1. Wise Money Management
By: Tyler Leighton

2. Frequently Asked Questions…
What Kind of financial Institution should I choose?
It is definitely a personal preference but there are three different types of financial institutions. Banks that collect direct deposits, credit-unions are member owned institutions that offer deposit accounts, as well as so many more products and services, and lastly Trust companies that can help manage mortgages, chequing accounts and loans, as well as being the trustee, or someone who manages assets. So overall it is up to each person, I personally suggest a credit-union for all of the services.
What kind of account should I choose?
Picking an account depends on the person, and it depends on how much activity they have at the bank. A savings account is great if you have over dollars, and are saving up for long term investments. A chequing account is great to put small amounts of money into for a shorter period of time, this account can be connected to your debit card.
When looking into different types of account read about each one, and find the one that works the best for you, and suits your lifestyle.
How can I keep my personal and Financial Information secure?
Know who your sharing your information with. (especially your Social Security #)
Store, and dispose of any personal information carefully and securely.
Ask lots of questions before deciding to share any of your personal information.
And maintain appropriate security measures, on your computer, and other technology.

3. More Frequently asked questions…
How can I use credit effectively?
Only get credit you need and know you can repay.
Speak up if you are having credit, or money troubles.
Ensure that you review your credit report at least once a year.
Pay your bills off in small amounts before the due date.
Review household bills monthly, and keep track of them wisely.
Use a deposit account to start saving.
What advice can you give about store promotions?
Store promotions can be deceiving, and you always should make sure before hand that you figure out the calculations, and figure out what the best possible option is so you are not stuck paying something off for months. Store promotions may also raise prices in order to give you a “deal” therefore it is not a deal at all but a ploy to make you buy the product, thinking it is a lower price.
What kind of financial commitment should I avoid?
It is always best to avoid crazy long financial commitments if you can. Having to pay something off other that a house for more that 12 months can get annoying. So its best not to get yourself in a credit issue where you are stuck in a debt. Also you should be able to trust your bank, and know what is happening to your money, always bake sure your in a banking situation where you are aware of where your money is.

4. Brown-bag your lunch and drink the coffee at home or work.
Even More Questions…
What are some ways to reduce expenses?
There are many ways to reduce your spending. Here are just a few ideas:
Avoid the cost of movie rentals by borrowing DVDs of movies and favorite series from your public library.
Shift your cell phone service to a slightly different plan, or switch to prepaid service.
Cancel paid cable TV and watch favorite shows for free online, via Hulu, for example.
Brown-bag your lunch and drink the coffee at home or work.
What is interest?
Interest is the cost of using money. When you deposit money into a savings account, the bank pays you interest. When you carry a balance on your credit card, you pay the credit card company interest. Interest is usually expressed as an annual percentage rate (APR)—the amount your money would earn if left on deposit for one year, or the amount you would pay on a loan or other credit over the course of a year.
What is credit?
Credit is the ability to borrow money or to purchase an item and pay for it over time. Credit cards are one form of credit. You can pay off your entire balance on a credit card every month or carry a balance. If you carry a balance, you will be charged interest by the credit card company.

5. Researching Loan Options
If you are a student and your are thinking about purchasing a brand new Apple Mac Laptop, and all you have at the moment is your credit card, which card would be the best option for you?
Option #2
Avion RBC Credit Card
Principle: $
Interest Rate: 14.9%
Term: 6 months
I=Prt
I=( )(0.149)(6÷12)
A=$ $
Total Value of the Loan: $
Option #1
Avion RBC Credit Card
Principle: $
Interest Rate: 19.99%
Term: 6 months
I=Prt
I=( )(0.1999)(6÷12)
A=$ $
Total Value of the Loan: $
The Capital One *Low Rate Guaranteed* Mastercard would be the best option for someone who is younger, and doesn’t want to be spending as much on interest.

6. Research Investment Options
If you are a student and you want to save money for the future, what would be the better option for investing money…?
Option #1
Savings Account: RBC
$5000 invested for 10 years
At an interest rate of 6%
Compounded: Annually
A=P(1+r/n)1x10
A=5000(1+.06/1) 1x10
A=5000(1.06) 10
A=$
Option #2
Guaranteed Investment Certificate: RBC
$50,000 invested for 1 year
At an interest rate of .25%
Compounded: Semi- Annually
A=P(1+r/n)1x10
A=50,000( /2) 2x1
A=5000(1.06) 2
A=$50,125.09
If you are a student and you want to save money for the future, you should invest a smaller amount of money for a longer time to get the most of your money!

7. Conclusion
In conclusion I believe that as a student it is important to manage your money wisely, to always take care of it, and know when and where you are spending it.
I believe that credit cards have their perks, and having one is not necessarily a bad thing but you must know how to manage one, and choosing one that does not have too much interest would be the best option. Always pay your bill on time, and do not depend on the credit card when paying for all things.
Lastly I also think that investing your money into a savings account is the best idea for youth, because it will give you an increased amount of interest that you can use later on.
The End.