Unit 3: It’s All about the Money

Money Personality Profile

Capture

Reflective Responses

Banking Basics

Some of my money management strengths are that I can put money away into the bank for future security.  I also do not spend money on things that I do not need.  Ex. that new iPhone that looks “SOOOOOOOO” cool (cough, cough).  When I do spend money I often spend it wisely, researching what it is that I want and where and how I can get the best deal and the best quality.  I need to work on finding a steady income so that I can afford to buy that amazing new overpriced iPhone.

Budgeting and Credit Card Use

Real Costs

So the main lesson of this section of the finances unit is that life is expensive (so we should all just go live off the land in the Yukon).  The best thing you can do to be prepared is to research everything like your new car BEFORE you buy it, that way you can know what to expect for costs.  Post secondary education is expensive, and the best way to reduce the cost is to find and apply for as many scholarships, grants, and bursaries as you humanly can.  Also a car is a very expensive investment which, if you are living in the city, you should make sure that you actually NEED one before you buy it.  It is also always a good idea to have some cash in reserve for unexpected costs.

Taxes and Me

“Nothing is sure in life but death and taxes”

Although we all dislike paying our taxes, taxes are what pays for all of our “free” services in Canada e.g. Health Care.  Essentially this unit tells me that everything is taxed, some things more than others.  It also tells me that I will have either PST, GST or both on most purchases.  As everyone in Canada pays taxes (we are all taxpayers) we should also be concerned as to where our taxes go.  Our government is acting on OUR BEHALF when they make a decision about what to do with taxpayer money.  Therefore we should all make sure that our opinion is heard by our politicians, whom we hire.

Financial Plan

So the lesson of the financial plan section, is invest early (and read “The Wealthy Barber”).  When you save early, you really make money for later on in life.  Another key to financial security is to avoid rip-offs.  When something sounds too good to be true (like the Sham-WOW) it probably is.  Find a different product.  If you comparison shop, and find the best prices you will also save a significant amount of money

Overall Summary

Web 2.19476109 (Rounds to 2.0) Tools

An amazing image of Taxes.

Taxes web 2.0

A World on avoiding rip-offs.

Unit 3 wordle

A flowchart on buying your first car.

Guide to Buying Car Flowchart

$500 Budget

Transportation:

  • 50$ older bike (one time expense)
  • 25$ on a spare tire and other repairs
  • 25$ for a bike lock (one time expense)
  • 20$ bike helmet (hopefully a one time expense. If it isn’t. . .well. . . I won’t be around to buy another one!)

This will mean that I do not have an expense for gas etc. when using my bicycle.

Clothing

  • 50$ for clothes from the thrift store (once every three months or so)

Personal Items

  • 4$ toothbrush (once every three months)
  • 6$ deodorant (once every couple of months)

Food

  • 200$
  • 10$ chocolate fund (it is also entertainment getting the cheapest, best bar)

I chose this much because it is better to have too much food rather than too little.

Cell-Phone

  • I really do not need a cell-phone, I can use the land line that is included in my accommodation and utilities bill which have already been provided for.

Entertainment

  • Riding my bike, free (yet priceless)
  • Library: about 2$ for registration and 8$ for overdue fines.

Savings (why wasn’t this supposed to be included in my budget?!?!?!?)

  • 100$

Summary Paragraph:

In summary the finances unit of planning 10 is showing you just how expensive life is.  It also shows you how to save, when to buy, when to go into debt (rarely) and find out the differences between a need a want.  A necessity is something that you need to survive, such as food and shelter, whereas a want is something like buying a new video game, or getting cable.  The two things that bugged me the most in this unit were the Money Personality Profiler -which was a complete waste of time due to the fact that it did not tell me anything except that I need to spend more money-  and the fact that we were not supposed to include savings in our 500$ budget.  This to me seemed very strange since throughout the rest of the unit the theme was essentially save, save and save some more.  In conclusion, this unit was a lot more useful than past units, but could still have some of the pointless sections taken out.

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