Former students of Indian residential schools eligible for federal compensation payments are being advised to watch their money carefully, and plan ahead for managing it.

For a gathering of former students and support workers Tuesday, Whitehorse RCMP Cpl. Dustin Rusk recalled briefly the tale of Alberta's oil money flowing to members of the Hobbema Reserve when they turned 18.

It was referred to, said Rusk, as simply the 18-money, because members of the reserve would be given $100,000 from oil royalties when they turned 18.

To many, it was a windfall; a time to celebrate and have a good time, Rusk said.

Recipients were expected to have parties, and to be generous, he added.

RCMP officers, however, experienced it from a different perspective responding to the trouble calls.

'We would see the money gone in less than a month,' he said of some cases.

'There was very little being done.'

Not all was bad, as Rusk knows of cases where the money was used wisely for advanced education and such.

He cautioned conference participants to be on the alert for con artists, and others even family members who might want to take advantage of an influx of cash that has already started to flow to former residential school students.

'We are not here to tell you how to spend your money, but we are here to help you protect it.'

Officials with the federal government attending the conference indicated the average payout under the Indian Residential School Settlement Agreement will be about $28,000 for somewhere around 84,000 former students who are still alive.

The common experience payout is paid to all who resided at a residential school, based on $10,000 for the first year and $3,000 for every year after.

The payout does not include compensation for additional damages sought by victims of sexual or other forms of abuse.

Those who pursue additional compensation under the settlement agreement for abuse suffered are eligible for up to $275,000 for the most severe cases.

Federal figures suggest there are approximately 8,000 eligible common-experience claims in the three northern territories, though no specific numbers were available for the Yukon.

All told, Ottawa is expecting to pay out an estimated $5 billion in what is said to be the largest class action settlement in Canadian history.

The federal government began accepting applications for common-experience claims on Sept. 19, and have so far received between 50,000 and 60,000, according to federal figures.

Rusk cautioned former students to be on the lookout for wolves in sheep's clothing for fast talkers with a deal that's too good to be true. One of the most telling signs of a con artist is his or her desire for you to keep the transaction a secret, just between the two of you, he told the gathering

The con artist, Rusk emphasized, moves quickly, puts the pressure on and is counting on his victims staying quiet to avoid embarrassment after they've been taken.

They don't care about who they steal from, or what hurt they may cause, he said.

'Just remember what your mother told you: If it looks to good to be true, it probably is.''

Rusk said if anything suspicious occurs to an individual directly, or to a friend or neighbour, contact the local RCMP detachment.

The more officers know, the more their investigation can be assisted, he said.

Rusk also laid out some basic home security rules that included installing a peep hole in a door so the occupant of the home can check who's knocking.

If somebody identifies himself as a repair worker who needs to check something inside, ask for ID, he insisted.

There's no better way to case out a house to rob than having a walk-around before hand.

A handful of conference participants told Rusk of instances of elder abuse or coersion that exist now because of drug abuse linked to younger family members.

There have been families or individual members threatened with their safety for money to pay off drug debts, Rusk was told.

'So you can imagine what our communities are going to be like when this lump sum of money comes,' said one conference participant.

There was a concern raised that RCMP officers sometime are not laying charges when they've received complaints because they don't want to see the offender jailed, or perhaps because somebody won't testify.

Rusk said sometimes circumstances or information can change. But just as he encouraged people to report suspicious activity, he emphasized if they feel RCMP officers are not fulfilling their duties, they can call him directly.