Lesson 6: The Basics of Financial Literacy

Three quotes on saving and borrowing

1: Saving money from a summer job

  • Create a summer budget
  • Use the 50 30 20 rule, 50% for essentials, 30 for entertainment, 20 for savings.
  • Open a checking and savings account

“School may be out, but new work might be on your mind. If you’ve started your first job this summer or are a college student on break, ensuring your summer income lasts all year is crucial.” - penncommunitybank.com

2: RESP

  • government grants boost your savings
  • you have a variety of investing options

"Contributing to an RESP allows you to grow your savings tax-free. What’s more, since this money is intended for a child, the taxable portion of the withdrawal will be allocated to that child, at a much lower tax rate than yours." - nbc.ca

3: student loans

  • Fixed and low Interest Rates
  • No Credit History Is Required
  • No Cosigner Required

"There are many different types of college financial aid available to college-bound students, with student loans being an option that many students consider. Roughly 46 million students have federal student loan debt." - sofi.com