One of the best ways to ease your financial worries is to learn about money and savings. This is called financial literacy. It might seem hard, but it can make a big difference. When you understand how to manage your money, where to get help, and the benefits of financial knowledge, you can take control of your finances.
Financial Awareness
Financial literacy means you have the knowledge and skills to make smart financial decisions. When you know how your money choices affect you, you can improve your financial health. Financial awareness can help you stick to a budget, avoid overspending, and save for important goals. So what are the basics of Financial literacy and awareness?
A budget
A budget is the first step of money management. Many online tools are available to help you create a budget and track your expenses. Your budget will show you if you have enough money for:
- Basic living expenses.
- Debt repayment.
- Other needs, such as transportation or entertainment.
- Short-term savings, such as an emergency fund or a pending expense.
- Long-term savings, such as retirement.
Knowing how much money you have coming in each month and how much you spend will help you determine if you need to adjust your spending, earn more, or if you have extra money to save.
Prevent overspending
When you look at your budget, you might realize that you’re overspending on smaller purchases, such as entertainment or dining out. These expenses seem small, but they can add up and leave you short of funds for essential items. Similarly, overspending on big-ticket items, like a vehicle or home, can have a big impact on your financial well-being. Understanding debt and how it works is crucial to avoiding these pitfalls. Important things to know about debt include:
- Knowing the interest rate you’re paying.
- How much interest you’ll pay over the course of the loan or mortgage.
- Ensuring the payment is manageable for your budget.(what’s coming in and going out)
- Calculating the costs of added fees like insurance on your loan.
Excessive spending or borrowing can strain your finances, leaving you short on funds for everyday needs and limiting your ability to reach future financial goals. Overspending reduces what you can save, and understanding the true cost of debt can help you avoid borrowing unwisely.
Planning for future goals
When you’re financially literate, you’ll know how much you need to put away for future goals. These goals can include retirement or your children’s education. You’ll understand how inflation can affect your savings. You will know the rate of return you need to earn on your investments to help you achieve your goals. Investing wisely will help you create a financially comfortable future and achieve the milestones that are important to you.
Financial Literacy in Canada
If all this sounds intimidating, you’re not alone. A recent survey indicated that 32% of Canadians feel they are financially illiterate. The good news is that there are many resources to help you learn more and take control of your finances.
November is Financial Literacy Month in Canada. The government and other sites like the Khan Academy provide a wide variety of self-directed learning to help you get a better understanding of your money.
How knowledgeable are you?
You might find it hard to understand the basics of personal finance, or maybe you know more than you think. Check your knowledge by taking a financial quiz! The Financial Consumer Agency of Canada (FCAC) offers a short financial knowledge test to see how much you know about managing money.
This financial knowledge test is a self-assessment quiz. It will grade you on what you know and suggest ways to improve. If you want to get better at personal finance, you can take online courses or join financial literacy programs.
Financial education
There are different routes you can take to improve your financial literacy. Your choice depends on how deep you want to go, whether you like learning online or in person, and how much you want to invest in your financial education.
Online courses
Online courses are often free. The Financial Consumer Agency of Canada offers resources covering topics like:
- Managing your money.
- Savings and Investments.
- Protecting yourself from scams.
- Taxes
- Pensions and Retirement.
- Debt and Borrowing.
The FCAC has a video series that covers important money management topics. The videos are brief and packed with helpful information.
If you prefer in-person learning, some public libraries offer financial literacy courses. The Chartered Professional Accountants of Canada (CPA) gives you the option to request in-person or virtual group classes. They cover a wide variety of topics for students, seniors, business owners, and new Canadians.
Being financially literate is not just about managing your money; it also affects your mental health. A poll from February 2025 by Mental Health Research Canada found that 39% of Canadians worry about paying their bills, and 42% say that the economy is affecting their mental health. By improving your financial knowledge, and understanding your finances, you can take charge of your money to help reduce some of this stress.
Use the free financial literacy resources to improve your knowledge and deal more effectively with your money. You may discover that your situation is better than you initially thought. OR
On the other hand, you could find out you’re in a difficult financial position and would benefit from expert help.
When to get help with debt
If you’ve gone over your budget and realized there’s just no way to keep up with your bills and debt payments, help is available. A Licensed Insolvency Trustee (LIT) can meet with you for a free consultation to review your situation and walk you through the debt relief options that can help you get back on track.
The Government of Canada licenses LITs, and their work is overseen by the Office of the Superintendent of Bankruptcy. They provide legal debt relief options for people who are struggling with money problems.
Three services they offer are Consumer Proposals, Bankruptcy and credit counselling. Your LIT will help you find the best way to pay off or get rid of your debt.
If you decide to file a Consumer Proposal or Bankruptcy, creditor calls and legal action will stop. Once you meet the program’s requirements, your debts will be cleared. You’ll also have two credit counselling sessions to learn how to better manage your finances and avoid taking on too much debt in the future.
Where to Find Debt Help
If you’re struggling with debt, you’re in the right place. – At Allan Marshall and Associates, our team of Licensed Insolvency Trustees have been helping overwhelmed borrowers eliminate their debts for more than thirty years. We can help you put your debts behind you and get you back on track. Book a free consultation with us online or by calling 1-888-371-8900 today. We look forward to working with you to build a better financial future.
