workshop led by erin cusack & kaycie hebert financial literacy 101: whats next?

Workshop led by Erin Cusack & Kaycie Hebert

Financial Literacy 101: What’s Next?

This workshop is designed to help you

Goals

and

Next Steps…

Stay on track Determine what type of spender

you are Set goals moving forward Learn how to improve your

financial health Be proactive and take control of

your finances

"Spend less than you earn, and do it for a long time." (Ron Blue)

What type of spender are you?

Take the quiz to find out!

(Quiz adapted from: http://ezinearticles.com)

Question 1:

You take out $10 at the bank machine on the way to work. How long does it last?

A – as far as the news stand. Two magazines and a pack of gum. Whoops!

B – until I need to buy lunch. There’s no need to spend until then.

C- Cash? My bank hasn’t let me have cash since 1993 and then it was in error!

Question 2:

It’s a rainy, miserable day so you’re spending lunchtime at the library. Doing what?

A – eBay! 12 bids in 20 minutes. Some of them nearly identical. Oh dear.

B – checking out expensive cars or holidays online. Hmm, with a bit of budgeting…

C – I always spend lunch in the library. I’m too broke to go out.

Question 3:

In your ‘winning the lottery’ fantasy you:

A – shop like a movie star, treat friends, give money to charities, spend, spend, spend!

B – buy a huge house, a Ferrari, a villa abroad, retire in the sun.

C – pay off all my debts and start again

Question 4:

A relative dies leaving you just enough to clear your debts. Six months later you:

A – meant to clear them but instead went shopping. No change in debts

B – cleared some but spent the rest on a car, holiday or other big burnout

C – cleared the lot but somehow find myself back in debt again

Question 5:

How much of your income goes on planning for the future?

A – I meant to set up a pension fund or savings account last year. No, two years ago. Five? Still time!

B – I have a company pension/ savings account that I contribute to.

C – I’m too tied up paying for my past!

Results:

Mostly As - The Impulse Shopper

You may only take small amounts out of the bank or get small sums in cash back at the supermarket, but it leaks out of your pocket in an instant and you have little idea where it goes!

If you have money in your wallet you feel almost compelled to spend it. You find it hard to pass up any shopping experience or opportunity to spend. Impulse shoppers are often frustrated ‘creative’ types whose imagination fuels their sprees.

You associate buying yourself little nothings with feeling good. The down side is that when you look at your bank balance or think about your spending you feel down again – and probably end up treating yourself to give yourself a boost!

You need to work out other ways of using your creativity.

Results:

Mostly Bs - The Investment Shopper

You tell yourself that you are not a shopper or not a spender, so why are you still in debt? Look back over the last six months or a year... you’ve been spending money, but it’s on big things. You’ve probably convinced yourself that buying a new car is an investment. Since a car is an asset, you could easily resell it. But the reality is that cars rarely hold their value.

Here's the catch: if you are putting yourself uncomfortably into the red to get your latest toy then you’re paying for it with more than money – you’re stressing yourself out too. The only assets that are truly investments are those that accrue interest or value, like a house.

What’s the answer? By saving regular amounts now you’ll lesson your burden – and feel better about that ‘investment’ you’re about to make! Shop around for a savings account with a good interest rate! This way, the money you save will accumulate interest, which can be used to make your big purchase.

Mostly Cs -The Habitual Debtor

You’re so used to having nothing or less than nothing that you habitually default back to this, even when your debts are cleared or you find yourself (miraculously) in the black again. You actually don’t feel comfortable when you’re in credit. To change your mindset you need to make it a goal for yourself to achieve financial balance.

Look at why you believe you don’t deserve wealth and then reprogram your beliefs. This you do by exchanging negative beliefs and statements for positive, eg don’t say (or think) “I’m in debt” but “I’m getting out of debt”. Run a ‘mental movie’ of yourself living a prosperous life.

You may be surprised at how just thinking differently will have you behaving differently.

Take advice from the experts!

So how do I getter better at managing my finances?

Karen Gross is a professor who has taught at New York Law School and is President of Southern Vermont College.

She has developed and taught a financial advocacy course to help students take control of and improve their financial health.

“Gross is the past president and CEO of an educational non-profit organization in New York City that designs, implements and studies programs to improve the financial literacy skills of consumers.” (allbusiness.com)

Karen Gross’ “Top Ten Principles to Achieving Financial Health that Should Matter to Students”

1. Recognize that you have money choices, and it is never too late to begin making better money decisions. Take the time to read and learn about money, credit and debt. The more you know, the better off you are.


2. Understand your current money situation, including how much money is coming in and where that money is going, no matter how painful.

Once you know the reality of your situation, you can start taking control of it.


3.Get organized about money. Create files or use other strategies so you know which bills need to be paid regularly and whether you have enough money to pay them.


4. Consider and write down your personal (and family) goals. Post your realistic goals in places where they can serve as reminders.

Tackle your goals step by step, and reward yourself as you achieve them. Track your progress (even small steps) to keep you motivated.


5. Learn how interest works- to your advantage and at your expense .

Try to reduce your interest rates on debt and look for high interest savings accounts that will give you the best return on investments.


6. Have a “bucket” for savings- even if you only toss in pennies at the end of each day. Seeing money grow helps. Savings is a first step toward successful investing.


7. Obtain and understand your credit report and credit score, and correct any errors. Doing so also helps to protect against identity theft.

Order your free credit report by mail through Equifax or TransUnion.

www.equifax.cawww.tuc.ca


8. Find responsible ways to borrow money and compare different product costs so you can avoid predatory lenders and high cost credit products.


9. Resist the urge to splurge by pausing before you buy. Create your own “cooling off period” by asking yourself about the wisdom of what you are buying. What you want today will likely still be there tomorrow.


10. Buy the insurance you need but avoid unnecessary insurance and learn about the differences.

For example, you may have certain insurance coverage when you pay for air tickets or car rentals on your card, don’ t pay for extra insurance for the same thing!

Overall, keep your goals in perspective and keep working toward

them!

Your mission, if you choose to accept it…

Bonus Challenge! Make a commitment to yourself

to move toward improved financial wellness: Define what financial wellness

means to you (ex. reducing stress, getting in control, having a plan… )

Identify concrete actions you can take to move toward your goals

workshop led by erin cusack & kaycie hebert financial literacy 101: whats next?

Documents

money youre

financial health

financial balance

investment youre

debts b

c cash

youre spending lunchtime

financial advocacy course