Economic Planning Board Saturday, April 12, 2014 Canada
Financial Literacy: Did You Know?
Following are set of helpful tips on financial literacy. For more information, contact
Did You Know?
Salaries have been declining steadily since 1970.
This means we need to be extra careful with the money we earn, focusing on saving and spending wisely.
More than 60% of North Americans live paycheck to paycheck.
Always keep something for later. The rule of thumb is to save a minimum of 10% of each paycheck and live off the remaining 90%.
Early Childhood is the best time to prepare children for good money management practices.
One of the most important determinants for our children’s success is parental engagement during their formative years, between birth and age 8. In fact, according to a recent BMO Poll, 96% of Canadians believe teaching kids about money matters is key to a healthier economy.
Tracking your income and expenses will let you see where you can improve.
This is a great way to plan for a strong financial future. Budgeting is a great exercise for peace of mind.
Setting up bill payments can help to pay bills on time.
This will also help to avoid high interest rates and bad credit scores.
Buying with cash and not credit can help cut back on spending.
People spend 12-18% more annually when using Credit cards.
Create a safety net in case of job loss/disability. Having a 6 month emergency fund along with necessary insurance (critical illness, disability) protects you in your living years in the event of a tragic or undesired event.
Save up to buy big items.
Putting things on credit might seem easier but it pays off in the long run to save up instead of paying a high interest rate to have it sooner. Buying something with $0 down can be financially irresponsible. Read the fine print. High interest rates can hurt you.
Retirement savings are important because of inflation. This will continue to rise every year, which means our buying power decreases. Keep saving more; your money isn’t worth the same years down the road.
A tax refund isn’t “free” money.
This cheque is not meant to be spent frivolously. It is simply money that the government is returning to you. Spend it wisely as you would a paycheck.
Finding a job that you love but pays less is better in the long run.
Follow your passion. You can move up the ladder doing something that you love.
Monitor your bank account.
Fraudulent activity has become commonplace. Be aware of account allowances, charged transactions and balances to avoid unnecessary fees.
If you make minimum payments on a $5000 credit card debt, it will take you over 30 years to pay it off and over $14,000 in interest.
If you are using a credit card make the full payment each month.
There is no shame in asking for help.
No one has to go through this journey alone. Get advice from an expert.
For more information, contact the EPB Financial Literacy representative in your region.
• Zahra Hirji, National Board Member
• Mary Vellani, British Columbia – Vice Chair
• Altaf Mawji, Prairies – Vice Chair
• Nadim Merali, Edmonton – Vice Chair
• Samira Walli, Ontario – Vice Chair
• Hussein Valji, Ottawa – Vice Chair
• Mirwais Alamy, Quebec and Maritimes – Vice Chair
