Financial literacy means having the knowledge, skills and confidence to make responsible financial decisions. The month of November represents Financial Literacy Month and it is dedicated to provide Canadian consumers with the tools to reassess their budgets, and spending habits, to secure a strong financial future.
The Financial Consumer Agency of Canada (FCAC) is asking organizations across Canada to collaborate their resources in order to raise awareness about financial literacy.
There are a number of resources available to Canadians to help them maintain good financial health. Along with the tools on the FCAC website, OCCA Consumer Debt Relief has the following tools that are easy to use:
• How to Build a Budget
• Credit Card Repayment Calculator
• Minimum Payment Chart (to see duration and interest of paying minimum payments)
• Finance Blog (source of information on personal finance and debt management as well as tips on how to save money)
• Frequently Asked Questions (FAQ)
According to the FCAC, being financially literate can help Canadians to:
• decide how they will spend their money and meet their financial obligations
• make sense of the financial marketplace and buy the products and services best suited to their needs
• manage their personal finances and plan ahead for life events, such as home ownership or retirement
• ask and understand how they can benefit from local, provincial and national government programs and systems
• assess the financial information and advice they receive from relatives and friends, professionals or the media, and
• maximize the use of the resources they have access to, including workplace benefits, private and public pensions, tax credits, public benefits, investments, home equity, and access to credit.
Ways consumers can become more financially literate:
• Talk to your partner/spouse about assets and liabilities. Be open and honeys about all individual assets and liabilities (debts). As a couple you can make a proper financial plan together if you start by laying all the baggage on the table.
• Set a budget that is reasonable and affordable. For helping building a budget, use our tool: How to Build a Budget
• Be aware of your and your partner’s credit history. Your own and your spouse’s credit reports will affect your ability to obtain credit as a couple. It is important you are both aware of each others credit history to understand where you, as a couple, are at financially. For more information about understanding credit score and rating, go to https://www.occa.ca/budgeting/credit-rating-credit-score.
• Set a financial goal(s). Whether it is saving up for a down payment on a car or home or saving to retire by a certain time, save accordingly and pay off your debt as soon as possible. Make sure your partner/spouse shares the same goal so you both strive towards it.
• Understand your spending habits. Do you like to spend or save? Are you an emotional spender or do you plan your purchases according to what you can afford? Be honest with yourself and with your spouse. If you find it difficult to control your spending, make an agreeable arrangement with your spouse to help control cash flow. Perhaps the person who has the most restraint can manage the bill payments. Have a discussion about money management as a couple and be open and honest.
For more information on how to manage personal finances responsibly, visit our blog for the article November is Financial Literacy Month (https://www.occa.ca/november-is-financial-literacy-month).
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