Making Money Make $ense

I NTRODUCING … THE NBSC Crown corporation Investor Protection Fostering Capital Markets Education and Market Development Enforcement Regulatory Affairs General Counsel

S O 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.

W HY S HOULD YOU C ARE ? 1. Credit cards 2. Job market is changing 3. Higher taxes 4. Multiple Jobs 5. Cost of energy 6. 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!

W HAT CAN YOU DO ? Set goals Be a smart spender Be a smart saver Budget

S ET G OALS 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.

S MART S PENDING 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

S AVE THE M ONEY 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?

S MART S AVING Find free money: Scholarships, bursaries and grants 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.

H OW TO M AKE A B UDGET 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?

W HY M OST B UDGETS D ON ’ T W ORK 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

H OW TO M AKE A B UDGET 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

H OW TO M AKE A B UDGET W ORK 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)

B UT I WANT IT NOW! JenniferMeganMark iPad Cost:$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 $ years Paid $1827 interest REAL cost$650$728$2,477 18% interest rate 32gb iPad wifi about $650 with tax

B E C REDIT S MART 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

R EMEMBER THE B ASICS ! 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.

W ANT TO KNOW MORE ? download the budgeting app (iTunes) Twitter Facebook –