Risk evaluation (in relation to investments)

by Giana

When it comes to choosing an investment, there are some different factors that can contribute to whether the investment will be lucrative or not. Risk evaluation is the probability of you losing or gaining money on your investment. The main factor that will influence the risk of your investment and whether or not it will be rewarding is market conditions, including currency risk and political risk.

The risks you can take with your investments vary widely. The investments that have the lowest risk also give out the smallest gains, or none at all. The investments that have the highest risks have the potential to give out the biggest gains, but since they pose a higher risk, also have a potential for big loss. 

There are some things to take into consideration when you are trying to decide the amount of risk that you want to take with your investment. First, you should not be using the money that you need to live for investments. Depending on how much you have to invest, you might want to spread out your money into different investments, so if you do lose money, you will still have some elsewhere. Also, you might want to invest your money in different asset classes that have different amounts of risk (e.g., bank stocks, gold, real estate, cash and antiques). 

http://www.finra.org/investors/reality-investment-risk

http://www.finra.org/investors/reality-investment-risk

https://www.google.ca/search?safe=strict&biw=1366&bih=662&tbm=isch&sa=1&ei=eHkYW5irKoKwjwS2ooOgAw&q=market+risk+triangle+for+investing&oq=market+risk+triangle+for+investing&gs_l=img.3...42471.51459.0.51619.21.21.0.0.0.0.227.1590.20j0j1.21.0....0...1c.1.64.img..0.2.301...0i8i7i30k1.0.O9WZufaTA5s#imgrc=8YGyC9ZScr3mZM:

Loan calculators

By Natasha A loan is something that is borrowed, usually a sum of money, that is expected to be paid back with interest. Loan calculators help determine the monthly payments on a loan that need to be paid. Loan calculators can also be used for mortgage, auto, or other types of loans. The two loan calculators that I compared are Scotia bank and TD Canada trust.

Scotia bank:

-Scotia bank pros: •easy to understand labels •vast amount of options •very interactive •there is a therefore statement (a final statement that clarifies results) •no pop up ads •disclaimer that lets you know that the loan calculator may not be necessarily accurate -Scotia bank cons: •small print •no step by step instructions •the calculations may not be accurate Overall a good calculator, easy to understand labels and a therefore statement that makes the answer clear but this loan calculator does have small print therefore making it a little harder to read the labels making it harder to use the calculator.

TD Canada trust:

-TD Canada trust pros: •step by step instructions •useful links •disclaimer that lets you know that the loan calculator may not be necessarily accurate -TD Canada trust cons: •not many options for payments •no therefore statement (a final statement that clarifies results) •more difficult to understand •pop up ads Overall a good calculator, step by step instructions but this loan calculator is hard to use and is confusing therefore not easy for beginners to use. Both calculators are good and bad in different ways but personally I think overall the Scotia bank calculator is a better loan calculator. https://www.tdcanadatrust.com/loanpaymentcalc.form

Podcasts: Afford Anything vs. The Mad Fientist

By Natasha I decided to compare two different financial podcasts that give good financial advice and suggest the best one. -afford anything: -afford anything pros: -good introduction with music -answers questions -good audio -sound effects -gives disclaimers and let's listeners know important information, ex. She isn't a professional -knows important information -the podcast episodes have good titles that let listeners know what the episode is about -she states her opinion but doesn't let her opinion influence her answer -has sponsors -she gives a good final answer that is clear and easy to understand -does question and answer episodes to make sure she's answering everyone's questions -afford anything cons: -not a professional -most episodes are long Overall afford anything is a good podcast to use to get information and helpful financial advice. -The mad fientist: -the mad fientist pros: -background music in some parts of the episodes -good introduction with music -has special guests -gives good advice -tells stories -talks to people who are professionals or people who have experience -suggests books, blogs, and other podcasts that are helpful -the episodes have good titles -the mad fientist cons: -minimal swearing -doesn't give that much finical advice in episodes but still is a little helpful -some episodes are long Overall the mad fientist is a good podcast to use to learn a little bit of information and is a good way to pass time. Therefore I think afford anything is a better financial podcast because it is overall more helpful and is a better podcast.

The Side Hustle

by Gabby

The side hustle is something that many people now of days have taken upon themselves. There are many different reasons why someone might like to do this, for example to live out their dream of being an artist, or just to make a little extra cash. A side hustle is basically your second job, there are many benefits to having a second job, some may use it as a way to fulfill their lives in a way that they are not able to within their regular jobs, or as a lot of younger people may use a side hustle, to earn a little extra dough to make ends meet. There are obvious negatives to having a side hustle, for example stress, a lack of time, a lack of energy. At the end of the day, if having a second job is something you would like to do, it will most likely be beneficial to your bank account as well.

https://www.sidehustlenation.com

Timeline Vs. Intensity

by Gabby

Timeline vs. Intensity is the theory of how much time it will take you to reach your goal of your desired retirement fund in combination with the amount of your takehome pay you will need to put away annually vs. The intensity of the actual saving, for example if your stroll and take your time it will seem as if it's taking forever to reach your goal, and if you only give yourself a very short amount of time to reach your goal, you might feel very rushed and as if you need to obsess over the program in order to succeed. This program can be condensed or stretched out, depending on your take-home pay amount and the amount of time you allow yourself, and may be used for a variety of things such as a retirement fund, buying a new car, paying off student loans and so much more.

https://affordanything.com/timeline-vs-intensity/

Financial Blogs

by Gabby

The two financial bogs that I will be talking about today are Girls on the Money and Young and Thrifty. These two blogs are both financially focused and provide help people who are trying to get their foot in the door on their way to their financial journey. Girls on the Money is very homemade and personal, yet still provides helpful information, links to buy their book and to their social medias, where others can share their stories, recommendations and tips. On the other hand, Young and Thrifty is a very professionally made and well formatted website with an abundance of how to guides, blog posts, and links to their ebooks. Each of these blogs provide addiment amounts of guidance for anyone looking to find some, although I prefer Young and Thrifty because of the clean lay out, organized categories and separate how to guides. Young and thrifty provides valid information in a way that can be quick and easy for anyone to use, which I think that many people appreciate.

https://girlsonthemoney.com 

https://youngandthrifty.ca

Mortgage Calculator App

by Carol-Anne

I chose to conduct my comparison on two mortgage calculator apps.  The first app I looked at was called, ”Canadian Mortgage app”.  I mainly chose this one because it had a five-star rating.  The only one.  Most of the other ones had low or no ratings at all!  The second app I looked at was called, ”Mortgage calculator for iPhone -calc Pro”. 

    The calculator for iPhone -calc pro was exceptionally difficult to navigate.  I believe this is due to the fact that in the review for the app, it says it has a calculator for everything.  This makes it incredibly frustrating to try and figure it out. It would be easier if the app was organized better. However, I discovered that the app does have an entire section dedicated to financial aid.  The Financial Calculator contains 10 powerful calculator worksheets to help solve common financial problems.  Five display options: normal, scientific, fractions, engineering, and allow up to 2-10 decimal places.  Five calculator modes: simple, algebraic,
direct algebraic, expression, and RPN. Advanced graphing functions:
simultaneous graphs, find points on the
graph and show tangents, and allows you to copy or email them.  Supported Languages: English, German,
Spanish, Portuguese, French, Italian,
Dutch, Japanese, Simplified & Traditional
Chinese, Korean, and Russian.

However, the Candadian Mortgage app is currently featured by Apple, the Canadian
Mortgage App has been used over 4+
million times and ranks as Canada's #1
mortgage app.  The app allows you, the user, to easily calculate your total home
ownership cost, the stress test, compare
rates by national and regional lenders and
brokers, calculate land transfer taxes and
determine your affordability to the penny.  The app was very easy to navigate as well. Some simple features that made it easier would be:

. All Possible Payment Frequencies
. 2018 Stress Test Rules
. Minimum Down Pavment Calculator
Total Monthly Ownership Calculator
. Closing Cost Calculator
. Affordability Calculator
. Extra Payments Calculator
. Load and Save Multiple Scenarios
. Scenario Comparison (side by side)

. Real-time Mortgage Rates
And it even allows you the aability to apply with an expert on the app.  The calculations have also been
vigorously tested both mathematically
and physically against almost all available
mortgage calculators. It calculates at an
extended number of decimal places,
and uses specialized rounding as suggested by the European Commission. 

In my opinion, with the comparing of the two apps, I feel as though the Canadian Mortgage App was the best option overall. This is due to the fact that I found it easier to navigate and understand.  I like the fact that it has a lot of options with layouts. However, I don't like how they crammed so much into the app.  This applies to both of the apps that I looked at.  It felt too overwhelming and confusing. But if I needed to calculate mortgage, I would definitely recommend and use the Canadian Mortgage app.

 Calculator for iPhone - Calc Pro by Panoramic Software Inc.

Canadian Mortgage App by Bendigi Tech Inc

Challenge everything

by Carol-Anne

The saving idea called, “challenge everything” by J. Money.  It is his new mentality of challenging the “norm” and getting his expenses as low as possible without sacrificing his quality of life. For example, every month he would focus on a new bill or expense that has been status quo for years – which helped to determine what’s truly important now in his life. Things like cable, cell phones, cars, insurance, etc.

 He got his idea from this clip from a friend’s blog post:               
                                       
“The most important thing to note is that cutting your spending rate is much more powerful than increasing your income. The reason is that every permanent drop in your spending has a double effect: it increases the amount of money you have left over to save each month, and it permanently decreases the amount you’ll need every month for the rest of your life.”                             

That last line stopped him in his tracks: “it permanently decreases the amount you’ll need every month for the rest of your life.” This hit him hard for personal reasoning so he was inspired to save more and as fast as he could.

His Total [Monthly] Savings since Starting This Challenge:
·         Cell Phones: $112.58
·         Cable/Internet/Phone: $80.00’ish
·         Car Insurance:  $30.59
·         TOTAL: $223.17

He opened up a new separate savings account that allowed him to track it all over the next 12 months, along with other “extra” money I find/earn over time.

Here were his monthly balances:
·         Month #1 balance: $203.96
·         Month #2 balance: $406.60
·         Month #3 balance: $1,209.16
·         Month #4 balance: $2,029.81
·         Month #5 balance: $2,954.14
·         Month #6 balance: $3,442.39
·         Month #7 balance: $3,843.70
·         Month #8 balance: $4,097.22
·         Month #9 balance: $4,485.22
·         Month #10 balance: $4,738.13
·         Month #11 balance: $4,990.84
·         Month #12 balance: $5,484.07

UPDATE: MISSION COMPLETE!!!

He ended up saving over $5,000 saved in one year.  Here is a diagram of the saving experience:

Critique

Personally, I feel like this is a good idea for saving money quick and conveniently.  I believe this because, it feels like this guy earned a lot of his money by doing almost nothing but ridding himself of finances that he didn’t need.  It also seems like it wouldn’t be that hard to cut back on things if I just slowed down and payed more attention to what I spend my money on.  Finally, I feel as though it would be a lot easier than I may think because there are probably a lot of expenses I could cut back on easily without losing anything valuable.  Like cutting the data from my phone bill.  I rarely need it as I have school and home Wi-Fi.  Come to think of it, it is essentially pointless for me to have it.  In conclusion, I feel this saving idea is a smart, adaptable and convenient way that I, personally, could use.

http://www.budgetsaresexy.com/challenge-everything/

Comparing Regular Banks to Credit Unions

by Jenna-Mae

Regular banks and credit unions share similar services like auto loans, checking and savings accounts and mortgages. But the difference between them is that “customers” of a credit union are considered members and they own the institution. While regular bank accounts are simply a company. They aim to “maximize profits” for shareholders. Credit unions focus on the members needs and try to provide credit at reasonable rates.

There are multiple pros and cons for these services. For example credit unions typically pay higher interest rates on all deposit accounts including savings, money market and checking’s. While some online banks offer rates close towards credit unions, the rates range from four to ten times the amount in interest you’d receive from local commercial banks. Also offering lower fees, many credit unions provide checking accounts with minimum balance and without a monthly account service charge.

Some disadvantages to owning a credit union would be fewer options for different checking’s and savings accounts and Less host of loan and investment products. There’s also inconvenience with less locations, having less physical branches and a sub-par online banking system that also present poorly online services.

Financial gym

by Riley

Financial gym offers a one on one service to help you save your money efficiently and effectively. Financial gym has a three step process on help you save. Step 1 is meet your trainer, you sit down 1 on 1 with one of their trainers as they train you on how to save your money. Step 2 is get your plan, you and your trainer will create a plan that fits perfectly to you using simple and achievable tasks. Step 3 is work it out, basically this step is just your trainer keeping up with you to make sure that you are keeping up with your plan and are saving money. I think this is good it is personal and they make sure you are saving your money the whole time and they hold you accountable if you are not keeping up with your personalized plan.

https://www.financialgym.com/

Hardbacon

by Riley

Hardbacon is app for buying and managing stocks. I don’t know how common buying stocks is with people now a days but the app seems simple and easy to use it is an apple devices only app right now. The app is very advanced and claim that it can set you up with something called a robo-adviser I’m not sure how helpful that may be compared to an actual person helping you. I think this app isn’t going to last it may be easily accessible and always with you but I think buying stocks is just too complicated for an app to handle. It is just smarted for people to do this kind of stuff face to face with someone. 

https://hardbacon.ca/

Pay Yourself First

by Riley

Pay yourself first is a phrase commonly used in personal finance and retirement planning it means to automatically route a specified saving contribution from each paycheck to the time it is received. Pay yourself first doesn’t refer to earning money but refers to saving money. Basically you are taking out your own sum of money and putting it into a retirement fund or any kind of fund with no middle man. This method helps with people who don’t save enough for retirement or an emergency fund. Personally I think this is a good method it makes sure you have money in those funds whether it’s emergency or life insurance or your 401k. The pay yourself first simplified is just put money in to your funds before you pay for your bills.

 https://www.investopedia.com/terms/p/payyourselffirst.asp 

Saving is Sexy

by Riley

This article states that men that spend more money on first dates have better dating success but are more likely to go home alone compared to savers who are more desirable romantic partners. The article also says those who are savers are much calmer and more likely not to cheat or drink too much when at bars. This article has zero evidence to prove any of their findings are true.  I didn’t like this article it had zero financial aid it just tells you that if you want a long-term relationship be a saver if you want a short one night stand kind of thing than be a big spender. For me this is not helpful and complete irrelevant to budgeting money.

http://www.humbledollar.com/2018/04/saving-is-sexy/

Retirement

by Riley

When thinking about retirement you have to decide if u are going to save for your retirement or get a pension. A pension plan is a sum of money added up during your employment period, these payments are drawn to help with life after work. A pension is either a “defined benefit plan” or a “defined contribution plan”, a defined benefit plan is a fixed sum is paid regularly to a person, a defined contribution plan is a fixed sum of money invested then becomes available at retirement age. Pensions should not be confused with severance pay. Saving for retirement could just be saving with a bank with a certain fixed number or investment rate of whatever you decide.

https://en.wikipedia.org/wiki/Retirement

https://www.canada.ca/en/financial-consumer-agency/services/retirement-planning/start-saving-retirement.html

OSAP

by Kristy

          OSAP stands for the Ontario Student Assistance Program. OSAP assists students in paying for their post-secondary education, for those that need the financial help.

          OSAP offers two types of funding. OSAP offers grants, which is money that the student is not required to pay back. OSAP also offers student loans, which is owed back to OSAP once the student is finished school.

          Almost everyone is eligible for OSAP, including Canadian citizens, permanent residents and protected persons. Unfortunately, you are not eligible for OSAP if you lack the academic requirements, have enough financial resources, the income given on your OSAP application is significantly different from what you reported to the Canadian Revenue Agency, you have defaulted a student loan, have bursary or grant overpayments or significant loan overpayments, failed a credit check, declared bankruptcy or you have reached your limit of student loan funding (limits given below).

Ø 340 weeks of funding

Ø 400 weeks of funding for doctorial studies

Ø 520 weeks of funding for students with disabilities

          OSAP tries to help with as much as they can. OSAP helps pay for tuition, books, mandatory student fees that a school may charge, living expenses for full-time students and child care for students with children.

          When OSAP accepts your application, you are guaranteed to get some sort of financial help. How much money you receive depends on education expenses, the course load and your personal financial situation.

          OSAP is a huge support for students who want to continue their education into post-secondary. OSAP gives thousands of students every year the opportunity to get the education that they want to have.

Link to source: http://www.ontario.ca/page/learn-about-osap

Bonds

by Kristy

          Bonds are issued by corporations and governments in order to raise the amount of money that they have. When you purchase a bond, you’re giving the issuer a loan. The issuer is required to pay you back the value of the loan you gave them on a certain date, and typically in certain periods.

          If you’ve ever purchased a government savings bond, you’ve become a debtholder/lender/creditor to the federal government. Same goes for big or small businesses; if you’ve ever bought a bond from one, you now are the lender, and they now owe you money.

          Bonds are extremely important, because they provide a steady and secure source of income for the lender, and they also support the issuer in what they need the money for. For example, you purchase a bond for $1000.00, and has a 5% interest rate. Twice per year, you will receive $25, for as long as you are the owner of the bond. At the end of your bonds “life”, you will get the initial $1000.00 back as well.

          When a bond is purchased, there is still a risk of inflation. Inflation is the risk that the money you get back at the end of your bonds life isn’t worth as much as when you originally bought the bond. The higher interest rate, the more chance of inflation there is.

          Bonds are more beneficial then not. They provide a steady source of income (not enough to not have a job though), and they help governments, businesses, etc. to stay in tack.

Link to source: http://www.investopedia.com/university/bonds.1.asp

Make and Follow a Budget

By Lauren

Making and following a budget can either be very simple for people or can be really hard for people to do. Some people like to not follow any sort of budgeting and some like to make and follow a budget in their everyday life. Some advantages of budgeting include, knowing what your money is going to, how much you’re spending on items and it can keep you focused on your money goals or something you plan on buying but need to save up for. Some disadvantages of making and following a budget would be the commitment it takes, you have to really commit to doing this as it can be tempting to spend money at certain points. It also can take some time to get into the rhythm of following the budget you set for yourself. I think the whole “make and follow a budget” is more a rule than a myth. I wouldn’t say it’s a rule everyone needs to follow but for some people this can be really useful and helpful. I would definitely recommend people to make and follow a budget if they’re trying to save up for something or if they would like to spend less money than they already are. I think this can be really useful for people who need it and are planning on saving for something as it can also be a reminder to stay committed to get what you want in the end. Therefore I believe everyone who is worried about the money they’re spending or anyone who would better like to see where their money is going to should definitely make a budget and follow it.

https://www.payoff.com/life/money/5-simple-steps-to-create-a-successful-budget/
https://www.mappingyourfuture.org/money/budget.cfm

Mortgages (what will the house really cost)

By Lauren

If you’re at the point in time where you want to buy your first house then using the TD mortgage affordability calculator may help you out. When you first go onto this site it asks you where you’re currently living or where you want to live, after that it then asks you what kind of home you’d like to live in. The last few questions ask you about how much you make yearly, how much you spend on other expenses and then how much you spend on like cars, credit cards etc. After you have answered all of the questions it tells you that you may be able to buy a new home up to however much they think you can afford. At the bottom of that same page it tells you how much you would roughly spend on the mortgage payment per month, it shows you other housing costs, and how much remaining cash you will roughly have every month. This calculator really helps people who are just starting out, especially when buying their first home. I would definitely recommend this calculator to anyone buying their first house.

https://tools.td.com/mortgage-affordability-calculator/?cm_sp=:MICROSOFT:Affordability+Calculator+-+Generic+%2818_S_RL_RMO_AO_ACQ_EN_GEN%29:MORT:Mortgage+Calculator+-+Broad/

The Money Jar

By Abbie

The purpose of the money jar is to help you handle your money better.  How often you put money in and how much is totally up you.  With a jar holding your money so that you can actually see how much you have, it makes it easier to make financial decisions.  You need to be smart when you're spending, and this jar helps you keep track of your money easier.  It's a wonderful budgeting idea for those who have never found another way that works for them.  If you try it and it's not for you, at least you know you gave an attempt. 

One really cool things about these jars is that it's close to home.  Years ago, back in the 30s, when society was going through the Great Depression they lost a lot of their money.  Many still have trust issues with the banks because of that, so when it comes to this jar, you have the money safe at home with you.  Now that's not to say you can't have bank account open, but at least you have money on the side in case something happens.

Now there's always ways it can go wrong.  Like, people can just reach into this jar and take your money with ease (as long as you and/or your family aren't watching) and the jar is fragile so it can be broken.  A thief could come in a take the jar easier than if it were a safe as well.  Overall, however, I think it's a pretty good idea and the concerns I mentioned above aren't very likely anyway.  Just be careful and if you're really worried, put it somewhere safe where you and your family can get to it easily.

http://www.gailvazoxlade.com/articles/budgeting/magic_jars.html

Minimalism

by Ben

The word minimalism has many different meanings. It can describe a lifestyle, a form of art, architecture and design. A person with minimalist lifestyle has a goal of clearing the clutter from their life and living with minimal possessions. They try to only own things that they need to survive and that are very important to them. Minimalism in an art form is abstract with a lot of geometric shapes. There isn’t much detail and is very simple. Minimalism in architecture strives to be simplistic with basic geometric shapes. It tends to look modern with straight lines and clean edges. In my opinion I think minimalism is a good idea because I hate clutter and love simple and modern aesthetics. Also it’s a good way for people who have a hard time getting rid of things and have a tough time letting go. It’s also a huge money saver because you buy a minimal amount of things. I think it’s a good movement because it teaches people you don’t need a lot of commercial items to live a happy life.

        

Here’s an example of a simple minimalistic house.

Retiring on a Pension Plan

By Abbie

A Pension Plan when you regularly (like perhaps monthly) place money into a savings account for when you retire.  It's something that you definitely want to start as soon as possible so you can get a good sum of money when you're done.  A defined benefit plan and a defined contribution plan are the two different kinds of pension plans. 

The defined benefit plan makes sure you have a certain amount of money regardless of what you have invested.  They generally base this on age, salary, and how long you've been with the company.  It assures you have a certain amount of money monthly.  This plan is costlier for businesses so many are switching to the defined contribution plan.  Railroads and airlines are two that used this plan and today are struggling so they had to stop, unable to afford it.

For the defined contribution plan you just put your own money in.  However, you control the sum going into the defined contribution plan, so although it might sound harder, it's probably better.  Often the defined benefit plan doesn't leave you enough money to live comfortably after you have retired.  It's also just less of a risk for companies to leave your retirement fund up to you to work out, because if they promise you that they'll give you a certain amount of money monthly, they must provide you with it.

https://www.investopedia.com/articles/retirement/06/retirementforminors.asp

https://www.thebalance.com/what-is-a-pension-plan-2385771

http://time.com/money/collection-post/2791222/difference-between-defined-benefit-plan-and-defined-contribution-plan/

https://www.money-rates.com/personal-finance/employee-pension-plans-disappear.htm

The Shockingly Simple Math Behind Early Retirement (from Mr. Money Moustache)

By Giana

The higher the percent of savings you put away from your take-home income the sooner you will be able to retire. If you live on 35% and save the rest (65%) of your take home-income you can retire in 10 years. That means living on 35% in your retirement as well. The 65% savings is then invested, growing your savings exponentially.This takes care of unexpected emergencies.

Making adjustments to you daily routine such as biking, making coffee at home and using community resources can add years to your retirement. It isn’t about making more money but saving the money you do have. Spending all your money as soon as you make it is pointless, save your money and work less.

I think everyone should have the opportunity to read this article before they’re 20. It shows a clear picture on how valuable saving is.  It really is Shockingly Simple.

https://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/

Financial Independence (aka early retirement)

by Madison

The article I read on this topic was called The Basics of FIRE (Financial Independence and Early Retirement) FIRE is having the freedom to decide whether or not you’d like to continue working. This focuses less on the actual early retirement part of things and more on the financial independence. To achieve financial independence it takes a lot of time and dedication.

“Early retirement is less for people who hate their jobs and more for those who have a clear idea of a different lifestyle or goal they may like to pursue.” The article also said if you’re doing this because you hate your job than you’re more likely to be bored at home during your retirement. “A good reason to retire early is that you have an alternative vision for your life that you are eager to pursue but you can’t pursue while employed full time”

Now, how do you accomplish financial independence you might ask? The article talks about how you must cut back on spending (of course) but for this to work it is also necessary that you have a decent income. Spend less than you earn and save the difference in an investment fund.

https://twocents.lifehacker.com/the-basics-of-fire-financial-independence-and-early-re-1820129768

Interview With My Grandparents

By Kristy

          My grandparents have always been huge inspirations to me. From how they raised their family, how they stay in shape at the prime ages of 73 and 76 and how they can save money. They both started with nothing, and now have lives that they never dreamed on having, and I praise them for that.

          As soon as my grandparents married at 17 and 19, they began to save money right away. My grandfather was always concerned that his family wouldn’t have an emergency fund, so he saved as much as he could. Having an emergency fund was something my grandfather told me was extremely important to have. One day, you could lose all the money you have. Having an emergency fund would help you somewhat remain on your feet.

          When you get your first job, my grandmother told me is the perfect time to start saving. Of course, it’s tempting to spend your first few paychecks, because there’s money in the bank that is now yours to spend. But, my grandmother told me to start saving even from the first paycheck. When you start to save right away, it won’t be hard to do later on.

          The way my grandparents saved their money the best was to have a payroll deduction if you have the option. That means that on your paycheck, an amount of pay is taken out and deposited into your bank account. They also said that having a savings account is important, as long as you don’t touch it. If you spend it, it defeats the purpose of a savings account.

          I asked my grandparents what advice they could give someone my age on saving money. They said that saving some of your weekly/biweekly paycheck is extremely important, and to never spend more than what you earn.

          Because of saving money, my grandparents went from having little to having a fair amount. They can take trips, they live in a home and they can afford extra things because they saved money.

Mutual Funds

by Lauren

A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. Some investors may be retail or institutional. Advantages of mutual funds are that they provide economies of scale, a higher level of diversification, they provide liquidity, and they are managed by investors who are professional. Disadvantages is that the investors in a mutual fund must pay various fees and expenses. When you buy a mutual fund, your money is then combined with the money from other investors, which allows you to buy part of a pool of investments. For some people mutual funds may not be for them as there are multiple fees you have to pay, like sales charges, fees and expenses regardless of how the fund performs, even if the fund has a negative outcome. Also with mutual funds the fund’s holdings are only known to investors at certain points in time, which means you don’t have any influence or control over specific investment decisions made by the portfolio manager which some people may not like. Therefore if you’re interested in investing then I would recommend doing a mutual fund.

https://www.investopedia.com/terms/m/mutualfund.asp
http://www.globefund.com/centre/GettingStarted02.html
https://www.google.ca/search?q=advantages+and+disadvantages+of+mutual+funds&rlz=1C1GGRV_enCA751CA751&oq=advantages+and+disadvantages+of+mutual+funds&aqs=chrome..69i57.11246j0j4&sourceid=chrome&ie=UTF-8

Stocks

By Natasha

A stock is a general term used to describe the ownership certificates of any company. A share refers to the stock certificate of a particular company, holding a company’s share makes you a shareholder. There are two types of stocks: 1. Common stock: common stock is shares entitling their holder to dividends that vary in amount and may even be missed, depending on the fortunes of the company. The main reason people invest in common stock is for capital appreciation. They want their money to grow in value over time. An investor in common stock hopes to buy the stock at a low price and sell it at a higher price at some point in the future. 2. Preferred stock: preferred stock is a stock that entitles the shareholder to a fixed dividend whose payment takes priority over that of common stock dividends. Preferred shareholders are legally entitled to receive a certain level of dividend payments before any dividends can be issued to other shareholders who have a common stock. There is also something like preferred stock that is called convertible preferred stock. This is basically a preferred stock with an option of converting into a fixed number of common shares, usually any time after a predetermined date. The stock market is a very important part of the economy of a country because it issues shares for the investors to invest in the stocks a company needs to get listed to a stocks exchange and through the primary market of the stock exchange they can issue the shares and get the funds for business requirements. Stocks offer the most potential for growth. American stocks have consistently earned more than bonds over the long term, despite regular ups and downs of the market. That’s why investing in in stocks, exchange traded funds (ETF), or stock mutual funds is important when saving for retirement or other far-off goals you need money for.

Stocks: https://www.investopedia.com/university/stocks/stocks1.asp https://www.investopedia.com/terms/s/stockmarket.asp

Robo Advisors

By Abbie

There used to be two options when you were dealing with financial issues.  You could either do it yourself or hire a FIA (Financial Investment Advisor).  An FIA would be great if you had a ton of money, but if you're young and/or have a low net worth, it's not ideal.  Basically, robo advisers do what a human advisor does, but for less money.  Now there are still things that humans do better, like answering tricky questions, but since it's cheaper it's worth it.  Despite this, robo advisers can manage more accounts than a human can, so really it there's are pros and cons just like with everything else.  Besides, today we have the internet we can go to for any questions we may have, and while sometimes people online can lead you wrong, there's a lot of information to be found.  People are also greedy at times, so working with humans isn't always the easiest to do.

I like the idea of working with a robo advisor instead of a human one.  It's likely less awkward than dealing with a real person and it's cheaper.  I think it's lack of ability to answer certain questions can be fixed by looking for help online, and that's really the biggest downside that I found.  It seems a lot less confusing, too, and great for those just beginning to deal with finacial issues.

http://www.businessinsider.com/what-are-robo-advisors-2017-9

https://investorjunkie.com/35919/robo-advisors/

The Four Types Of Expenses (from Budgets are Sexy)

by Alex

According to Nik Halik, there are 4 types of expenses, all of which are good, except one. The four types of expenses are as follows;

Lifestyle Expenses

Lifestyle expenses are expenses such as; eating out, vacations, concerts, entertainment, and road trips. These are practically memory building costs that involve other people. They are all good, but only in moderation.

Protective Expenses

These costs are associated with protection of important things in life, such as; health, house, cars, and businesses. This also includes all insurances; car, life, house, and disability. Also, this includes an emergency fund to protect you from falling into debt. This type is also good, but much easier to manage if you are wealthy.

Productive Expenses

These costs are those that improve your life, especially long term improvements. This includes education, career, investments, and/or anything that you need to spend money on to earn money.

Destructive Expenses

These are the worst type of costs. This includes bad habits, credit card debts, and anything else that makes you spend money for nothing in return.

All information attained from; http://www.budgetsaresexy.com/4-types-of-expenses-not-all-bad/

Net Worth

By Giana

Your net worth is the amount of money you have plus how much you stuff cost (assets) minus how much you owe (liabilities).

Calculation:

list assets with estimated value of each item

list liabilities and the outstanding balances

total assets - total liabilities= net worth

Net Worth Calculation Website

https://www.getsmarteraboutmoney.ca/calculators/net-worth-calculator/

Net Worth App

https://itunes.apple.com/ca/app/wealthplus-net-worth/id933534901?mt=8

Downloadable Net Worth Spreadsheet

https://templates.office.com/en-us/Net-worth-calculator-TM01018308

Your net worth is the money that you have. It is your pay cheque after all deductions are made. Deductions may include mortgage, taxes and debt. A person’s net worth is the amount of money they actually have after everything has been payed off. It is their available means.

http://www.schwabmoneywise.com/public/moneywise/essentials/goals_budgeting/personal_net_worth

Spaving’s account

by Madison

Spaving, from my understanding, is having an account and keeping track of any money you were planning to spend, but didn’t or any coupons or deals and putting the money you saved into a spaving’s account. For example, if I were planning to get 2 new bathing suits, $12.95 each and then I decided to only get one of them, I’d have $12.95 spaved because of the money I changed my mind on spending!

The goal of the account is to encourage you to save so your account can continue to grow. If you know that there’s an account for every time you don’t spend money, you’ll avoid spending it so that account can grow.

The person that wrote the article on this had $35.68 in their account after two weeks from things like, getting a dollar off their coffee, buying the cheaper product of two, changing their mind on buying things, etc.

I’m considering opening my own spaving’s account and it seems like it may be a good idea for others to try as well

http://www.budgetsaresexy.com/spavings-savings-account/

Buying vs. leasing a car

By Kristy

Buying and leasing a car

Both have their pros, and both have their cons. Depending on your financial income or even if you travel frequently, buying or leasing a car may be best for you.

Leasing

People often lease a car when they have a steady and reliable income. If you decide to lease a car, your monthly payments will typically be lower than an auto loan. When you lease a car, you are always protected by a warranty, and you don’t need to worry about trading or selling a car. But, if you lease a car, you can only drive so many kilometres. You also need to consistently and properly maintain the car in good condition. Overtime, you will pay more for leasing the car rather than buying.

Buying a car           

Buying a car also has its pros and its cons. When you purchase a car, you have ownership of it. Which means you can drive as far as you want to, and you can customize it however you’d like. You can build-up the trade in or resale value, and you are at no risk for lease end charges. But, there will be higher monthly payments. There is a risk of an unexpected post-warranty repair cost, and you are personally responsible for trading and selling the car if desired.

In the short term, leasing a vehicle does seem cheaper, and a better idea overall. But, in the long term, buying a car is much more beneficial for most individuals.

Link to source: http://thebalance.com/pros-and-cons-of-leasing-vs-buying-a-car-527145

Minimalist Finance

By Giana

Minimalist finance is all about making things as simple as possible. Straightforward and uncomplicated.

That means:

•      One savings account, one chequing account, one retirement account and only one credit card.

•      Pay in cash for everyday purchases and only use a credit card for big purchases with refundable circumstances.

•      Toss your paperwork, only save paperwork that is 100% important. Of the little paperwork you have it will be simple. If your money is simple your paperwork is simple. 

•      If you’re not debt free become debt free. Debt is one more weight on your shoulders. By making a plan to eliminate your debt, stress will dwindle and eventually be gone!

•      The least number of payments the better. Don’t pay for things you hardly use.

•      Only have one or two financial goals at a time to make them obtainable.

•      Rent instead of own. Renting cuts obligations by reducing the number of payments. Rent also includes maintenance and upkeep which further reduces fees.

https://www.becomingminimalist.com/simplify-finances/

Passive income

By Natasha

Passive income is income resulting from cash flow that is received on a regular basis that requires minimal to no effort at all by the recipient to maintain it. The American IRS (international revenue service) categorizes income into three different groups: active income, passive income, and portfolio income. Passive income is taxable, what many people don't know is the difference between ordinary income and passive income. The federal government taxes ordinary income up to 35% and passive income at 15%. You can get passive income by government benefits, rental property earnings, pension, etc. Passive income is important because it's an easier way to make money that isn't active income and it helps people be financially stable because it's a reliable source of income. You also get to keep more passive income because it's taxed a lot less then active income.

Passive income: https://www.investopedia.com/terms/p/passiveincome.asp https://en.m.wikipedia.org/wiki/Passive_income

Interviewing an old Person

by Alex

Interviewing an old person about retirement is, in my opinion, a bad idea. But, for those that actually going to interview that old person, here are some questions to ask them.

1.      When did you start saving for retirement? An answer you might receive is maybe around the age of 18-30. Typically around that age does it set in that retirement is approaching.

2.       Did the retirement savings help you post-retirement? The answer for this question might be a little more complicated. For example, you need to take pension into account, and all expenses that need to be paid.

3.       Did you have any plans for post-retirement? The answer for this might be a bit long… like a whole bucket list and reasons for the items. An answer might include going on a long vacation, skydiving, or any other crazy stunt. Or, you might get a no for an answer. Maybe this person just wants to live out life after they retire.

And so, if you actually want to interview an old person about retirement, those are some questions to ask.