JUSTCAWS

In our last lesson we showed you how to easily put aside a portion of your paycheque into a high interest savings account. While you enjoy seeing that money grow, we can now focus on making your walking around cash last. Tracking your spending indicated how much money you need to get by on between pay periods. Whatever that amount is, go to your bank’s ATM and take it out in cash. I told you to use a debit card before — so that you could track where your money was going over a month’s time. We’ve done that — so now we can start using cash to make our purchases. There are many reasons to do this — but a key one is that you will spend less money using cash to buy things instead of debit. Why? You will control your own spending because you will always know how much money you have left. If your bank has provided your account with overdraft protection, you have the option of going into debt if your account balance goes below zero. You pay fees and interest every time you use this dangerous ...

Ah, April, that beautiful time of year when the snow melts away and things are supposed to warm up. April is also tax season for Canadians. With that in mind, this lesson in finance will examine income taxes from a teenage perspective. For the 2018 tax year, the basic personal tax exemption is $11,809. If you earn under this amount, then you don’t have to pay federal income taxes. Some employers, however, will deduct income taxes from students’ paycheques if the gross pay they earn, pro-rated for the year, is greater than the exemption limit. Many students who only work during the summer months are in this situation. If, for example, a student earns $2,000 a month during July and August — but does not work the rest of the year — their employer will deduct income taxes from their paycheque even though they are earning below the exemption limit. To the employer, the student’s monthly earnings equate to $24,000 (12 months times $2,000). This amount is above the exemption limit, and theref...

OK, time for a little review. We began our first lesson telling you to get a job. Then you were told how rich you are right now and the need to keep track of where all your money is going. Finally, you were given some motivation to start saving your cash now for the tsunami of bills that are coming your way. Now we can move forward. This lesson is all about saving your money with ease. To begin taking charge of our money, we must use the tools out there that make spending our money easy to do. The great thing about this plan is it is flexible to accommodate a wide variety of income scenarios. It can be used no matter how much you make, just as long as you have money coming in on a regular basis — either through an allowance or paycheque. The amount of money can also vary from one paycheque to the next. There are numerous saving products offered by the banks. Unfortunately, many, such as savings bonds or Guaranteed Investment Certificates, require that you have money already saved up be...

If you are a high school senior your inner desire for independence is beginning to emerge. Your ability to move out of your parents’ shadow and be your own person is going to be tied with your financial independence. If your folks are still buying everything for you or giving you a steady allowance, they are stunting your financial growth. It’s time to lay claim to your own financial independence. If you don’t have a job yet — get one. You are never going to be able to manage your own money if you don’t have any of your own money to manage. Many young people shy away from working because they or their parents feel it will hurt their marks at school. As long as you are not involved heavily in extracurricular activities you should be able to handle up to 15 hours a week. From my research and observation teaching high school students, academic performance begins to suffer around the 15 hour per week mark depending on the student. Some students can push it, but go 20 hours or m...