INTRODUCING…THE NBSC

Crown corporation Investor Protection Fostering Capital Markets

Education and Market Development Enforcement Regulatory Affairs General Counsel

SO WHAT DO WE KNOW ABOUT YOU?

You are the wealthiest generation of 16 – 24 year olds ever to exist.

You don’t realize the cost of your everyday life.

You’re highly educated You don’t have many siblings, so your social

lives (real or virtual) are very important You’re popular with big companies You have yet to form long-term

brand loyalties.

WHY SHOULD YOU CARE?

1. Credit cards2. Job market is changing3. Higher taxes4. Multiple Jobs5. Cost of energy6. Education costs

But despite that – you’re in the best place to take responsibility for your financial situation as it is right now, and keep making it better!

WHAT CAN YOU DO?

Set goals

Be a smart spender

Be a smart saver

Budget

SET GOALS

Values drive almost every financial decision you make!

Values are what you consider to be the most important things in life. They are intangible.

Goals are accomplishments you work toward that fulfill your values.

Goals can be short term or long term.

Make them S.M.A.R.T.

SMART SPENDING

Double Check – “Do I need this or do I want this?”

Use cash – plastic tricks your brain!

Pack a lunch – I save $150 a month

Get a hobby

Don’t be stingy

Pay your bills on time

SAVE THE MONEY YOU DIDN’T KNOW YOU HAD!

How much should I save each month? 10% Adjust it with your income Build it into your budget Set challenges Pay off debt vs. saving

What are you saving for? Tuition? Rent? Personal spending?

SMART SAVING

Find free money: Scholarships, bursaries and grants

www.studentawards.com www.scholarshipscanada.com

Buy used text books Recycle binders/bookbags from last year

Food / Entertainment / Personal Items Don’t do groceries when you’re hungry Wait for sales to go shopping Don’t take the credit or debit card – just cash Buy CDs or rent movies online.

HOW TO MAKE A BUDGET

Gather pay stubs, bills, receipts, bank statements

Budgets are for saving too!

Ask yourself: How can I even out my income if it goes up and

down a lot? How can I spend less at times when my income

is lower? If I need to borrow money, how can I reduce

the cost of my debts?  

WHY MOST BUDGETS DON’T WORK

We give up too quickly We expect too much We don’t adapt our budget We become:

A budget miser A half-way budgeteer A carved in stone budgeteer

HOW TO MAKE A BUDGET WORK

Think of it as a GPS for your financial life. Where the money comes from and where it goes.

Be honest and realistic

Allow for change

Give it a chance

STICK TO IT

HOW TO MAKE A BUDGET WORK

Start with how much you’re spending on:

Fixed Costs These are not flexible and you have to pay them

(tuition, student feeds, rent etc) Needs

These are things you have to buy, but what you pay for them is flexible (power bill, groceries, personal items)

Wants These can have the most impact on your budget.

These are things that you can live without so you can trim the costs or even eliminate them (entertainment, shopping, phones etc)

BUT I WANT IT NOW!Jennifer Megan Mark

iPad Cost: $650 $650 $650

How did they pay?

Paid balance right away

Paid $50/month

1 yr 3 months

Paid $78 interest

Chose to pay back by paying only monthly minimum payments of $10.

21 years

Paid $1827 interest

REAL cost $650 $728 $2,477

18% interest rate32gb iPad wifi about $650 with tax

BE CREDIT SMART

Always read and keep all paperwork Sign the card immediately Don’t lend your card to anyone Pay your monthly bill, in full. You’re the ideal customer – shop around!

No/Low annual fee Good grace period Low long-term interest rate Rewards programs

A few months of credit card abuse can lead to years of repayments

REMEMBER THE BASICS!

Set goals based on your values.

Distinguish between needs and wants.

Be a smart spender.

Create a realistic budget.

Saving money doesn’t mean going without.

Use credit wisely.

WANT TO KNOW MORE?

www.makeitcountonline.ca download the budgeting app (iTunes)

www.InvestInKnowingMore.ca Twitter - @4NBInvestors Facebook – www.facebook.com/4NBInvestors