ICYMI: Financial Literacy Tips
Financial literacy is about empowering individuals with the knowledge, skills, and confidence to make better decisions about their finances. Here is a summary of some tips you may find useful.
Invest in your financial well-being
Test your knowledge Get an idea of what you already know and what you don’t.
Learn the lingo The financial world has a language all its own. Familiarize yourself with the terms and acronyms used in the industry.
Have a plan In order to reach your financial goals, it’s important to know what they are. To be effective, you should take some time to determine what you want to achieve and how you’re going to accomplish it.
Prepare for your kids’ education – Sending your child to get a post-secondary education is becoming more and more costly. Consider opening a registered education savings plan (RESP) where the government helps you save for your children’s education by contributing money to the plan.
Make informed decisions
Work with a financial advisor Working with a financial advisor can have a significantly positive impact on your overall wealth. Learn about what to look for when choosing a financial advisor.
Insure your risks – Insurance may not always be top of mind but a death or a disability can have devastating consequences for your family finances. Read this post to learn how you can protect yourself against a future loss.
Use debt wisely – When used effectively, debt can help you reach a goal, like purchasing a home. Read on to learn how you can make use of it.
Diversify, diversify, diversify – Hold many types of investments so if one product doesn’t do well, it can be balanced off by other products.
Start good habits early
Become a smart consumer – Making money is hard work so be discriminating on how you spend it. Get into the habit of comparison shopping and focus on getting the best value for your money.
Start investing now – There’s no better time than the present to start investing. The longer your time horizon, the more you can benefit from compound interest.
Set it and forget it – Thinking about investing, but don’t know how? Read this post to learn how easy it can be to start and continue investing.
Live within your means – With rising costs and a consumerism society, it’s becoming harder and harder to keep spending in check. Read on to learn how you can better track your spending.
Give back – Canadians give billions of dollars to charity each year. Ensure that you do your homework to make sure your dollars are going to a cause that you believe in and support.
Teach the kids – Set your kids up on a path to financial success by teaching them good money habits from a young age.
Take control of your finances
Beware of financial fraud – When an investment sounds too good to be true, it may just well be. Protect yourself by looking out for the warning signs and being a more informed investor.
Pay yourself first – Instead of waiting until the end the month to see what’s left over, set aside your savings first and then use the remaining money to pay for expenses.
Check your emotions – Research tells us that our judgement and decision making can be greatly influenced by our emotions rather than rational thought. It’s a good idea to take a step back and evaluate the situation before acting.
Thanks for reading!
IFSE Institute, a leader in financial education for professionals in the financial services sector, is sponsoring its first-ever Financial Literacy Champion Award, nominate an advisor today as the deadline for submissions is February 25, 2019.
You can stay up-to-date on our latest posts by visiting our blog site.