Importance of Financial Literacy

• More than one-third of Canadians are struggling to keep up with their finances

• 30% of Canadians are not planning ahead for retirement

• A financially literate population helps build a strong economy

• Understanding basic concepts such as: - budgeting and saving- how to manage credit and debt- financial planning

will provide students and youth with the tools they need to navigate the financial realities of adulthood.

• Good financial habits last a lifetime.

Importance of Financial Literacy

Earn Interest Security

Direct DepositTrack your

Money

Easy Access

Do I really need a bank account?

You

Your Financial Institution

Success!

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Payday Loans

• A fast cash loan that can provide a temporary solution until your

next payday

• Must be over 18

• Must be employed

• Must be a Canadian resident

• Target age group 18-34

• Also used for cheque cashing- high fees!

Payday LoansThings to Consider

• Loans must be paid in full at end of term

• How many hours did you have to work to cover the cost of that payday advance?

• If you do not have the money today what will be different next payday?

• Make sure you are fully aware of all the terms of ANY loan or credit that you have

Payday Loans

Sample Payday Loan Transaction

Value of the payday loan advance on January 19 $300.00

Amount paid by the borrower on February 2 $369.00

Term of the loan 14 days

Breakdown of amount paid by borrower: Principal $300.00

Cost of Interest and fees $69.00

Effective annual rate of interest (ARP) 599.64%

Interest you

would pay

Total you would pay Time it would take for you to pay it

back based on monthly minimum

payment of 2% of balance owing

9% $343.55 $1343.55 85 months or about 7 years

15% $851.03 $1851.03 117 months or about 10.5 years

21% $2,798 $3798.00 234 months or about 19.5 years

……OUCH!

REMEMBER..

Every time you are paying interest, that’s money you aren’t able to spend on things that actually matter! Let’s get money back in your pocket!

• Choosing a Financial Institution• The Basics of Budgeting• Breakdown of a Credit Score• 7 Easy Ways to Boost Your Credit

Score• Leasing vs Buying• Compound Interest Mind Bend• 7 Cooperative principals• Foiling Identity Theft• RRSP vs TFSA • And many more

Topics Available for Presentation

www.affinitycu.ca