money, but she’s not sure exactly what she is saving for or when she will want to spend the money.

Ruth is 17 years old and has a part-time job at a local convenience store. She wants to start saving money, but she’s not sure exactly what she is saving for or when she will want to spend the money.

Oscar is 55 and wants to start saving for his retirement.

Sylvie is 67 and wants to contribute money to save for her grandchildren’s education.

Cory is 35 and is on federal disability payments. He wants to save up for when he is elderly.


Handout 7-6B Types of Savings Tools High interest savings account. This is a type of deposit account. The bank pays you interest on your deposits. The interest is slightly higher than a regular savings account. Right now, the interest rate on a basic savings account is around .02%. The interest rate on a high interest savings account can be 2%, which is 100 times larger. There may be fees for withdrawing money, however, you can withdraw this money whenever you like. There may also be a required minimum deposit.

This is a very safe way to save. It is best used for short to medium-term investments.

Guaranteed Investment Certificate (GIC). This is another very safe type of deposit account. Your money is ‘locked in’ for a length of time called a term. The term can range from 30 days to five years. Longer terms often come with higher interest rates. At the end of the term, the money “matures”. Then you can withdraw it. GICs require a minimum deposit of $100 to $500. You could use this to save for something medium-term or long-term. You would plan it so that the GIC matures before you need the money.

Bonds. This is a type of investment. It means that you lend your money to a government or a corporation. They pay you interest on your loan over a period of time called a term. When the term is over, you get all of your money back.

Government bonds in Canada are very safe. Corporate bonds hold some risk. You need to research them and get some advice from a financial professional. The safer the bond, the lower the rate of return.

There is a minimum investment required to buy bonds. You could use bonds to save for medium or long-term goals.

Stocks and mutual funds: These are two types of investments in which you buy shares in a business (if you are buying a stock), or group of businesses and other investments (in the case of mutual funds), that are publicly traded on the stock market. You choose a stock or mutual fund based on its rate of return, risk level, and fees. Because stocks and mutual funds are complex, it is best to work with a financial advisor or get advice from your bank.

Stocks and mutual funds can be risky because your money is not guaranteed—you can lose some or all of the money you put into the investment if you are not careful. For that reason, these investments are best for medium and long-term savings goals because while the risk can be high in the short-term, over a long-period of time you are likely to get a higher rate of return than you would from a savings account, GIC, or bond. Registered Retirement Savings Plan (RRSPs). This is a tax-advantage savings program. It is a way of saving on taxes while you save for retirement. When you put money into an RRSP, you can invest it as you choose savings accounts, GICs, stocks, and so on. This is a very useful way to save if you are working and paying taxes. It is not as useful if you are living on a very low income or collecting social assistance.


You can open an RRSP at a bank, credit union, or investment management company. The money you put in an RRSP and the interest you earn is not taxed until you withdraw it in the future. This significantly reduces the taxes you must pay. You must begin withdrawals at age 71.

You can withdraw some money from an RRSP without paying taxes right away, to either buy a home or go back to school. Otherwise, if you take money out before you turn 71, the government takes 20% of what you withdraw right away.

Registered Education Savings Plans (RESPs). This is a tax-advantage savings program that is used to save for a child’s education after high school. The government adds money to the money you save, so it grows faster. If you have a low-income, you can apply for a “Canada Learning Bond,” in which the government will give you $500 to open an RESP and will put in another $100 each year. You can invest the money in the RESP as you choose, in savings accounts, GICs, and so on. The money in an RESP grows tax free until it is withdrawn. Then the money is taxed in the hands of the student, who will likely pay little or no tax, because their income is low while in school.

You can open an RESP at your bank or a company that handles RESPs. Watch out for companies that want you to sign a contract requiring you to save a certain amount each month.

Tax-Free Savings Account (TFSA). This is a tax-advantage savings program. This is a way of saving and investing money without having to pay tax on the interest you earn. You can open a TFSA at your bank if you are 18 or older and have a Social Insurance Number. There are rules concerning how much you can put into the account in a year. You can invest the money in the TFSA as you choose, in savings accounts, GICs, and so on.

The Registered Disability Savings Account (RDSP): This is a savings plan available only to people who qualify for the Federal Government Disability Tax Credit. It is a long-term savings plan to ensure savings for a disabled person later in life.


Handout 7-8 Savings Goals

1. What do you want to save for?

Item/Goal Cost Time frame Amount I need to save each month to reach my goal

2. How much can you afford to save? Identify items that you have spent money on in the last month that are wants, not needs. Or list items that you could have bought more cheaply.

Items I buy Cost per month Amount I could save if I bought this item less or not at all

3. Set a savings goal I will save $______________ per month. (Make sure your goal is realistic for your budget) I will save my money by:

• Going to the bank and putting money in a savings account • Setting up an automatic transfer • Keeping a change jar or savings envelope • Other:_____________________

4. Savings tools

I will set-up (or use, if I already have one) the following types of savings tools: • Savings account • Registered Education Savings Plan • Registered Retirement Savings Plan • Tax-free Savings Account • Other


Handout 7-8 (continued) Savings Goals

1. What do you want to save for?

• Short-term • Medium-term • Long-term

2. Set a savings goal: I will save $______________ per month. (Make sure your goal is realistic for your budget) I will save my money by:

• Going to the bank and putting money in a savings account • Setting up an automatic transfer • Keeping a change jar or savings envelope • Other:_____________________

3. Savings tools I will set up (or use, if I already have one) the following types of savings tools:

• Savings account • Registered Education Savings Plan • Registered Retirement Savings Plan • Tax-free Savings Account • Other


APPENDIX


Dreams, Goals … Action! Goal Setting Worksheet Managing your money and saving allows you to make the most of your earnings and realize your dreams. Do you have a goal for saving money?

Below are examples of savings goals. Select those that apply to you or share something that isn’t listed!

My education My child’s education Rent - living on my own Paying back money I owe Something big – like a car or

appliance Buying something I want, like a new

cell phone, clothes or T.V.

A trip To finance a business Paying back taxes owed An emergency Buying a home Retirement Other Goal: ______________________________

In order to realize your life goals, it helps to take personal action steps that will allow you to achieve them. What concrete steps will you take? ACTION PLAN

# GOAL ACTION TIMELINE Notes

Eg. Eg. Save for a trip home Make a personal budget; determine know how much I can save from every paycheck

Make my budget by the end of the month

Check online banking statement for list of expenses

1.

2.

3.

On the reverse are examples of actions you could take to achieve your goals, as well as tips for goal setting.

Tip: Set realistic goals. Honour them by following through with your

commitments.


DREAMS, GOALS… ACTION! (Continued)

Sample actions:

• Track my expenses for 1-2 months • Make a budget (revenue/expenses) • Open a bank account • Apply for school / student loan • Get a job/better job • Make a plan to save money • Spend my money on local goods • Get a credit check • Change a spending habit • Prioritize my expenses • Make a plan to pay off my debt • Talk to someone who can help with my finances • Have a discussion with my parents/partner about money • Repeat a mantra everyday “I am in control of my money and destiny” • Save money on a purchase and do something special for someone • Talk with my friends about being smart with our money

When setting your goals, use the concept of SMART goals. Your goals should be:

Specific Measurable Achievable Relevant Time-bound

SMARTER goals are also: Evaluated and Reviewed on an on-going basis Ecological Rewarding!


Follow-up Coaching Guidelines You may want to consider offering follow-up coaching as part of your financial literacy training program. Follow-up coaching is offering participants the opportunity to meet with facilitators one-on-one to receive support. As each person’s financial situation and needs are unique, one-on-one coaching can be extremely beneficial. Coaching will help participants to put their learning from the training into practice, increase their financial literacy and well-being, and achieve their personal goals. Topics that can be covered in follow-up coaching include:

• Developing strategies to reduce spending • Developing strategies to increase income • Setting realistic savings goals and budgeting targets • Helping participants to track their expenses and make a budget • Discussing participant’s relationship with money • Answering questions about workshop materials • Brainstorming strategies to deal with financial challenges • Referring participants to services and sources of support • Providing participants with information specific to their needs

With follow up coaching, you need to be clear that you are not a financial advisor and are not giving financial advice. Your role is simply to help participants work towards their goals and provide relevant information as needed. Coaching can be done in person or over the phone. It can be structured as regular appointments or drop-in hours. You can also add a social media aspect where you post answers to common questions or information to supplement the training on social media (such as Facebook or Twitter). For instance, if you identify through coaching that a number of participants are wanting to open a savings account, you can post additional information about savings accounts on social media. However you decide to organize your coaching, it is important to use a “coaching approach” with participants. This means that you focus on identifying participants’ goals and helping them to meet these goals. It is not your role to tell participants what you think they should do, to share your values around money, or to judge participants’ choices about money.

Follow-up Coaching Guidelines Continued on Next Page


Follow-up Coaching Guidelines (continued) This table illustrates some examples of a coaching approach:

Don’t Say Do Say You should do X. What options do you have in this situation? Have you

considered doing X? That was a poor financial choice. How did you feel about that decision? What do you think

are the impacts of that decision? What could you do differently to avoid those impacts in the future?

Your finances are in a mess. How would you assess the state of your finances? What goals do you have for your financial well-being?

It’s better to spend money at a local business than buy from a large corporation.

What do you think are the impacts of where you spend your money? How do your choices about where you spend money reflect your values?

When you are using a coaching approach, you can structure your conversations around the GROW model. Each conversation should include these elements:

G—Goals: Ask participants about their goals related to the subject at hand. R—Reality: Ask the participant to describe their current reality related to their goals. O—Options: Ask the participant to suggest options to reach their goal. You may provide information, but let the participants come up with the options as much as possible. W—Will: Ask the participants to develop a plan to reach their goal and have them articulate how they will stick to that plan.

To use a coaching approach, you need to be a really good listener. Here are some tips for being a good listener:

• Always let the participant speak first. • Allow there to be silence in the conversation. Don’t always feel someone needs to be speaking. • Try to draw information out from participants by asking really good questions. Questions that are open-ended

and don’t have a correct answer work best. • Paraphrase what the participant has said so you can be sure you understood it correctly. • Minimize distractions so you can focus on the conversation. • Avoid giving advice or being judgmental.

Coaching is a great tool to deepen the learning from this training, build supportive relations, and empower participants to achieve the financial state that they desire.


Native Friendship Centre Financial Literacy Training Participant Pre-Workshop Form

(optional – can be used at registration)

Name: ______________________________________________________ First name Last name

Address: _________________________________________________________________ Street/ City Province Postal Code

Home or Cell phone: ________________________ Email: _______________________________

Age (Please check one age range)

□ Under 16 □ 16-25 □ 26 -45 □46-64 □ 65 + Gender (Please check one) Male Female Other Are you a status or non-status Indigenous person? (Please check one)

Yes - If yes, go to No

Yes, I am: Status First Nations Non-status First Nations Inuit Métis Other ______________________

Education (Please check the one that shows the highest level you have completed)

□ Elementary School □ High school □ College □ Trade □ University_________ Do you have any children (under age 25) living with you now (either shared or full-time custody)? (Please check one) I have no children (under 25). Yes, I have children (under 25) living with me. Please tell us how many __________ No, my children (under 25) are not living with me. Please list any topics or skills related to money management that you are keen to explore and learn about:

__________________________________ ________________________________ Signature Date


Indigenous Financial Literacy Consent and Release Form

The _____________________________________is a community based non-profit organization that works with communities and urban Indigenous peoples to provide information, training, and supports in a number of areas including life skills. Having the knowledge, skills and confidence to make responsible financial decisions is called financial literacy. We need your help to find out if financial literacy programs are worth doing. By filling out some forms and giving us some information about yourself and how you manage your money, you can help us to assess our work. Consent and Release Declaration I know that the purpose of this research is to find out if financial literacy programs make a difference in people’s lives and to learn more about what works. I understand that: Participating in this research is my choice. At any point, I can decide not to go on if I don’t want to. I have been given enough information to understand the purpose of the study and what is expected

of me. The questions I will be asked will look at: • My life and how I manage my money • What I learned • How things changed for me • Impacts of history and culture on my relationship with money I do not have to answer questions if I don’t want to. The information I provide will be kept confidential and private.

I agree that the Friendship Centre can communicate with me within the next year to follow-up on this research and talk to me about changes in my life.

I have read this consent form and I understand it. I agree to participate in this research. ________________________________ _______________________________ Your name (please print) Parent/Guardian signature (if under 16) ________________________________ ________________________________ Your signature Today’s date

Your trainer/organization will also sign this agreement to ensure that you are protected. We will keep all of the forms you fill in confidential and private. The findings from the survey will be reported in summary form only. This means that no individuals will be

identified or identifiable in any reports or presentations. ____________________________________________________________________________ Facilitator Signature Name (print) (on behalf of the organization)


Indigenous Financial Literacy Workshop Entrance Survey

(To be filled out by participant on first day of FL training)

Thanks you for filling out this survey. The information you provide will only be used to improve the workshop and assess its impact on participants. Please note this survey is confidential and entirely voluntary. You do not have to fill out this survey and you can stop at any time.

Name: __________________________________________________

Age: □Under 16 □16-25 □26-45 □46-64 □65+

Workshop Date: ___________________________________________

Gender: Male Female Other

Please select YES or NO:

Question YES NO

1. Do you have a source of income? 2. Do you have a bank account? 3. Do you budget your money?

4. Do you use payday loans?

5. What word best describes money for you?

□ Obstacle □ Freedom □ Confusing □ Never thought about it In what way does your culture influence your relationship with money?

□ Gives me strength □ Creates challenges

□ I have mixed feelings □ It has no influence

□ Never thought about it


On a scale of 1-5, (5 being strongly agree) please indicate how much you agree with the following statement:

Question 1 Strongly Disagree

2 3 4 5 Strongly Agree

6. I feel confident managing my money

7. My parents (or guardians) showed me how to manage my money

8. I (or my family) worry about being able to meet expenses each month

9. I am comfortable asking others for help with my finances

10. I feel the history of Indigenous people has affected their relationship with money

11. How did you hear about this workshop

Thank You!

Indigenous Financial Literacy


Workshop Evaluation Form (To be completed by participants after workshops)

Workshops date (Month/day/year): ______/_______/_________

1. On a scale of 1-5, with 5 being excellent, how would you rate this financial literacy workshop?

1. Poor

2.

3. Average

4.

5. Excellent

2. What did you like best about this workshop?

3. What are the most important and useful things that you learned from this workshop?

4. How could the workshop be improved?

5. Would you recommend this workshop to someone else?

Yes No Maybe


Indigenous Financial Literacy Workshop Follow-up Survey

(To be filled out approximately 3 months after FL training)

Please note this survey is confidential and entirely voluntary. You do not have to fill out this survey and you can stop at any time. The information you provide will only be used to improve the workshop and assess its impact on participants.

Name: __________________________________________________________

Age: □ Under 16 □ 16-25 □ 26-45 □ 46-64 □ 65 +

Date of Workshop (s): ______________________________________________

Date of follow-up Survey (Today’s): ___________________________________

Gender: □ Male □ Female □ Other Please select Yes or No:

Question YES NO 1. Do you have a source of income?

2. Do you have a bank account?

3. Do you budget your money 4. Do you use payday loans?

5. What word best describes money for you?

□ Obstacle □ Freedom □ Confusing □ Never thought about it

6. In what way does your culture influence your relationship with money?

□ Gives me strength □ Creates challenges □ I have mixed feelings

□ It has no influence □ Never thought about it


On a scale of 1-5, (5 being strongly agree) please indicate how much you agree with the following statement:

Question 1 Strongly Disagree

2 3 4 5 Strongly Agree

7. I feel confident managing my money

8. My parents (or guardians) showed me how to manage my money

9. I (or my family) worry about being able to meet expenses each month

10. I am comfortable asking others for help with my finances

11. I feel the history of Indigenous people has affected their relationship with money

12. Looking back, what did you find most helpful about the financial literacy

workshop?


13. Did you participate in a one-on-one coaching session?

□ YES □ NO If YES: what did you like best or find most helpful about the follow-up coaching? If NO: Did you receive follow-up materials, see posts online/find them helpful?

14. In the past months since the workshop, what has changed the most about

how you manage your money? Follow/up or prompt: Have you been successful in accomplishing some of the goals you set for yourself?

15. Is there anything else you would like to share regarding your experience

with the financial literacy workshop and follow-up? Follow/up or prompt: Have you been successful in accomplishing some of the goals you set for yourself?

Thank You!


Workshop Debrief Summary Form Indigenous Financial Literacy

(To be completed by the facilitator(s) after the FL training)

Workshop Date/time: _____________________________________

Workshop Location: _______________________________________

The purpose of this form is to help you, the FL facilitator, keep track of your workshops and participants, as well as make notes about what worked well or could be improved.

Facilitator Information – please note the names and contact information of the individuals who helped deliver the FL training

1. Name:

Organization:

E-mail:

Tel:

2. Name:

Organization:

E-mail:

Tel:

2. Name:

Organization:

E-mail:

Tel:

Forms Collected from Participants

Forms collected # of forms collected Entrance survey forms

Consent and release forms

Consent forms youth under 16 (to obtain guardian information)

Workshop evaluation forms

Other form (name):

Other form (name):


Workshop Attendance and Demographic

Category Answer Category Number Total number of participants Aged Under 16

# Male Aged 16 – 25

# Female Aged 26 – 45

# Other Aged 46 – 64

Were they clients or staff? Aged 65 +

Which modules / sub-topics were covered?

Module – topic Modules / sub-topic(s) covered Workshop Opening – Introduction yes

Acknowledgement of territory

Entrance survey

Ice breaker game

1. Money, Values and Culture yes

A. Your Relationship with Money

B. Indigenous History, Culture and Wealth

C. Values, Needs, Wants

D. Money and Your Energy, Environment and Community

E. Moving Forward – Goal Setting

2. Budgeting Basics yes

A. What is a Budget and Why is It Useful?

B. Income and Expenses

C. Creating a Budget

D. Budget Busters

E. Adapting Your Budget

F. Tracking Income and Expenses

3. Creating Your Budget yes

A. Setting Your Budgeting Goals

B. Making Your Budget


Module – topic Modules / sub-topic(s) covered C. Agreeing on a Family Budget

D. Staying on Track

4. Financial Basics yes

A. Identification

B. Bank Account Basics

C. Income Basics

D. Income Tax

5. Being a Wise Consumer yes

A. Being a Wise Consumer

B. Planning for Purchases

C. Your Rights

D. Fraud

E. Moving Forward

6. Debt Management yes

A. What is Credit?

B. The Cost of Credit

C. Types of Credit

D. Using Credit Wisely

E. Debt Management

F. Moving Forward – goal setting

7. Savings yes

A. The Benefits of Savings

B. Types of Savings

C. Strategies for Saving

D. Savings Goals

Workshop - Closing yes

Wrap-up activity (what did you learn)

Preview next session (if applicable)

Assign take-away exercise (eg. expense list)

Workshop Evaluation Questionnaire


Other Topics Covered:

Materials / assignments given to participants List materials or assignments that participants were given to take away from the workshop

How did participants rate the financial literacy workshop? (On a scale of 1-5, with 5 being excellent) Average sore: ________________

# 1s Poor:

#2s:

#3s Average: #4s:

#5s Excellent:

What worked well? Main successes of the workshop. Activities that were most effective and why.

What could be improved? Main challenges of the workshops. Areas and activities that can be improved and how.

Do you have any other comments about the workshop?

_____________________________________________________________________________________

_____________________________________________________________________________________

Thank You!


Certificate of Achievement

________________________________________

Participant Name

In recognition of your completion of the Journey to Empowerment Indigenous Financial Literacy Program

________________________ ________________________ Workshop Date Instructor Signature

Program Offered by:

___________________________________________

Certificate of Achievement

Facilitator’s Guidebook

Documents

Transcript of Facilitator’s Guidebook