Saving/Investing
Name an account that you can put money into Tax Free
A tax free savings account
List at least two examples of essential items to have in your budget.
Food, clothing, shelter, etc.
When you make a purchase with a credit card, are you spending your own money?
NO!
Bob has a lot of extra money, list at least two things he can do with his money.
Save, invest, pay off debt, donate, spend on wants, etc.
What does the T stand for in SMART goal?
Time!
This account is specifically for retirement.
Registered Retirement Savings Plan
List at least two non-essential items that may be in a budget.
How often do you need to file taxes in Canada?
Once per year!
Bob has more expenses than income. List at least two specific things he can do to have a more balanced budget.
Create a quality budget, modify spending habits, negotiate or modify bills, increase income, etc.
What does the M stand for in SMART goal?
Measurable
JM put all their money into a savings account at their bank. Is this a risky decision?
No.
What information do you need to have to create a budget?
A) 5-10%
B)10-15%
C)15-20%
D)30+ %
C) 15-20%
Jan has a small emergency fund and a small amount of savings. Unfortunately, Jan just lost her job but was planning to buy a new car that costs $50 000. Jan lives in a city that is easy to walk around and can access everything she needs within a 10 minute walk. What would be a good financial decision?
A) Buy the car, she has some savings and she won't have to put much money towards maintenance because it's a new car.
B) Buy the car, but with less features so it only costs $45 000. Buying the car will help motivate Jan to get a new job faster!
C) Continue taking public transport
D) Buy a cheaper used car, so that it is not such a big expense!
C) Continue taking public transport!
Is "I want to save a lot of money" a specific goal?
NO!
JH put all their money into stocks because they are certain the stocks will go up in value. Is this a risky decision?
Yes
How often should you modify your budget?
Anytime income/expenses change!
True or false, you only need to file your taxes when you turn 19.
False!
Jan has a bike and has been saving to buy a car. The car she wants to buy costs $10 000 and she has the money saved up. List two additional expenses Jan will have to pay for once buying a car.
Gas/electricity, insurance, maintenance/repairs, etc.
Is this a SMART goal? "I would like to save at least $600 in one year. I will do this by putting $50/month into my Tax Free Savings account for at least one year. It is important to me that I have savings, I earn money each month at my part time job.
Yes!
What is Impact Investing?
Investing in companies/organizations that are socially/environmentally responsible and aim to do good for society.
List at least one step to creating a budget.
1. Knowing what your income/expenses are and having a detailed list of them
2. Finding/creating a budgeting template
3. Filling out template with detail and adjusting as needed!
True or false: you need to pay taxes on the contributions to your RRSP WHEN you deposit money into the RRSP.
False, it is when you take it out!
Jan wants to buy a house and has savings. List at least two expenses Jan will need to pay as a homeowner that she didn't have to pay as renter.
Is this a SMART goal? "I would like to save $1000 in a high interest savings account. I will do this by depositing all of my earnings from babysitting into my tax free savings account. It is important to me that I achieve this goal because I would like to buy a new bike and paddle board to spend more time outside this summer. "
No, it doesn't have a timeline!