Photo courtesty of the Toronto Star

September is coming soon and thousands of college and university students will be leaving the nest and heading off to school. If, as in many Canadian families, your child has been added to your auto insurance policy, you should notify your insurance professional. Your agent or broker can make or explain any changes to your policy that may be required as a result.

If your child is going to be living at home and going to school in the same community, your insurance needs and coverage probably won’t change. If your child is moving a significant distance from home, though, there will likely be some changes to your coverage and premiums.

Making intelligent alterations to your coverage can save you hundreds of dollars in insurance premiums throughout the school year. This is a real benefit to parents trying to put their kids through expensive college and university programs.

Reducing Insurance Costs for Post Secondary Students

Here’s are some ways to reduce costs:

1.    Keep your child on your insurance policy.

For most young drivers, especially young males, the cost of owning their own insurance policy can be quite high. It usually makes good financial sense to keep them insured under your policy as a secondary driver, if at all possible. This is particularly true if your child is moving to an urban center that has a substantially increased risk of theft or vandalism. Most insurance companies offer multi-car discounts for loyal customers, allowing you to insure your child’s car at reduced rates. Make sure that you inform your agent well in advance of the changes. Failure to do so may result in your child not being covered under your policy.

2.    If your child will not be driving while at school consider changing your child’s insurance status to “restricted”.

If your child won’t be taking a car with them to school, you may be entitled to a discount on their portion of your premium.  If your child is away at school you get a reduction of about 50%, depending upon how far away they are.  Make sure you inform your insurance professional when your child returns home for the summer.

3.    Ask for student discounts for having good grades.

Students who have good grades may be eligible for discounted premiums. This can make a big difference in your overall insurance costs, particularly if you have more than one child attending post-secondary education. If not, you can always shop around for insurance rates and options that better suit your family’s current needs and goals.

4.    Remind your child of the importance of a clean driving record.

Young drivers, especially young males, tend to suffer significant increases in premium costs if their driving record has one or more blemishes on it. It’s worthwhile to keep in mind the importance of safe and defensive driving practices.

Some insurance companies offer accident forgiveness programs for the first accident or traffic violation on your child’s record. This type of program can be very beneficial for students whose lack of driving experience might lead to an occasional fender bender.

You may want to consider scheduling an appointment with your insurance agent or broker and discuss the changes that your family is about to experience. Your insurance professional can answer questions that are unique to your personal situation and show you how to keep your insurance costs manageable while maintaining the coverage that you need.

If your rate remains the same or increases remember that you always have the option of shopping your rate around.  This can be done quickly and easily through online sites such as InsuranceHotline.com.  There may be a cheaper rate for you for the exact same coverage.

The Constantine’s daughter, Renee, had worked for four years at a leading money-lending chain, and spent almost a year with a national bank. She learned first-hand about the power and pitfalls of working in the financial industry. Renee rejected numerous management offers from the money-lending chain because her pay didn’t increase with her responsibilities. The former bank teller also realized that despite delivering excellent customer service, customers were still frustrated when their cheques were held for up to 10 business days.

At the time, Renee was a university student with hopes of entering law school and opening her own firm. However, she recognized that people needed to access their money quickly, avoid bureaucracy and receive excellent customer service. Like most entrepreneurs, she saw a void, and decided to fill it.

Renee recruited her twin sister, Monique, for the position of regional manager; her other sister, Rochelle, was hired as a teller; her aunt, Suzette Corrie, became director of publicity; and her cousin, Dwayne Anderson, came on board as marketing director.

Anderson says PureCash’s clients are more than just numbers. “Some stores are so aggressive that you feel like a nobody,” he says. “We treat you like a person. When our regular clients come through our doors, we know them by name. We know their pay dates, how many children they have, and in certain cases we know their marital problems. We actually take the time to build relationships because that’s what it’s all about.”

Renee says that in addition to the warm atmosphere, PureCash has a competitive edge by offering the lowest cheque-cashing fees on payday loans with a 48-hour turnaround. “Our rates are 2.89 per cent and then we charge a $2.89 administration fee per cheque. So if you came in with a $500 cheque, you’re looking at about $15 being taken off your cheque.” PureCash’s Buddy System waives these fees for customers who refer friends cashing cheques of $500 or less. This promotion has no limit on the number of referrals and has proven to be a successful and cost-effective marketing strategy.

Five years after launch, Canada’s first Black-owned, family-run, money services franchise has two locations in the Scarborough, Ont. area, with plans to expand throughout the province.

The 30th anniversary gala is already in the works, says Michelle Ambrose, BBPA’s director of events. “Plans are already underway for the unveiling of an extraordinary celebration,” she says. “This is an event you won’t want to miss.”

But the BBPA has always been about more than one pinnacle event of the season. The recently elected board of directors and board of trustees work hard all year to ensure that the mandate to inspire youth, generate success in the business and professional realms, and create forward shifts in the areas of entrepreneurship and economic development are all maintained.

“A major thrust will be placed on the tactful and aggressive building of generational wealth, which is on the agenda of the convention slated for Nov. 3 and 4 at the Allstream Conference Centre,” reveals second vice president and chair of the National Black Business and Professional Convention, Mayvia Morrison.

Another not-to-be-missed event is the 5th Annual Black Heroes Golf Tournament (July 23) in support of the National Scholarship Fund, a joint effort of the BBPA, UFSC and CABL. Plus the BBPA will host its annual National Scholarship Fund Leaders of Tomorrow Conference (Oct. 27) for students from priority neighbourhoods, with a special 25th anniversary ceremony for the recipients of the BBPA National Scholarship Fund.

“The BBPA’s motto has always included striving for excellence,” says Ambrose. “Through increased involvement by all members of Canada’s Black communities, there is just no imagining what we can achieve.”

For more info on membership, newsletters, volunteering or donations to the scholarship fund, visit bbpa.org

What makes their company and collection stand out is the sisters’ ability to attract diverse clientele while holding true to their ideas. “We like to keep our roster of clients very versatile,” says Lisa. “For example, we will work with companies in the technology industry, urban events, charity events and independent film companies.

It gives us the opportunity to branch out in our design styles.” Some of the duo’s clients include the ReelWorld Film Festival and the High Commission of Barbados; and their work has been displayed at LG Fashion Week. The sisters say getting to know a client’s vision intimately (through hours of brainstorming, for example) helps with creating a product that reflects exactly what the client is looking for. Another colourful aspect of their work, especially through Dn’A, using an older technique to provide a new product.

“We work strictly with words. Dn’A is essentially no pictures and no drawings, just words,” explains Leslie. “It’s easy to create an aesthetic out of objects, pictures or drawings, but we are really creating art out of words. Our Dn’A pieces are glass displays, and we have wall displays and floor displays.”

While X Height Media and Dn’A are making a vibrant impact, the biggest challenge Lisa, Leslie and many other graphic artists face is a lack of validation for their efforts. “There are a lot of people who don’t see the value in graphic design, so you always encounter issues where potential clients may not see the full value in your work,” says Leslie. “You’re also working against the general public, which sometimes does not recognize the time and effort that goes into design work.”

Obstacles aside, both sisters are determined to leave evidence of their Dn’A and take X Height Media to awesome levels. “I believe in our product. I want more of Toronto to see it and the rest of the world will eventually see what we can do,” sums up Lisa.

Nnecka Elliot

By Erica Phillips

Instead of acquiescing to or bemoaning the ever-changing media landscape, Nneka Elliott decided to embrace it. On May 2, the television personality left news channel CP24,  where she had worked for three years, to open her own company.

The Media Huddle (TMH) launched on May 26. It was time for the Ryerson graduate to step out of her comfort zone and listen to her heart, which, since October 2010, had been telling her she needed a change. “I felt like I was becoming complacent and losing my true sense of self. I was out of touch with all the things that made me, me,” she says.

The debut of Toronto-based TMH featured many of her former colleagues, including Dwight Drummond, Nathan Downer, Gurdeep Ahluwalia, Michelle Dube and others. Many of them held up signs that read words of inspiration and encouragement.

Elliott started TMH to help steer media professionals through an industry-wide transition, driven in large part by social media. She wants to help media professionals acquire the skills needed to stay alive and thrive, no matter their stage in the industry.

TMH, she says, is about people coming together, learning, sharing and connecting. “Social media has changed the definition of what media is,” Elliott says. “We can’t just sit back and let the change happen, we must be a part of that process. We need to position ourselves in different ways, align ourselves with different people and learn new ways to tell our stories.”

The 27-year-old has several goals for TMH. In the first year, she hopes that it will become the official source for educating media professionals in Toronto. Over the next five years, she hopes to provide scholarships for media students and develop her web series into a kind of “inside the actors’ studio” for media professionals. In 10 years, she wants to set up branches in major cities around the world.

To do this, Elliott will use thought-provoking seminars, networking parties and skill-building workshops led by industry experts. Topics will include: networking, developing your personal brand, social media trends, freelance work and negotiating contracts, to name a few. Meanwhile, newsletters will provide tips, job postings and links to videos.

As Elliott’s passion is still broadcasting, she plans to appear on television as a contributor and be the face of TMH’s web series. For now, her days start at 7:30 a.m. with her puppy, Remy, and exercise. Then it’s onto making phone calls to potential sponsors and guest speakers, touching base with her personal assistant, interns and volunteers, coordinating web content and event planning. She stops just after midnight.

That work ethic and energy come from Elliott’s major inspiration, her very active mother: “My mom does not know the phrase ‘I can’t.’ She always figures out a way to overcome any obstacle, including breast cancer. She has a quiet strength, a strong sense of self. She gets more beautiful everyday and surprises me with her wisdom every time I talk to her.”

Camille Jones, CLU

By Camille Jones

When it comes to life insurance affordability, there are a variety of strategies that we can look at to ensure you are adequately insured without breaking your pockets.

For example, looking at term vs permanent insurance is a way to have greater insurance coverage for a lower cost. Term insurance can be purchased in 5/10/20 year terms, depending on how long you need the insurance and the cost. The lower the duration, the lower the cost. Most young individuals, individuals with small children, and/or individuals who have a short term liability, such as a mortgage, would choose the term option. The term option covers you for the duration chosen at inception, 5/10/20. After the term is up, there is an option of converting your policy to permanent or starting a new policy. This again is because of the lower rates for a greater amount of coverage. If one is just starting out in life, I would suggest term insurance.

Once you have established assets, such as a paid off mortgage, investments or to leave a legacy, the permanent option would be preferable. This is due to the benefit of holding this insurance until death. A permanent solution is more, but the death benefit need is usually lower than term insurance, as permanent insurance assists in paying taxes at death and funeral expenses.

Depending on the situation, sometimes it is more beneficial to have a “hybrid” policy, which is a combination of both permanent and term.

The best way to completely answer your questions is to meet with a consultant and go over an insurance needs analysis. When I sit with my clients, we do this analysis to determine where the insurance needs are, how much insurance is required and at what cost works into that client’s budget.

It is very important to have a protection plan in place for your family and assets, but just like a financial plan, there is no such thing as a one size fits all. We need to look at your individual situation and tailor your needs.

To discover the best protection plan for your family, contact Camille Jones, C.L.U at 647  856-8048 or 416 602 2231 or by email at [email protected].

Camille Jones, CLU

By Camille Jones

“I’m really curious about finances for newly-graduated students”

Graduation is both a joyous time and a very stressful time. It is great because on one hand, no more homework or late night study groups, but on the other hand, graduations marks the beginning of your career and of course, the repayment of student loans, mortgages and many other future debts.

This can be overwhelming for a new grad, especially when they have their parents and others saying that they should start saving. All the grad is thinking of is, “how can I save money when I am just starting out, and/or paying off my student loan”? This is true, but even as a newly graduated student, you need to start building life long habits of saving and paying yourself first. Remember, where we are today, is not where will be tomorrow, so start off small.

The rule of thumb is to save 10% of what you are earn a month, and then use what is remaining for expenses and hobbies. If 10% is too high to start with, 5% is ok, but nothing less. For example, if you make $500 per month, you should be setting aside $50 a month. As your income increases, you increase the amount you pay yourself. The key is to re-adjust your life to 10% less in your pay a month. If you think about it, most of us SPEND 10% of our earnings eating out on a monthly basis.

Please do not save your money under the mattress, as you loose the purchasing power of that money. The best solution for a grad is the tax-free savings account, (please view my previous articles for information on the TFSA). Now I am not neglecting your expenses and recommend that you set aside 25-30% of your pay to service them.

Create systems as soon as you start making an income. Building proper savings habits as soon as you start working will pay off BIG in the long term. When it comes to your student loan, it is not always beneficial to pay it off right away, as the interest on the loan is tax deductable, (please contact your account to see if this solution is good for you).

Lastly, the master key to your question is, get a financial planner working for you asap! We are trained to create a plan tailored to your needs, and look for opportunities that you can benefit from. When you have a cavity, you go to a dentist, an expert. Please do the same with servicing your financial needs. We are the experts here to assist.

Contact Camille Jones, C.L.U at 647  856-8048 or by email at [email protected].

Camille Jones, CLU

By Camille Jones

Have you wondered where all your money goes at the end of the month? Is it the bills swallowing up all of your income? Or is it eating out, going to the mall, and entertainment habits? The only solution is one we all hate to hear. You know, the B word. A budget.

A budget is an essential element of financial planning. It’s a great tool for not only monitoring finances, but for building better habits and getting your goals under control. The financial rewards of budgeting are great: growing your wealth, building financial confidence and gaining peace of mind.
Here are some basic steps for you to start your monthly budget.

1.    Calculate your TOTAL monthly income
-    List all income sources including salary, commissions, bonuses, business royalties
-    Use after tax amounts

2.    List Expenses
-    Consult your banking statements and list ALL your expenses. Monthly and annual
-    Separate your ‘fixed’ and ‘variable’ expenses
-    Expenses vary so take an average over three to four months
-    Also include your monthly contributions to your RSP or savings

3.    Total and Subtract
-    Total your income and expenses separately to see how much comes in each month and how much goes out
-    Subtract your expenses from your income to determine the amount left to save and invest

**This is an important number because it shows you how successful you are in managing your money. If the figure is small or a minus, you have to work on what ‘variable’ expenses you can reduce.

Use your budget to find ways to increase your savings and investments. How? Consider the following:

4.    Reduce Expenses
-    Identify expenses that can be cut and assist in setting new spending objectives
-    Decide how much you can realistically cut, but don’t go overboard; try cutting back a little at a time. If your goals are overly strict, you’ll never stick to them

5.    Review your Debt
-    How much can you pay down faster?
-    Is there a way to reduce overall interest costs, such as consolidating existing debts or payment plans?

You should consider working an expert financial planner to develop a short-term investment plan. Once your cost-cutting plan is in place, you should review your progress every few months. You may find further opportunities for shaving expenses, and you will most certainly see that you have more money left over to invest for your future!

Call Camille Jones, CLU to get started on your budget today.  647-856-8048

By Camille Jones

With interest rates so low, you may be thinking of taking the big step into home ownership, ‘moving up’ or even refinancing your existing home. If so, knowing what’s what with mortgages can save you money now and in the future. Here’s a mortgage primer to get you going.

Get pre-approved.

Many people want the security of knowing they have a pre-approved mortgage before they go house shopping. Having a preapproved mortgage helps you focus on looking at houses you can afford and provides the security of knowing you meet the financing requirements of the home you are trying to buy.

The down payment decision.

Conventional mortgages do not exceed 80 per cent of the purchase price of a house—you supply the other 20 per cent as a down payment. If you don’t have that kind of cash on hand, you can apply for a high ratio mortgage, but it must be insured through Canada Mortgage and Housing Corporation (CMHC) or GE Mortgage Insurance Canada (GE). In this case, it’s important to keep in mind that you need to pay an insurance premium typically in the range of 1% to 3% of your mortgage amount. This fee may be added to the mortgage amount.

Amortization period.

Amortization is the number of fixed payments or years it takes to repay the entire amount of a mortgage. The traditional amortization period is 25 years, but by making higher monthly payments over a shorter amortization period, you’ll pay off the loan that much faster and save substantially on borrowing
costs.

Accelerated mortgage payment
By making accelerated payments you’ll pay off your mortgage faster. The same is true of lump-sum payments. When you have excess cash, you can use it to reduce the principal amount of your mortgage loan. Most lenders allow a yearly lump-sum prepayment of up to 10 per cent of the original principal amount, and some allow more.

Term
A mortgage term is the period of time for which the money is loaned under the same rate. When the term expires, you have the choice of repaying the balance of the principal still owing or renegotiating your mortgage for a further term at the then current interest rate.

Open or closed—determines how much re-payment flexibility you want.

An open mortgage allows payment of the principal in part or in full at any time without penalty and tends to be for a short term – usually six months
to one year. Since open mortgages offer greater flexibility than closed mortgages, they typically have a higher interest rate. A closed mortgage allows limited prepayment privileges and a penalty usually applies if you repay the loan in full prior to the end of the term. Closed mortgages typically offer a
lower interest rate as compared to open mortgages of similar terms.

Fixed versus variable rate.

With a fixed rate mortgage, you can be certain the interest rate will remain the same for the mortgage term, making it easier to budget. A variable rate
mortgage may deliver a lower initial interest rate, but this will fluctuate from month to month with changes in prevailing market interest rates. The more rates change, the larger the impact on your monthly budget. Don’t jump into a mortgage—take the time to find the right product for your unique situation. We can help you make sound decisions for your life as it is now and as you wish it to be in the future.

To discover the best mortgage solution that best fits your needs, contact Camille Jones, C.L.U at 647  856-8048 or by email at [email protected].

To avoid diving into deeper debt, financial expert Tessa-Marie Shillingford says there are simple steps we can take to reduce financial distress. “Once you have found yourself in debt after the holidays, vacations or other special occasions, you should make a spending plan that lists your income and expenses, including a savings and debt repayment plan,” she says. “It is important that you stick to both plans. I recommend that my clients begin a savings account to take care of the holidays, vacations, and special occasions so that they will not find themselves in the same position again.”

While that solution may work for some, many Canadians choose plastic over paper, only to suffer the consequences later. According to Shillingford, it may be difficult to bounce back after your credit has been compromised, but it’s not impossible. It’s all about changing spending habits to prove to credit grantors that you made a mistake and have changed your ways.

For example, having a savings account and a registered retirement account will allow them to see that you are serious. The best part is you can get either, despite your credit standing. “Then they will take a small chance on you and let you have a small credit card,” Shillingford explains. “It now becomes your responsibility to pay this bill on time, and preferably the balance in full each month.”

The best way to see where you stand credit-wise is through Canada’s two credit report agencies, Equifax Canada and Trans Union Canada. All that’s needed are photocopies of two pieces of I.D., one of which needs to be signed on the back. Once you have mailed in your information and paid the fee, the credit report will be sent to you. Included in it will be your credit score, which can be as high as 900 or as low as 300.

Shillingford advises cardholders to keep it simple when establishing credit. She says the biggest myth about credit is that we need several cards from various companies to build credit. “One credit card is sufficient to let a credit grantor know that you are a good credit risk. The more cards you have, the more of your money you are giving away.”

Shillingford, however, recognizes that this generation is less likely to be as frugal as its parents. “This generation is more educated, but we do not have the village raising the child anymore,” she says. “Instead, we’re bombarded by radio, television and social media sites with very little information on how to save or hold onto our money.”

Despite these challenges, this expert believes that with a little planning and patience, we can all spring forward into financial freedom.