Helping you to reduce stress and build a happier and more financially-secure future

w w w . e d u c a t o r s f i n a n c i a l g r o u p . c a
THE KEYS TO
FINANCIAL WELLNESS
Presented by: Karen Hubbard, CFP Moderated by: Bruce Sellery

The Keys to Financial Wellness
Meet your moderator
Founder of Moolala (a personal finance training company)
Bruce Sellery

Meet your subject matter expert
Financial Planner – CFP
Educators Financial Group
Karen Hubbard

About the webinar
Will I be able to get
a copy of the slides
after the webinar?
Is this webinar being
taped so it can be
viewed afterwards?

STRESSED?
Does the topic of money make you

Our financial wellness agenda
• What is stress?
• How to deal with the top three
financial stress factors:
- High debt levels
- Low savings
- Lack of financial literacy
• Q&A/wrap up

Ice breaker
What is
STRESS

Common symptoms of stress
• Increased anxiety
• Extreme mood swings (irritability)
• Inability to cope (feeling loss of control)
• Chronic fatigue (even after excessive sleep)
• Inaction (due to feeling so overwhelmed)

There are several contributing factors,
however we’re going to focus on the top three:
1. High debt levels
2. Low savings
3. Lack of financial literacy
What causes financial stress?

1. Communicate: Open the dialogue about money with
your spouse and your Educators financial specialist.
2. Plan: Get your head out of sand and come up with a
plan to get a handle on your money.
3. Care: Take care of your physical and mental health.
The keys to financial wellness

High
DEBT
Levels
How to deal with:

Main cause: - Spending more than you make
Risks: - Inability to pay bills on time
- Damage credit rating
- Bankruptcy
Stress factor 1: high debt levels

Types of debt: the pros and cons
Vehicle Pro Con
Personal Loan
• Set payment term
• Can be paid off anytime
• Higher rate of interest
Credit Card
• Low minimum payment
• Revolving limit
• High interest rate
• Can have debt for life
Line Of Credit
• Revolving limit
• Can be paid off anytime
• Like a low-interest
credit card
• No set payment term
• Can have debt for life
Mortgage
• Set payment term
• Lowest borrowing rate
• Pre-payment restrictions
• Long amortization
• Not easily refinanced

Stop paying high interest rates
=The average department store credit card charges 20%
The average bank credit card interest rate = 14%
Educators Financial Group 5-year mortgage rate = 3.04%
Consolidating high-interest debt into your mortgage
can help you become debt-free faster.
The average line of credit interest rate = 8%

Chart out your debt strategy
Strategy VISA Loan PLC Consolidation
Balance $10,000 $25,000 $15,000 $50,000
Monthly
Payment
$300* $506.91 $470.05 $920**
Interest
Charged
19% 8% 8% 4%
*Monthly payment is 3% of balance.
**Based on an Educators line of credit (in partnership with Teachers’ Credit Union) at a 4% interest rate and paid out in 5 years.
Combined monthly payment: $1276.96 Save: $356.96/mo.
Consolidating the various high interest rate debts above into one lower rate monthly
payment has the potential to save you $21,417.60 in interest over the duration**.

Accelerate your mortgage payments:
Look for more ways to save
*Over the duration of the mortgage – based on a $200,000 mortgage at a 5-year
fixed term/25-year amortization period and a 4% rate.
Payment
Strategy
Total Mort.
Payment
Interest/Time Saved*
(Over life of mortgage)
Slow and steady
(Regular)
$1,052.00
(per month)
None
Accelerated $526.00
(bi-weekly)
$16,849.00
(plus 3 years off amortization)
Accelerated +
(Add $180)
$706.00
(bi-weekly)
$53,826.00
Turbo charged
(Add $180 + $5,000
annual lump sum)
$526.00
(bi-weekly)
$72,513.00

Take control – take action
• Stop paying high interest rates
• Consolidate high-interest debt if possible
• Increase amount/frequency of payment(s)
• Round up payment to nearest $100
• List all balances from highest to lowest
- Record interest rates for each debt
- Pay the highest rate with the lowest
balance first

You can do this by:
• Always paying at least the minimum payment
on time
• Never exceeding your credit card limit
• Minimizing the number of credit
applications you make
• Use your card regularly
Protect your credit rating
Keep tabs of your credit rating online:
www.equifax.ca and www.transunion.ca

session

Stress factor #2
savings
How to deal with:

Main causes: - Other financial commitments
(pension contributions, day-to-day living expenses)
- No budget in place
- Frivolous spending
- Low cash flow
Risks: - No emergency fund
- Potential to keep using credit
- Possible pension income gap
Stress factor 2: low savings

By first understanding where your money goes:
Road to savings: where to start?
Net
Income
 Day-to-day
expenses
 Debt
repayments
Surplus/
Shortfall
 Retirement
pension plan
(OTPP/OMERS)

Start by penciling in your budget
Monthly Net Income
(after pension contributions)
$3,000
Monthly Expenses
Mortgage/Rent $1,220
Food $500
Cable/Internet $85
Insurance $150
Student Loan $200
Entertainment $250
Misc. $300
Income Minus Total Expenses $2,705
Use our Go Figure calculator online to figure out
your budget: www.educatorsfinancialgroup.ca

Set your savings goals
Do you want to:
• Create an emergency fund?
• Travel a few times a year?
• Take advantage of a Deferred Salary Plan?
• Purchase a home/pay down your mortgage?
• Save for children’s
education?

Putting away just $100 a month with 5% growth:
Start saving then watch it grow
Compounding Amount Actual Monthly Contributions
2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034
$0K
$10K
$20K
$30K
$40K
$50K
$60K
2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034
$0K
$10K
$20K
$30K
$40K
$50K
$60K
$6,000
$6,808
$13,200
$17,503
$58,801
$30,000
Source: Go Figure calculations based on $100/month contributions at 5% growth.

Don’t cut – cut back:
Think before you buy:
Spend smart:
Reduce spending
Set yourself limitations – reduce
trips to mall/online spending
Ask yourself “why?” – do you really
need this or simply want it?
Spend in positive ways that contribute
to improving your health and wealth

How to improve your
FINANCIAL

Stress factor 3: lack of financial literacy
Did you know…
According to the
Canadian Council
for Learning, only
50% of adult Canadians
are financially literate.

Learn about educator-specific challenges
Education-specific item Learn how to…
OTPP / OMERS pension
• Minimize potential income gaps
• Navigate pension income
fluctuations
• Manage cash flow challenges
Gratuities • Minimize tax implications
Summer time • Optimize cash flow
(i.e. Summer Freedom mortgage)
Deferred Salary Plan • Develop a plan for DSP while
minimizing the income pinch

Tap into free resources such as…
• Workshops and webinars
• Our quarterly newsletter, Insights
• Online through The Learning Centre
• Regular eNews – our email communications
• Free one-on-one financial
planning sessions

Create your budget (i.e. use our Go Figure online tool)
Determine your financial goals
Take advantage of our free educational
resources (i.e. sign up for The Learning Centre and eNews)
Call us/visit us online: 1.800.263.9541,
www.educatorsfinancialgroup.ca
Homework

1. Communicate: Open up the dialogue about money with
your spouse and your Educators financial specialist.
2. Plan: Get your head out of sand and come up with a
plan to get a handle on your money.
3. Care: Take care of your physical and mental health.

Disclaimer
The information provided is general in nature and is provided with the understanding that it may not be
relied upon as, nor considered to be, the rendering of tax, legal, accounting or professional advice.
Attendees and readers should consult a financial planner and their own accountant and/or legal advisor
for specific advice related to their circumstances. Educators Financial Group will not be held
responsible or liable for any losses, costs, damages or expenses incurred by reason of reliance as a
result of the aforementioned information. The information presented was obtained from sources that are
believed to be reliable. However, Educators Financial Group can not guarantee their completeness or
accuracy. Commissions, trailing commissions, management fees and expenses may all be associated
with mutual funds. Please read the simplified prospectus before investing. Mutual funds are not
guaranteed, their value changes frequently and past performance may not be repeated.

Helping you to reduce stress and build a happier and more financially-secure future

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