At Big Brothers Big Sisters, we believe every child should have the opportunity to reach his or her full potential – both as individuals and citizens. We believe that by changing the course of young lives we can in turn be changing the course of a community’s future.
Start Talking is a place where we want to raise awareness of key issues that face today’s youth. We will sometimes advocate, sometimes educate, sometimes inform, sometimes ask questions and always invite discussion about the pressing concerns that involve the younger generations of today.

Monday, June 17, 2013

Financial Literacy with Jamie Golombek from CIBC!

We welcome Jamie Golombek as a guest blogger from CIBC. Jamie is a panellist at the upcoming CIBC Digital Youth Forum celebrating the 15th Anniversary of the CIBC Youthvision Scholarship Program. If you would like to hear more money management advice from Jamie, please tune-in to the Forum, next Thursday, June 20th, 2013 at 5 pm EST.

How to Tune-In-

About Jamie: As Managing Director of Tax and Estate planning, Jamie works with colleagues across CIBC to support high net worth clients and deliver integrated financial planning and strong advisory solutions. He joined CIBC in 2008 after 12 years with Invesco Trimark and previous to that was with Deloitte & Touche. He is often quoted as an expert on taxation, writes a weekly column called “Tax Expert” in the National Post and is a regular personal finance guest on The Marilyn Denis Show. In his spare time, Jamie teaches an MBA course in Personal Finance at the Schulich School of Business at York University.

Financial Literacy with Jamie Golombek from CIBC
June 17, 2013

Whether you’re a child who has just received his first allowance, a teen with a part-time job while in high school or a graduate student who is beginning her career, getting used to setting – and sticking to – a budget is probably the most important piece of financial advice you will ever receive.

But before even trying to set a budget, you should set a few goals for yourself. For a goal to be meaningful, it must have both a specific, measurable outcome and a timeframe for achieving that outcome.

For example, let’s say your goal is to get an iPad. While that goal itself may be exciting, it’s far too vague to be achievable as it’s not specific enough and no timeframe for achieving it has been established. To make the goal real, you do some research and determine that the model you want will cost $550, including all taxes. You would like to have the iPad to enjoy during winter break, say, by late December.

Now, we have a concrete, objective and measurable goal: To buy an iPad, that costs $550, by December 25th.

Now comes the harder step - how are we going to achieve that goal? That’s where budgeting fits in.

A budget can help you save for that iPad by forcing you to set aside funds on a regular basis so that your goal can be realized in time. Part of a budget involves looking at how much money is coming in and comparing that to your expenses. The excess – if any! – is what’s available to set aside to fund that goal.

Let’s say you do some babysitting each week and earn about $50 weekly. Most weeks you end up spending this money on a movie, snacks, or a trip or two (or three!) to McDonald’s. But what if you were to only spend $30 per week on your current expenses and were disciplined enough to set aside $20 from now until December to be able to buy that iPad.

By doing so, in just over six months’ time, you will have accumulated the $550 needed to buy your iPad. Yes – it involved sacrificing your current lifestyle in return for the reward of achieving your goal by the end of the year, but it was worth it!

If you can master the ability to set goals and stick to a budget when you’re young, it will serve you well throughout your life as you apply these very same principles to help you achieve larger financial goals, like buying your first car or even one day, a home.


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