Damon Williams is a famous investor from Chicago. He is 14 years old, and got $50,000 in his bank just by saving and investing. It was his mother who inspired and taught him to start saving little by little since childhood.
Williams became a star across the border. Scarborough parents watched a video of his story. They nodded their heads constantly and exchanged smiles with their daughters, hoping the girls to be the next youth millionaires.
“His story was pretty impressive. I thought if he can do it, I can do it, too,” University of Toronto Scarborough student, Hayley Pereira said. “I’m a big saver myself, but I get off track sometimes. It was a good refresher.”
On Nov. 20, RBC Dominion Securities shared their real-world skills on student financing and investing to Scarborough high school and university students and their parents.
Interns from Ryerson University broke down the average tuition fees of major universities in the Greater Toronto Area bit by bit, and advised them to opt out of any unnecessary elements like university health insurance if a family already has its own.
Another significant strategy was to take advantage of cards. The young credit card holders may get excited to have one, but the experts told them not to use them on a regular basis. They said debit cards and cash are for everyday spending, while credit cards are beneficial for larger purchases such as purchasing textbooks or laptops. They also recommended an account that features a student price card, which gives 10-15 per cent discounts.
The experts emphasized that wise spending enables saving, and that regular saving enables investment. Dividing up is the best way to stay away from risks in both saving and investment, they said.
A Grade 11 student from Cedarbrae Collegiate Institute, Thivya Naganathan, said she’s always used her parents’ money but wants to start saving money. She hoped she doesn’t end up in debt after graduating from university.
Pereira decided to try her hand again at saving. She wants to put the money towards her plans to travel.
“It takes money to do what you want to do, and it takes years to save,” she said. “I’m good with numbers, so I’m tempted to start investing. I just haven’t done my research yet.”