Financial literacy is the ability to make wise financial decisions. It is also a sign that you understand the implications of your choices, particularly when they may cost you money in the future. Financial literacy also equips individuals with resources, tools and strategies to help them reach their goals.
For instance being financially knowledgeable can help you establish and adhere https://fuhrman-matt.com/2023/06/19/financial-literacy-and-auto-renewal-services/ to a budget. You can also set up an emergency fund that can cover at least three months’ living expenses, and save for retirement. It will help you monitor your finances to be alerted to suspicious activity and protect your assets and your identity from cyber-crime.
Additionally, it’s essential to be aware of the distinction between a mortgage, an auto loan and a credit card as well as an account at a bank. Knowing the distinctions can help you manage your debt and help you avoid paying interest that isn’t needed and pay off your debt faster.
The good news is that there are many opportunities to study financial literacy: from websites and apps to workshops at community centres, libraries and local businesses. You can ask your employer regarding the financial planning and financial counseling they offer.
There has been a significant improvement in increasing financial literacy over the years due to the great collaboration by participants and a range of outreach strategies. However, more can be done to remove obstacles and enhance the financial literacy ecosystem so it can be used by all Canadians.