Get your money working for you!!!

What we’re going to talk about…Chequing/Savings AccountsLoans vs Lines of CreditMortgagesChequesCredit CardsPurchases?Investments

CHEQUING ACCOUNTPROSConvenience: For taking out money /using

debit on a regular basis.Can pay bills and write cheques from this type

of account.

CONSYou pay a monthly fee once you turn 18,

unless enough money is kept in.No interest (money) is made.

SAVINGS ACCOUNTProsYour money grows when in a savings account

(interest)Account is free as long as you do not take

money out more than twice per month.Helps you to save for education, a house,

retirement, etc.ConsCan make more money from other investments.May end up paying more than you’re making if

taking money out too often.

LOAN vs LINE OF CREDIT-A LOAN is when you borrow a lump sum of money.ie. When you go to a bank to get money to purchase a

car.

-A LINE OF CREDIT is when you have a maximum amount of money you qualify to borrow, but you do not need it all at once, so you borrow the money as needed.

ie. You’re doing home renovations and need money, but you do not need all the money at once, so rather than paying interest on money you do not need right away, you only take as needed.

MORTGAGEA form of debt in which one can own property by

paying the entire price over time with interest.

-The home is held as collateral; so, if you are unable to make your mortgage payments, the bank or lender will gain ownership on your home.

-Different rates depending on where you get your mortgage from…SHOP AROUND BEFORE SIGNING!!!

CHEQUESRegular ChequeA piece of paper saying that you have that amount of

money in your account to give to the other person (a promisory note – promise to pay them that amount)

Bounced Cheque(Sometimes happens to regular cheques)

A cheque was given out, but the person giving the cheque did not have enough money in their account.

Certified ChequeSame as a regular cheque except that the bank has

stamped it indicating that they have already taken the money out of the person’s account so you know it will not ‘bounce’.

CREDIT CARDSPROS30-day interest free loan.Many cards offer cash-back or rewards when

used.Do not have to carry cash.Will get reimbursed if stolen.

CONSInterest rates VERY HIGH.Easy to spend money that you do not actually

have, thus leading to spending problems.

PURCHASES- How would you pay for these???CAR?HOUSE?COUCH?CLOTHES?BIG SCREEN TVCANDY or PEPSI

INVESTMENTSSTOCKS-Investing in companies.

MUTUAL FUNDS-Investing in a collection of stocks, bond and other

investments.-Investing in a large variety of investments like this

generally is less risky.

PROPERTY FLIPPING/RENTINGBuying property and then either renting it out or

fixing it up and selling it for a higher price to make profit. (ex.HGTV)

What we’re going to talk about…Chequing/Savings AccountsLoans vs Lines of CreditMortgagesChequesCredit CardsPurchases?Investments

The END…go enjoy yourselves