Finacial Planning and Software.

- - This unit is all about money and finances. Looking after your money is an important job in your life now and in your future. There are many types of financial software that can be used to assist in banking, financial planning, budgeting, income tax filing and other areas. - software provided by financial institutes (often for free) to manage personal finances - financial planning software - spreadsheets (and templates) that can be used for budgeting, tracking expenses, other finances - income tax filing software

Banking Software
Visit the website of the bank which you do business with. Explore their website and search for information about online banking. You can use your own account (be sure to clear browser memory when finished) or you can use an online demonstration of the account. For the bank’s online banking answer the following questions in a word processing file or WIKI.

1) What bank have you chosen? How do you identify yourself to the bank to access your account? How do they know it is you?
- The bank I have chosen in CIBC. How you identify yourself to the bank to access your account is by logging in with your band card number and a a personal password. They do not really know it is you, they are assuming it is you, because you are the only one who should have your bank card and password.

2) What can you view in online banking?

In online banking you can view:

• Your account balance.



• A demo on how to use online banking.



• Account details.



• Message Center.

• Recent Transactions.



• Alerts.



• How to contact them.

3) What types of banking transactions can you perform using online banking? List the type of transaction and then explain the process.

You can preform the following:

• Bill Payments



• Money Transfers (from one account to another)



• Email money Transfers



• Order checks



• Check Balances

4) Review the security procedures of the bank you chosen. Do you feel the bank has taken necessary steps to ensure your security? Why or why not? Why is it important for a bank to ensure your transactions are secure?

5) Why does a bank offer online banking services to its customers? When answering this question be sure to outline benefits to the bank and benefits to the customers.

- The bank offers online banking services to its customers because it will attract the customer to stay with the company. If another bank company offers online banking and CIBC didn't than a CIBC customer who has no time to go to the bank during bank hours is more likely to switch banks. Also the bank saves money by having online services because the money and bills do not have to go threw so many steps. By having online banking it makes less work for the tellers, and it is more convenient for people at home or work that do not have time to go to the bank and wait in line.

6) Provide relevant links

CIBC Website: http://www.cibc.com/ca/personal.html

Financial Planning Software
Read pages 415-421 of ITC Projects in Business and read the Career Perspective on page 160 of Business Connections. Answer the following questions (save answers in finances.wpd)

1) Using information found at www.canlearn.ca and other sites (such as a bank website -search for information for students) complete the tables as outlined in Question 20-1 on page 417 and 20-2 on page 418 of ITC Projects in Business Textbook. (Please note the links outlined in the textbook are out of date - choose links from the front page to complete tables) Investigate other areas of the www.canlearn.ca website to help with your future planning. What other items did you find useful at the site? Name at least 3 other items.

2) Read page 160-161 of Business Connections Textbook. Complete Questions 4, 5 on page 426 of ITC Projects in Business textbook Answer Question 1 on page 161 of Business Connections.

ITC Projects:

4. Briefly Describe the difference between a scholarship and a bursary.

- A scholarship is money that is given to the student that they are not required to pay back. Scholarships are awarded academically (by marks). It is a grant-in-aid to a student. A bursary takes into account academic merit, but every bursary is means-tested and its value is related to the income and financial resources of the recipients family.

5. What are three types of investment options for students?

- Three types of investment options for students are mutual funds, stocks, and GIC's. There are different funds available to choose from. Money Market funds are good quality and equity funds are good choices. Stocks in solid companies provide growth and dividends. GIC's (Guaranteed Investment Certificates). There are the safest investment but may not provide the growth that the other two options have.

Business Connections:

1. Explain the role of a financial planner and how one can be of assistance to an average person.

- Professionally certified financial planners pass rigorous examinations to verify their competence in applying financial knowledge to actual situations. They take courses in the financial planning process, tax planning, employee benefits and retirement planning, estate planning, investment management, and insurance. A financial planner will work with you, the client, to determine what your financial goals are and an appropriate way of achieving them. A financial planner assist you to live "comfortably," free from the worry of running out of funds, and can achieve their life goals.

3) Try the moneysense.ca net worth calculator at http://www.hsbc.ca/1/2/en/calculators/net-worth-calculator and create an electronic version of your personal results. Try the RESP and University tuition cost calculators at the moneysense.ca site ( http://www.moneysense.ca/calculators/ ) and save your results in electronic format. Provide relevant links.

- Click the link below to view my personal results:

http://www.hsbc.ca/1/2/en/calculators/net-worth-calculator

- Click the link below to view my RESP:

http://tools.moneysense.ca/calc/resp/Default.aspx?balance=5000&contrib=1040&income=2&rate=6&year=3&goal=8000&submit=Calculate&process=1&calc=resp_calculator

- Click the link below to view my tuition for University:

http://tools.moneysense.ca/calc/univ_cost/Default.aspx?athl=1&health=1&stdserv=1&other=1&duration=4&calc=university_planner&process=3&uniID=35&tuitionType=ca&facID=4&degreeType=under

4) Search the internet and find 3 other Canadian companies that provide financial planning software that could help students. Provide relevant links.

- CCH Canadian Limited is a software that you are able to purchase in-order to help with financial planning. (http://www.cch.ca/)

Using Spreadsheets for Financial Planning

Read page 158-160 of Business Connections and answer the following questions:
1) Question 1 - 4 on page 160 of Business Connections

1. Define a template. Explain how it can assist in the preparation of spreadsheet data.

- A template is a format used to create standardized documents; also a pre-designed worksheet in a spreadsheet program that contains labels and formulas and functions; but no values. A template can be used to assist in the preparation of spreadsheet data by simply entering the values into the templates and the functions and the formulas preform the required calculations.

2. Describe how a macro improves efficiency in using the same spreadsheet time after time.

- A macro can be used to improved efficiency for situations where you require customization and these procedures are preformed repetitively (e.g., weekly or monthly). They recognize similar actions while using the spreadsheet and immediately repeat the steps used.

3. Explain why you think protecting you documents is so important when using a spreadsheet.

- It is important to protect your documents when dealing with spreadsheets, because most of the time you are using personal information and you would not want someone to find out what that information is, or to tamper with that information.

4. Describe two methods of protecting your spreadsheets.

- The first method is the password-protecting of individual sheets within the document. This allows the viewer to open the document in a read-only format and they have to save the document with a new name. This will alert you that someone has tampered with the document.
- The second method is to save the document with a password. When trying to open the document, if the person trying to view the document does not know the password the are unable to view it.

2) Using a spreadsheet - prepare a personal statement of net worth using the Statement of Net Worth Template. Enter your personal data into the template and save an electronic version. Provide relevant links. Compare the results to your statement of net worth created in the last section. What did you find?

3) Using a spreadsheet template create and print a personal budget. Create an electronic version of your budget. Provide relevant links..

4) Enter the numbers from your spreadsheet budget into the aarp.org Budget Calculator found at: http://www.aarp.org/money/toolkit/articles/home_budget_calculator.html?CMP=KNC-360I-YAHOO-MON&HBX_OU=51&HBX_PK=budget_calculator&utm_source=Yahoo%2BPanama&utm_medium=cpc&utm_term=budget%2Bcalculator&utm_campaign=Y%21-Money%2BSection Create an electronic version of your results and provide relevant links.

Income Tax Filing Software

1) Read pages 421-426 of ITC Projects in Business textbook
2) Answer Questions 6-8 page 426 of ITC Projects in Business textbook.

6. What are the two types of student expenses? Give examples of each type.

- The two types of student expenses are Fixed Costs and Variable Costs.

Fixed Costs:

• Tuition
• Books
  
• Supplies
• Residence ( or rent)
• Meal Plan
  
• Student Fees
• Internet Connection
• Car Insurance (if you own a car)
• Utilities
  

Variable Costs:

• Food
  
• Entertainment
  
• Clothes
• Gas (if you own a car)
• Laundry
  

7. What are the income tax deductions uniquely available to students?

- Canada Customs and Revenue Agency (CCRA)

8. What is the name of the government agency that is responsible for personal income tax?

3) Visit the Canadian Revenue Agency website. Why do Canadians need to prepare a tax return? What is NETFILE?

4) What certified tax preparation software does the CRA allow to be used for income tax filing?

5) The following statement is found on the CRA website.

- What is the difference between tax preparation software and tax preparation web application? "NETFILE-certified" tax preparation software or "NETFILE-certified" tax preparation Web application means that the developer of the tax preparation software has gone through a process with the Canada Revenue Agency (CRA) to verify that their product is compatible with the CRA NETFILE electronic tax filing service. This does not mean that we endorse or recommend any product over another, nor does the CRA look at spelling or grammatical errors within the tax preparation software packages or Web applications. From the CRA website (http://www.netfile.gc.ca/sftwr-eng.html)

6) Install TaxFreeWay Income Tax Software and complete a tax return using your own information slips from the 2009 tax year or the information slips provided by your teacher. Create a PDF file from the completed income tax return. Provide a link to the PDF file.