5 Golden Rules for a Golden Future The only one responsible for

5 Golden Rules for a Golden Future The only one responsible for your future is you!

5 Golden Rules for a Golden Future Improve your Education

5 Golden Rules for a Golden Future Dream and Dream Big

5 Golden Rules for a Golden Future Start Saving Now

5 Golden Rules for a Golden Future Become Financially Literate

INVEST IN YOUR FUTURE

AGENDA Who I am, who I work for and what I do Money Smarts Did you Know . Planning for the Future What is saving What is investing Types of Investments Becoming an Investor Questions / Contact us

WHO I AM, WHO I WORK FOR AND WHAT I DO Ainsley Cunningham B.A., B.Ed., securities industry experience Manitoba Securities Commission Government Agency Self Funding Make and enforce rules Mandate - To protect the public and ensure that the markets are running fairly and efficiently Education and Information Coordinator TV Programs, media relations, public presentation, industry events, marketing, national initiatives, web site development

MONEY SMARTS Financial Literacy means being able to earn money, keep track of a bank account, use credit wisely and put cash aside for future needs. Having money smarts allows women to: Be self sufficient Have power Enjoy equality Make Choices

DID YOU KNOW . Canadian Youth earn earn money from part-time jobs, allowance and gift money. Canadian youth spend 14 billion annually (discretionary income) Money is typically spent on food, entertainment and clothing Debt among Canadians is extremely high

WHY IS PLANING FOR OUR FUTURE WHEN WE ARE YOUNG IMPORTANT? Cost to achieve our dreams Time is on our side (Value of compounding) Few expenses Relatively easy (10% rule and pay yourself first) Good financial management habits formed when we are young are generally carried over into adulthood.

WHAT IS SAVING? To put aside To accumulate

WHAT IS INVESTING? At its most basic, it is giving money to someone else with the expectation you will get a return What the return is will depend on what you invest in.

WHAT IS INVESTING? There are three characteristics that apply to all investments: Expected Return - Interest, dividends or capital gains you expect to receive. Risk - The possibility of losing some, all or more than the amount you invested or that you could earn a lower return than expected. Marketability - How easy it is to sell or redeem the investment. Understanding these characteristics is key!

TYPES OF INVESTMENTS Cash and Equivalents Fixed Income Equity Investments Mutual Funds

Types of Investments Advantages Disadvantages Savings Account Safe – insured by gov’t up to a limit Pays interest Running record Interest rates are low Interest is taxed GIC’s Safe Keep money on deposit Higher interest than savings until it matures Interest is taxed Safe investment small Interest not as high as for denominations other investments Interest is taxed Hold for several years Safer than corporate stocks Market Value goes up and Allows diversification down Invest smaller amounts Unlimited potential return Returns may decline on investment Bond Mutual Funds Stocks

BECOMING AN INVESTOR Know Yourself Assess you financial situation- communicate clearly any changes Identify your goals Know your tolerance for risk Know you Adviser Credibility / Trust / Comfort Investment Approach /Fees - cost of investing/Customer Service Become Informed Newspapers, books and magazines Television and research reports Classes Talk to the Commission

RESOURCES Street Cents MSC Web site (Other provincial web sites) Newspapers, books and magazines Professionals, friends and family Banks Credit Unions, Mutual Fund Dealers and Brokerage houses Very important that you take the time to do research because no one cares as much about your financial situation as you do.

QUESTIONS? / CONTACT US Manitoba Securities Commission Phone 945-4733 web site: www.msc.gov.mb.ca