When it comes to your knowledge of finances, how confident are you? Would you be able to answer basic financial literacy questions, such as:
- What’s the difference between a savings account and a chequing account?
- What is compound interest?
- What’s the difference between a variable rate and a fixed rate?
- What is an emergency savings fund and how much should you save?
According to an Ipsos poll conducted in 2017 on behalf of LowestRates.ca, 78% of Canadians believe they’re financial literate. When it came to taking a basic financial literacy test though, almost 57% of Canadians failed.
Financial literacy is a critical life skill and just as important in life as any other basic life skill. Why? Because money is all around us and something we deal with every day. Being financially literate means you understand all things money – how it works, how it’s generated, how to manage it, how to invest it and more. It means having the knowledge and confidence to make smart, responsible decisions about your money.
Improving your financial knowledge
It’s never too early, or too late, to improve your financial knowledge. Here are a few ways you can expand your financial knowledge and confidence with money:
Take the Fin-Lit Challenge: Testing your financial knowledge will you see how much, or how little, you may know. This will help you identify topics that you may want to focus on to expand your knowledge.
Talk to a Financial Advisor: Your financial advisor is an excellent resource for advice and knowledge, ensuring you’re not alone when making financial decisions. There is no such thing as a dumb question. Meet with your financial advisor often and ask questions to ensure you understand your money and financial decisions.
Read a Conexus #MONEYTALK Blog: Each week, Conexus #MONEYTALK publishes a blog providing expert advice, solutions and guidance on financial topics important to you. Savings, budget, investment 101 – we cover it all. Commit to reading the blog each week to continually expand your financial knowledge.