10 Financial Literacy Tips for the 10th anniversary of Financial Literacy Month

"November marks the 10th anniversary of Financial Literacy Month (FLM), an initiative launched by numerous community groups, non-profits and government bodies to help improve Canadians’ financial literacy levels.

With four in 10 Canadians reporting that money is a daily concern, and a third of low-income Canadians reporting that they worry about money almost constantly, financial literacy is a skill that helps improve confidence around financial decisions.

After a difficult year, many Canadians are finding themselves struggling financially more than ever. Through Financial Literacy Month, Canadians can leverage information and support from various non-profits and government agencies to better understand their finances. When Canadians are better able to understand finances, they become more confident, and ultimately make better decisions about their money." (ABC Life Literacy Canada, "10 financial literacy tips to mark 10 years of Financial Literacy Month", abclifeliteracy.ca)

1. Ask yourself if the item you "need" is actually more of a want than a necessity. If you still think you need it, wait 14 days before purchasing to see if it's really that important.

2. Invest in stocks or mutual funds to make your money work for you.

3. A TFSA is one of the best investments a newbie investor can make. The money you make in interest or investment profit is fully tax-free.

4. Putting just $50 a month away in an RRSP can make you $500,000 if you start before you're 30.

5. Always eat before grocery shopping to avoid impulse purchases while hungry.

6. Try not to spend unnecessarily on convenience.

7. Open a high-interest savings account.

8. Borrowing money isn't always bad, especially if you're using it to buy something like a house. It can be a good long-term investment.

9. Talk to people who are more knowledgeable about money. While it might seem daunting to ask people about money, you shouldn't feel bad about asking simple questions. By asking them why they made their own financial decisions, you'll become more confident in making your own decisions.

10. You don't have to put all of your investments in "high-risk" or "low-risk" stocks or mutual funds. You can diversify your investment portfolio.

Source: ABC Life Literacy Canada, "10 financial literacy tips to mark 10 years of Financial Literacy Month", ABClifeliteracy.ca, October 22, 2020.