Financial

Basic
Workshop
VICTORIA ENGLISH
CLASS
Agenda
• How to manage your spending and prepare a realistic budget

• How to manage credit

• How to pay off debt

• Ways to save

• How to set and reach your own financial goals

Benefits of gaining financial skills
• Control your financial future

• Achieve your life goals

• Provide for yourself and your family

• Be a smarter consumer

• Reduce stress and sleep better

• Be confident that you can manage your finances

Budgeting
The percentage of Canadian households have some type of outstanding debt or used
a payday loan:

1. 32%
2. 46%
3. 73%
Budgeting
2019 Canadian Financial Capability Survey (CFCS)

*nearly three quarters of Canadians (73.2%) have some type of outstanding debt or used a payday loan
at some point over the past 12 months

*Almost one third (31%) believe they have too much debt.
Credit and debt management
In 2023, the average household debt of Canadians was:

1. 1Trillion
2. 2Trillion
3. 4 trillion
Credit and debt management
Equifax Canada recently reported

*that Canadian consumer debt reached $2.4 trillion,

*as credit card debt hit an all-time high of $107.4 billion.

*household debt now represents 177% of Canadians’ disposable income

Oct 3, 2023

https://www.bnnbloomberg.ca/nearly-40-of-canadians-are-financially-stressed-survey-finds-1.1979695
Credit and debt management

home equity lines of credit [HELOCs]

Emergency savings
The best way to plan for unexpected expenses is:

1. Buy a lottery ticket every week

2. Only have friends who will lend you money
3. Set money aside in an emergency savings fund
Emergency savings
•at $5 a week, you’ll have $260 after a year

•at $10 a week, you’ll have $520 after a year

•at $15 a week, you’ll have $780 after a year

•at $20 a week, you’ll have $1,040 after a year

Emergency savings
Smart Consumer

https://www.canada.ca/en/financial-consumer-agency/services/make-budget.html
 Emergency Fund

https://www.canada.ca/en/financial-consumer-agency/services/savings-investments/setting-up-emergency-funds.html
Cost of Borrowing
Account Comparison Tool

https://itools-ioutils.fcac-acfc.gc.ca/ACT-OCC/SearchFilter-eng.aspx?lang=eng

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Saving And Investing
 Segragated Funds

https://www.canadalife.com/blog/investing-saving/mutual-funds-vs-segregated-funds-whats-the-difference.html#Advantages-of-segregated-funds
Investing Money
Is self-directed investing a good idea?

Self-directed investing offers more control and the potential for higher returns,

but requires a significant time investment and a solid understanding of financial markets.
FCAC Financial Goal Calculator
https://www.canada.ca/en/services/finance/tools.html
Summary
What We learn