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

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.

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

Calculating Budgets

By Kristy

Budgeting is not easy. It’s hard to know where to start, how to start, and what to use. Spreadsheets are extremely beneficial in budgeting, because they help keep all of your cost, payments, and savings all in one place, where you can adjust it at any time.

1)

https://docs.google.com/spreadsheets/d/1RJBOzs78YE9NkTg2Q43eMnhV3T2tlNDIgN3la-ONneo/template/preview?usp=drive_web

          This spreadsheet looks complicated, but overall makes things much easier for you. After part of the template are filled, a graph is shown to give you an idea of where you are for budgeting, and how it can be improved or stay steady.  For anything you spend money on, there’s a category for it on this template. You’re able to add anything else you need to, in order to see exactly how you’re spending your money. Each month, you can start a fresh spreadsheet so you don’t need to work about deleting all that you had prior to that. All that you do is you fill in what you’ve spent money on in the spreadsheet, a graph is shown and you are able to see what could be improved or kept the same in your budgeting.

2)

https://docs.google.com/spreadsheets/d/1D4bmsJN_66DGfVFbaGcbhFGXoymhScTdIRSe6LZR3tM/edit#gid=0

          This spreadsheet is very simple to use. All you do is you fill in what you’ve spent on the given categories, and the math is almost all done for you. Your start balance, end balance, how much you saved this month and your increase in total savings are all included in this spreadsheet. Like the first spreadsheet, there are visuals as well for those who understand visuals more than numbers.

Budget Calculator

http://www.youcandealwithit.com/borrowers/calculators-and-resources/calculators/budget-calculator.shtml

          To use this budget calculator, you plug in estimated amounts, or specific amounts in all categories that apply to you. In the end you will be able to see if you are under budget or over budget.