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Canada’s Financial Literacy Month

By Debt.ca on October 30, 2020 No Comments
A book and calculator for financial literacy

November is Financial Literacy Month in Canada. This year is the 10th anniversary of this initiative. Various non-profit organizations and community groups partner with the Financial Consumer Agency of Canada (FCAC). In this effort, they all encourage Canadians to improve their financial well-being.

Throughout the month, there are national events to educate the public about the importance of financial literacy. These events promote financial products and services available to the people of Canada.

Here’s what you need to know about Financial Literacy Month and how it works to boost Canadians’ financial literacy levels.

Data on Financial Literacy in Canada

If you want to know how Canadians fare when it comes to financial literacy, see the numbers below.

●      According to a Financial Planning Standards Council’s survey in 2016, 4 in 10 Canadians say that money is a cause of daily stress. Majority of the respondents who said that money is a serious concern belong to low-income earners.

●      According to the 2014 FCAC survey findings, only 46% of Canadians know how to create a budget.

●      Individuals who are more confident with their financial knowledge and decisions are better when it comes to managing their finances.

●      Almost 60 percent of Canadian adults don’t know how much money to save for retirement.

With this data, it’s only imperative to help improve the public’s knowledge, skills, and confidence in handling their finances. Make sure to keep updated with people’s financial literacy levels in Canada by checking out the Canadian financial literacy database.

The Importance of Financial Literacy

Financial literacy is immensely important because of the current situation brought about by the Covid-19 pandemic. Across the globe, millions of people have lost their jobs and are financially struggling. Now is the best time to help folks understand and make informed decisions regarding their finances.

A good understanding of personal finances can boost confidence in saving and budgeting. Through the celebration of Financial Literacy Month, we remind ourselves about the importance of financial knowledge, skills, and confidence.

Organizations that participate can also provide useful resources and financial literacy programs. Social media and other online platforms to educate the public is an impressive approach because technology makes financial education more accessible.

This year features webinars and podcasts that cover the following topics:

  • How to create a budget
  • Building credit
  • Prevent money scams

Financial Literacy Tips Everyone Should Hear

In celebration of the 10th anniversary of Financial Literacy Month, below are some financial tips.

  1. Open a savings account that gains high interest.
  2. Discipline yourself to avoid spending unnecessarily on convenience.
  3. You can make $500,000 if you set aside $50 every month in a Registered Retirement Savings Plan (RRSP) starting in your early 30s.
  4. Investing in a tax-free savings account is among the best investments you can make. Since it’s tax-free, you can grow your money fast.
  5. Start investing in mutual funds or stocks to make your money work for you.
  6. Before buying something, always ask yourself if you really need the item. You also need to think carefully if it’s important. You can delay buying the item for 2 weeks for that purpose.
  7. Make sure to eat at home before you go out to buy groceries. In this way, you can prevent yourself from buying food items impulsively.
  8. Taking out loans isn’t always detrimental to your finances. Consider them investments if you use the money for a purchase like buying a home or building a business.
  9. Diversification of your investment portfolio is crucial. So, it’s advisable to avoid putting all your investments in low-risk or high-risk mutual funds or stocks.
  10. Don’t hesitate to ask people about financial matters. A simple question about money can make a difference in your financial health. Also, surround yourself with folks who are financially literate.

Takeaway

Financial Literacy Month in Canada is just a few days away. Make sure to grab this opportunity to make yourself knowledgeable about financial matters. Learn how to save your money, look for investment opportunities, and create a budget. You can do all that and more to help you become financially stable.

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