Financial Stuff

We recognize that learning about finances should start early, way before the age 18. At the agency we provide financial literacy training for our children and youth in care starting at grade 4. By the time you turn 18, you will have had the chance to practice and manage finances, which is essential to transitioning out of care and into adulthood.

Part of this strategy includes training caregivers who can practice and teach these skills to children in their care on an on-going basis.  Ideally, all children and adolescents in our care should have a bank account by age 8 or after 8 months in care.

What is financial literacy?

Financial Literacy is having the skills, knowledge and confidence to make responsible financial decisions. Being financially literate will help you decide how you will spend your money. It will help you understand the financial marketplace and will help you determine which products and services would best suit needs. If we are aware of our financial needs and plans we can easily manage personal finances, and plan long term events such as home ownership and retirement. As financial intellectuals we can mmaximize the use of the resources we have access to, including workplace benefits, private and public pensions, tax credits, public benefits, investments, home equity, and access to credit.

Some important financial information

  • Budgeting is a simple plan for your money which helps you identify the changes that have to be made within your spending and saving practices.
  • You can budget by listing your income, your expenses, debts, savings and also by creating short and long term financial goals.
  • A need is something we need for our daily life, whereas our wants are the styles and comfort that we desire
  • The safest place to keep your money is the bank
  • Cheque-cashing outlets such as money mart are places which provide cash pay checks money with a high interest rate and also cash advance on next pay cheque
  • Pawn shops charge high interest for loans, when the load + interest is repaid you get the collateral back
  • Compound interest is the interest paid on original amount plus any interest that is earned
  • It is not mandatory to have a job when opening a bank account
  • Internet banking is available 24 hours and can be accessed from anywhere in the world, however some WebPages may take time to download and also firewall may prevent you from accessing your account
  • Companies use guarantees, false sense of urgency, numerical claims and compare and contrast to other companies to manipulate audience to buy their product.
  • In order to build a credit history, pay your bills on time, try to pay your bills in full or pay the minimum amount by the due date.
  • Credit Cards help with big purchases such as vacation, cars. They allow you to get things on sale so you can save. There are bad things about credit such as interest being added on things if the credit amount is not paid off on time.
  • Interest rate is the rate charged for the use of money, which is calculated by dividing the amount of interest by the amount of principal.
  • Tip for smart credit use: Increase your credit score by paying your credit bill on time and also getting benefits and points on using your credit card travelling etc.
  • In order to get your first job volunteer, gain experience, perform internships if you are interested in a specific field.

Important Terms to remember

Benefit

Something that satisfies one’s wants

Buyers

People who purchase goods and services

Consumers

Person who buys goods and services to satisfy wants

Choice

Selecting or making a decision within two or more possibilities

Cost

Amount that must be paid or spent to buy or obtain something

Goods

Merchandise that you can buy or possess

Borrow

Obtain or receive something on load with the promise to return it

Capital Resources

Resources made and used to produce and distribute goods and services

Exchange

Trading a good or service for another good or service

Direct Deposit

Service that allows employer to deposit your pay into your account

Chequings account

Account for day to day transactions

Money Mart

A place where you can cash a cheque fast, but with higher fee

Debit Card

Card that allows you to access money electronically

Bank Book

A copy of all your withdrawals and deposits which you can get updated by the teller

Savings account

Account for short-term savings needs

On-line banking

A way to manage your money electronically through the internet

Financial Support for your colleges and universities:

OSAP: The Ontario Student Assistance Program (OSAP) is a mix of grants and loans for students. Through one OSAP application, you have access to this mix of different financial aid programs, depending on your circumstances.

Student Loans and Grants: Applying for the student loans and grants: http://www.canlearn.ca/eng/loans_grants/loans/apply.shtml

The Student Financial Assistance Estimator is an interactive Web application that can be used by students to estimate their annual student loan and grant amounts. Visit this site to access the SFAE: http://tools.canlearn.ca/cslgs-scpse/cln-cln/sfae-eafe/sfae-eafe-0-eng.do

Other areas of financial support:

Bursaries – Each year, Peel Children’s Aid Foundation provides bursaries to youth in care to support them to pursue a post-secondary education. Speak to your worker about how you can apply for one of these bursaries.

Scholarships www.scholarshipscanada.com
Student awards www.studentawards.com
Crown ward application fee reimbursement www.tcu.gov.on.ca


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