Ainsley Cunningham Education and Information Coordinator April 11, 2006

Agenda Start when you are young You have money You have time Statistics Power of Compounding Set some goals Use a budget Pay yourself first Reward yourself

Money Challenge Prize Question Would you rather have $10,000 or a penny a day doubled for 30 days?

START WHEN YOU ARE YOUNG Do you know how much money you have? Canadian Tweens (ages 9-14) spend $1.9 billion annually. (YTVmedia.com) Canadian teens (ages 13-19) spend $14 billion annually. (YTVmedia.com) Tweens influence $20 billion in household purchases annually. (YTVmedia.com) You spend your money on food, clothing and entertainment.

HOOK YOU WHEN YOU ARE YOUNG Time is on your side To learn good habits To recover from market ups and downs To benefit from few financial obligations You have the money

START WHEN YOU ARE YOUNG Some of the hard facts Divorce rates on the rise Debt is at an all time high Money matters affect every aspect of our lives Cost to achieve our dreams

Power of Compounding Compound Interest Interest earned not only on your original investment, but on your accrued earnings as well.

Short Term Pain Long Term Gain AgeInvestedValue 19$2000 $2,200 20$2000 $4,620 21$2000 $7,282 22$2000$10,210 23$2000$13,431 24$2000$16,974 25$2000$20,872 26$2000$25, $1,035,161 Total Invested$16,000 !0% rate of return

Short Term Pain Long Term Gain AgeInvestmentValue 27$2,000$ $2,000$ $2,000$ $2,000$ $2,000 $ $2,000$ $2,000 $ $805,185 Total Invested$78,000 !0% rate of return

SETTING GOALS What is a goal? Short term – Spend (weekly) Medium term – Save (six months – one year) Long term – Invest (many years) Giving – Donate (giving to help others)

TOOLS TO REACH YOUR GOALS Budget A budget is like a road map. If you don’t know where you are going, how are you going to get there? Income (Earnings) – Expenses (bills) = Savings (thrills)

Pay yourself first Pretend you are a bill that comes due at the end of each month Saving $10 a week gives you $580 Save loose change by: Bring your lunch to school Take the bus, ride your bike or car pool Cut down on double lattes or number of movies you go to Borrow books from the library TOOLS TO REACH YOUR GOALS

Build in room for rewards Don’t quit spending all together. When you have reached your goal reward yourself

Key Identify your goals Set a plan Follow through

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Play the Games Review the four games The Thing That Ate my Paycheque Honey I Shrunk the Money Kids and Cash Future Fortune Prizes to be won Parental consent form