SIFE Queen's - Financial Literacy Project Presentation 2010

QUEEN’S PRESENTS

HIGH SCHOOL FINANCIAL LITERACY2010 Student Presentation

Sponsored by

AGENDA

1. Introductions2. Post Secondary Funding

-OSAP, RESP’s, line of credit, scholarships, etc.

3. Personal Savings & Banking 4. Personal Investing : The Basics 5. High School Investopedia Portfolio Simulation 6. Q&A

INTRODUCTION

Presenter 1

B.Comm, 2nd year Queen’s School of Business

Presenter 2

POST SECONDARY FUNDING

Ontario Student Assistance Program (OSAP) Registered Education Savings Plan (RESP) Student Line of Credit Student Employment Scholarships & Bursaries Budgeting

ONTARIO STUDENT ASSISTANCE PROGRAM (OSAP)

OSAP is a government-funding loan program designed to aid full-time students

OSAP is based on financial need, so an application is required Anyone is eligible to apply, but your need will be

evaluated on the basis of: -your parent’s income-the post-secondary program in question, etc.

OSAP loans can be used to fund tuition, textbooks, living expenses, etc.

see http://osap.gov.on.ca for details

REGISTERED EDUCATION SAVINGS PLAN (RESP)

A tax-deductible savings account that is contributed to by subscribers over a number of years

Distributed via educational assistance payments (EAP’s) at intervals over student’s education

STUDENT LINE OF CREDIT Taken out with your banking institution

STUDENT EMPLOYMENT Typical Part-Time Jobs

Tim Hortons McDonald’s Contracting Telemarketing Retail

SCHOLARSHIPS & BURSARIES Bursaries are need-based Scholarships are for academic, athletic, or

other achievement www.studentawards.com

PLANNING YOUR BUDGET

What is a budget? Most simply, a budget is a tool that can help you manage your financial goals and objectives

1. Identify your needs2. Identify sources & uses of funds

Where will you get money from, where will it be spent?

3. Set your budget assumptions 4. Set your time period 5. Plan your budget, implement & review

FIRST YEAR UNIVERSITY BUDGET First year tuition: $8000 First year residence and meals: $9000 First year textbook and misc.: $1500 Total need: $18,500 Total savings: $2000 Total RESP: $5000 Total Scholarships and bursaries: $2500 Total need left: $9000 Parents/OSAP: $5000 Work ($10/hr, 20 hrs/week for 2.5 months):

$2000 Student line of credit required: $2000

PERSONAL SAVINGS & BANKING

Stick with your youth account until you turn 19 When you are 18, apply for a credit card

build your credit rating responsibly to take advantage of lower future interest rates

When you are 18, get a TFSA (Tax Free Savings Account) If you have excess savings, put it in here! Greater rates of interest No tax on interest earnings Do investments within a TFSA if you ever do any at all About 3% interest, so I=PRN, with $1000 over 4 years, I=1000(0.03)(4),

which is $120.

INTRODUCTION TO INVESTING

How do investments make us money?1. earn income or dividends from an investment while

owning it.2. earn profits or capital gains from selling an investment

for more than the amount you paid to purchase it

What do we consider when making investment decisions? Time horizon Risk tolerance

TYPES OF INVESTMENTS Physical assets (ex. land, houses, art, etc.) Money market instruments - less than 1 year Treasury Bills (“T-Bills”, issued by the government)

Fixed Income Instruments debt claims Guaranteed Investment Certificates (GIC) , Bonds, etc.

Equity Instruments ownership stake Common shares, preferred shares

Other Mutual funds, Exchange traded funds (ETF) , Derivatives

INTRODUCTION TO THE

Join the Facebook group – SIFE Queen’s Simulation 2010 Remember, this is a trading competition, not necessarily an

investing competition There will be cash prizes! Win up to $150! Simulation will run from February 12 – April 9

INVESTOPEDIA STOCK PORTFOLIO SIMULATION

REGISTRATION

THE SIMULATION

JOIN GAME

JOIN GAME – CONTINUED

JOIN GAME - CONTINUED

JOIN GAME - CONTINUED

JOIN GAME - PORTFOLIO

RESOURCES

HOME PAGE

TRADING

TRADING CONTINUED

TRADING CONTINUED

MESSAGES

RANKINGS

THANK YOU! QUESTIONS?

EMAIL: SIFE.SIMULATION2010@GMAIL.COM