Ainsley Cunningham
Education and Information Coordinator
April 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 Question
Would 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 Gain
Age Invested
19
$2000
20
$2000
21
$2000
22
$2000
23
$2000
24
$2000
25
$2000
26
$2000
27
65
Total Invested
!0% rate of return
Value
$2,200
$4,620
$7,282
$10,210
$13,431
$16,974
$20,872
$25,159
$1,035,161
$16,000
Short Term Pain Long Term Gain
Age
Investment
27
$2,000
35
$2,000
40
$2,000
45
$2,000
50
$2,000
55
$2,000
60
$2,000
65
Total Invested
!0% rate of return
Value
$2200
$29875
$61545
$112550
$194694
$326988
$540049
$805,185
$78,000
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)
TOOLS TO REACH YOUR GOALS
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
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
2
3
.01
8.
.02
10
1.28
2.56
16
$164
22
23
$20972
29
$2684354
6
.08
11
$5.12
7
.16
12
$10.24
.32
13
$20.48
18
$655
24
$41943
30
$5638709
19
$1311
25
$40.96
$83886
31
?
$167772
20
$2621
26
$335544
.64
14
$10737418
17
$328
5
.04
9
15
4
$5243
27
$671089
$81.92
21
$10486
28
$1342177
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