You are about to complete an important step in your life: high school. The beginning of your adult life means independence, but it also requires planning ahead. When it comes to budgeting, saving and using credit, you have many options.
To help you understand these concepts and manage your personal finances more effectively, here is a series of concept sheets that look at these issues in detail:
The Personal Budget concept sheet explains the differences between expenses (fixed, variable, controllable, uncontrollable) and the types of income to include in your budget. It also includes tips on how to balance your budget, which will be very useful in helping you fulfil your dreams.
The concept sheet on Personal Savings gives you useful information on the various savings tools (GICs, bonds, stocks, etc.), types of investments (TFSAs, RRSPs, RESPs, etc.) and interest (rates, simple interest, compound interest). It provides everything you need to know to meet your personal or professional goals and protect yourself from future events that can affect your finances.
Credit can be tempting, because you can use it to buy something right away. However, credit is also money that you have to pay back and this can easily lead to excessive debt. On the other hand, establishing a good credit rating allows you to borrow money to buy a house or a car, for example. The Credit concept sheet provides useful information on credit rating, as well as on the risks and benefits of using various credit contracts (credit cards, lines of credit, personal loans, etc.).