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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

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Dollar and a Dream

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

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