1 of 98

Financial Literacy Information Session

2 of 98

Agenda

Plan to Earn

Reality Cheque

Where Does the Money Go?

Pay Yourself First

Saving for Life

3 of 98

JA NEWFOUNDLAND AND LABRADOR

A registered charity

More than 130,000 students have participated in JA programs since its inception in the province in 1985

Approximately 300 active volunteers province-wide

Deliver programs to students free of charge

Purpose: to inspire and prepare young people to succeed in a global economy.

4 of 98

JA Company Program

Groups of 10-15 high school students
Business Mentors
21 weeks long
After school
Start and manage a business

5 of 98

JA Company Program

Entrepreneurship
Planning
Marketing and sales
Public speaking and communication skills
Leadership abilities
Networking opportunities
Boosts confidence

You’ll learn a lot of different skills while participating in company program. Entrepreneurship obviously because it is a business program - but this is a good skill to have in your back pocket even if you don’t think you want to start a business. You may work in trades for a few years before deciding you’re tired of working for other people - with some entrepreneurial experience you can be your own boss, decide what jobs you do, how much you charge, your hours etc.

You’ll also learn planning, including how to write a business plan.

You’ll learn about marketing and sales, which like entrepreneurship can be more widely useful than you think - a job interview is just you marketing and selling yourself and your skills.

You’ll have the opportunity to practice communication skills, and public speaking if you wish

You’ll learn new leadership skills from others with experience

You'll have opportunities to meet other students as well as adults from the local business community

It’s a great boost in confidence. This one may sound a little silly, but it is very satisfying to create something from your own idea that people want so bad they’ll pay you for it! Creating your own income and business is a great accomplishment.

6 of 98

Why become an entrepreneur?

Freedom to be your own boss
Execute your own ideas
Contribute to society
Develop personal accomplishment
Make money
Create jobs for others

7 of 98

Brainstorm a product or service

Elect a management team

Buy shares in your company

Produce & implement your idea

Market & sell your idea for real money

Liquidate your business and keep the profits!

Inspire

Unite

Build

Launch

Achieve

Develop and finalize the business plan

8 of 98

JA COMPANY PROGRAM BUSINESS PLANNING

Weeks 1-6

9 of 98

JA COMPANY PROGRAM - PRODUCTION

10 of 98

JA COMPANY PROGRAM - PRODUCTS

11 of 98

JA COMPANY PROGRAM - TRADE FAIR

12 of 98

JA COMPANY PROGRAM AWARDS AND SCHOLARSHIPS

National scholarships and awards are available

JA Company Program Awards

JA Business Hall of Fame

Co-emcee Award

13 of 98

JA COMPANY PROGRAM AWARDS AND SCHOLARSHIPS

14 of 98

JUNIOR ACHIEVERS AT JA BUSINESS HALL OF FAME

15 of 98

JA COMPANY PROGRAM – WHY DO IT?

To make new friends
To learn about entrepreneurship and a variety of business skills
To learn more about yourself and build your confidence
To meet business mentors in your community
It looks good on your resume. JA’s company program is well-recognized and highly regarded.
To earn a small wage
It’s free; it’s a phenomenal opportunity and it’s FUN!

16 of 98

JA COMPANY PROGRAM – Q&As

Do I need experience?

No! You learn, grow, and

have fun with JA Company Program!

Who can take part in the program?

Anyone in High School!

17 of 98

JA COMPANY PROGRAM – Q&As

What kind of products can you make and sell?

What kind of responsibilities will I have?

You can choose what’s right for you! If you enjoy a lot of responsibility, you can run for one of the VP positions. But there are other important roles too.

18 of 98

JA COMPANY PROGRAM – Q&As

Do I need to have a product idea to join?

No! That’s why we brain-storm. Feel free

to let people know if you have an idea though.

Who will be in my company?

There could be anyone from any high school in the area.

19 of 98

JA COMPANY PROGRAM – Q&As

How much does it cost?

Nothing! It’s free!

When does it start?

Late October

College of the North Atlantic, Prince Philip Drive

20 of 98

Raise your hand if you feel you currently understand:

What the difference is between working for a business and being an entrepreneur

The fundamental reasons a business plan is important

The difference between a social enterprise and a non profit

Why networking is important for entrepreneurs

21 of 98

Plan to Earn

22 of 98

Classroom Question

Over the next 2 minutes discuss as a class

What are some things that might happen in your life that will cost money?

Teachers please put answers in the chat.

23 of 98

Classroom Question

Over the next 2 minutes discuss as a class

What are some things that might happen in your life that will cost money?

Teachers please put answers in the chat.

<<2:00>>

24 of 98

Classroom Question

Over the next 1 minute discuss as a class

What do you think is the single best predictor of your future income in life?

Teachers please put answers in the chat.

25 of 98

Classroom Question

Over the next 1 minute discuss as a class

What do you think is the single best predictor of your future income in life?

Teachers please put answers in the chat.

<<1:00>>

26 of 98

5 main factors that impact finances

Earning income

27 of 98

28 of 98

29 of 98

30 of 98

31 of 98

32 of 98

5 main factors that impact finances

Earning income
Becoming a couple

33 of 98

5 main factors that impact finances

Earning income
Becoming a couple
Starting a family

34 of 98

5 main factors that impact finances

Earning income
Becoming a couple
Starting a family
Property ownership

Rent vs. Home Ownership - pros and cons. Ask the students if they can list and pros for either buying or renting, and discuss. Point out any of the below that students don’t touch on.

Rent - relatively carefree in terms of additional expenses but you do not build up any equity as property ownership does. Not responsible for maintenance on the property, but not able to make big changes. More flexible for if you might move, because a lease is usually a year max.

Property ownership often requires getting a big loan, or mortgage - this can have a huge impact on our finances. It’s a higher barrier to entry but you then own something that’s very valuable. You can do whatever you want with the house, but any problems that need fixing are your responsibility. It’s also a big commitment, and it’s not as easy to up and move when you own a home.

35 of 98

5 main factors that impact finances

Earning income
Becoming a couple
Starting a family
Property ownership
Everything else

36 of 98

37 of 98

Classroom Question

Over the next 2 minutes discuss as a class

What are some things YOU will have to spend money on in the next few years?

Teachers please put your students answers in the chat.

38 of 98

Classroom Question

Over the next 2 minutes discuss as a class

What are some things YOU will have to spend money on in the next few years?

Teachers please put your students answers in the chat.

<<2:00>>

39 of 98

Classroom Question

Over the next 2 minutes discuss as a class

How do you think your income level might affect your life and future?

Teachers please put your students answers in the chat.

40 of 98

Classroom Question

Over the next 2 minutes discuss as a class

How do you think your income level might affect your life and future?

Teachers please put your students answers in the chat.

<<2:00>>

41 of 98

Reality Cheque

42 of 98

With each paycheck you receive, you will also get a Statement of Earnings like you see below. This is sometimes called a paystub. It will be attached to your paycheck or to a direct deposit statement if you have this payment option.

Statement of Earnings
Employee		Employee ID		Pay Period
Kim Yee		1234566789		01/06/24 - 15/06/24
Earnings	Hours	Rate	Gross Pay	Deductions
001 Basic Pay	40.00	$15.60/hr	624.00	Income Tax	49.92
				E.I.	3.96
				CPP/QPP	8.23
Gross Pay		Deductions		Net Pay
624.00		62.11		561.89
The hourly wage rate is based on Newfoundland and Labrador, 2024. Minimum wage differs from each province and territory.

43 of 98

On the left, you will see how many hours you worked, your hourly rate, and the total amount you have earned for the pay period. This amount is called gross pay.

Statement of Earnings
Employee		Employee ID		Pay Period
Kim Yee		1234566789		01/06/24 - 15/06/24
Earnings	Hours	Rate	Gross Pay	Deductions
001 Basic Pay	40.00	$15.60/hr	624.00	Income Tax	49.92
				E.I.	3.96
				CPP/QPP	8.23
Gross Pay		Deductions		Net Pay
624.00		62.11		561.89

44 of 98

On the right, you will see the amount of money deducted from your pay for taxes, such as:

Income Tax
Employment Insurance
Canada Pension Plan/Quebec Pension Plan (CPP/QPP)

Statement of Earnings
Employee		Employee ID		Pay Period
Kim Yee		1234566789		01/06/24 - 15/06/24
Earnings	Hours	Rate	Gross Pay	Deductions
001 Basic Pay	40.00	$15.60/hr	624.00	Income Tax	49.92
				E.I.	3.96
				CPP/QPP	8.23
Gross Pay		Deductions		Net Pay
624.00		62.11		561.89

45 of 98

When you subtract the deductions from your gross pay, you are left with your net pay, which is shown along the bottom of your Statement of Earnings. This is the amount you take home.

Statement of Earnings
Employee		Employee ID		Pay Period
Kim Yee		1234566789		01/06/24 - 15/06/24
Earnings	Hours	Rate	Gross Pay	Deductions
001 Basic Pay	40.00	$15.60/hr	624.00	Income Tax	49.92
				E.I.	3.96
				CPP/QPP	8.23
Gross Pay		Deductions		Net Pay
624.00		62.11		561.89

46 of 98

Classroom Question

Over the next 2.5 minutes discuss as a class

What happens to the money that’s deducted for income tax from your paycheque?

Teachers please put your students answers in the chat.

47 of 98

Classroom Question

Over the next 2.5 minutes discuss as a class

What happens to the income tax that’s deducted from your paycheque?

Teachers please put your students answers in the chat.

<<2:30>>

48 of 98

49 of 98

50 of 98

51 of 98

52 of 98

Saving for Life

53 of 98

Pay Yourself First

54 of 98

Classroom Question

Over the next minute discuss as a class

What are some places you can keep your money?

Teachers please put your students answers in the chat.

55 of 98

Classroom Question

Over the next minute discuss as a class

What are some places you can keep your money?

Teachers please put your students answers in the chat.

<<1:00>>

56 of 98

There are lots of places to keep your money, but the best options are:

A bank account
A tax free savings account (TFSA)
A registered retirement savings plan (RRSP)

Besides putting your savings into a savings account, you can also invest them.

57 of 98

Tax Free Savings Account

A TFSA is a special type of account that lets Canadians invest their money, earn money on those investments, and not pay any taxes when withdrawn

It works by letting your money grow long-term without you having to pay tax on the earnings you make on your deposits

A TFSA can be spread out across several different accounts, including investment accounts and mutual funds

You are limited to how much money can be added to the account each year. Anything over your contribution limit will be taxed. Current limit is $7000/year

58 of 98

Registered Savings Plan

May be set up for education, retirement, first home purchase, and more

Plans vary in how they work, but gains are typically not taxed until the money is taken out

Contributions to certain registered savings plans are deducted from your taxable income - meaning you pay less taxes while earning the same amount of money

A savings plan may be opened for yourself or on your behalf by someone else. Your parents may have an RESP set up for you

No contribution limit (unlike TFSA)

Gains are taxed (unlike TFSA)

59 of 98

Make Your Money Work

Interest is money earned on money saved/invested. You’ll earn interest in most cases when it comes to TFSA and RRSP.

However, not all interest is created equal.

You may find that you are earning either simple or compound interest, and there is a big difference between the two

Simple interest in earned on the initial amount, or principal, that you’re saving. That means if you out $100 in your account and earn 5% interest, you’ll earn $5 in interest every year.

On the other hand, compound interest accumulates on both the principal and the earned interest. So what does that mean?

60 of 98

Simple vs Compound Interest

	Simple interest (5%)	Compound interest (5%)
Initial Savings	$100	$100
Total after 1 year @ 5%	$105	$105
After 2 years	$110	$110.25
After 5 years	$125	$127.62
After 10 years	$150	$162.89
After 20 years	$200	$265.33

61 of 98

Thank you!

62 of 98

Financial Literacy Information Session

63 of 98

Agenda

Pay Yourself First

Budget Basics

Credit Sense

Common Credit Mistakes

Savvy Consumer

64 of 98

Budget Basics

65 of 98

66 of 98

Classroom Question

Over the next 2 minutes discuss as a class

What are some examples of variable expenses?

Teachers please put your students answers in the chat.

67 of 98

Classroom Question

Over the next 2 minutes discuss as a class

What are some examples of variable expenses?

Teachers please put your students answers in the chat.

<<2:00>>

68 of 98

69 of 98

Credit Sense

70 of 98

71 of 98

• Credit itself is neither good nor bad. However, you can make good or bad choices about how to use credit in your life. Think of credit as a tool, like a hammer. The hammer is not good or bad, it’s just a tool. But that tool can build things or tear things down.

• If you make good choices, you will have the credit necessary to buy the things you want and need and the opportunity to pay for those items over time.

• If you make bad decisions, you will pay far more money than the original purchase price. That additional cost comes in the form of interest, fees, fines, and higher interest on future credit. You also could suffer consequences in other parts of your life that may seem unrelated, like not being able to get certain jobs or rent the place you would like to live.

• One question to ask about using credit is: If I don’t have the money now, will I have it when I have to pay back the loan plus interest?

72 of 98

Classroom Question

Over the next minute discuss as a class

What types of loans have you heard of?

Teachers please put your students answers in the chat.

73 of 98

Classroom Question

Over the next minute discuss as a class

What types of loans have you heard of?

Teachers please put your students answers in the chat.

<<1:00>>

74 of 98

75 of 98

Payday Loans

76 of 98

Pawn Shops

77 of 98

Rent to Own

78 of 98

79 of 98

80 of 98

Classroom Question

Over the next 2 minutes discuss as a class

What do you think lenders are looking for in a borrower?

Teachers please put your students answers in the chat.

81 of 98

Classroom Question

Over the next 2 minutes discuss as a class

What do you think lenders are looking for in a borrower?

Teachers please put your students answers in the chat.

<<2:00>>

82 of 98

Common Credit Mistakes

If you co-sign a loan for another person and they don't pay back the debt it won't affect your credit. False

If you ask someone to co-sign a loan for you and you don't pay the bill you will both pay for bad credit with higher fees and interest rates.

Reading the fine print on credit offers is not too important. Most agreements are the same. False - always read the fine print, it can have a huge impact on the actual amount of money you will need to pay back in addition to the loan amount.

If you ever get into financial trouble and can't pay a bill, contact the company immediately and ask about options. Yes, take this action right away, rather than let the problem get worse with each missed payment, which not only adds to the money you will need to repay, but also have an affect on your credit score.

83 of 98

Being a Savvy Consumer

84 of 98

All consumers potentially face the risk of financial loss. It is important to be informed and prepared when it comes to your personal finances.

85 of 98

Classroom Question

Over the next 2 minutes discuss as a class

What are some things that could have a negative impact on someone’s finances?

Teachers please put your students answers in the chat.

86 of 98

Classroom Question

Over the next 2 minutes discuss as a class

What are some things that could have a negative impact on someone’s finances?

Teachers please put your students answers in the chat.

<<2:00>>

87 of 98

88 of 98

89 of 98

90 of 98

Insurance

Life is already expensive without having to pay for extended medical care or replace possessions that are stolen or damaged in an accident, especially when those items are costly and haven’t been fully paid for

Having insurance can protect us against the unexpected. Some things that people commonly insure include:

Car (accidents/injury)
Quad/motorcycle/boat etc
House/apartment (tenant’s insurance)
Life
Health (dental/vision/prescriptions etc)
Valuables (jewelry/electronics/collections/instruments)
Pets

91 of 98

92 of 98

93 of 98

Review

Pay Yourself First is the best way to guarantee savings
A budget is a plan for your money, including income and fixed/variable expenses
Credit is a tool to be used wisely
There are many types of loans, and it is important to know the difference between your options
Lenders take your full financial history into account when deciding to give you money. Better history means better loans
Paying back money on time and in full is the best thing you can do for your credit
Everyone out there wants your money and information - protect it!