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Financial Survival 101

Financial Survival 101. Introduction. Money out Money in Keeping it balanced Questions. Money OUT. Fees due September 10 and January 10 th STAC: view online. NO bills sent to you! Debit, cheque, online banking 1 % interest. Money In. Osap Line of credit Bursaries Scholarships

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Financial Survival 101

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  1. Financial Survival101

  2. Introduction • Money out • Money in • Keeping it balanced • Questions

  3. Money OUT • Fees due September 10 and January 10th • STAC: view online. NO bills sent to you! • Debit, cheque, online banking • 1 % interest

  4. Money In • Osap • Line of credit • Bursaries • Scholarships • Part time jobs • Savings • Bank of Mom and Dad

  5. OSAP • Not too late to apply • Combination of bursary, scholarship and loans. • Interest free loan while in school full time.

  6. Line of Credit • Organise through your bank • While you are a full or part-time student, you pay interest only during school. • Interest ( all banks) Prime + 1-2 %. Prime is @ 4.75 EXAMPLE • Pay tuition with credit card $4700 x 18.5% = $5569.50 • Pay tuition with line of credit $4700 x 6.75 = $5017.25

  7. Bursaries • If you only remember one thing!! Student Financial Profile

  8. Scholarships • Based on grades, sometimes on grades and financial need • Fill in the Student Financial Profile • Check online for more awards • Continuing student scholarships: 8.0 • Renewable entrance 8.0

  9. PART TIME JOBS • Off campus • On campus • Work/study • Hire a Glendon Student Programme • RAY programme • Other • If you get a job, don’t forget to tell OSAP

  10. Keeping it balanced • Budgeting • Credit card tips

  11. Vocabulary • Income sources – pay, savings, bursaries, scholarships, money from home, gifts etc. • Fixed expenses – room and board, tuition, transportation • Flexible expenses – books, snacks, phone bills, personal expenses, clothing,

  12. Budget Format • 8 month period (Sept. – April) • List income • List expenses ( both fixed and flexible). Flexible expenses are more difficult to identify because of changing nature. • Compare expenses with income and adjust flexible expenses to balance your budget

  13. The cost of credit • You pay for the cost of credit through interest. What the lender charges depends on many factors such as the cost of money. • The degree of risk is why interest on unsecured loans like credit cards is higher than on secured loans like mortgages. • Borrowing will cost you less in the long term if you make extra payments or pay off your loan sooner.

  14. Credit card tips • Set limits and stick to them • Pay balance off every month • Comparison shop for the right credit card and read the fine print • Sears 28.8 %, BMO Mastercard 17.9 % TDVisa/ Royal Visa/ Scotia Visa 18.5 % • Use credit for emergencies only • Don’t raise your limit – the more you have the more you spend. • Keep credit card on ice – literally freeze it in ice

  15. Examples • Example 1: Borrowing $10,000 for your own car and paying it back in five years: Interest 9.0 % Monthly payment $207.63, Total Paid $12,457 TOTAL INTEREST PAID $2,457 • Example 2: Borrowing $10,000 for your own car and paying it back in three years: Interest9.00% Monthly payment $318.08 total paid $11,450.00 TOTAL INTEREST PAID $1,450.88 Pay over 3 years instead of 5 and save $1007 !

  16. Resources • York Budgeting 101 www.yorku.ca/osfs/budgetplanning02 • Credit card cost calculator http://strategis.ic.gc.ca/SSG/ca00458e.html • Introduction to budgetinghttp://strategis.ic.gc.ca/SSG/ca01085e.html • Budget analyser http://rapids.canoe.ca/cmoney/calculators/budgetCalc.pl

  17. Questions?

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