Info-VoyageursVolume 1 • Numéro 7 • Summer 2011

Every Monday from August 1st to October 28, 2011, some advice and a question relating to savings

will be posted on Desjardins’ web site at www.desjardins.com/MondayQuestion. For every right answer to the 13 questions, participants will gain more chances to win the prizes being drawn!

The contest is open during the fall 2011 session to full-time students (professional, college or university studies) from 17 to 30 years of age, who are members of a caisse populaire that is part of the Fédération des caisses populaires de l’Ontario Inc or of the Fédération des caisses Desjardins du Québec.PRIZES: Two grand prizes of $5,000 to

be invested with a Desjardins personal finance advisor and five $1,000 scholarships provided by the Desjardins Foundation.

Just for studentsThe Caisses des Voyageurs offer products

tailored just for students, as the line of credit, a VISA credit card just for students, advice on budgeting, savings, etc. Visit

www.desjardins.com/students for more information or meet with one of our

Personal Finance Advisors.

Scholarships Visit www.desjardins.com/en/fondation

to find out more on scholarships offered to students who are members of a Desjardins

caisse populaire.

Contest Just for students

Back to school… learn and win!

At the close of the fiscal year ended December 31st, 2010, the Caisse populaire des Voyageurs posted very good financial results. In fact, a proactive approach and sound management have made it possible to

achieve surplus earnings of $5,464,352 before adjustments in the fair market value of derivatives, taxes and member dividends: an increase of 49.11% over the last fiscal year.

Rigorous financial controls have allowed Caisse des Voyageurs to achieve excellent year-end results. “This is mostly due to the confidence our members have in us. By using our services and relying on our staff’s expertise, they bring us to the forefront of our community,” explained Board of Directors’ chair, Carole Kairovicius.

Furthermore, during its 2010 Annual General Meeting, the Caisse des Voyageurs also made donations to many Greater Sudbury community organizations (picture). More than $6,000 was distributed to local schools, parishes and organizations in its territory and nearly $15,000 was returned to non-profit organizations for reimbursement of service charges. The organizations were very grateful for the Caisse’s donations. In addition, over the next few months, the Caisse de Voyageurs is planning to make several more donations totalling approximately $6,500 to organizations in the Simcoe and Greater Toronto areas.

Very Good Financial Results

Caisse populaire des Voyageurs gave away 9 bicycles to some lucky young members from

the School Caisse at the annual draw. The drawing of a bicycle, in the

nine schools that are members of the school Caisse, encourages children to participate in the program, and mainly to acquire savings habits at a young age. ‘’We would like to thank all of the Caisse’s and the school employees that helped with the operation of the School Caisse. Without them, the School Caisse wouldn’t exist‘’, states Jean-Marc Spencer, Executive Director of the Caisse des Voyageurs.

There are nearly 400 students who participated in the school Caisse in 2010-2011 at Jeanne-Sauvé, Hélène-Gravel et Jean-Éthier Blais and French-language catholic schools Félix-Ricard, St-Dominique, St-Joseph, St-Augustin, St-Denis et St-Pierre.

A total of $1,200 was given to the Sudbury St-Jean-Baptiste Organizing

Committee. The amount was collected during the traditional pancake breakfast organized by Caisse des Voyageurs.

Executive director Jean-Marc Spencer would like to thank the people in the community who contributed to the event’s success. More than 400 people came out to the pancake breakfast held in June.

In addition, for the fifth consecu-tive year, Caisse des Voyageurs, in conjunction with its community partners and the members of the St-Jean-de-Brébeuf Parish, supplied the financial and human resources needed to hold the breakfast. Over the past four years, the Caisse populaire des Voyageurs has given $5,515 to the Sudbury St. Jean-Baptiste Organizing Committee.

Caisse des Voyageurs and the community collected $1,200

Gilbert Lacroix, director of Jeanne-Sauvé school and Alyssa Beauparlant, winner of a bicycle.

The Caisse des Voyageurs holds a draw for 9 bicycles

Jean-Marc Spencer, director of the Caisse, Nicholas MacPhee (kindergarten, Félix-Ricard school) and his mother, Josée MacPhee.

Roger Gervais, Samuel Gervais and Stéphanie St-Pierre appreciated the pancakes and the ham served by Caisse populaire des Voyageurs executive director, Jean-Marc Spencer.

In a society where so much attention is given to spending, how can parents instil good money habits in their children, habits that they will keep for a lifetime?

Mom and dad cannot control all the factors that influence the upbringing of their children. School, advertising, the neighbours, close relatives and friends, especially in the teenage years, all play a role in how children build their “consumer personality’’ and, as a result, their relationship with money. However, parents are still the primary source, the first role models, before children even start school.

Here are some tips and advice on helping children and teenagers build a healthy relationship with money.

Where does money come from?Money is a very abstract concept for young children. We need

to make them understand that it does not grow on the prover-bial trees, nor does it come from the ATM, nor from the teller.

Having the child witness you make a deposit at an ATM or with the teller will help in understanding that we can withdraw funds because we deposited some earlier.

Responsible spendingThey will not understand everything right away, but children

absorb plenty of information about money and spending by observing their parents. As early as possible, it is advisable to encourage children to participate in the buying process, starting with items that concern them. We can get children involved in assessing their needs, the amount of money available and the possibility of shopping around for the best price. What is important is to demonstrate to children that a purchase is not something to be made impulsively.

Pocket moneyPocket money is an excellent education tool and should

be used as such. We shouldn’t be giving allowance to a child without paying attention to where the money goes.

At what age should you introduce an allowance? How much pocket money should you give your child? There is no one-size-fits-all recipe. Only the parents can know whether their children are able to manage their own allowance, and how much they can afford to give their children. However, parents should not give money to their children without taking the time to sit down with them and discuss what expenses they will use the money for, and to educate them on the subject.

Learning from mistakesDo your children squander their spending

money in the space of two days? This may be an opportunity to get them to take responsibility for their actions. Mopping up after them, or constantly coming to the rescue, is a mistake. We must help children or teenagers bear the consequences of their spending decisions. Otherwise, they are likely to become young adults with no sense of financial responsibility.

In the event of a mishap, we must clarify the situation with children and use this experience, of poorly planned spending, for example, to further their financial education.

This may be a first opportunity to show children that credit is not money that grows on trees either. Once or twice, perhaps, we can lend children money to be repaid from their allowance over the subsequent weeks. However, this must definitely not become a habit.

Odd jobsWhen you children take on jobs in the neighbourhood,

it is advisable to keep a watchful eye. First, to teach them what fair pay is, and then, to have a good idea of how much money they are earning and how fast they are spending it.

Your child’s first budgetWhen children start receiving or earning money and have

some basic knowledge, of personal finance, it is time to introduce the concept of a budget. Children, and especially teenagers, will learn to forecast their expenses for the week, to make choices and to plan their savings for special projects such as buying a bicycle. Here again, mistakes provide learning opportunities.

Young adults and creditBefore they even have a driver’s licence, young people

already know most of the rules of the road. Yet, studies show that approximately half of young adults do not understand how credit works. Parents need to talk about credit. They can explain that credit offers benefits, but also drawbacks and traps; that interest is payable on the balance, and how much those interest payments can amount to.

Building a healthy relationship with money early in life

Fill out this ballot and you could win a gift certificate from the Fishbowl restaurant located at 900 Lasalle Blvd. Drop off the ballot at one of the branches of the Caisse populaire des Voyageurs in Sudbury, before Friday September 30th, 2011, at 5:00 P.M.*

Contest for members

Name : ____________________________________________________________________________________________________

Address : __________________________________________________________________________________________________

Telephone Number : _______________________________________________________________________________________

Skill-testing question (required): 10 + 25 - 30 X 4 = ______________________________________________________

*The contest is open to residents of the City of Greater Sudbury, members of the Caisse des Voyageurs. The gift certificate is worth $ 50. One coupon per person.

Credit Cards: Friends of Enemies?Part Two

It has been a long time since we thought of credit cards as a luxury items. Today, they are a necessary part of life – without one you could not reserve a hotel room,

rent a car or even make a purchase over the Internet. We haven’t even talked about those nasty surprises either, like the classic stalled car on the side of the road. But our little plastic friend can also turn into an enemy if we don’t think about how we use it.

Here’s the second overview of what we need to know about credit cards.

How many cards should I have?Just one. Nowadays, most merchants accept all the

major cards, which means also you can do away with your « just in case » cards. It is also simply easier to have only one card to think about: one statement, one limit to keep in mind, one transaction history to consult on one Web site. With more than one card, it is hard to maintain an overview of your entire budget, which can be dangerous. Debt overload is often the result of relying on a number of different methods of financing and especially having several credit cards.

Today, consumers are more informed – they have fewer credit cards in their possession: 1.6 per person on average, compare to 2 and even 2.2 several years ago.

If you absolutely need two credit card so you feel more secure, then make sure tour second card doesn’t cost you anything to have, and has no hidden fees. Do your homework.

Choosing the right cardYour institution offers lots of cards, but which one is the

right one? Answer: it depends on your needs. These days, there are cards just about every profile: the Classic card has no fees and is for occasional users who pay off their bill in full on time; the card that gives you points or has perks like extended benefits or insurance for frequent travellers; the low interest rate card, like the Modulo at 9.9% for those who have greater credit card needs.

The Desjardins Web site (Products and services section) provides detailed information on each category. By clicking « Which card is best for you? » a simulator will take you through a few questions to determine which card would word best with you financial situation.

Put a limit on your limitIncreasing your credit limit might give you short-term

gratification, but it is not always a good thing. You should always ask yourself: Do I really need this? In the last 12 months did I really need a higher limit? And would I have been able to pay it back?

You might be treading dangerous ground if you have a really high limit (or several credit cards). For example, a lender may hesitate to provide you with a loan if it looks like you are likely to rack up debt with your credit card.

Interest and reimbursement rulesWhen you receive your credit card statement, some of

your purchases will have been made 1 month ago, and Desjardins will have paid the merchant for you in the meantime. This means that you have 21 days where you basically get something for free. Desjardins has footed the bill for you. So it is normal that if you go past this grace period, there will be a price to pay.

All purchases you make with your card bear interest starting from the moment of the purchases until you pay it off in full. But contrary to what some people think, if you have paid off a part of the bill, interest is calculated every day on what remains to be paid. This is why you should not wait to get your statement before paying off your balance, if you have only paid off the minimum required.

Cash advances and advanced paymentsLike with debit cards, you can get cash by using your credit

card. What’s different here is that you are not taking out money that you already have in your account – you are borrowing an amount that you promise to pay back later. As with all loans, this withdrawal bears interest right from the day you make the transaction.

If you are going on a trip, it is possible to make an advanced payment on your credit card, which will let you withdraw the equivalent amount as cash, without paying interest. But, be careful! If you’ve been making purchases on your card in the meantime, these purchases will be debited first, and if they add up to the amount of your advance, which bears interest right away.

They are not for everyoneAre there some people who simply should not have

a credit card? Yes: those who cannot stick to a budget and those who are impulse shoppers. You need to keep in mind that a credit card does not represent money you already have; rather, it opens up the possibility of buying something now but paying for it later. If you don’t have money when the bill comes, you’ll still have to pay it, somehow.

The Visa prevention program

At Visa, a specialized team is in place to take pre-ventive intervention steps with cardholders whose card transaction history reveals financial problems or even fraud risks due to NSF cheque payments.

To spot these accounts, the team takes note on irregular cash advances, cheques for unusually high amounts, changes in credit habits, etc. The team then goes on to inform cardholders about healthy credit card use and helps them to manage their personal finances. Action is taken so holders don’t get even further into debt.