Ainsley CunninghamEducation and Information CoordinatorApril 11, 2006
Agenda•Start when you are young
• You have money
• You have time
• Statistics
•Power of Compounding
•Set some goals• Use a budget
• Pay yourself first
• Reward yourself
Money Challenge Prize QuestionWould you rather have $10,000 or a penny a
day doubled for 30 days?
START WHEN YOU ARE YOUNG
Do you know how much money you have?
•Canadian Tweens (ages 9-14) spend $1.9 billion annually. (YTVmedia.com)
•Canadian teens (ages 13-19) spend $14 billion annually. (YTVmedia.com)
•Tweens influence $20 billion in household purchases annually. (YTVmedia.com)
•You spend your money on food, clothing and entertainment.
HOOK YOU WHEN YOU ARE YOUNG
Time is on your side
•To learn good habits
•To recover from market ups and downs
•To benefit from few financial obligations
•You have the money
START WHEN YOU ARE YOUNG
Some of the hard facts
•Divorce rates on the rise
•Debt is at an all time high
•Money matters affect every aspect of our lives
•Cost to achieve our dreams
Power of Compounding
Compound Interest
•Interest earned not only on your original investment, but on your accrued earnings as well.
Short Term Pain Long Term GainAge Invested Value19 $2000 $2,20020 $2000 $4,62021 $2000 $7,28222 $2000 $10,21023 $2000 $13,43124 $2000 $16,97425 $2000 $20,87226 $2000 $25,1592765 $1,035,161Total Invested $16,000!0% rate of return
Short Term Pain Long Term Gain
Age Investment Value
27 $2,000 $2200
35 $2,000 $29875
40 $2,000 $61545
45 $2,000 $112550
50 $2,000 $194694
55 $2,000 $326988
60 $2,000 $540049
65 $805,185
Total Invested $78,000!0% rate of return
SETTING GOALS
What is a goal?
•Short term – Spend (weekly)
•Medium term – Save (six months – one year)
•Long term – Invest (many years)
•Giving – Donate (giving to help others)
TOOLS TO REACH YOUR GOALS Budget
• A budget is like a road map. If you don’t know where you are going, how are you going to get there?
• Income (Earnings) – Expenses (bills) = Savings (thrills)
Pay yourself first
•Pretend you are a bill that comes due at the end of each month
•Saving $10 a week gives you $580
•Save loose change by:• Bring your lunch to school
• Take the bus, ride your bike or car pool
• Cut down on double lattes or number of movies you go to
• Borrow books from the library
TOOLS TO REACH YOUR GOALS
TOOLS TO REACH YOUR GOALS
Build in room for rewards
•Don’t quit spending all together.
•When you have reached your goal reward yourself
Key
•Identify your goals
•Set a plan
•Follow through
1
.01
2
.02
3
.04
4
.08
5
.16
6
.32
7
.64
8.
1.28
9
2.56
10
$5.12
11
$10.24
12
$20.48
13
$40.96
14
$81.92
15
$164
16
$328
17
$655
18
$1311
19
$2621
20
$5243
21
$10486
22
$20972
23
$41943
24
$83886
25
$167772
26
$335544
27
$671089
28
$1342177
29
$2684354
30
$5638709
31
?
$10737418
Play the Games•Review the four games
• The Thing That Ate my Paycheque
• Honey I Shrunk the Money
• Kids and Cash
• Future Fortune
•Prizes to be won
•Parental consent form