Financial Survival 101

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 _at_
  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, dont 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
• Dont 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/budgetplannin
  g02
• Credit card cost calculator http//strategis.ic.gc
  .ca/SSG/ca00458e.html
• Introduction to budgeting http//strategis.ic.gc.c
  a/SSG/ca01085e.html
• Budget analyser http//rapids.canoe.ca/cmoney/calc
  ulators/budgetCalc.pl

17
Questions?