Financial goals

Question 1

What are the money personalities

Answer 1

• Spender
• Saver
• Investor
• Balancer

Question 2

Spender tips

Answer 2

• Set aside a portion of your income that you do not allow yourself to touch, and keep it for emergencies
• Use cash and debit cards, instead of credit cards
• Find other ways to reward yourself that do not include spending money

Question 3

Saver tips

Answer 3

• Make sure your budget isn’t too strict. Let yourself have some fun sometimes, and make changes to your budget when you need to.
• Think about sharing your money with people who might need it more than you do. You could give it to family, friends, or charities.

Question 4

Investor tips

Answer 4

• Make sure you don’t put all your money into one investment. Save some money for emergencies.
• Think about what you could gain or lose from your investments. Don’t just hope everything will work out.
• Only invest in things you believe in. Don’t let money make you do things you don’t think are right.

Question 5

Balancer tips

Answer 5

• Relax and enjoy your money sometimes, and treat yourself to something you want or need.
• Be ready to learn about new chances to make more money. Make sure to find out all you can before you say “no.”

Question 6

What is charitable giving

Answer 6

Charitable giving is the act of voluntarily giving something of value to a cause or organization that works for the public good.
E.g.
Giving money, such as cash, checks, credit cards, or online payments
Giving goods, such as clothes, books, food, or furniture
Giving services, such as volunteering, tutoring, mentoring, or counseling
Giving assets, such as stocks, bonds, real estate, or vehicles

Question 7

What can you give charitably to?

Answer 7

Education, such as schools, scholarships, or libraries
Health, such as hospitals, clinics, or research
Environment, such as conservation, wildlife, or climate change
Human rights, such as civil liberties, equality, or justice
Disaster relief, such as emergency, recovery, or prevention
Arts and culture, such as museums, theaters, or music

Question 8

Why do people give to charity?

Answer 8

Altruism, which is the desire to help others or improve the world.
Empathy, which is the ability to understand and share the feelings of others.
Religious beliefs, which may encourage or require giving to certain causes or organizations.
Social norms, which are the expectations or rules of behavior in a group or society.
Tax benefits, which are the reductions or savings in taxes that result from giving to charity.
Reputation, which is the way that others see or think of you.

Question 9

How does charitable giving affect you and others?

Answer 9

The warm glow effect, which is the feeling of satisfaction or joy that comes from giving to others
The helper’s high, which is the boost of energy or mood that comes from helping others
The happiness paradox, which is the finding that giving to others makes you happier than spending on yourself
The gratitude effect, which is the feeling of appreciation or thankfulness that comes from receiving or acknowledging a gift
The social connection, which is the bond or relationship that forms between the giver and the receiver or the cause or organization

Question 10

How does charitable giving affect your finances?

Answer 10

Lowering your taxable income, which is the amount of income that you pay taxes on
Donations increase your deductions or credits, which are the amounts that you can subtract from your taxes or get back as refunds
Donations can lower estate taxes, which are the taxes that apply to the property or assets that you leave behind when you die

Question 11

How does charitable giving affect your taxes?

Answer 11

When you combine your donation receipts at tax time, you’ll get charity tax credits you can use to reduce both your federal and provincial income taxes.

Question 12

Charities

Answer 12

Charities are non-profit organizations that have a charitable purpose and are registered or recognized by the government or a regulatory body. Any donation to a charity can be claimed on your tax return.

Question 13

Fundraisers

Answer 13

Fundraisers are events or campaigns that raise money for a specific cause or organization, such as a walkathon, a raffle, or a concert. Anything given to a fundraiser, typically, cannot be claimed on a tax return.

Question 14

Organizations

Answer 14

Organizations are groups or entities that have a common goal or interest, such as a club, a society, or a foundation. Gifts to organizations are typically not included on tax returns.

Question 15

What are SMART goals?

Answer 15

S-Specific
M-Measurable
A-Achievable
R-Realistic
T-Time-bound

Question 16

How to write your own SMART financial goals

Answer 16

1. Think of a financial goal that you want to achieve.
2. Write down your goal in one sentence, using the SMART criteria.
3. Check your goal for clarity, realism, and relevance.
4. Adjust your goal if needed.
5. Write down the action steps that you need to take to achieve your goal.
6. Review your goal and action steps regularly.

Question 17

Short-term goals

Answer 17

Short term financial goals are goals you want to achieve in less than a year, such as buying a new phone, saving for a trip, or paying off a small amount of debt. These goals are usually low risk, meaning you are unlikely to lose money or face unexpected costs. To reach these goals, you need to budget your income and expenses, and save a portion of your money in a safe and accessible place, such as a bank account or a money jar.

Question 18

Medium-term goals

Answer 18

Medium term financial goals are the ones you want to achieve in one to five years, such as buying a car, saving for college, or starting a business. These goals are usually moderate risk, meaning you may face some uncertainty or fluctuations in your income, expenses, or returns. To reach these goals, you need to plan your income and expenses, and invest a portion of your money in a diversified and flexible way, such as a mutual fund or a certificate of deposit.

Question 19

Long-term goals

Answer 19

Long term financial goals are the ones you want to achieve in more than five years, such as buying a house, saving for retirement, or leaving a legacy. These goals are usually high risk, meaning you may face significant changes or challenges in your income, expenses, or returns. To reach these goals, you need to project your income and expenses, and invest a portion of your money in a growth-oriented and long-lasting way, such as a stock or a bond.

Question 20

How to create a financial plan

Answer 20

1. Create a budget
   This is a plan that shows how much money you earn, spend, and save each month. It helps you track your income and expenses, identify your needs and wants, and balance your spending and saving. You can use a spreadsheet, an app, or a website to create and monitor your budget.
2. Create a savings plan
   This is a plan that shows how much money you save each month for your short, medium, and long term goals. It helps you prioritize your goals, allocate your income, and build your savings.
3. Create a debt repayment plan
   This is a plan that shows how much money you pay each month to reduce your debts, such as credit cards, student loans, or car loans. It helps you lower your interest costs, improve your credit score, and free up your cash flow.
4. Create an investment plan
   This is a plan that shows how much money you invest each month to grow your wealth and achieve your long term goals. It helps you diversify your portfolio, balance your risk and return, and take advantage of compound interest.