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NOVEMBER > Financial Literacy Month

 * Hi Students,**
 * Did you know that November is Financial Literacy Month ?**
 * Happy Financial Literacy Month !**

Check out what Mississauga News has to say about Newcomer Students learning about our Financial Literacy workshops. []


 * Kinetic 11/10/16**


 * Prosper Canada > TD Bank (November 2014)**

1. Some Important Words

 * Credit:** The choice to borrow money to buy something now, and pay for it later. Some examples of credit are credit cards and car loans.


 * Credit bureau:** A business that collects information about you as a borrower and gives reports about the way you use credit.


 * Credit card**: A card given by a lender that lets you buy things and pay for them later. The credit card company pays the seller. You repay the credit card company monthly.


 * Creditor:** A person or business that lends money or sells you goods that you pay for later. This is also known as a lender.


 * Credit limit:** The largest amount of money you can borrow on your credit card or line of credit.


 * Credit rating:** In a credit report, each of our credit accounts gets a rating. For example, if you have a credit card and a car loan, you get ratings for each one. The rating shows how you've used credit in the past.


 * Credit score:** A score from 300-900 that credit bureaus use to rate the information in your credit report. Credit bureaus use a mathematical formula based on many factors to arrive at your credit score.


 * Debt:** Money that you owe.


 * Interest:** The amount paid by a borrower to a lender for the use of money.


 * Loan:** Money that you have borrowed and have to repay on a set schedule, with interest.

2. What's True for Me ?
This is a list of steps that can help you to build credit in Canada. Read each one and check "Yes", if the statement is true for //you// and //your life//. There are NO right or wrong answers to these statements. We'll talk about all of this during the workshop !

1. I pay my bills on time

[ ] Yes [ ] No [ ] I don't know

2. I am careful about the total amount of debt I owe. 3. I understand the terms of my credit agreements. For example, I know what happens if I pay late. 4. I`ve asked for my credit report in Canada. 5. I avoid using kinds of credit that charge high fees and interest. 6. I have a `secured`credit card to build my credit. 7. I`ve gone for a free appointment with a non-profit credit counselor. 8. I have a debt payment plan for myself. 9. I have talked with my family about building and protecting our credit.

Financial Literacy (Workshop by Nehru, August 2014)

 * Financial literacy means having knowledge, skills and confidence to make responsible financial decisions.
 * Financial literacy is the set of skills and knowledge that allows you to understand:
 * The financial principles you need to know how to make informed financial decisions, and the financial products that impact your personal well-being.


 * Understand the key financial products that you may need throughout your life - including bank accounts, mortgages, retirement savings plans and basic investments like stocks, bonds and mutual funds.
 * Understand basic financial concepts like compound interest, investment returns, diversification, and so on.
 * Discuss money and financial issues - that you don't really like to talk about.
 * Make good financial choices.


 * In early 2007, Credit Canada Surveyed almost 4500 randomly chosen Canadians about their finances. Of those surveyed: **
 * Almost a third felt they would not be able to retire at age 65.
 * As of today, the maximum pension you can receive is $1037.25 (some students say you need $3000./month). You must have worked at least 39 years in Canada. Age 26-65 years - 39 years.
 * Pension Cap is $51,200.
 * 50% of Canadians cannot retire at 65 years > very important to plan your life ahead of time
 * More than half do not contribute to their Registered Retirement Savings Plans each year
 * 9/10 felt that Canadians have more debt than they did five years ago.
 * 8/10 did not know their credit score.
 * more than half were not aware of free credit or debt services to help out.


 * If you pay your bills each month and there is nothing left over, what is the best thing you can do ? **
 * Go to the bank and get a debt consolidation loan
 * talk to a financial advisor about putting money away before you pay your bills
 * Make a **BUDGET** to help you figure out what's left after monthly expenses YOU take care of YOU !
 * We all know our income. Plan your expenses (rent/mortgage, food, transportation, insurance, telephone, etc. ... ) according to what you have.


 * VIDEO ** > GetSmarterAboutMoney.ca > Funny Money "Track O Matic", 'Money Loosers & Money Makers', ' Get it ON Credit' 'Emergency Money'... etc.

http://www.getsmarteraboutmoney.ca/en/managing-your-money/planning/budgeting/Pages/video-track-your-spending-track-o-matic.aspx#.VSaCFPnF_As

= Investment Basics for Newcomers = Financial Literacy

Make up 5 questions regarding each topic.

__ **Real Estate & Home Ownership** __

__ **Investment Basics for Newcomers to Canada** __


 * __Cross Border Banking &__ ** ** __Establishing Your Credit__ **

Abdullah - Business Development Manager (outreach … Brand) Suzanna Choi – Investments, Premier Relationship Mgr, Global Banking Service (international travel)
 * __GUEST SPEAKER: HSBC Financial Literacy >__ ** September 2011

Hong Kong Shanghai Bank of Canada (British origin) 87 countries (2nd largest bank in the world, international) since 1863 Canada 30 years (1981)
 * Cross Border Banking & Establishing Your Credit **


 * __WIRE TRANSFERS:__ **
 * Levels of Service (based on the amount of money you have on deposit)
 * Premier Service (free for self to self) $100,000.
 * Advance ($8.50 ) $25,000.
 * Retail (standard) $0.0


 * HSBC respects the laws of the country (ie. Gov’t of China allows $50,000 / person to be wired out per year). There is not a straight forward answer, it depends on the country’s laws on the eligibility of wiring out money
 * ON-line transfers are instant. Limit $50,000./day
 * Inter-bank wiring of money. May take a week to 2 weeks. HBSC to HBSC is quicker.
 * Cross Border (Corporation vs. Individual)
 * Int’l premier clients purchasing homes in USA 30% down, 70% mortgage. 1 month to 6 weeks.


 * __ESTABLISHING CREDIT:__ **
 * 1) standard way vs. HSBC way (Get credit records from 1st country, 1 week)
 * 2) credit history, why (how pay back ?), income (employment*, if coming from outside of Canada, may not count ?), how much, liabilities & assets
 * 3) Privacy … Gov’t cannot see your records in a bank in another country…
 * 4) The refusal of a department cards … is it a black mark on your credit history? (not really) Credit bureau is an independent 3rdparty (1. Equifax, 2. Trans Union)
 * 5) Repayment of loans or credit card (this generates a history and score)
 * 6) Establish a loan /credit card (use it every month and pay it back in full is best)
 * 7) Don’t open your credit report unless you need to (you loose points just looking)
 * 8) 10 business day turnaround to get a credit card
 * 9) Anything you don’t pay will show up on your credit rating (alimony, leans, bills, etc.)
 * 10) Automatic credit card payment available via 1 website, all accounts all over the world.


 * __MORTGAGES__ **
 * 1) Mortgage Preapproval offered by all banks
 * 2) Credit History ? Assets ? Job ?
 * 3) Int’l Client: Do you bank with HSBC overseas ? (60% mortgage, 40% down, for Premier clients without verification)
 * 4) Categories of immigration (refugee, student, investor, skilled worker…)
 * 5) Investor (75% mortgage, 1 question: show document that you are an ‘investor’)
 * 6) Employment: where’s your money coming from to pay the mortgage?
 * 7) Basic guideline for most banks 30% down (don’t need to prove income).
 * 8) Minimum down payment in Canada is 5% down
 * 9) Realtor (charge fees to the seller, not the buyer. When you sign with a Realtor, you are obliged to them for 90 days)
 * 10) Sign offer to purchase
 * 11) Appraisal (Bank wants to make sure of the proof of value) The bank won’t mortgage the amount over market value.
 * 12) Inspection to protect the buyer … to see beyond the ‘staging’ 5 day window to have your reputable 3rd party inspector to check the house.
 * 13) Down payment confirmation (money needs to be in your possession for at least 90 days). Need to explain where the money came from (to prove it’s not laundered money / illegal)
 * 14) Income / Employment
 * 15) Send to Lawyer … explaining terms of the mortgage. They will prepare legal transfer papers. What happens if I’m not in Canada at the time of closing?
 * 16) Other costs associated with a mortgage:
 * 17) CMHC Insurance – down payment < 20% (5% down 2.75, 10% down 2.00, 15% down 1.00%) can be included in mortgage, one time fee, or pay up front.
 * 18) Appraisal – down payment > 20%
 * 19) Home insurance * $ 25 - $40./month ?
 * 20) Property Tax * (mandatory depending on where) annually
 * 21) Maintenance Fees - Condo fees / townhouse
 * 22) Creditor Insurance (on the mortgage) - optional
 * 23) Land transfer tax * (mandatory ?) 1 time only at time of purchase
 * 24) Lawyer fees $1000 - $1500.

Whatever your purchase prices is 2% to cover fees (basic rule) not including your down payment.