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
You can quiz yourself here, here, and here to see how you measure up!
Financial literacy is understanding how these things work together and how to make them work for you.