1. Financial Tools
101

2. Some Financial Tools that can help your Money Grow?
Who Knows
Discuss
Some Financial Tools that can help your Money Grow?

3. Remember, Your success takes
Financial Planning!

4. Learning Goals
To understand an overview of the Who, What, Where, When, Why and How of:
RESP, RRSP, TFSA
Will, POA
This will be tomorrow:
Mutual Funds, Stocks , GICs

5. How not to be a Money Moron
Gail Vaz-Oxlade
Canadian Financial Expert
(6 minutes)

6. Financial Tools 101 Matching
[handout required]
Let’s see what you already know!

7. Let’s See how you did!

8. 6 months of essential expenses
(e.g. rent or mortgage payment, basic food, basic utilities, transportation, minimum payments on debt)

9. E) Emergency Savings 6 months of essential expenses
(e.g. rent or mortgage payment, basic food, basic utilities, transportation, minimum payments on debt)

10. A document listing the legal decisions about what you want done with your assets when you die

11. G) Will
A document listing the legal decisions about what you want done with your assets when you die

12. An investment tool Money that helps you save tax-free for your child’s education, and government grants give you extra help.
For every $1 you put in, the government will put in $.20, so if you put in $1000 the government will put in $200.
Available for children just born to 17 years old. When the child goes to post-secondary, s/he is taxed on the money (but at a low rate due to the student’s low income

13. A) RESP
An investment tool Money that helps you save tax-free for your child’s education, and government grants give you extra help.
For every $1 you put in, the government will put in $.20, so if you put in $1000 the government will put in $200.
Available for children just born to 17 years old. When the child goes to post-secondary, s/he is taxed on the money (but at a low rate due to the student’s low income

14. What is an RESP?

15. 7 things to know about RESPs

16. #1 Your savings grow tax free
#1 Your savings grow tax free. There is no tax on the investment earnings, as long as they stay in the plan

17. #2 If you save for a child age 17 and under, the federal government also puts money into the RESP as a grant or bond.
In some provinces, the provincial government may contribute too

18. #3 You can usually put money in whenever you want, up to a lifetime maximum of $50,000 per child.
Some plans require set monthly or annual contributions.

19. #4 The contributions are not tax deductible.
But you can withdraw them tax free from the plan at any time for any reason.

20. #5 There is a wide range of investment options available for RESPs
#5 There is a wide range of investment options available for RESPs. Examples: stocks,bonds, mutual funds, GICs. Some plans let you decide how to invest your savings. Others invest your money for you.

21. #6 Your child can take money out of the RESP when they enrol in university or college or another qualifying education program or specified education program.

22. #7 An RESP can stay open for up to 36 years
#7 An RESP can stay open for up to 36 years. Under specified plan rules, the plan can stay open for up to 40 years for beneficiaries eligible for the disability tax credit.

23. The act of setting aside money that could have been used to buy stuff and set it aside for some future need.

24. I) Saving
The act of setting aside money that could have been used to buy stuff and set it aside for some future need.

25. A method of setting and tracking monetary goals via income and expenses

26. H) Budget
A method of setting and tracking monetary goals via income and expenses
Gail's thoughts on Budgeting

27. Is an account that provides tax benefits for saving in Canada
Is an account that provides tax benefits for saving in Canada. Investment income is not taxed, even when withdrawn.

28. C) TFSA - Tax Free Savings Account
Is an account that provides tax benefits for saving in Canada. Investment income is not taxed, even when withdrawn.

29. Helps you save for retirement with tax benefits along the way.

30. B) RRSP Helps you save for retirement with tax benefits along the way.

31. 5 Reasons to Open an RRSP

32. #1 Contributions are tax deductible

33. #2 Savings Grow Tax Free

34. #3 You can convert your RRSP when you retire to get regular payments

35. #4 A Spousal RRSP can reduce your tax burden

36. #5 You can borrow from your RRSP to:
Buy your first home or
pay for education
Up to $25,000

37. Amy: Amanda: • Starts saving at age 20
• Puts $1,000 a year into her RRSP to age 34
• Total she saved: $15,000
Amanda:
• Starts saving at age 30
• Puts $1,000 a year into her RRSP to age 64
• Total she saved: $35,000
Fromhttp://

38. Who will have more money?? Amy or Amanda??

39. Amy: $141,700 Amanda: $118,100 Saving early pays off!!
From

40. The process of using your money to buy an asset that you think has a good probability of generating a safe and acceptable rate of return over time, making you wealthier even if it means suffering volatility (prices increasing & decreasing), perhaps even for years.

41. D) Investing
The process of using your money to buy an asset that you think has a good probability of generating a safe and acceptable rate of return over time, making you wealthier even if it means suffering volatility (prices increasing & decreasing), perhaps even for years.

42. a legal document that authorizes someone else to act on your behalf.
1 for legal/property matters
and 1 for health/medical

43. F) POA - Power of Attorney
a legal document that authorizes someone else to act on your behalf.
1 for legal/property matters and
1 for health/medical

44. Tools needed for these false statements
What have you learned so far??
Tools needed for these false statements

45. Bad things don’t happen to good People

46. Bad things don’t happen to good People
Emerge ncy Savings
Bad things don’t happen to good People

47. You need Emergency savings?
Why might
Discuss
You need Emergency savings?

48. My partner knows what I want

49. My partner knows what I want
Will or
POA
My partner knows what I want

50. Only the rich need an estate plans

51. Only the rich need an estate plans
Will
Only the rich need an estate plans

52. Wants come before needs. I don’t need a plan

53. Wants come before needs. I don’t need a plan
Budge t
Wants come before needs. I don’t need a plan

54. When I earn “enough” money I will start this habit

55. When I earn “enough” money I will start this habit
Savin g
When I earn “enough” money I will start this habit

56. Where do you want to be in
Start with the big picture
Where do you want to be in
5, 10, 20, 30 years?
Then work Backwards

57. Part 1 of 3 Gail Vaz Oxlade with Fanny Kiefer

58. Part 2 of 3 Gail Vaz Oxlade with Fanny Kiefer

59. Part 3 of 3 Gail Vaz Oxlade with Fanny Kiefer

60. Information Credits
Get Smarter About Money
The City

61. Credits
Special thanks to all the people who made and released these awesome resources for free:
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Photographs by Startupstockphotos & Pixabay