financial plan for transition from secondary school

Transcription

1 module 10 financial plan for transition from secondary school tip: This activity works best as a computerbased activity, although the hard copy version is presented here. See Materials and Tools for computer references. overview Students will: discuss the purpose of a financial plan and identify its main components review a sample financial plan for a student use a template to develop a financial plan for their transition from secondary school By working through a template for a financial plan, students learn how to plan systematically for their transition from secondary school. curriculum areas Use this module to teach Learning Outcomes in curriculum areas such as: Personal Finances Life/Work Transition Budgeting and Financial Planning Career and Life Planning Applications of Math For a detailed listing by province/territory and course, refer to Learning Outcomes on the educator pages at Educational Programs> The City. outcomes Following this activity, students will be able to: develop a personal financial plan for their transition from secondary school using a template describe the benefits of planning for their future preparation Advise students to bring to class their Financial Life Skills binder or portfolio (as described in Module 1), including the following: Handout 2-1, Lifestyle Reality Check Handout 5-2, Potential Sources of Income Handout 5-3, Freedom 18 Budget Handout 7-2, Borrowing Money and My Future Goals Handout 8-1, My Insurance Needs a statement of their education and career goals, or the goals they developed in the Lifestyle Reality Check module any information students have gathered regarding their living costs when they leave secondary school Review the example of Handout 10-1, My Financial Plan Sample, to become familiar with the types of information needed in the activity

2 module 10 (cont d) materials and tools students personal budgets, Lifestyle Reality Checks (from Module 2), and any statements referring to their education and career goals and the budgets for their Life Stage Characters copy for each student of Story 10-1, Financial Plan (optional) overhead transparencies from Overhead 10-1, Budget and Financial Plan Overhead 10-2, Parts of a Student Financial Plan Handout 10-1, My Financial Plan Sample Handout 10-2, Checklist of Financial Planning Materials copy for each student of Handout 10-1, My Financial Plan Sample Handout 10-2, Checklist of Financial Planning Materials Handout 2-1, Lifestyle Reality Check Handout 10-3, My Financial Plan (also available as downloadable Spreadsheet file 10-3, My Financial Plan, on the FCAC educator pages at Educational Programs > The City, Module 10) Handout 10-4, Financial Plan Review Handout 10-5, Quick Quiz Financial Plan overhead projector, if using in-class time required two lessons (approximately 2 hours) Key words financial plan, assets suggested approach 1. Present Story 10-1, Financial Plan, to the class. Discuss the story by asking questions like the following: Why did Sienna need a financial plan? How could a financial plan help each of the characters reach his or her life and financial goals? What do you want to know about making a personal financial plan? 2. Ask students to explain what a plan is. a) Encourage students to define a plan as: a step-by-step outline (usually written) describing how someone intends to accomplish something a guide to an objective, similar to a roadmap b) Emphasize the fact that in financial planning a plan: is a systematic, orderly planning method is written focuses on making decisions relating to personal finances leads to the accomplishment of life goals is written at a specific time, and needs periodic review and revision

3 overhead overhead The City Module 10 module 10 (cont d) budget ANd financial plan Budget Financial plan does not set out your goal states a goal shows current income and shows expected future income current expenses and expected future expenses shows sources of income and shows how income and the allocation of expenses expenses will be organized over time to achieve objectives doesn t include current or shows investments, savings future assets and other assets that are available or will be generated or acquired doesn t include debts, such as shows loans that may be loans required doesn t include steps to be shows steps that will be needed taken to meet financial goals 3. Ask students to summarize the differences between a budget and a financial plan. a) Write the differences students identify on a blank overhead under the titles, Budget and Financial Plan. b) Show Overhead 10-1, Budget and Financial Plan. c) Review the information on the overhead and compare it with the differences students identified. Point out that: A budget looks mainly at the flow of income and expenses. A budget doesn t include assets or loans (although it may include payments to acquire assets or repay loans). A budget is a key document but it s only one part of a financial plan. A financial plan is a much broader document that focuses on all aspects of your financial life. parts of a student financial plan What I want to do By the day I leave school, what do I want to have done? One year after I leave school, what do I want to have done? eadlines d When do I have to have things ready? My starting point What assets and debts will I have? My future income What income can I expect in the year after school? My future expenses What expenses can I expect in the year after school? Will my income cover my expenses? My resources What can I do to get the money and other support I ll need? Problem solving 4. Show Overhead 10-2, Parts of a Student Financial Plan, and review the parts of the Student Financial Plan. a) Point out that a financial plan for a student would be different from that of a person who wanted to start a business, but that they would have elements in common. b) Explain that plans can take different forms, but this outline is a systematic way for students to plan for their transition from secondary school and to meet their education and career goals. What could go wrong? What will I do about it? Updating How will I keep my plan up-to-date? 5. Distribute Handout 10-1, My Financial Plan Sample and show a transparency of the first page. a) Point out that this financial plan uses a student pursuing postsecondary education as an example. Although not everyone plans to go right into post-secondary education, most people will eventually get more education or training, so the student example is a useful one. b) Lead the class through the overhead pages to show how a financial plan is developed. 6. Distribute Handout 10-2, Checklist of Financial Planning Materials and Handout 10-3, My Financial Plan or downloadable Spreadsheet file 10-3, My Financial Plan. a) Have students review the materials in their Financial Life Skills binders or portfolios to ensure that they have all the materials listed in Handout 10-2, and they re complete and up-to-date. b) Advise students that they ll be expected to discuss their completed Financial Plan in a personal interview. In some provinces and territories, they may be able to use their plan as part of their graduation requirements. c) Have students develop a financial plan for their transition from secondary school by using the materials listed in Handout 10-2, Checklist of Financial Planning Materials, to work through Handout 10-3, My Financial Plan

4 module 10 (cont d) 7. Home Connections: To complete the last step of their financial plan (Family Check-In), have students: Review their personal financial plans with their parents or another adult. Discuss whether their financial plan is realistic, and make any changes to their plan that they think are necessary. Write a summary of their discussion in the Family Check-In, describing any challenges they identified. File their Financial Plan in their Financial Life Skills binder or portfolio, and review it as they move towards their transition from secondary school. 8. Reflection and Summary. Distribute Handout 10-4, Financial Plan Review, and have students complete the questions. Have students file the handout in their Financial Life Skills binder or portfolio (as described in Module 1). evidence for assessment Review the students personal financial plans to ensure they can develop a plan for their transition from secondary school. In an interview, review students materials in their Financial Life Skills binder or portfolio (as described in Module 1), including their financial plan. Have the students explain the items in the binder or portfolio, and how their Freedom 18 budget and financial plan relate to their transition from secondary school. Monitor the class discussion and review students responses to Handout 10-4, Financial Plan Review, to ensure students can describe a financial plan and its benefits. Distribute Handout 10-5, Quick Quiz Financial Plan, and have the class complete the quiz. Correct answers are as follows: 1) Define the words: Financial plan: Answer: A written plan using a systematic, orderly method to state goals relating to personal finances and describe steps needed to move toward goals over a given period of time Assets: Answer: Things you own that have value in financial terms 2) Which statement is false? A financial plan: Answer: e) Never needs to be reviewed or revised 3) State at least three differences between a budget and a financial plan Answer: Budget: does not set out your goal; shows current income/expenses; shows sources of income and allocation of expenses, doesn t include assets, credit or loans; doesn t outline steps to be taken to reach a goal Financial plan: states goals; shows future income and expenses; shows allocation of income to expenses; shows assets available or to be acquired; shows credit and loans that may be required; shows steps needed to meet goal

5 module 10 (cont d) 4) List three benefits of making a personal financial plan. Answer: It summarizes your current financial position; it helps you analyze future financial needs; it shows how income and expenses affect assets and liabilities over time 5) Name five parts of a financial plan. Answer: Goals, deadlines, starting points/assets; future income; education and career costs; funding and resources; problem solving; keeping current extension activities Have students research websites and other sources that provide financial planning advice for students, and report their findings to the class in the form of an annotated resource list. Have students make a graphic or other representation of the financial status and outlook of their Life Stage Characters, and relate their status and outlook to the career and lifestyle choices they made. Have students write an alternative storyline for the characters in The City, or describe what happens next in their lives. Have students research and debate the proposition that a five-year financial plan should be a requirement of secondary school graduation

6 Story 10-1 financial plan Late one night, Sienna sat in a quiet corner. Her wrist-pod lay face-up on the table, along with account records and a calculator. As she punched in numbers, she murmured, Wages savings dividends budget rent equipment Rio went by, on his way off shift. There she goes again, he thought. Always working, planning Having fun? Sienna looked up. Well, no I can t say this is fun. That s good. If you d ve said yes, I really would ve wondered. Sienna laughed. So, whatcha doing? Figuring out a financial plan for my restaurant. Now? It s a long way off, isn t it? Yeah, several years. But it s gonna cost a lot of money, and I need to know how I m gonna get there. I ve had this dream for a long time. If I don t plan for it, and stay on track, I ll never make it. Wow, you re really serious about this. You better believe it. Nothing s gonna stop me. I m even playing with names. What do you think of Sienna s Cantina? Or Ambrosia? Maybe it was the determination in her voice. Maybe it was the hint of someplace exotic and classy. He moved closer. Tell me about it. As she talked, he could almost see the candlelit tables hear the rustle of expensive clothes see the gleam of silver and crystal smell and taste the food, the wine Before he knew it, he was sitting beside her. I need to project my income and expenses over the next few years, Sienna said. She pointed. Here are my investments and savings I ve got $5,000 in corporate bonds, plus some mutual fund shares. There are my debts, like my student loan from culinary school, which I m still paying off. A financial plan has to include all that, plus any other loans I m going to need. She showed him how her savings, which she added to each month, grew over time. She showed him how she was planning to invest those savings so she d have more income to add into the mix. She wrote down where she could count on direct investment from relatives and friends. She showed him how much it would cost, and how much she d have to borrow. Slowly the figures added up. Slowly the plan advanced toward the target. It was like building a map, piece by piece. A map to the future

7 Story 10-1 (cont d) financial plan (cont d) Something about the way she was so focused made Rio feel his own dream. A professional Game player. He d made out like it was all about the money, but it was more than that. It was being in the moment, being part of a team, feeling your body and mind in total sync. He wanted it so bad he could taste it. But he didn t seem to be any closer to getting drafted by the Pro Game League. So he d been thinking that maybe going to college and learning a trade and getting a better-paying job was the way to go. Not that he was giving up. No way. But it might be good to have a fallback. Just in case. But there was no way he was telling all this to this girl. Not after he d bragged about going pro. She d laugh at him. Two minutes later, he d spilled it all. And she didn t even crack a smile. Cool, she said. Want me to help you start a financial plan? Oh, I don t know. I ll probably never do it. So I don t need a plan. OK but what about just in case, like you said? He hesitated. Why not? Can t hurt. When she grabbed a sheet of paper and they started jotting down the possibilities for school and training, it began to seem a lot more real. As the two of them worked away, the others drifted over. When they saw Sienna s and Rio s financial plans, that got everyone thinking. I need to get through the next three years of university, luna thought. Tuition, books, course downloads. But I ve also gotta save to buy a new computer and animation software, so I can open my own studio. Luna s Graphix? I won t be earning full wages for another year, until I finish my apprenticeship, Nikos thought. Then I ll be a wrist-pod technician and I ll start making good money. But in the meantime my roommates are driving me crazy. Even if it costs more, I ve got to get my own place now! My investments are doing great, Indigo thought. But I m bored with my job. I need a change, a challenge. What if I started my own security company? Call the shots for a change. It ll take research, though, and a pile of money. Maybe in a couple of years I ll be ready to make the move That freakin debt! liam thought. Six more months till it s paid off. But after that, if Avonel goes back to work, and we really scrimp, and I don t pull another bright move like the last one, maybe we ll be able to afford a house in three years. Freedom from the in-laws! I want my sports car back, Zack thought. Sure it s expensive, but so what? It s worth it to have a ride like that. But I ve still got half of Raven s university tuition to pay. And Flore ll be graduating from high school in three more years, and she might decide to go to university too. Gotta save for that. Can I swing tuition and the car? I love this place, Gaia thought, but I ve had it with the workload. I m gonna give it five more years. Then I ll sell it and go back to doing what I ve always wanted to do volunteering in an underprivileged area of The City. But it ll take savings if I m gonna work for free

8 overhead 10-1 budget ANd financial plan Budget does not set out your goal financial plan states a goal shows current income and current expenses shows expected future income and expected future expenses shows sources of income and the allocation of expenses shows how income and expenses will be organized over time to achieve objectives doesn t include current or future assets shows investments, savings and other assets that are available or will be generated or acquired doesn t include debts, such as shows loans that may be loans required doesn t include steps to be shows steps that will be needed taken to meet financial goals

9 overhead 10-2 parts of A student financial plan What I want to do By the day I leave school, what do I want to have done? One year after I leave school, what do I want to have done? deadlines When do I have to have things ready? My starting point What assets and debts will I have? My future income What income can I expect in the year after school? My future expenses What expenses can I expect in the year after school? Will my income cover my expenses? My resources What can I do to get the money and other support I ll need? Problem solving What could go wrong? What will I do about it? Updating How will I keep my plan up-to-date?

10 HaNdout 10-1 my financial plan sample Name: Class/Block: Date: A financial plan is your roadmap to your future. A roadmap that s detailed and accurate can help you get there with less trouble and less expense. A roadmap that s vague or inaccurate can lead you down rough roads and into dead ends. Fill in the blanks that apply to you with as much detail as you can. Take the time to research and check out anything you aren t sure of. Before you start, you have to know where you want to end up. My future career goal is to: open my own restaurant tip: Remember, a financial plan is a living document it changes as you do. Check it and revise it regularly to keep it up-to-date. 1. By the day i leave high school, what do i want to have done? my education goal: pass all my courses with a 75% average My work goal: work part-time at a restaurant while I m in Grade 12 and line up a full-time job for the summer after I leave high school my savings goal: save $1,500 for my college tuition My personal goals: be ready to move into an apartment with a roommate and get a cat tip: Write your goals so they re achievable, so they have a clear timeframe and so you know when you ve accomplished them. E.g.: My goal is to complete first year arts with a 75% average by spring My goal is to save $5,500 in my college fund by the end of My goal is to work at Burger Joint when I graduate, and find a new job paying at least $2,000 a month by March My goal is to establish a profitable small business selling T-shirts to students by September My goal is to save $5,500 in my business start-up fund by the end of My goal is to save $4,500 by the end of 2011 so I can travel

11 HaNdout 10-1 (cont d) my financial plan sample (cont d) 2. one year after i leave high school, what do i want to have done? The year after I leave high school runs from: [date] July 1, 2010 to [date] July 1, 2011 I ll need some education or training. My education/training goal is to: pass the cook training course at the culinary institute by June 1, 2011 I have to have a job to get money and experience. My employment goal is to: get as much experience as I can working in a high-end restaurant by July 1, 2011 I don t want to work for anyone else. I ll create my own job. My business goal is to: take a course on restaurant management by May 1, 2011 The rest of my life is important. My personal goals are to: take at least one vacation and find an apartment in a nicer area by June 1,

12 HaNdout 10-1 (cont d) my financial plan sample (cont d) 3. when do i have to have things ready? what are my deadlines? You ll have to keep track of dates and deadlines to make sure you can accomplish your goals for the first year after high school. Enter any dates that apply below. tip: The program information available from the institution you choose or through CanLearn website ( can help you find deadlines for education programs. If you don t know of any important deadlines, use the internet, published information or telephone contacts to get the key information and enter it below. Use the form at the end of this plan to keep track of any applications you make. Create a timeline or put these dates in your daytimer or calendar so you don t lose track of them. Check R Date when done Keeping my life together Move to new home (apartment, university residence, etc.) September 1, 2010 R Arrange utilities and telecommunications September 1, 2010 Buy insurance (home, contents, car, etc.) September 1, 2010 Apply for Social Insurance Number already have it R Apply for medical insurance family coverage 1 yr R Transfer banking accounts not needed R Change address on ID and other records September 1, 2010 my education Apply to educational institutions March 31, 2010 tip: Use the online application forms to apply to educational institutions. Apply as soon as you have your records the earlier the better. Pay tuition and student fees September 15, 2010 Apply for government scholarships/bursaries July 15, 2010 R Apply for community/other scholarships or grants April 15, 2010 R Apply for student loan September 15, 2010 Arrange RESP/investment withdrawals September 1, 2010 Apply for student housing not applicable my job Apply for employment I ll keep my job R Buy equipment and supplies Enrol in job training program Enrol in job placement program Apply for apprenticeship or other work programs Working for myself tip: Check out the resources on self-employment on the Canadian Youth Business Foundation website ( Research and write business plan Meet with a business adviser Apply for line of credit or other loans

13 HaNdout 10-1 (cont d) my financial plan sample (cont d) 4. what will i Be starting out with? tip: This is your projected net worth statement for the end of high school. Date I leave high school June 30, 2010 assets List financial assets you expect to have when you leave high school, either your own, or those your family has set aside for you. Enter any amounts that apply. tip: Consult your family before including assets from them to be sure your financial expectations are the same as theirs. My savings $ 1, My investments $ My other assets $ My scholarships/bursaries $ My student loans (the money I ll get) $ 4, RESP in my name $ 2, Contributions from family and friends $ Other $ my total assets $ 8, A debts List any debts that you expect to be responsible for: My credit card balances $ My student loans (the money I ll owe) $ 4, My car loan $ My bank or other loans $ My other debts (money owed to family and friends) $ my total debts $ 4, B My net worth (total assets minus total debts) $ 4, C=(A B)) 5. what will my income Be? List the income you expect to have in the year (the complete 12-month period) after you leave high school. Use your Freedom 18 Budget research to help you estimate. tip: Don t include scholarships, bursaries, loans, gifts or similar one-time receipts of money. List them as Assets in Part 4. Income after deductions $ 3, Income from investments or other sources $ On-going financial support from family $ total Income $ 3, D

14 HaNdout 10-1 (cont d) my financial plan sample (cont d) 6. what will my expenses Be? List the expenses you expect to have in the year (the complete 12-month period) after you leave high school. Use your Freedom 18 Budget research to help your estimate. The example is for British Columbia; expenses may be different in your area. The year after FIxed I leave high school Housing $ 5, Car payments $ Other loans payments $ Insurance Car $ Home or contents $ Other (e.g.: travel medical) $ Utilities (electricity, gas) $ Telecommunications (cable, internet, telephone, cellphone) $ Other $ Total fixed expenses $ 5, variable Food Groceries $ 1, Eating out $ Household (cleaning, maintenance, furniture) $ Computer (hardware, software, accessories, supplies) $ Health care (medical insurance, dental, glasses/lenses, medications) $ Childcare $ Pets $ Transportation Car (gas, maintenance, repairs) $ Public transit $ Clothing $ Personal care (toiletries, hair care, make-up, laundry, etc.) $ Recreation (movies, games, music, DVD/videos, clubs, $ concerts, sports, etc.) Travel $ Gifts and charitable donations $ Education, lessons, etc. Tuition, fees $ 3, Books, supplies $ Other $ Savings $ Total variable expenses $ 12, total expenses $ 18, E tip: Check carefully. Are these expenses realistic for you? Do you have to re-think anything? Have you left anything out?

15 HaNdout 10-1 (cont d) my financial plan sample (cont d) 7. will i have enough money to meet my goals? Enter the information from your estimate in the blanks below. In the year after I leave high school: Income from D $ 3, Expenses from E $ 18, Difference $ (15,070.00) F If the difference is a positive number, you can add it to your savings. Additional savings I can add to my assets from F (if positive) $ G If the difference is a negative number, you have a few options: 1) Cut back! Reduce your expenses and adjust Step 6. 2) Push on! Work more to earn more money and adjust Step 5. 3) Use your resources! Try the funding strategies in Step what can i do to get the extra money i need? You have resources! You can raise the funds you need with these strategies: tip: For advice, check out the CanLearn website (canlearn.ca) and similar sites. Use the assets listed in Step 4 amount Ask family for support $ Use my scholarships and bursaries $ Use my student loan $ 4, Use my savings $ 1, Use my RESPs and other investments $ 2, Apply for additional government scholarships or bursaries $ Apply for additional community/other scholarships or bursaries $ Apply for additional student loans $ 3, Appy for a bank loan or line of credit $ Earn additional income in part-time or full-time employment $ 3, Earn income from self-employment $ Apply for a co-operative work arrangement $ Apply for an apprenticeship program $ Apply for sponsorship $ Apply to a military program $ total $ 15, tip: If your resources are greater than your excess expenses, decide which resources you ll use first

16 The City Module 10 HANDOUT 10-1 (cont d) MY FINANCIAL PLAN SAMPLE (cont d) 9. WHERE CAN I GET THE SUPPORT AND ADVICE I NEED? Family members parents, aunt can lend me furniture for apartment Community leaders Junior Chefs adviser can give reference Community agencies Financial advisers bank education website has online advice parents financial adviser will tell me about finances Library and other information resources Online resources library has recipe books I can use CanLearn has financial planning advice FCAC website ( Provincial/territorial websites look for budget calculators on the Web check provincial financial programs CanLearn website (canlearn.ca) check info on financial aid 10. WHAT COULD GO WRONG? Use this checklist to think ahead about possible problems and how you d solve them. How will I make sure I don t miss any important dates and deadlines? Put dates on calendar What will I do if the cost of tuition or some of my other expenses go up a lot? Wait a semester to apply and work three months longer What will I do if I don t meet my savings goal? I ll apply for more student loans Do I have an emergency fund for unplanned expenses? No I ll have to ask Mom and Dad Do I have enough insurance? It s in my budget How will I make money if my job falls through? Contact friends and Employment Centre to find job in another restaurant Who can I call for emergency advice if things don t work out? Aunt has lots of experience and I can talk to her What other problems might come up? None I can think of, but I ll watch for problems

17 HANDOUT 10-1 (cont d) MY FINANCIAL PLAN SAMPLE (cont d) 11. HOW DO I KEEP MY PLAN UP-TO-DATE? No plan can deal with everything that may come up in the future. That s why it s important to review your plan regularly to adapt your plan to changes in your life and your goals. TIP: If you save your plan on your computer using the downloadable spreadsheet file available from FCAC at > Educational Programs (The City Financial Plan module) you can update your plan every year. To keep my plan up-to-date, I will: review my tuition and living costs and add up my work savings I ll review it and revise it on [date] July of each year. 12. FAMILY CHECK-IN Discuss your financial plan with your parents or guardians to be sure it s realistic for you. Write a summary of your discussion. My mom says this is realistic because I like to cook, but she thinks I should save money by living at home instead of in an apartment until I have a full-time job. My dad says he thinks it would be safer to take a car instead of transit to work. But I don t think I can afford a car yet

18 HaNdout 10-1 (cont d) my financial plan sample (cont d) applications template Use this form to keep track of important contacts and deadlines. Make copies and keep a separate page for employment, education, and scholarships and bursaries. My applications for scholarships and bursaries Apply to: Northern Bursary for Cooking Students Address: Broadway, Maple Heights, V6K 1J2 Name of conact: Ms. Rosalie Wong Phone: Apply by: February 1, 2010 Check back by: July 1, 2010 Apply to: Western Barbecue Club Address: Central Road, Maple Falls, V8V 0S0 Name of conact: Mr. Bill Wheeler Phone: Apply by: April 1, 2010 Check back by: June 15, 2010 Apply to: Southern Fine Dining Society Address: Box 12858, Maple Junction, V4W 1M7 Name of conact: Mr. Ben Sandhu Phone: Apply by: March 31, 2010 Check back by: June 30, 2010 Apply to: Address: Name of conact: Apply by: Check back by: Phone: Apply to: Address: Name of conact: Apply by: Check back by: Apply to: Address: Name of conact: Apply by: Check back by: Phone: Phone:

19 HaNdout 10-2 checklist of financial planning materials Name: Class/Block: Date: Check the materials that you gathered in your Financial Life Skills binder or portfolio to be sure that you have the following: Handout 2-1, Lifestyle Reality Check Handout 5-2, Potential Sources of Income Handout 5-3, Freedom 18 Budget Handout 7-2, Borrowing Money and My Future Goals Handout 8-1, My Insurance Needs In addition, you ll need the following: A statement of your education and career goals Any information you ve gathered regarding the costs of a program you wish to pursue when you leave secondary school Review your materials to be sure they re complete and up-to-date. Revise anything that you think needs to be updated

20 HaNdout 10-3 my financial plan Name: Class/Block: Date: A financial plan is your roadmap to your future. A roadmap that s detailed and accurate can help you get there with less trouble and less expense. A roadmap that s vague or inaccurate can lead you down rough roads and into dead ends. Fill in the blanks that apply to you with as much detail as you can. Take the time to research and check out anything you aren t sure of. Before you start, you have to know where you want to end up. My future career goal is to: tip: Remember, a financial plan is a living document it changes as you do. Check it and revise it regularly to keep it up-to-date. 1. By the day i leave high school, what do i want to have done? my education goal: My work goal: my savings goal: My personal goals: tip: Write your goals so they re achievable, so they have a clear timeframe and so you know when you ve accomplished them. E.g.: My goal is to complete first year arts with a 75% average by spring My goal is to save $5,500 in my college fund by the end of My goal is to work at Burger Joint when I graduate, and find a new job paying at least $2,000 a month by March My goal is to establish a profitable small business selling T-shirts to students by September My goal is to save $5,500 in my business start-up fund by the end of My goal is to save $4,500 by the end of 2011 so I can travel

21 HaNdout 10-3 (cont d) my financial plan (cont d) 2. one year after i leave high school, what do i want to have done? The year after I leave high school runs from: [date] to [date] I ll need some education or training. My education/training goal is to: I have to have a job to get money and experience. My employment goal is to: I don t want to work for anyone else. I ll create my own job. My business goal is to: The rest of my life is important. My personal goals are to:

22 HaNdout 10-3 (cont d) my financial plan (cont d) 3. when do i have to have things ready? what are my deadlines? You ll have to keep track of dates and deadlines to make sure you can accomplish your goals for the first year after high school. Enter any dates that apply below. tip: The program information available from the institution you choose or through CanLearn website ( can help you find deadlines for education programs. If you don t know of any important deadlines, use the internet, published information or telephone contacts to get the key information and enter it below. Use the form at the end of this plan to keep track of any applications you make. Create a timeline or put these dates in your daytimer or calendar so you don t lose track of them. Check R Date when done Keeping my life together Move to new home (apartment, university residence, etc.) Arrange utilities and telecommunications Buy insurance (home, contents, car, etc.) Apply for Social Insurance Number Apply for medical insurance Transfer banking accounts Change address on ID and other records my education Apply to educational institutions tip: Use the online application forms to apply to educational institutions. Apply as soon as you have your records the earlier the better. Pay tuition and student fees Apply for government scholarships/bursaries Apply for community/other scholarships or grants Apply for student loan Arrange RESP/investment withdrawals Apply for student housing my job Apply for employment Buy equipment and supplies Enrol in job training program Enrol in job placement program Apply for apprenticeship or other work programs Working for myself tip: Check out the resources on self-employment on the Canadian Youth Business Foundation website ( Research and write business plan Meet with a business adviser Apply for line of credit or other loans

23 HaNdout 10-3 (cont d) my financial plan (cont d) 4. what will i Be starting out with? tip: This is your projected net worth statement for the end of high school. Date I leave high school assets List financial assets you expect to have when you leave high school, either your own, or those your family has set aside for you. Enter any amounts that apply. tip: Consult your family before including assets from them to be sure your financial expectations are the same as theirs. My savings $ My investments $ My other assets $ My scholarships/bursaries $ My student loans (the money I ll get) $ RESP in my name $ Contributions from family and friends $ Other $ my total assets $ A debts List any debts that you expect to be responsible for: My credit card balances $ My student loans (the money I ll owe) $ My car loan $ My bank or other loans $ My other debts (money owed to family and friends) $ my total debts $ My net worth (total assets minus total debts) $ B C=(A B)) ritish Columbia Securities Commission B 5. what will my income Be? List the income you expect to have in the year (the complete 12-month period) after you leave high school. Use your Freedom 18 Budget research to help you estimate. tip: Don t include scholarships, bursaries, loans, gifts or similar one-time receipts of money. List them as Assets in Part 4. Income after deductions $ Income from investments or other sources $ On-going financial support from family $ total Income $ D

24 HaNdout 10-3 (cont d) my financial plan (cont d) 6. what will my expenses Be? List the expenses you expect to have in the year (the complete 12-month period) after you leave high school. Use your Freedom 18 Budget research to help your estimate. The year after FIxed I leave high school Housing $ Car payments $ Other loans payments $ Insurance Car $ Home or contents $ Other (e.g.: travel medical) $ Utilities (electricity, gas) $ Telecommunications (cable, internet, telephone, cellphone) $ Other $ Total fixed expenses $ variable Food Groceries $ Eating out $ Household (cleaning, maintenance, furniture) $ Computer (hardware, software, accessories, supplies) $ Health care (medical insurance, dental, glasses/lenses, medications) $ Childcare $ Pets $ Transportation Car (gas, maintenance, repairs) $ Public transit $ Clothing $ Personal care (toiletries, hair care, make-up, laundry, etc.) $ Recreation (movies, games, music, DVD/videos, clubs, $ concerts, sports, etc.) Travel $ Gifts and charitable donations $ Education, lessons, etc. Tuition, fees $ Books, supplies $ Other $ Savings $ Total variable expenses $ total expenses $ tip: Check carefully. Are these expenses realistic for you? Do you have to re-think anything? Have you left anything out? E

25 HaNdout 10-3 (cont d) my financial plan (cont d) 7. will i have enough money to meet my goals? Enter the information from your estimate in the blanks below. In the year after I leave high school: Income from D $ Expenses from E $ Difference $ If the difference is a positive number, you can add it to your savings. Additional savings I can add to my assets from F (if positive) $ F G If the difference is a negative number, you have a few options: 1) Cut back! Reduce your expenses and adjust Step 6. 2) Push on! Work more to earn more money and adjust Step 5. 3) Use your resources! Try the funding strategies in Step what can i do to get the extra money i need? You have resources! You can raise the funds you need with these strategies: tip: For advice, check out the CanLearn website (canlearn.ca) and similar sites. Use the assets listed in Step 4 Ask family for support $ Use my scholarships and bursaries $ Use my student loan $ Use my savings $ Use my RESPs and other investments $ Apply for additional government scholarships or bursaries $ Apply for additional community/other scholarships or bursaries $ Apply for additional student loans $ Appy for a bank loan or line of credit $ Earn additional income in part-time or full-time employment $ Earn income from self-employment $ Apply for a co-operative work arrangement $ Apply for an apprenticeship program $ Apply for sponsorship $ Apply to a military program $ total $ amount tip: If your resources are greater than your excess expenses, decide which resources you ll use first

26 The City Module 10 HANDOUT 10-3 (cont d) MY FINANCIAL PLAN (cont d) 9. WHERE CAN I GET THE SUPPORT AND ADVICE I NEED? Family members Community leaders Community agencies Financial advisers Library and other information resources Online resources FCAC website ( Provincial/territorial websites CanLearn website (canlearn.ca) 10. WHAT COULD GO WRONG? Use this checklist to think ahead about possible problems and how you d solve them. How will I make sure I don t miss any important dates and deadlines? What will I do if the cost of tuition or some of my other expenses go up a lot? What will I do if I don t meet my savings goal? Do I have an emergency fund for unplanned expenses? Do I have enough insurance? How will I make money if my job falls through? Who can I call for emergency advice if things don t work out? What other problems might come up?

27 HANDOUT 10-3 (cont d) MY FINANCIAL PLAN (cont d) 11. HOW DO I KEEP MY PLAN UP-TO-DATE? No plan can deal with everything that may come up in the future. That s why it s important to review your plan regularly to adapt your plan to changes in your life and your goals. tip : If you save your plan on your computer using the downloadable spreadsheet file available from FCAC at > Educational Programs (The City Financial Plan module) you can update your plan every year. To keep my plan up-to-date, I will: I ll review it and revise it on [date] of each year. 12. FAMILY CHECK-IN Discuss your financial plan with your parents or guardians to be sure it s realistic for you. Write a summary of your discussion

28 HaNdout 10-3 (cont d) my financial plan (cont d) applications template Use this form to keep track of important contacts and deadlines. Make copies and keep a separate page for employment, education, and scholarships and bursaries. My applications for Apply to: Address: Name of conact: Apply by: Check back by: Phone: Apply to: Address: Name of conact: Apply by: Check back by: Phone: Apply to: Address: Name of conact: Apply by: Check back by: Phone: Apply to: Address: Name of conact: Apply by: Check back by: Phone: Apply to: Address: Name of conact: Apply by: Check back by: Apply to: Address: Name of conact: Apply by: Check back by: Phone: Phone: 10.28

29 HaNdout 10-4 financial plan review Name: Class/Block: Date: 1. What s a financial plan? 2. What kinds of challenges and potential problems did you identify? 3. What strategies can you use if your projected expenses exceed your projected income? 4. How does preparing a financial plan help you to prepare for your life after secondary school? 5. How is a financial plan a living document? 6. What did you learn from preparing your financial plan?

30 HaNdout 10-5 quick quiz financial plan Name: Class/Block: Date: 1. Define the words: a. financial plan b. assets 2. Which statement is false? A financial plan: a. is a systematic, orderly method b. is written c. is focused on making decisions relating to personal finances d. leads to the accomplishment of a goal e. never needs to be reviewed or revised 3. State at least three differences between a budget and a financial plan Budget Financial Plan 4. List three benefits of making a personal financial plan. 5. Name five parts of a financial plan. a. b. c. d. e