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All of the information about the 5 covered topics in Unit 3 and how they correlate with my final project.

Unit 3 Planning:It's All About the Money 

On this document resides all of the information on the four major topics in this unit, as well as how each unit effected the final project. 

Cassie Drieschner 

My results from the personal money profile quiz were that of a hoarder. It said I liked to save money which in the larger scheme of things is beneficial especially when dealing with entry level jobs and unstable sources of income. I have noticed that every purchase I make I somehow plan in advance, no matter the amount of thought or time put into the decision. How when I buy a drink at the mall, I am aware i will not have the money to buy something else down the road, and is the four dollars really worth spending. I create small budgets every day when I leave my house. The money I use to spend is obtained most often from an allowance but also from babysitting and other side jobs. I keep the majority of the money I obtain, but most often use an allocated amount for entertainment, such as books, as well as food when eating out. Larger amounts of money that I would like to save for longer periods of time I put into a credit union. My particular family uses Invision.

 

Banking Basics:

 Intro

 


In this unit I also learned how write a cheque and read a bank statement (where everything is including the statement date deposits section etc). I was also made aware of savings accounts and how there are different plans available for different people to choose from including Tax Free Savings accounts, term deposits, and GICs. The most important step in investing or opening savings accounts is starting to save early in one’s life for the most benefit. This unit also covered debit cards(banking card that can be used to purchase items and is linked to one’s bank account) and the fees when a person withdraws money using an ATM.

Credit Card use is another important thing to look at when budgeting. Credit shows banks how reliable you are when taking out a loan or using a credit card. Credit card ratings are very important and bad credit ratings can really impact the future of a younger person. I personally dont use a credit card and I did not include the use of a credit card in the money managment of the final project. I do plan on getting a credit card eventually, although I would like to use my own money significantly more often than money I will have to pay back. I know this is not always possible when making big purchases, and that most if not all people are in debt to a bank or another company whether that be from their house, car, etc. Credit card companies also charge interest rates, so it is important to pay back one’s purchase relatively quickly to avoid taxing and sometimes detrimental situations. 




Budget:

 


As I come out of high school i will have to learn to fully take care of myself with my own income and housing. The first month in a new place can be expensive and stressful which is why planning ahead and having ample room in your budget can be very beneficial. Although the final project wasn’t covering finding shelter as well as paying for utilities it did demonstrate how hard budgeting is when given a very realistically limited amount of money for a young adult. It showed how I do like to put more emphasis on food rather than entertainment. It also shows how frugal you have to be when shopping for things, that with a secure budget, one could easily splurge on such as feminine hygiene products and personal care items.    

Buying a car can also be another step in establishing oneself. For the final project, I decided to use public transport, especially because of the extended skytrain line that was recently opened. When I do decide to buy a car there are things such as tax (HST) and insurance. Being a ;earner or new driver means insurance is even more expensive not even thinking about the type of vehicle and how that affects prices. 

Before I can get into most of the careers I am interested in, I need to pursue (and invest) in a post-secondary education. Tution can be inbetween a couple thousand to ten thousand dollars fpr a single year. Luckily, registered education savings plans can help one pay off tuition with more ease as the government contributes a certain amount. Scholarships and bursaries are also helpful which is one of the reasons I try to keep my academic grades higher than average. Student loans are also an option but can lead into increased debt that can affect one when they are much older. 



Real Costs:

 


Taxes are also a significant part of a young adult's life. This can be one of the first significant times that an individual has to answer to the government in regards of finances. Taxes are there so that so that Canadians can enjoy the many amenities that we often take for granted like education and healthcare. Working a job means you must pay taxes depending on your income. At my present age if I had a part-time job, I would have to file an income tax form but would get all of the money because of the personal tax exemption amount Paperwork is another significant part of taxes such as TD.1 forms and T4 slips (keeps a record the money that I would have made). Money I obtain through smaller jobs such as babysitting and lawn mowing would also count towards my income. For the purpose of the final project, taxes were not a huge part and only came up when dealing with buying items (sales tax).


Taxes:

 


Saving is another very important factor when it comes to entering the workforce and starting a life without one's parents or guardians.  When putting your money in a bank you can grow the amount you originally put in. Investing using compound interest is a way one can have extra money later in life. It is very important to start investing early and don’t touch the money being invested, for maximum profit. Of course when dealing with money and other businesses or people, ripoffs and fraud can occur. When spending money it is important to be aware of all parts of the transaction so that the chance of being taken advantage of is very slim. The three steps to avoid such catastrophes would be to be aware of “free” things, compare sellers, and to be aware of anything that could be too good to be true. Scams can happen to anyone so it is important to be on the lookout for such a common crime. Once again this part of the unit was very informative, but did not directly contribute to my budgeting plan for the final project. 



Financial Plan/Investment: