How financially literate are you? And what is financial literacy, anyway?
Broadly, the main things encompassing financial literacy are:
- money, credit and debt management
- saving, spending and investing
Financial literacy includes:
- creating a budget and sticking to it
- choosing the right credit card – and why you should have one
- knowing the difference between TFSAs, mutual funds and exchange traded funds
- knowing the difference between lines of credit and credit cards
- paying attention to your credit score
- investing in life insurance and living benefits coverage
- having a financial safety net for unexpected expenses
- knowing why it’s important to start saving for the future early
- knowing how compound interest works
- knowing how and why having a financial advisor can help you
Financial literacy is understanding how these things work together and how to make them work for you.
Take the first step towards being financial literate.