Smart Savers Money Info

One of the major issues that face teens and promotes spending habits is the constant pressure from advertisers and peers:

  • Understand the difference between needs and wants. "Needs" are the essential elements of life, such as food, clothing, shelter and cell phones. "Wants" are the items that make life easier. Learn to address and pay for needs before you can spend money on wants.
  • Set financial goals and budget accordingly. One of the best ways to learn about managing money is to set and achieve a simple financial goal. “Select something to save for -- designer jeans (a Want) or a piece of sports equipment is an attainable goal. Then set up a budget (prioritizing Needs) and determine how much will need to be saved each week to reach the (Want goal) within a reasonable amount of time. Same principle should be employed to plan for longer-term goals which could include a car purchase or post secondary education.
  • Know your 'money' personality. We all have a tendency to emphasize different things in the way we manage money. Some people are primarily spenders while others are savers.It is important to identify what kind of 'money personality' you are. So get some input from friends or maybe parents, so that steps can be taken to plan accordingly and avoid blunders caused by spending style. For example, people who are likely to immediately spend their loose cash may want to consider having it less readily available. Instead, they should be prepared to deposit it directly into a savings account. It is important to be aware of financial weaknesses and recognize that different "money personalities" play an important role in your financial future.
  • Pay yourself first. We all have heard this piece of advice! Regardless of your age group everyone should get into the habit of putting a percentage of earnings directly into savings. By making the contribution automatic, it becomes like paying a bill and here Comtech can assist with the Smart Savers Student Account by providing the accounts and the process to develop this healthy life time habit of making an investment in your own future. People who pay themselves first will have money when they need it, always.
  • Start early. The sooner you start to save, the more your money will grow. In fact, starting to save early is more important than saving a large amount. The Rule of 72 is a simple formula for calculating how long it takes money to double at any given time. Under this rule, the number of years required to double an investment is equal to 72 divided by the interest rate earned. For example: if you want to know how long it will take to double your money at 6% interest, divide 6 into 72 and you get 12 years.

Rate Rule of 72 Actual Years
1% 72 69.661
6% 12 11.896

10%

7 7.273

  • Opening a Smart Savers Student Account at Comtech is a vital tool to keeping your spending in check by putting two accounts into one. The Life Saver High Interest Savings Account portion is for your long term saving goals while you use the chequing account portion for your day-to-day banking needs.

You have questions. We have answers!

Things To Ask Your Personal Financial Officer

Expand a tab below for more info!

Keys to a Car Expand/Collapse

  • How to Buy: dealer purchase, private sale
  • How to Price: do comparison shopping, Black/Red Book, dealer negotiation
  • How to Finance: lease vs. buy, loan processes, how long does it take, what about “0%” financing
  • What about the other stuff: insurance, maintenance, gas

Saving and Investing Expand/Collapse

  • Why Save
  • How to Save
  • Some Product Descriptions: Savings, GICs, Terms, RRSPs
  • Mutual Funds: description of Mutual Funds and Stocks

Loans and Credit Cards Expand/Collapse

  • Loan Product Descriptions: Term loans, mortgages, lines of credit, overdrafts
  • When to borrow
  • Credit Cards: teaser rates, stick with one card, pay in full each month, pay on time, don’t exceed limit and good housekeeping to include: don’t lend card, report lost and stolen cards immediately, review all of your statements carefully

ATM/Debit Cards Expand/Collapse

  • Good housekeeping rules, Interac Security points, review statements, don’t lend card or PIN
  • Record purchases to monitor spending habits (wants or needs)

Student Loans for Post Secondary Expand/Collapse

  • What will it cost me for: Community College, University, Residence costs, Apprenticeships, Books, other supplies/tools
  • How will I pay for it: Loans, work, parents, bursaries, scholarships or combination of all
  • Loans: what is available, how do I apply, where do I go for information, how long will it take to pay back

Other stuff Expand/Collapse

  • Everyday Banking: fees, electronic portals, how to use the freebies, what are the right questions to ask when opening an account
  • Taxes: What is tax exempt and what is taxable
  • Insurance: Deposit insurance protection, loan/disability insurance
 

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