enactus queen's (previously sife queen's) - financial literacy project presentation 2010
DESCRIPTION
Presentation delivered at Kingston high schools as a component of the SIFE Queen's High School Financial Literacy Project 2010TRANSCRIPT
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: [email protected]