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Financial Literacy
Have your say:
Financial Literacy Consultations with Canadians this spring, 2010: Don't let the opportunity slip away!
Financial Literacy in Canada - Task Force website
Financial Literacy Task Force established by federal government June 25, 2009
10 tips on establishing and maintaining financial controls
- Evaluate your spending habits for a month, list all of your regular committments or contracts that are annual or monthly, your debt service payments, interest rates on debts and essentials like groceries and gas or medical. How much is left over and who is entitled to spend the remainder? Is it split 50/50 or 80/20 between you and your spouse or partner? Is that fair?
- Review what you own, what you owe, check your will, power of attorney and representation agreements are current, review beneficiaries on insurance, RSP or RIF contracts
- Evaluate financial contracts to determine if they are necessary and cancel any that are not (cell phone, internet, phone, cable, debt, mortgage, credit, bank & investment accounts, organic grocery delivery, lawn, building, sprinkler, spa or pool maintenance, gym memberships, insurance plans)
- Develop a plan to manage your paperwork, sort out your paperwork into account numbers, one account or asset per file. You'll find that most of your paper is from an account or asset, whether it's a bank, credit card, investment, vehicle, house, pension plan, utility provider or cell phone.
- Create a budget and a plan to live within that budget. Sort your cash out into five major categories with sub-categories. The five major categories are annual, monthly, essential, debt service and remainder.
- Refinance debt at a lower rate of interest, investigate lines of credit with credit cards attached instead of credit cards
- Do long term planning about your cash flow (requires date of death prediction)
- Prepare some 'what-if' I scenarios, like what if we sold the house and rented, experienced a decline in health , what if we cashed in the GIC's and paid off the credit cards?
- Evaluate saving plans and review what RRSP is invested in, consider debt repayment versus savings in tax deferred accounts and definitely consider TFSA's
- Shift your attitude about consumption of everything from water, your footprint on the earth, your food and other consumables from sources within 100 miles, living even more green and within your means
Isn't all of that really boring and hard work?
Actually, no, it can be fun. Consider it skills you can learn and even master that might lead to a new career in finance. Learn to:
- Communicate about money with those closest to you
- Use your computer to research and calculate using financial tools
- Why financial literacy is directly related to Tax Literacy
Financial Literacy Tool Kit:
Eileen Reppenhagen CGA does not research or endorse any product or service appearing in ads on this site. Before making any major financial decision(s) you should consult a qualified professional.
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