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Dollar and a Dream


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Dollar and a Dream is a financially literacy workshop I created. It gives the very basics of Saving, Budgeting, Debt and Credit. It is targeted at high school youth and at risk youth

Dollar and a Dream is a financially literacy workshop I created. It gives the very basics of Saving, Budgeting, Debt and Credit. It is targeted at high school youth and at risk youth

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  • Impress the fact: where money can be saved and spending
  • Straight forward-These deductions are for employees-If you have your own business you deduct these things from your employees(more control in entreperneurship)-
  • Emphasize the difference between fixed and variable. Fixed – rent, insurance, heat, water etc.Variable –food can be, clothes can be, entertainment, Rent (although rent would be variable income for rental properties)When trying to find places to reduce costs, analyze variable costs
  • Emphasize difference between need and want. Need – food, clothes, shelter, etc…Want- fancy jacket, new video gameWhen trying to reduce spending, analyse wants.Ask for examples, have some fun with it.(no need to spend a lot of time on above)Assets Vs Liabilities –DylanWhat is an Asset? What is a liability?Get examples of both.Show the major differences between the 2.
  • Impress the fact to start saving earlyPay yourself first – saving a portion of your pay as soon as you get it.The rest are straight forward.
  • -Downplay GIC’s, put emphasis on learning more. -TFSA: 5000$ maximum per year. Tax free. Invested in mutual funds generally. They do a risk profile on you, explain what that is.-Talk briefly about the TSX averaging 12% over the past 60 years-GIC’s: usually set for a term with a maturity date. Return is guaranteed. -Bonds are set for even longer terms then GIC’s (5, 10 20 year terms)-Both GICs and Bonds are for rookie investors.
  • Compound is important to start saving early. Emphasize the power of money over time. Two most important parts of saving, time (start early) and consistency (make saving a habit no matter how small)The rule of 72.Also show what a higher compound interest can yield you over simple interest.Use an example of 3% (GIC’s)Use an example of 12% (avrg. Of TSX)
  • All of this is pretty straight forward. Emphasize the risk of high cost loans, such as cash advances, money marts, etc…
  • Leveraging debt for assets. Borrow when you don’t need it. Increase your access to money.
  • Payment History- any missed payments etcTotal amounts owed- less betterLength- longer betterNew credit- less betterTypes of credit – small variety – credit card, mortgage, etc..Making 2 payments in one cycle betters your credit score.
  • Short term + LT – is it worthwhile to used credit to purchase something?Pay off debt quickly to reduce interest paymentsWould you use a credit card to buy a coach? Explain how Leons etc. Uses compound interest for back pay on all the months you owe for. -Dylan
  • Stress the negative impact of minimum payments. How much longer it takes to pay off principle and how much more you end up paying.(but always at LEAST pay the minimum)
  • Transcript

    • 1. Money In and Money OutIncome, Expenses, and Budgeting
      Dollar and a Dream
    • 2. Pay Cheques Terms
      Gross Pay-amount of pay before deductions
      Net Pay-amount of pay after deductions
      YTD(Year To Date)-total amount for the year to the current date
      CPP (Canadian Pension Plan)- is an insurance program designed to help Canadians provide income for their retirement. It also gives them income if they become disabled.
      EI (Employment Insurance)- a sum of money paid to people that have become unemployed.
      Income Tax-a personal tax based on income
    • 3. Fixed and Variable Expenses
      Fixed Expenses- don’t generally change from month to month
      Variable Expenses-can easily change like the amount spent on
      Why is it important to know the difference?
    • 4. Needs vs Wants
      Need-something that is necessary for humans to live a healthy life
      Want-is something that is desired
      Why is it Important to know the difference?
    • 5. Save Now, Spend LaterTechniques, Compound Interest, and Options
      Dollar and a Dream
    • 6. Saving Techniques
      Pay yourself first
      Save your change
      Borrow don’t buy
      Don’t carry cash
      Don’t spend what you save
    • 7. Saving Options
      Savings Account- low interest and liquid
      Tax Free Savings Account(TFSA)
      Guaranteed Investment Certificate (GIC)- medium interest and not as liquid as savings account
      Government Bond
      Equity Investments- high interest and high risk
    • 8. Compound Interest
      Compound Interest- Interest paid on the original amount invested plus interest
      Why Save Now?
    • 9. Compound Interest
    • 10. Money In and Money OutCredit and Debt
      Dollar and a Dream
    • 11. Types of Credit
      Credit cards
      Student loans
      Bank loans or lines of credit
      Overdraft Loan
      High cost loans
    • 12. Responsibilities of Debt
      Borrow what you can pay
      Legal commitment
      Make payments as agree
      Keep credit card secure
    • 13. Credit Score Makeup
      Payment History – 35%
      Total Amounts Owed – 30%
      Length of Credit History – 15%
      New Credit – 10%
      Type of Credit in Use – 10%
    • 14. Use Debt Wisely
      Short term implications
      Long term implications
      Pay down debt quickly
    • 15. Compound Credit Interest
      credit excel.xlsx