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.