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It pays to learn how to manage and make your money grow. To do this 

you must become a smart investor. Learning to manage your money 

wisely will make you better prepared for the many challenges and 

opportunities that life throws your way.

If you've go a part-time job, set aside 10% of every paycheque. It's like 

paying yourself first, before you pay other expenses. This simplest way to 

do this is to arrange an automatic withdrawal for your bank account to a 

separate savings account. There is a good chance you will never miss the 

money.   Why do this? It makes you save for the future.

Think for a moment about the goals - personal, academic or 

financial. Realistic goals involve three key elements.

1. Define your objective - examples could be a new smart 

phone, a vacation of saving for university.

2. Set a time limit - how long to meet your goal.

3. Use strategies to achieve your objective.

Don't just work for money - make your money 

work for you!

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It is also important to know that investing isn't just about you 

and the things you want! It's also about how you can 

contribute to your community and your family.

You may not know it, but investments have already had a big 

impact on almost every facet of your life. Your school may 

have been built from money raised from investors by the 

provincial government. The clothes you are wearing or the 

electronics you use are probably made by a company funded 

by investors.

The food you eat, the car you want to buy, the streets you 

walk on are all connected to a "place" called the capital 

market - where stock and bonds are bought and sold.

The Magic of Compounding

Compounding uses time to multiply investment returns. 

And time is on your side! In you start investing at an 

early age, you can end up with much more money than 

someone who starts investing later on in life. 

Compounding means earning interest on both the 

amount of your investment (principal) and the interest 

earned on the principal.

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Monica begins investing at age 19. She invests $2000 per year for eight years and 

receives 10% interest compounded yearly. At the end of her first year, her 

investment is worth $2200 ($2000 + $200 interest). At the end of the second 

year, her investment has grown to $4620 ($2200 from the first year + $2000 

investment for year 2 + interest for year two ($420). And so on. By the time 

Monica turns 40, she will invested $16,000 but now have $95,541 in the bank - six 

times the amount of the actual investment. Dan instead didn't save anything until 

he turns 27. He then invests the same $2000 per year until he is 40. He has 

invested $28,000 but now only has $61, 545 - only two times the actual 

investment. 

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