Enactus Queen's (previously SIFE Queen's) - Financial Literacy Project Presentation 2010

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Presentation delivered at Kingston high schools as a component of the SIFE Queen's High School Financial Literacy Project 2010

Transcript of Enactus Queen's (previously SIFE Queen's) - Financial Literacy Project Presentation 2010

  • 1. QUEENS PRESENTSHIGH SCHOOL FINANCIAL LITERACY2010 Student PresentationSponsored by

2. AGENDA1. Introductions2. Post Secondary Funding -OSAP, RESPs, line of credit, scholarships, etc.3. Personal Savings & Banking4. Personal Investing : The Basics5. High School Investopedia Portfolio Simulation6. Q&A 3. INTRODUCTION Presenter 1 Presenter 2B.Comm, 2nd yearQueens School ofBusiness 4. POST SECONDARY FUNDING Ontario Student Assistance Program (OSAP) Registered Education Savings Plan (RESP) Student Line of Credit Student Employment Scholarships & Bursaries Budgeting 5. ONTARIO STUDENT ASSISTANCE PROGRAM (OSAP) OSAP is a government-funding loan programdesigned to aid full-time students OSAP is based on financial need, so anapplication is required Anyone is eligible to apply, but your need will beevaluated on the basis of:-your parents 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 6. REGISTERED EDUCATION SAVINGS PLAN (RESP) A tax-deductible savings account that iscontributed to by subscribers over a number ofyears Distributed via educational assistance payments(EAPs) at intervals over students educationSTUDENT LINE OF CREDIT Taken out with your banking institution 7. STUDENT EMPLOYMENT Typical Part-Time Jobs Tim Hortons McDonalds Contracting Telemarketing RetailSCHOLARSHIPS & BURSARIES Bursaries are need-based Scholarships are for academic, athletic, orother achievement www.studentawards.com 8. PLANNING YOUR BUDGETWhat is a budget? Most simply, a budget is a tool that can help you manage your financial goals and objectives1. Identify your needs2. Identify sources & uses of funds Where will you get money from, where will it be spent?3. Set your budget assumptions4. Set your time period5. Plan your budget, implement & review 9. 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 10. 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 futureinterest 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. 11. INTRODUCTION TO INVESTINGHow 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 itWhat do we consider when making investment decisions?Time horizonRisk tolerance 12. 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 13. INTRODUCTION TO THE INVESTOPEDIA STOCK PORTFOLIO SIMULATION Join the Facebook group SIFE Queens Simulation 2010 Remember, this is a trading competition, not necessarily aninvesting competition There will be cash prizes! Win up to $150! Simulation will run from February 12 April 9 14. REGISTRATION 15. THE SIMULATION 16. JOIN GAME 17. JOIN GAME CONTINUED 18. JOIN GAME - CONTINUED 19. JOIN GAME - CONTINUED 20. JOIN GAME - PORTFOLIO 21. RESOURCES 22. HOME PAGE 23. TRADING 24. TRADING CONTINUED 25. TRADING CONTINUED 26. MESSAGES 27. RANKINGS 28. THANK YOU!QUESTIONS?EMAIL: SIFE.SIMULATION2010@GMAIL.COM