Welcome to Kids Camp Millionaire at Explorer Hop!
For interest rates, we also learnt about the equation:
Everyone has been so attentive in writing this formula down, but as promised, don't worry! You will have access which everyone should have received emails on.
I = Principle Amount x Rates x Time
We also touched on the differences between simple vs compound interest which are used under different circumstances.
See you tomorrow for budgeting tips and tricks, the final BIG chapter!
And we are done with level 4! WOW!
It's been such a pleasure teaching you guys! So, during this final class, we learnt through our characters Edna and Jonah on creating a budget that is useful and effective in the long run! But, have you decided if you are Edna? Or Jonah who works really hard at the farm?
Would you like to save, plan carefully on fixed and current expenses? How could you make adjustments so you can spend lesser and save more?
Steps on creating a monthly budget:
1) Know your net income (total income-taxes)
2) Analyze past spending (what happened last month that caused you to spend more? can you do better this month)
3) Set your goals (what do you want to achieve?)
4) Put it together (on a list, on a piece of paper, use your computer!)
5) Make your budget (realistic, effective and takes you through school and university!)
6) Stick to it! (never give up!)
And also the 50-30-20 rule!
50% of net income - for essentials like your home mortgage in the future, bills for phone, internet, hydro, groceries to eat and drink!
30% of net income - for investing in your important education, stocks when you gain enough financial knowledge, home purchases, businesses that you may want to be a shareholder for
20% of net income - for spending for entertainment (movies, shopping), fun(dinners and vacations!)
Don't forget the importance of technology! They help us to automate spending e.g for our investment accounts so you can set up this good habit.
Mobile apps widely available these days can also help us to compare and contrast our past spending. e.g TD myspend app.
What happened last month that made you spend more/less? Can you do better this month? How about in the future, will you do as well too?
Remember to fill our form here for the survey and your certificate will be generated!
For any other questions, please do not hesitate to contact me at