Financial Literacy Lifelong Learning Centre Wednesdays, November 7 to 28, :00 to 9:00 p.m. Gallery Room 106 Dr. Cyril Kesten Education 334, Faculty of Education Wiki:

Financial Competency This four part workshop series will introduce you to the skills necessary to becoming Financially Competent. Sessions include: How to become financially competent, saving and investing, how to use the internet to become financially competent and investing 2.0

Financial Literacy Financial literacy is the set of skills and knowledge that allow you to understand:  The financial principles you need to know to make informed financial decisions, and  The financial products that impact your financial well- being. financial-literacy.aspx

Financial Competency The degree to which financial literacy is actually used to one’s advantage. Financial capability is the ability – based on knowledge, skills, and access – to manage financial resources effectively. In order to develop this capacity, individuals must have appropriate access to and understanding of financial products, services, and concepts. Financial capability empowers individuals to make informed choices, avoid pitfalls, know where to go for help, and take other actions to improve their present and long-term financial well-being. The set of money related knowledge and activities adults need to be able to engage in to participate effectively in the money economy in which they reside

Financial Competency It is a truism that people tend to assume they know and understand how to manage money. Yet time and again it is evident few people are able to engage in sustained competent financial behaviour across the range of financial activities they are required to participate in. This has consequences for individuals, households, communities and, ultimately, countries. In a broad range of contexts, ranging from highly urbanized environments, to isolated rural environments, people, when asked about money, profess to understand basic money concepts and yet, when asked to demonstrate their understanding, cannot show they are competent. A lack of financial competence typically results in people failing to plan ahead (in respect to both short term planning and longer term retirement planning), purchasing financial instruments without understanding the risks implicit in the instrument, entering into contracts (in particular credit contracts) the terms of which they do not understand, and engaging in a broad range of reckless financial behaviours.

Financial Literacy 1. Get Organized 2. Pay Yourself First 3. Get Debt Under Control 4. Lay A Foundation 1. Three to six month emergency funds 2. Long term, “Secure,” Compounding Investments 5. Build Your Savings and Investments For Your Future

Saving and Investing  Inflation – 1.2% Fall 2012  Time Horizon  Risk  Diversification

Get the Facts What facts? Where do I get them? What do I do with them once I get them?

Investment Clubs A group of people who meet regularly and pool their funds to invest in securities. Often a club is formed as much for social and educational reasons as for making profits. An individual joins with others to invest in stocks and other securities. The clubs focus on education: each member learns from and teaches the others. The monthly meetings create a comfortable social setting to help the individual stay focused on investment goals. Members are usually required to contribute a minimum amount each month to the investment pool as well as commit time to do investment research. And the clubs' financial returns are often very successful.

Investment Club Organization Formation Officers Membership Dissolution Constitution Components Procedures Financials Voting Guests/ New Members Banks/ Brokers

Investment Clubs Focus on Financial Literacy Learn about investments, economics & financial liquidity Review & analyze financial statements Share info about investments & market sectors Make appropriate investment decisions

Investment Clubs Learning Stage I Learning Stage 2 Learning Stage 3 Work Group Skills Parliamentary Law Team Work Skills Economics/Financial Skills Market Operation Economic Concepts Financial Statements Financial Planning Adv. Financial Concepts Business Statement Analysis Conducting Market Research Sophisticated Invest- ment Opportunities (such as index funds) Understanding risk Continuing Ed Specialized Financial Topics New Sector Investment Opportunities

Tips For Joining An Investment Club 1. Think Long Term 1. Define Your Style 1. Always Value Education