A growing number of Canadians are feeling financially stressed because of uncertainty around the future of our economy, citing worries about inflation or a potential recession, according to survey results from The Canadian Payroll Association. Much of Canadians’ stress is being caused by a fear of the unknown future— things that are not happening now, but still affect your ability to plan, prepare and protect your financial future.
We can help you close the gap between fear of the unknown future and how to plan today to protect tomorrow. Whatever your goals are, improving your financial literacy will help you make smart decisions today to better position you for your future.
What is financial literacy?
Financial literacy is more than knowing terminology and understanding interest rates, account types and investment strategies. Financial literacy is also about how you use your level of understanding to make choices that put you on the right financial path.
While mathematics is taught in schools, financial literacy—which is just as important—often isn’t. Lessons such as needs vs. wants, savings, spending within your means to avoid debt and how to invest wisely help us to make decisions that impact our lifestyle.
You may have learned important money lessons when you were growing up and practiced those lessons when you became independent. Making great decisions and some mistakes both contribute to your overall financial literacy.
Why is financial literacy important?
When you improve your financial literacy, you improve your ability to make informed financial decisions. That can have positive impact on your life and your future plans.
How to improve your financial literacy
It’s never too late to start learning! You can brush up your general knowledge with the Financial Literacy Program available through the Chartered Professional Accountants of Canada.
As well, here are some steps you can take to better understand your financial situation and alleviate some of your worries:
Track your expenses
Part of financial literacy and saving is to get the big picture of where your money goes. This is key to understanding your monthly picture. Tracking expenses helps you build a budget, which allows you to plan for tomorrow. Whether your money goes to paying off student debt, credit cards, car payments or a mortgage, understanding your financial obligations shows you opportunities for saving.
Build your safety net
Your safety net is your secret weapon because it lets you weather life’s surprise. Setting aside some money now may help reduce financial stress when you have a difficult money month. We can help you find ways to grow your safety net while keeping it accessible for life’s unpredictable moments.
Setting smart goals
Being aware of how today affects tomorrow is important. Whether you decide to refinance a mortgage or buy a particular investment, small decisions can have a big impact on your future. Goals-based investing considers your current situation, your future objectives and your risk tolerance to build a strategy that works for you.
Know your options
There are so many financial products available, but one does not fit all! We can help you understand what your options are, so you can decide what’s right for you.
We all have unique financial experience and individual goals. Whatever your financial literacy currently is, a financial security advisor help you build a plan that suits your current situation—and builds you a better tomorrow. Find an advisor today.
Whatever your goals are, improving your financial literacy will help you make smart decisions today to better position you for your future.Opens a new website in a new window
The information provided is based on current laws, regulations and other rules applicable to Canadian residents. It is accurate to the best of our knowledge as of the date of publication. Rules and their interpretation may change, affecting the accuracy of the information. The information provided is general in nature, and should not be relied upon as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors.