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NOVEMBER IS FINANCIAL LITERACY MONTH: 5 MINIMALIST STEPS TO BECOME FINANCIALLY SUCCESSFUL

We hope that you and your family are safe, healthy and secure during this COVID-19 pandemic. Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

financial literacy month

The History of Financial Literacy Month

A national month dedicated to promoting financial literacy and financial education is celebrated every year, with the aim of teaching citizens effective financial habits. Canadian Financial Literacy Month is held every November.

Some of the country’s financial institutions and nonprofit financial educational organizations are promoting the month and supporting financial literacy efforts by creating educational materials, making financial literacy resources available and hosting financial literacy programs and events centred around personal finances.

Children are welcome to participate in Financial Literacy Month. It can be said that it is also a financial literacy for youth month. In this Brandon Blog, I describe how Financial Literacy Month can be used by anyone for personal finance education. It will equip Canadians with practical tips and financial tools to make informed financial decisions relevant to their financial situation and gain confidence around money.

financial literacy month
financial literacy month

The Goals of Financial Literacy Month

This year Financial Literacy Month in Canada is 11 years old. It is the goal of this month to educate Canadians so that they will be able to:

  • Invest in their future and the future of their children by providing for themselves and their families.
  • Understand their rights and responsibilities when it comes to their finances.
  • Give back to the community in a positive way.
  • Increase financial literacy among students and adults alike.

All these efforts translate into promoting, advocating for, and supporting financial literacy efforts across the country.

During COVID, Canadians Need Financial Literacy Month More Than Ever

Why is financial literacy important? In order to protect consumers, the Financial Consumer Agency of Canada aims to improve their financial literacy. Canadians need to have the knowledge, skills, and confidence they need to select the right financial products and services in light of the increasingly complex financial market. Personal and economic benefits accrue from financial literacy. Learning the basics of money today is as vital as it was 2,000 years ago!

By acquiring financial literacy, people are able to know what they need to know before they take on debt or invest in assets. This is especially true when it comes to major life purchases like real estate. You should be knowledgeable about issues such as credit cards, mortgages, insurance policies, investments, retirement planning, taxes and more. Knowing your options better will help you make an informed decision. Being financially literate involves managing one’s own finances effectively.

This year is probably especially more true than ever. As Canada is trying to get its economic situation ramped up again and things back to normal, the government funding for the various coronavirus income supports is ending. People will have to get back to the basics of understanding what their after-tax income is and sticking to a balanced budget so that they do not incur budget breaker expenses.

financial literacy month
financial literacy month

Financial Literacy Month: 5 Steps to Financial Wellness

  1. Do not procrastinate. We have Financial Literacy Month for a reason. Having a good understanding of and prioritizing your finances is important. By not putting off your complete understanding of your finances you will build a healthy relationship with money.
  2. Don’t overthink things. People think that their finances are confusing and complicated. When you are starting out on your financial journey, it’s important to not get caught up in the complexities. Just deal with the basics and build from there. Start with writing down what your financial plan is, track your after-tax income and your expenses. List your assets and your debts. This is the complete list of what you need to do to start. Those are the basics that will give you a proper foundation. It is not more difficult than that. You can then show that information to your accountant, financial planner or a relative or friend who is more knowledgeable than you. From those 4 basic items, they can then help you build a budget that works. They will help you build an even more extensive list of things to think about. It will also show you whether or not you need to think about earning extra income with a side gig.
  3. Check your credit report. Using the search function above, you can find many of my blogs on the topics of your credit score, credit report, and Canada’s two credit bureaus: Equifax and TransUnion.Every year, you can obtain a free credit report from each bureau. However, neither of these credit reports includes your credit score. Your credit score is a number that comes from a complex math equation representing all the information contained in your credit report. There will be instructions on each company’s website on how to obtain your free credit report. Annually, you should order your credit report and check it for errors. If there is an error, write Equifax or TransUnion and request that the mistake be corrected immediately by providing your proof.
  4. Retrace your steps. It is vital that you have an accurate picture of the amount of money you will have in the future to spend and how you will spend it. Your household budget serves this purpose. In order to do this, you need to review your historical income, expenses, and taxes. Make a decision about the source and amount of income you expect in the future and decide whether it will come from the same or different sources. Take a look also at the expenses that you will incur. Whether it was paid for with cash or first charged to a credit card, all of them. Starting with a realistic and accurate picture is the only way to plan for a successful future.
  5. Use Financial Literacy Month to establish financial goals. Each person’s financial goals will take a different amount of time to accomplish. Short-term goals are those that can be completed within a year. Every goal should have a specific purpose, a dollar amount, and a realistic deadline. Then there are your mid – term goals. These will take more than 1 year to accomplish, but no more than say 3 years. You should make sure they are flexible and realistic. Having too high a goal will cause frustration and prevent you from achieving it. Debt reduction should be both short- and mid-term goals. A debt management plan should be part of your overall budget. An emergency savings fund should also be established. It will take even longer to achieve long-term financial goals. Regular savings is critical to achieving them. A larger savings plan should be implemented as your budget allows for it. Your success and happiness will increase the more goals you achieve. This is why you should set attainable financial goals which include long-term savings. Goals can also change over time. Occasionally, life’s fluctuations force us to reevaluate our goals or even toss some altogether. This is all part of your financial education. It’s important to remain committed to your successful financial future.

    financial literacy month
    financial literacy month

National Financial Literacy Month: 30 Days To Celebrate, Learn And Share

As indicated above, shortly the Canadian Financial Consumer Agency, financial institutions and other financial education centres will be advertising many resources, including financial literacy books, to help you further your financial education. Whether you are looking for basic literacy basics about money or more advanced money management education, there will be something for you.

I hope you enjoyed this Financial Literacy Month Brandon Blog post. Are you worried because you or your business are dealing with substantial debt challenges and you assume bankruptcy is your only option? Call me. It is not your fault that you remain in this way. You have actually been only shown the old ways to try to deal with financial issues. These old ways do not work anymore.

The Ira Smith Team utilizes new modern-day ways to get you out of your debt difficulties while avoiding bankruptcy. We can get you the relief you need and so deserve.

The tension put upon you is big. We know your discomfort factors. We will check out your entire situation and design a new approach that is as unique as you and your problems; financial and emotional. We will take the weight off of your shoulders and blow away the dark cloud hanging over you. We will design a debt settlement strategy for you. We know that we can help you now.

We understand that people and businesses facing financial issues need a realistic lifeline. There is no “one solution fits all” method with the Ira Smith Team. Not everyone has to file bankruptcy in Canada. The majority of our clients never do. We help many people and companies stay clear of bankruptcy.

That is why we can establish a new restructuring procedure for paying down debt that will be built just for you. It will be as one-of-a-kind as the economic issues and discomfort you are encountering. If any one of these seems familiar to you and you are serious about getting the solution you need, contact the Ira Smith Trustee & Receiver Inc. group today.

Call us now for a no-cost consultation.

We will get you or your business back up driving to healthy and balanced trouble-free operations and get rid of the discomfort factors in your life, Starting Over, Starting Now.

We hope that you and your family are safe, healthy and secure during this COVID-19 pandemic. Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

financial literacy month
financial literacy month

 

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FINANCIAL LITERACY BOOKS ARE GREAT BUT MAY NOT BE YOUR BEST RESOURCE

Financial literacy books: Introduction


The power of today’s technology enables one to discover ways to learn without needing to look very hard for it. The Internet has changed the ways we learn and in general, approach life. To gain financial literacy, financial literacy books are now merely one of many ways we can use to improve our financial acumen.

The academic system, for the most part, still uses classical teaching methods. As a standard, literacy is defined as the ability to write and read. Financial literacy is the ability of people to learn and understand basic financial concepts, strategies and information.

Unfortunately, financial literacy is not so common after all. With 21st century education, financial reading and financial writing can be used to make financial liberty. Financial literacy ought to not be a far-flung idea for people, starting at a very young age.

Financial literacy books: Think differently

In his best-selling book “What I Didn’t Learn in School however I Wish I Had“, author Jamie McIntyre talks about the relevance of financial literacy and 21st-century education. From the title of his book, he freely tells us that we are not discovering what could have been general information for success. The standard view forces the most people to be and follow a structure in a system before all the modern tools available to us today.

As a self-made millionaire, Jamie McIntyre advocates that to be a financial success, people need to be doing the opposite of what others have actually been doing for so long. By being financially literate, we can find reasons why people fail and discover ways to avoid these factors.

Financial literacy transcends the standard read-write approach. By having a different method or viewpoint to one’s life, financial literacy can be used to establish various monetary strategies with the hope of accomplishing financial flexibility.

Financial literacy books: There are many methods to increase financial literacy

To become financially literate, there are many ways people historically have learned about finance, with some new ones. I think some people would say that we can take financial courses or try to get the best financial advice from the best financial advisor. Others may suggest to read the best financial advice books of all time or go to the most popular money advice websites.

However, a research paper released in September 2018, may just give us a glimpse into a different way of gaining financial literacy.

Financial literacy books: What is financial literacy?

Financial literacy is the ability of people to get an understanding when it comes to standard monetary strategies and information. With 21st century education, financial reading and monetary writing can be used to obtain monetary flexibility. Financial literacy needs to not be a far-flung idea for individuals of any age.

Financial literacy books: A new research study

A brand-new research study discovered that people with reduced financial knowledge have a tendency to find out more and make far better choices about money if they are helped by peers that have comparable degrees of financial expertise. This is the case more than if they read financial literacy books or got financial advice from people with much more financial experience and knowledge.

The study, Peer Advice on Financial Decisions: A case of the blind leading the blind?, was released in September 2018. The research showed that the majority of university undergrads with little financial acumen learned better after looking for help from a peer that was in a similar way unenlightened and not somebody having a lot more financial savviness.

While this may strike you as being strange, the study described why it makes good sense. Learning was better between people who can understand and had the patience for each other’s learning gaps stated Professor Sandro Ambuehl, a co-author of the research and an assistant prof at the University of Toronto’s Rotman School of Management. His fellow researchers are B. Douglas Bernheim of Stanford University, Fulya Ersoy of Loyola Marymount University and Donna Harris of the University of Oxford.

Financial literacy books: A new way of learning

What this suggests to me is that one of the best ways to teach financial literacy is to start in the elementary schools and continue it throughout high school. Let groups of students interact with their peers to learn together on age proper financial and investment definitions, terms, subjects and strategies. The study suggests that and not leaving it up to people to try to learn it for themselves, promoting learning in peer groups, may be the easiest and most efficient way for learning financial literacy.

Our provincial governments should be taking the lead in encouraging our teachers to start teaching financial literacy to children at a very young age. The study indicates that by having peers work in groups to learn about financial matters, may just be the way for us to have more financially literate adults and a society that has great financial literacy. Peer groups working together to increase their financial knowledge may just be the best resource.

Financial literacy books: Do you have too much debt?

Do you feel that you don’t have sufficient financial literacy? Do you believe that the lack of knowledge has led to you making financial mistakes? Have these mistakes caused you to now have too much debt? Is the pain and stress of too much debt now negatively affecting your health?

If so, contact the Ira Smith Team today. We have decades and generations of helping people and companies in need of financial restructuring and counselling. As a licensed insolvency trustee (formerly known as a bankruptcy trustee), we are the only professionals licensed and supervised by the Federal government to provide debt settlement and financial restructuring services.

We offer a free consultation to help you solve your problems. We understand your pain that debt causes. We can also end it right away from your life. This will allow you to begin a fresh start, Starting Over Starting Now. Call the Ira Smith Team today so that we can begin helping you and get you back into a healthy, stress-free life.financial literacy books

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FINANCIAL LITERACY FOR KIDS: OUR 3 STEP FINANCIAL LITERACY CURRICULUM TO GREAT FINANCIAL LITERACY EDUCATION FOR YOUTH

financial literacy for kidsFinancial literacy for kids: Introduction

It’s important for kids to start learning about money at a young age. Financial literacy for kids is important so that they’ll be ready for the financial challenges of adulthood. Even something very simple like teaching a preschooler to save money in a piggy bank can be a good foundation for becoming financially literate and set up good money habits for life. That is why I put together this very simple three-step financial literacy curriculum.

Financial literacy for kids: Parents should prioritize a great financial literacy education for youth

In a world of virtual money with credit cards and online banking, our kids don’t often see transactions with money changing hands. Children are keen observers and they learn by example. If you create a program of financial literacy for kids, your children will be willing and eager students.

I heard a funny story about a mom and her young daughter. They were out and about and the child wanted her mom to buy her something. The mom thought the easiest way out was to say she had no money. So the child said, “You can go to the green machine and get some”.

The child understood that the ATM gives you money. But she had no idea about where money really came from or its value. Financial literacy for kids will teach them an appreciation for the value of money. They will know it is not earned easily. Parents need to teach their children about where money comes from, its value, saving, budgeting and goal setting.

Financial literacy for kids will also teach them about the need to make choices and that instant gratification through purchasing is wrong. And remember, children learn by example so make sure your financial house is in order. Financial literacy for kids is best taught when your children grow up in a household knowing and feeling that you and they are living the principles that you are teaching.

Financial literacy for kids: Teaching your kids of all ages about money should be part of your everyday life

Here is my simple 3 step financial literacy curriculum for great financial literacy education for youth:

  • Pre-schoolers: A piggy bank is an ideal way to instill the concept of saving.
  • Ages 5 – 10: Take your child to the bank and open up a savings account for them. Help them to goal set. Is there something special they want to save up for? Every time they have some money to deposit take them to the bank and have them give the cash to the teller. You can also reward them financially for doing extra chores so that they begin to understand the concept of working for money. Set up an allowance system and teach them to save part of their allowance. Leave some of their money to spend on themselves, introducing the concept of budgeting.
  • Ages 10 – 16: By now your kids should have an understanding of saving, working for money and budgeting. As they get closer to 16 they can begin working outside the home for extra money by babysitting, mowing lawns or having a paper route. Now is a good time to introduce the concept of credit, how to manage money and what happens if you don’t manage money properly. If they have mobile phones they should be taught how to keep track of their mobile data and what their limits are. You should also make sure that they know it is better to always check to make sure they’re on wi-fi so that they don’t run up big data bills.

Following these 3 simple steps in teaching financial literacy for kids will instill the necessary basic financial concepts. Your child will be well equipped to handle the financial challenges, issues and choices they will face in adulthood.

Financial literacy for kids: Everyone needs a financially healthy life

To instill the lessons of living a financially healthy life, you have to not only talk the talk, but you have to walk the walk. Perhaps you were not given the benefit of great financial literacy for kids when you were growing up.

If your financial house is not in order reach out to a professional trustee. Ira Smith Trustee & Receiver Inc. are experts in dealing with debt and we can set you back on a path to financial health Starting Over, Starting Now. Give us a call today.

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