November is Financial Literacy Month in Canada!

But what does financial literacy mean exactly? It is the education and understanding of various financial areas. These areas include personal finance management, investing, insurance, tax planning, and more. When you become financially literate, this means you have the confidence to make responsible financial decisions.

The Canada Revenue Agency (CRA) is always a great resource. They recognize the importance of giving people guidance and information to make these decisions. There are so many ways to become financially literate. Here are a few starting points:

 

Recognize What Stage you are at in Life

  • Financial commitments typically vary depending on your age group. For instance, a young adult (age 18-25) will have a different financial situation than a mid-career adult (age 35-45) who has a family.

 

Create a Budget

  • Budgeting is the foundation of being financially literate. You should focus on tracking all of your expenses for the month, using a method of your choice. There are many tools and systems to help you with this. A common approach nowadays includes using spreadsheets to log transactions.

 

Contact a Professional

  • Seek out your financial institution, accountant, and/or business advisor if you are unclear about something.

 

Protect Yourself from Fraud

  • When things are too good to be true, they often are. Beware of fraud and tax scams… They’re everywhere! Read our blog to learn more about these tax schemes.

 

You can head over to CRA for more advice on how to become financially literate. As always, our phones are always available for you! Contact us at 1-866-822-9992 if you have any questions.

 

References:

https://www.investopedia.com/terms/f/financial-literacy.asp

https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2017/pays-informed-about-finances.html?utm_source=mediaroom&utm_medium=eml

http://www.rlb.ca/caution-schemes-claiming-you-dont-have-to-pay-taxes/

https://www.themuse.com/advice/50-personal-finance-tips-that-will-change-the-way-you-think-about-money