Did you know that November is Financial Literacy Month in Canada? Probably not, most people don’t. Why do we need to ‘celebrate’ financial literacy anyway? Because it really is that important.
Why is Financial Literacy Month Important?
For the last several years, Canadians have been struggling with extremely high levels of household and personal debt. At one point, the statistics rang in at an average debt to income ratio of over 160%. Abundant offers of free or cheap credit and a tightened economy have led many Canadians to falsely believe that it was okay to rely on credit for the short term. The truth is, relying on credit for any amount of time can have a staggering long term affect. So what does financial literacy have to do with it?
What is Financial Literacy?
Financial literacy is a fancy term for a basic set of skills – budgeting, saving, planning and overall money management. The stronger your financial literacy skill set, the more financial success you’ll have. Sure, things happen. Emergencies can always throw the best laid plans to the wind, but a person with good financial literacy skills will have set aside a rainy day fund for those very things.
You use your financial literacy skills every day of your life, usually without ever really noticing, much like how you read or write. Every time you buy a coffee, pay a bill, swipe your card, drop coins in the piggy bank, you are drawing on your financial literacy skills. Not buying it? Read on.
Every month should be Financial Literacy Month
At Personal Bankruptcy Canada, we believe EVERY MONTH SHOULD BE FINANCIAL LITERACY MONTH. Each time you swipe your card for that coffee, you should be thinking about your bottom line. How much of your overall monthly budget are you spending on that coffee? Is there somewhere that money can be better spent? Maybe to pay off debt or take that vacation?
Personal Bankruptcy Canada’s Commitment to Financial Literacy
PBC is going ALL OUT for financial literacy month. Our Member Trustees are excited to provide their knowledge and expertise all month long in a series of interviews, tips, techniques and unique challenges to help you learn to put your best financial foot forward. We believe a little bit of knowledge goes a long, long way and we are committed to educating Canadians on how to grow their financial literacy and better manage their money.