November is financial literacy month in Canada and it’s time we started having more conversations about money principals. Financial literacy is the skill set and knowledge that allows a person to make informed and effective decisions about their money. It’s a big problem in Canada as too many consumers have little understanding of how to manage their finances and how the credit industry really works.
Money talks seems to be the last taboo. We can discuss so many topics openly, yet rarely do you hear people discuss how they manage their paycheque at a dinner party. We all know that family member or friend that has the big home, fancy car and takes all those lavish trips. We marvel at “how they do it” but are afraid to ask because that would be rude. The truth? Chances are credit is paying for it all. Society expects adults to understand how credit works and be good with money. As a Licensed Insolvency Trustee with over 30 years experience meeting people with financial problems, I can tell you that good money habits don’t just happen. It takes education, sacrifice and dedicated daily practice. But don’t be discouraged, even one small change can lead to big successes.
This month on all our social media platforms we will promoting tips to make you better understand how credit works, how to better manage that paycheque and how to make rational, unemotional buying decisions that make sense. Have you ever heard the expression “ change your mindset, change your life”? When it comes to your finances, it can be that simple.
Today let’s start with one small mindset change. Begin “do I need this or do I want this”. Too often we get caught up in the impulse, frenzy and excitement of a purchase. We see something we want and maybe it’s even on sale. We can feel out heart race. Maybe we are bored or sad and it will lift up our spirits. Even if you don’t have money in your account to debit the purchase, you have credit and can deal with the minimum payment later on down the road. Sound familiar? Stop that cycle today by saying to yourself on EVERY purchase “do I need this or do I want this”. I guarantee more often than not you will think to yourself it is simply a want and you are not prepared to sacrifice something else you will NEED later on for this thing. Income level doesn’t matter. You can use this concept for any purchase. Premium mustard vs no name? It’s all up to you. The concept is simple. Stop buying “stuff” you don’t actually need. Save the money for the needs. Make logical unemotional buying decisions. This one small mindset change can put money in your pocket immediately and make you feel more financially responsible. Now you’re thinking like someone who is financial literate!