PW - Financial Management For Young Adults

CAREER ACCELERATOR:
FINANCIAL
MANAGEMENT FOR
YOUNG ADULTS
Participant Workbook
Youth Employment Services YES

www.yes.on.ca
Youth Employment Services YES Financial Management for Young Adults: Participant Workbook
Financial Management for Young Adults
Overview and Purpose
This workshop provides critical information that will assist participants in understanding how to
complete sometimes mundane but necessary tasks for becoming a financially responsible
young adult. The concepts included are using, building and interpreting credit; debt, debt
repayment and bankruptcy; personal income taxes and lastly, online security and preventative
measures that participants can take to avoid fraud with their finances. It is recommended that
participants complete ‘An Introduction to Financial Literacy, Capability and Inclusion’ to build
foundational knowledge related to the key concepts discussed in this module.
Time
The workshop is between two and a half to three hours long.
Learning Outcomes
At the end of this workshop you will have the tips and resources to be able to:
1. Comprehend credit: the different types, how to apply for credit and to understand your
credit score.
2. Understand debt: know your options including repayment, consolidation, and
bankruptcy.
3. Track personal documents needed to file your income taxes.
4. File your income taxes.
5. Optimize your online security and prevent fraud.
Leading Questions
As you complete this workshop, you will think about and answer the following questions:
1. How can using credit contribute to long and short term financial goals?
2. What are the benefits of having good credit? How can having bad credit hold you back?
3. Is all debt bad? What is the difference between good and bad debt?
4. What are some ways the government helps low income people during tax season?
5. What are some common online fraud schemes? How can you avoid them?
Page 2
Workshop Agenda
1. Before We Begin
2. Navigating Credit
3. Understanding Debt
4. Filing Income Taxes
5. Online Security and Fraud Prevention
6. Final Questions
Page 3
1. Before We Begin
Adult·ing
/əˈdəltiNG,ˈaˌdəltiNG/
noun
“The practice of behaving in a way characteristic of a responsible adult, especially the
accomplishment of mundane but necessary tasks.” (Oxford Dictionary)
If you’re reading this, you have most likely completed the Career Accelerator: Introduction to
Financial Literacy, Capability and Inclusion workshop and are ready to dive deeper into the
financial skills that will help you to thrive as a young adult.
Today, we will cover tasks such as applying for credit and maintaining a good credit score,
dealing with debt, gathering tax documents and filing personal taxes, as well as ensuring your
financial data is secure in order to protect yourself against fraud.
While these tasks may sound dull, tedious and maybe even unexciting, they are an essential
part of adulting and feeling confident in this extremely important area of your life.
2. Navigating Credit
Introduction to Credit
What does credit mean to you?
Have you accessed credit before? Why?
Credit is the ability to borrow money or access goods or services with the understanding that
you'll pay later. (Experian)
Page 4
There are many different types of credit that are used for different services. Your ability to
access credit is important for your financial future. It helps you to get things that you need now,
such as loan for a car, or a student loan.
Watch the video: What is Credit and Why is it Important?
https://youtu.be/Gxt5xRdD3bI
Main Ideas:
Types of Credit
What are the different types of credit?
How many forms of credit can you think of?
There are many different credit products available to young people. The two most common
types of credit are installment loans and revolving credit.
A credit card is a form of revolving credit. Revolving credit is credit that you can keep using
after you pay it off. You can continue to make purchases with it if the balance stays under the
credit limit. Other examples of revolving credit could be a personal or home equity line of
credit.
Page 5
Example:
Sam uses their credit card to pay for concert tickets online. They use their online banking app
to pay the charge to the credit card right away, so they don’t get charged any interest. Later
that day they visit the campus bookstore and pick up a set of textbooks for their accounting
course. Sam uses their credit card again to pay for the books and some groceries that they
ordered for curbside pick-up. When they receive their pay cheque they pay off the entire
balance on their card using their secured online banking app.
A car loan is an example of an installment loan. Installment loans are a form of credit, where
you owe a set amount to which you pay in installments. There is a set amount of money loaned
to you for a specific purpose. Other common examples of installment loans are student loans
and mortgages.
Example:
Sam is financing a car. They are given a timeframe to pay for the car, 48 months, then asked to
pay a certain amount per month for those 48 months until the car is paid off.
Forms of Credit Products
Overdraft
Payday Loan Consumer Loan Line of Credit
Protection
Private Auto
Student Loan Mortgage Credit Card
Financing
Deferred Rent-to-own Secured Credit

Informal Loan
Payment Plan Contract Card
High Risk or
Approved Loan
Form of What it is/ Advantages Disadvantages

Credit
How it Works
1 – Consumer A lump-sum If you get a loan with The longer you take to pay off the
payment from a an open repayment principal amount, the more your
Loan financial institution schedule (as opposed purchase will cost. Ex. Choosing a longer
Page 6
directly to you or a to one with a fixed term with smaller payments will result in
business where you schedule), you may be paying more interest.
are making a able to increase your
purchase. monthly payment to
pay it off faster.
Suitable for medium-
and longer-term
needs (ex. buying a
car or education).
2 - Line of A type of pre- Revolving Credit. The interest rate is often not fixed and
Credit approved loan that Allows you to borrow, can rise.
allows you to borrow repay and borrow
money when you again based on your The minimum payment is interest only,
need it, up to a credit limit. and there is often no repayment
maximum amount – schedule, which can make it hard to
similar to a credit Often has a lower prioritize repaying.
card. interest rate and can
offer different
repayment options.
3 - Overdraft A service that Convenient if you are Interest charges can be very expensive.
Protection financial institutions short of money in
offer on chequing your account at a It is common to get stuck in a cycle of
accounts, which particular time (e.g., if overdraft-repayment-overdraft.
allows you to access a bill is due just
additional funds before your payday).
after the account
reaches a $0 Helps you avoid costly
balance. NSF (not-sufficient
funds) charges.
4 – Private A loan for the May offer various You could pay very high interest
Auto purchase of a vehicle promotions at certain
Financing arranged through times of the year. The lender could re-possess your car if
the car dealer's you are unable to pay (the car is
financing company. collateral).
5 - Student A loan provided by Interest rates are You could graduate with a great deal of
Loan the government for lower than for debt.
education costs with personal bank loans.
a special rate and
special repayment Interest paid is
terms for students. eligible for a tax
credit.
Sometimes
Page 7
guaranteed if you
meet specific
eligibility criteria.
6 - Mortgage A type of loan used Allows you to build You must get mortgage insurance if you
to buy a home or equity through have less than 20% of the value of the
other property. Your increasing market home as a down payment, which
home or property is value. increases the cost of the loan.
the security or
guarantee for the Different terms (loan You could lose your house if you do not
loan. period, interest rate, make the mortgage payments.
payment schedule,
To be eligible for a etc.) are available, Most mortgages require a lawyer, title
mortgage, you must adding repayment registration and a survey, which add to
provide a significant flexibility. the cost of buying a house.
down payment and
meet other strict Often available at
criteria. lower rates than
consumer loans.
7 - Credit Card When you make a Let’s you borrow High interest charges add to the cost of a
purchase, you money instantly to purchase if you don't pay the balance in
borrow money from make purchases. full by the due date.
the credit card
company (ex. Visa) Has an interest-free Interest varies from about 10% to 30%,
to pay the vendor, grace period on new depending on the type of card and the
and you must pay purchases, if you pay type of transaction. This is much higher
back the money the balance in full by than many other types of credit.
you've borrowed by the current month's
a due date. due date.
If you do not pay the Can offer rewards and

balance in full each benefits (cash back,
month by the air miles)
payment due date,
you incur interest
charges.
8 - Deferred A purchase plan in Allows you to buy Usually charges very high interest rates
Payment Plan which you can delay things immediately and fees
paying for a without having to
purchase for a wait to save up the Some plans offer "0% interest" for a
specified time, entire purchase period, but if you don't pay by the due
usually by paying the amount date, you must pay high interest from
amount in
Page 8
installments, with the date you made the purchase

interest
Often offered by
appliance and
furniture stores
9 - Rent-to- A type of loan in Allows you to use the Can take a very long time to pay off and
own- Contract which you rent an rented item without is often extremely poor value for money.
item (usually waiting to save up the
furniture or entire purchase You can end up paying much more than
appliances) for a amount. the actual purchase price.
defined period.
You have the option

of purchasing the
item by continuing
to pay the rental fee
over time or by
paying a lump sum
You do not own the

item until the last
installment of the
loan is paid.
10 - Payday A short-term loan Provides quick access May not be regulated by the
Loan that you promise to to cash. government.
pay back from your
next pay cheque. More expensive than alternatives.
Offered by payday Charges very high interest rates and fees.

loan companies and
by most cheque- Can be caught in a cycle, using your next
cashing outlets. pay to repay this loan.
Page 9
11 - Secured A card that requires Could be useful if you Normally has a higher interest rate than
Credit Card you to provide the have no credit history an unsecured card if you have no credit
card issuer a security in Canada, you've had history or bad credit.
deposit before the credit problems in the
card is issued past and want to May charge annual fees, application fees
rebuild your credit and other charges.
Your credit limit is rating, or you've filed
normally set as a for bankruptcy in the
percentage of your past.
deposit (usually
100% or more). Most issuers pay
interest on your
security deposit.
12 - Informal Money that you Provides quick access Some informal loans come through “loan
Loan borrow from a family to cash if you have no sharks,” people who lend money at
member, friend or alternative source of exorbitant or illegal rates of interest.
other individual. funding.
Can cause relationship problems.
Family members may
charge low or no
interest.
13 - High Risk A type of unsecured Can improve your Usually has a higher interest rate and
or Approved loan that you may credit rating if you higher fees than other loans, as well as
Loan apply for if you are pay off the loan on stricter terms.
turned down for a time and in full.
personal or other
loan by a financial Lenders do not
institution usually ask for
collateral.
Often used by
people with poor The application
credit for short-term process is usually
emergency loans quick and simple.
Page 10
Selecting the Right Form of Credit
Small Group Activity:
Each group will be assigned four types of credit from the chart above. You will need to weigh
the advantages and disadvantages, then choose one Type of Credit that makes sense for the
assigned reason you are seeking credit.
Once you have chosen your form of credit, please research real examples of this form of credit
and select one credit product.
You will be asked to report back on the type of credit that you chose and why, as well as the
fees associated with the form of credit that you will be moving forward with (interest, APR, etc.)
I am seeking credit in order to:
The form of credit, credit product and associated fees I chose are:
I chose this credit product because:
Page 11
Key Credit Terms and Concepts

Match the definitions of the following basic credit terms and concepts that we need to know as
we begin to apply for and utilize credit.
1. Grace Period a. Money paid regularly at a particular

rate for the use of money lent, or for
delaying the repayment of debt.
2. Compound Interest b. The yearly interest rate charged on

outstanding credit card balances.
3. Credit Bureau c. The absolute maximum amount of

money that your lender will let you
borrow while using your credit card or
line of credit.
4. Interest Rate d. A banking service that allows you

access credit attached to your
chequing account thereby protecting
you from penalties or bounced checks
in the case of insufficient funds.
5. Minimum Payment e. The period after a payment deadline

when the borrower can pay back the
borrowed money without adding
interest or a late fee.
6. Credit Limit f. An interest rate offered by credit card

issuers in the initial stages of a loan.
These rates are often set much lower
than standard rates to attract new
cardholders.
7. Introductory Rate g. The minimum amount of money that

you are required to pay on your credit
card statement each month to keep
the account in good standing.
8. Overdraft Protection h. Interest added to the principal amount

invested or borrowed, and then the
interest rate applies to the new (larger)
principal/balance
9. Annual Percentage Rate (APR) i. A reporting agency that collects
information on consumer credit usage.
Page 12
Applying for Credit
There are many different forms of credit products. Each form of credit comes with its own
unique advantages and disadvantages.
The Government of Canada advises to limit your number of credit applications or credit checks.
Each time you apply for a credit card, the lender will perform a credit check. If you have too
many credit checks in your report, lenders may think that you are urgently seeking out credit,
or that you are trying to live beyond your means.
Your ability to access credit will be dependent on your credit history, whether you have paid
your bills on time, if you have a lot of debt already and if you have utilized credit in the past,
among other factors.
It’s also important to weigh the pros and cons, or the advantages and disadvantages of
different types of credit.
What are some common advantages and disadvantages to consider?
ADVANTAGES DISADVANTAGES
● Convenience ● Temptation (to use $ you don’t really
● Perks/ Rewards (cash advance, air miles have)
etc.) ● Fees
● Build a good credit history ● Interest charges
● Purchase protection ● Tricky short-term teaser rates
● Recordkeeping ● Potential for credit card fraud
● Available in case of Emergency ● Able to obtain multiple cards/ accrue
● Beneficial when traveling/ a lot have more debt than is necessary/ needed
the option to make purchases ● Depending on a variety of factors
worldwide (interest, rate you repay etc.), you can
pay back A LOT more than you
borrowed
Credit Reports and Credit Scores
The Importance of Credit Reports and Scores
Your credit report can impact whether you are approved to rent an apartment/house, whether
you can get a loan, some employers may even perform a credit check when they are looking to
hire someone, so it can also affect your employability.
Page 13
The bills that can impact your credit score are phone, internet, and utilities like water and
electricity.
If you can pay your bills on time, or early every month, this will prove to creditors that you are
reliable and responsible with your money, meaning that they will be more likely to loan you
money when we need it and at a lower interest rate.
Some ways to ensure your bills are paid on time would be to set up a reminder in your phone,
or agenda, and if the amount for the bill is the same every month, you can even set up an
automatic deposit so that the payment is automatically withdrawn from your account on a
scheduled day every month.
What is a Credit Report and a Credit Score?
Watch the video: A Quick Guide to your Equifax Credit Report and Equifax
Credit Score
https://youtu.be/Nr2aK1k1_z4
Main Ideas:
A credit report is a summary of your credit history. It is created when you borrow money or
apply for credit for the first time. Lenders will send information about your accounts to credit
reporting agencies, known as credit bureaus (ex. Equifax).
A credit score is a 3 digit number (ranging from 300 to 800) that comes from the information in
your credit report. It shows how well you manage your credit (do you pay on time, pay your full
balance, only make minimum payments etc.) Your credit score will be calculated based off a
formula used after looking at your credit report. You will gain points on your credit score if you
are using credit responsibly. You will lose points if you have trouble managing your credit.
The two main credit bureaus in Canada are Equifax and TransUnion. You can order your credit
report by mail, fax, phone, in person or online for free through either of these bureaus. You
must verify your identity with government issued identification.
Page 14
You may be asked to provide a credit report for things such as renting an apartment or applying
for a job in the financial sector.
Factors that can impact your credit score:
● carrying a balance on your credit cards

● how long you have been using credit
● frequency of credit applications
● types of credit you are using
● records of insolvency or bankruptcy
● if you are close to or above your credit limit
Interpreting Your Credit Score
VERY
POOR FAIR GOOD GOOD
EXCELLENT
300-559 560-659 660-724 760-900
725-759
Can You?
3. Understanding Debt
Introduction to Debt
Watch the video: 100 People Tell us How Much Debt They Have
https://www.youtube.com/watch?v=wAf0p9gP7oQ
Main Ideas:
Page 15
Debt is something, typically money, that is owed or due. (Oxford Dictionary)

Often, people feel badly about the debt that they have, even feeling shame because of it.
It’s important to note that not all debt is bad. It is common to acquire debt to ultimately land
us into a better financial situation for our future, i.e. paying for post-secondary education to
obtain a higher earning career. This is an investment in our future and should not be seen as
negative. It is completely normal to have debt!
● A 2018 Statistics Canada study showed that only 23 % of Canadians had received
financial support from their families towards their post-secondary education.
● In 2020, 69.8 % of Canadians had debt and the average Canadians debt was $73,500.
The debts were most commonly student loans, credit cards, mortgages, and car loans
(source: CBC.ca)
Although it is normal to have debt, there is potential for debt to become problematic and
stressful. Here are some warning signs that your debt may be getting out of hand:
● You’re receiving calls from collections agencies due to missed payments

● You’re regularly only making minimum payments
● You’re being denied loan and credit approval because your credit score is poor
● You’re relying on pay day loans or cash advances to cover every day or basic
expenses/bills
● You’re feeling stressed about your debt and it’s causing issues within your relationships
So you’ve accumulated some debt, now what?
Options for Dealing with Debt
DEBT
REPAYMENT CONSOLIDATION BANKRUPTCY
Page 16
Repayment
The best option for your credit score would be to repay the debt. It’s a great idea to come up
with a debt repayment plan. See how much total debt that you have, then plan a timeline for
repaying that debt.
Consider using SMART (specific, measurable, attainable, realistic, time-framed) goals. You can
also use the Credit Card Payment Calculator to figure out a monthly payment that works for you
and your budget.
Refer to the chart below. Let’s say that you have a debt of $1000.00 and you
would like to pay this debt off, with automatic monthly payments taken from
your account. Choose the automatic monthly payment amount and then
calculate how long it will take you to pay off the debt.
You can utilize the Debt Calculator: https://www.creditcanada.com/debt-

calculator
Total Debt Owed: Interest Rate: 20% Monthly Payment: How long it will take
$1,000.00 to pay off the debt:
Tips for Debt Repayment:
● Think through your purchase/aim to spend less than you may want to spend (it’s easy to
pile up debt due to our lifestyle choices) i.e. purchasing a quality used car, rather than a
new car could save you thousands of dollars.
● Pay more than the minimum payment.
● Set up an automatic payment so that you don’t have to worry about missing or late
payments.
● Pay off your biggest/ most expensive debt first (if one of your cards has a very high
interest rate, concentrate on paying down the balance of that card first, while still
contributing at least the minimum payments on any other debts owed).
● Communicate with creditors. If you are unable to pay, or must pay late this month,
notify your creditor.
Page 17
Debt Consolidation
Debt consolidation is a form of debt refinancing. This could mean taking out one larger loan to
pay off many other loans.
Pros:
● One simple monthly bill to pay

● Smaller payments overall
● A lower interest rate that means that more of your payment will go toward the principal
(balance owed)
● Can improve credit score (although may hurt it at the start, after you’re able to repay
your debts it could improve your score)
Cons:
● Could come with added costs: balance transfer, cancellation and annual fees
● You may not be able to get the loan with a lower interest rate depending on your credit
score, meaning that you could be paying the same, or more interest on the debt even
though it is now combined
● Doesn’t solve underlying financial issues. This helps to make a lot of payments into just
one payment, but doesn’t prevent you from spending and doesn’t automatically mean
that your habits will change
Bankruptcy
Bankruptcy is not having enough money or assets to pay all debts. Bankruptcy is a legal
proceeding involving a person or a business that is unable to pay their outstanding debts.
Filing for bankruptcy would impact: your credit score, your property (house, or car), your
spouse, someone that co-signed a loan, your student loans.
4. Income Tax
What is Income Tax?
Income tax refers to a type of tax that governments impose on income generated by businesses
and individuals. By law, taxpayers must file an income tax return every year to determine their
tax obligations.
Page 18
Income taxes are a source of revenue for governments. They are used to fund public services,
pay government obligations, and provide goods for citizens. (Investopedia.ca)
Why do we file our taxes?
What do our taxes pay for?
When is Tax Season?
Tax season is typically February to April each year, however, this may vary. If you are self-
employed, you have until June to file your taxes.
Employers have until the end of February to provide you with your T4. If you have left a job and
have a new address, it is important that you provide your former employer with your new
address in order to receive your T4.
Why should I file my taxes on time?
● You will avoid paying interest or penalties (Interest on your taxes owing grows daily the
day after the deadline. Penalties are 5% of your tax owing, plus 1 % for each full month
your return is late, up to a maximum of 12 months)
● You will receive your benefits/ credits sooner
● You could help protect your identity (tax identity theft can happen where someone
claims a fraudulent return using your personal information. You may not know that your
information has been stolen until you file a return)
Other steps to take: Visit the cra.ca website to find out what’s new for the upcoming tax
season, when the filing date is set for this year (typically end of April), and to ensure that all
your personal information is up to date.
Page 19
What do I need to file?
It is important to have everything you need to file your taxes prepared before you file or have
someone file for you. Regardless of who is submitting your tax return, it is important to keep
these documents in a secure file in case you are audited. If you are audited and do not have
these items handy, you could be asked to pay money back to the government.
Let’s get organized! Documents needed for filing your personal income tax:
Your social insurance number and other personal information, current address, phone
number
Income T-slips (T4s etc.) These will be provided by your employer (most likely in
February) and may be accessible on the secure online platform that holds your pay
statements.
T5007 statement of benefits provided by the Ministry of Community and Social Services
if you received social assistance.
Records of any other income, such as an income statement from a side hustle/ self-
employment/ cash job (i.e. if you nanny for a family on the weekends and they pay you
in cash, document your earnings)
Receipts for tax deductions, including medical expenses, childcare expenses, transit
passes, charitable donations, student loan interest paid
Information from past tax years, such as your RRSP Contribution limit.
The tax package sent to you by the Canada Revenue Agency, including your access code
to file online or by telephone. If you didn’t receive this it can be found online on cra.ca or
physical forms can be found at all post offices.
Income Tax Benefits and Credits
In Ontario, there are many different income tax benefits/credits that are worth looking into. To
receive these credits, you must be an Ontario resident and file a personal income tax return,
even if you didn’t earn a taxable income. Even if you didn’t earn any employment income, it’s
possible that you could receive money from the government.
The amount of money that you can receive from these benefits is based off of: your income,
age, where you live and the size of your family.
Most tax return software (ex. Turbo Tax) will automatically prompt you with questions to apply
for tax credits and benefits. You can also apply by filing a paper tax return and accompanying
forms.
Page 20
Ontario Income Tax Benefits/Credits that you may be able to claim:
✔ Donations (if you donate more than $50 to a charitable organization you can claim it on
your taxes)
✔ Student Loan Interest (you will receive a form from the government with the amount
paid)
✔ Union Dues (If you pay union dues- not your employer)
✔ Canada Child Benefit (Must be the primary person responsible for a child under the age
of 18 to qualify)
✔ Ontario Child Care Tax Credit (If a child’s household earns less than $150,000/yr the
eligible child’s parent can claim up to $8000 for a child under 7 and up to $5000 for each
child aged 7-17)
✔ Ontario Trillium Benefit (a combination of 3 tax credits to help Ontario residents with
low-moderate income pay for sales and property taxes and energy costs. You must
qualify for one of the following three credits: Ontario Sales Tax Credit, Ontario Energy
and Property Tax Credit, or Northern Ontario Tax Credit)
✔ Ontario Electricity Support Program (this benefit lowers the electricity bills for lower
income households. How much you can receive is dependent on how many people
reside in the residence and their combined incomes)
✔ Trillium Drug Program (anyone who does not have private health insurance can apply
regardless of their income)
✔ Low Income Workers Tax Credit (can apply if your individual net income is less than
$38,500/yr)
✔ Ontario Staycation Tax Credit (temporary credit for 2022-can claim up to $1000 of your
accommodation expenses if you travelled within Ontario)
✔ Ontario Sales Tax Credit (designed to provide relief for low-moderate income residents
for the sales tax they pay - the amount will depend on the individual’s income)
✔ GST/ HST Credit (must be over 19 years old and earn a combined income of less than
$60,000 to qualify)
✔ Canada Workers Benefit (amount can be received by individuals earning less than
$24,573, or families earning less than $37,173)
✔ Disability Tax Credit (for individuals with prolonged impairments lasting more than 12
months can apply, the individuals support people may also qualify)
✔ Canada Caregiver Credit (you may qualify if you reside with/ care for someone over the
age of 18 with a physical or mental impairment)
Page 21
Options for Filing Taxes
Watch the video: Filing Online – Fast, Easy and Secure
https://www.youtube.com/watch?v=-HSjk7Wq3-U
Main Ideas:
What are your options for filing your taxes?
You can file your taxes online or mail in a paper copy. You can also find other options to have
someone else, such as an accountant, complete them for you.
Here are some common options:
● Certified tax software (electronic filing – ex. Turbo Tax). You can download this software
directly from the website. This should be FREE to use, however you will need to pay to
use versions of the program that provide more guidance.
● Authorize a representative – this could be a family member or an accountant
● Community volunteer tax clinics – these are often found at community centers or
libraries and are accessible to low income individuals
● Discounter – this is a tax preparer (ex. H&R Block) that calculates your refund and
immediately pays you a part of your refund. It’s best to avoid using businesses like this
as you could end up paying them more than you get back. Most people receive returns
from the government fairly quickly so it is best to wait if you can.
● Paper tax return
● Automated phone line (File my Return)
● Tax filing assistance from a CRA agent
What happens after I submit?
After you submit your tax return, Canada Revenue Agency will assess the information you
provided for accuracy. Once they have determined that the information that you provided is
correct, they will issue you a notice of assessment.
Page 22
Your notice of assessment can be found on your online CRA account or will be mailed to you
typically within 2 weeks of submitting your tax return. Your notice of assessment will verify if
you will receive a refund and how much, or if you will be required to pay.
Most refunds are issued via direct deposit, however there is an option to receive a physical
cheque if that is your preference.
Self-Reflection – What do you need to be ready for Tax Season?
Do you feel confident filing your taxes this year? Why or why not?
Do you know where to find the documents you need to file? List them here.
Is there anything that you can prepare now?
Which method will you choose to file this year?
Page 23
5. Online Security and Fraud Prevention
Watch the video: How to Bank Safely Online
https://youtu.be/DGo-OhDWIKQ
Main Ideas:
While the concept of scams and fraud is nothing new, the digital age has created new
opportunities for cyber criminals to steal your money, identity or both.
Cyber criminals execute scams in a variety of different ways including via social media, phishing
e-mails, SMS messages on your mobile phone, fake tech support phone calls and more.
Typically, the scammer will request things like passwords and banking information.
Can you think of any online scams?
Have you, or anyone you know, ever fallen victim to an online scam?
Do you think older people or young adults fall victim to scams more often?
A June 2021 article from the New York Times shared that survey research from the Better
Business Bureau has shown that younger adults lose money more often than the older people
that you may think of as the stereotypical victims.
Page 24
The reports show that 44% of people ages 20-29 lose money to fraud, more than double the
20 % of people aged 60-79.
Young people most commonly fall victim to online retail scams (sharing their
banking/address/birthday information with “businesses” that influencers are promoting for
example) or employment scams (often these will request your SIN and DOB as a part of the
employment application).
Simple steps that you can take to protect you and your finances online, on computers and
mobile devices:
1. Choose secure passwords. When choosing your password, make sure it would be difficult
for a criminal to guess. Try not to use the same passwords across many websites. If there
is a security breach on website and your banking password is the same, it could put you at
risk. Some tips for coming up with a strong password: you can create your own personal
formula using a combination of numbers, letters and symbols, a word you will remember
and the first few letters of the site that you are accessing. For example, a combination of
your word (sushi), your favourite number 52 and the three letters of the site you are
accessing (Twitch) would look like this: TWIsushi52! You could also use a song title or lyric,
combined with a number as a secure password.
2. Protect your tablet, phone and computer. Install an anti-virus, anti-spyware and internet
firewall tools on all of your devices. Check regularly to make sure that these programs are
active and updated to keep your information protected. You can also protect against
malicious software by being careful about using free public WiFi to conduct financial
transactions and by ensuring that you only download apps directly from your bank or a
reputable app store that your financial institution directs you to.
3. If something is not right, contact your bank or creditor immediately. The Government of
Canada recommends that you check your bank statements and review your transactions
regularly. If there are any transactions listed that you didn’t make or are unsure about
contact your financial institution or lender immediately and notify them.
4. Never disclose your personal information. Although your bank may contact you by
phone, text, and email they will never ask you for personal information like your full
credit card number, PIN, or online banking password. They would already have that
information. If you are unsure about the communication that you receive, contact your
financial institution using a phone number or email address that is legitimate.
The Canadian Bankers Association often posts about fraud prevention tips. You can follow
their Twitter posts to be in the know. @CdnBankers
Page 25
How Secure is my Online Presence?
Looking at the Simple Steps above, answer the following questions:
Are your passwords secure? When was the last time you changed your
passwords? If it’s been longer than a year, or you have the same passwords for
all of your accounts, take the time to change your passwords.
Are your devices protected with anti-virus/spyware? If you’re at home, take a

few minutes to update these if necessary. If you’re not home right now, make
a note to check your online security ASAP when you get home.
Do you regularly check your bank statements? If not, make a reminder in your
phone to do so once every few weeks.
6. Wrap Up
Congratulations!
Upon completion of this module, you have been equipped with the skills and knowledge
needed to be in better control of your finances and complete tasks essential to *adulting*.
Be sure to keep this workbook on hand as a resource to help you navigate credit, debt, taxes
and online security in the future. Remember that family, friends, career counsellors, and other
community organization staff can also be great resources who can point you in the right
direction if you need a little bit of extra support with anything that we talked about today.
Ask Any Final Questions.
Page 26

PW - Financial Management For Young Adults

Uploaded by

Copyright:

Available Formats

PW - Financial Management For Young Adults

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

PW - Financial Management For Young Adults

Uploaded by

Copyright:

Available Formats

CAREER ACCELERATOR:

Youth Employment Services YES

Financial Management for Young Adults

Overview and Purpose

The workshop is between two and a half to three hours long.

What does credit mean to you?

Have you accessed credit before? Why?

Watch the video: What is Credit and Why is it Important?

What are the different types of credit?

How many forms of credit can you think of?

Forms of Credit Products

Deferred Rent-to-own Secured Credit

Form of What it is/ Advantages Disadvantages

If you do not pay the Can offer rewards and

installments, with the date you made the purchase

You have the option

You do not own the

Offered by payday Charges very high interest rates and fees.

Selecting the Right Form of Credit

Small Group Activity:

I am seeking credit in order to:

I chose this credit product because:

Key Credit Terms and Concepts

1. Grace Period a. Money paid regularly at a particular

2. Compound Interest b. The yearly interest rate charged on

3. Credit Bureau c. The absolute maximum amount of

4. Interest Rate d. A banking service that allows you

5. Minimum Payment e. The period after a payment deadline

6. Credit Limit f. An interest rate offered by credit card

7. Introductory Rate g. The minimum amount of money that

8. Overdraft Protection h. Interest added to the principal amount

Applying for Credit

What are some common advantages and disadvantages to consider?

Credit Reports and Credit Scores

The Importance of Credit Reports and Scores

What is a Credit Report and a Credit Score?

Factors that can impact your credit score:

● carrying a balance on your credit cards

Interpreting Your Credit Score

Debt is something, typically money, that is owed or due. (Oxford Dictionary)

● You’re receiving calls from collections agencies due to missed payments

So you’ve accumulated some debt, now what?

Options for Dealing with Debt

You can utilize the Debt Calculator: https://www.creditcanada.com/debt-

Tips for Debt Repayment:

● One simple monthly bill to pay

What is Income Tax?

Why do we file our taxes?

What do our taxes pay for?

When is Tax Season?

Why should I file my taxes on time?

What do I need to file?

Income Tax Benefits and Credits

Ontario Income Tax Benefits/Credits that you may be able to claim:

Options for Filing Taxes

Watch the video: Filing Online – Fast, Easy and Secure

What are your options for filing your taxes?

Here are some common options: