Financial Literacy Month: Tips to Manage Money and Debt
November is Financial Literacy Month, marked by the Financial Consumer Agency of Canada. Throughout this month, FCAC shares financial literacy to Canadian families, individuals, and businesses, to help strengthen the ability to manage money and debt wisely.
To take part in Financial Literacy Month, our debt experts are going to share the top 10 financial tips to help you manage money and debt in your everyday life.
1. Set Financial Goals to Manage Money and Debt
Being serious with your financial goals will help you determine what you want to accomplish with your money. How much debt you can pay and by when. Lastly, how much money you want to save, can, and by when. Setting clear goals is the first step to successfully manage money and debt.
2. Need or Want? Make Smarter Choices to Manage Money and Debt
Identifying whether you want or need to make a purchase can sometimes be challenging. Before any purchase ask yourself if you need it or if you can live without it. For example, you have 40 pairs of shoes sitting in the closet — do you need another just because you like it? Focusing on needs rather than wants helps you better manage money and debt.
3. Pay Your Credit Card Statement to Manage Money and Debt
Credit cards are a proven way to improve your credit score. Making your monthly payments in full shows lenders you’re responsible with your finances. Staying current on your credit card statements is a key part of learning to manage money and debt well.
4. Figure Out Your Debt and Manage Money and Debt Efficiently
Write down all your debt. It can be scary to have $40,000 in debt and only $1,500 in your bank account. Doing so motivates you to start saving. Keep track of interest rates to prioritize which loans to pay first. This approach is essential to manage money and debt efficiently.
5. Automate Your Process to Manage Money and Debt Smartly
Once your finances are in place and debt is paid off, focus on your savings goals. Automate transfers so a portion of each paycheck goes directly to savings. Automation helps you consistently manage money and debt without having to think about it.
6. Stay Away From Co-Signing Loans to Manage Money and Debt Safely
Before signing papers for a friend or family member, ask yourself if you trust them to make payments. If they miss payments, your credit score takes a hit. This can damage both your relationship and your finances. Avoiding risky co-signing is crucial to manage money and debt safely.
7. Pay Yourself First to Manage Money and Debt Proactively
If you’re not on top of your finances, it’s unlikely you’ll build a healthy savings or investment account. Before paying bills or spending on entertainment, set aside 5% of your salary for savings. Automate this to help you consistently manage money and debt proactively.
8. Maximize Employee Benefits to Manage Money and Debt Effectively
Employee benefits like medical and dental insurance, health savings, and paid vacation add significant value. Make sure to take advantage of these perks to better manage money and debt throughout the year.
9. Evaluate Purchases by Cost Per Use to Manage Money and Debt Wisely
Avoid buying the latest gadgets or cheap versions impulsively. Think about how often you’ll use an item before purchasing. This mindset helps you stretch your budget and more effectively manage money and debt.
10. Focus on Yourself to Manage Money and Debt with Confidence
It’s easy to get distracted comparing yourself to others. Everyone’s financial journey is different. Concentrate on your progress and goals. If you need help learning how to better manage money and debt, reach out to our debt specialists today through our contact form.
For more information about Financial Literacy Month, check out the Government of Canada website
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