Financial Literacy

Don’t make cash a cold,

THERE’S SOMETHING ABOUT money that makes people squirm. Like the “sex talk,” the “where money comes from” talk is something that doesn’t happen in every household. But how did money become such a dirty word when being financially literate is so important? Whether we’re graduating from school, renting our first apartment, starting a family, launching a start-up or retiring, our finances are

tied to nearly every major benchmark in our lives. And with the payoffs being so big and the losses being so devastating, it’s time we stopped settling for half-truths and financial advice from the wrong sources. Instead, let’s start exploring what it means to be well informed about financial matters—starting with learning the lexicon needed to begin the conversation.

DID YOU KNOW?When it comes to budgeting, many financial experts recommend the 50/20/30 rule: 50% of your take-home pay goes to needs such as housing, transportation, groceries and utilities. 20% goes to future goals, such as savings, debt repayment and retirement contributions. 30% goes to wants such as cable, Internet, gym memberships, pets and hobbies.

ADVICE FOR WOMEN

When it comes to finances, gender should not determine decision-making power. However, in many households this isn’t the case. “In a lot of families, men want to take the driver’s seat [when it comes to finances], but it’s very important that women make sure they are involved in all financial decisions,” says Brunelle. “All parties at the table need to have a say in what’s going on. Statistically, women outlive men. If they don’t pick up [financial knowledge], they won’t know what to do when they’re on their own.”

FINANCIAL FACTSAccording to a 2012 Statistics Canada study, 71% of Canadian families had at least some debt (including both mortgage and consumer debt). That number was up from 67% in 1999.The same 2012 study found that the median debt for Canadian families was $60,100 (up $23,400 from 1999).

Finding the Right Financial Help

Overwhelmed by the roadmap? That’s probably because it’s a little overwhelming. And that’s okay. What’s not okay is thinking you can’t manage it. Many people fail to plan their finances (or do a poor job of it) because the financial world can be so complex. From researching mortgage rates to understanding savings and investment options, to choosing the right insurance, financial management can feel overwhelming. The good news is, working with a qualified financial professional you trust can make things much easier.

But, how do you know if you’re working with the right advisor? Brunelle offers this advice: “If I could tell people one thing, I’d tell them to research their financial advisors. Make sure you are working with licenced professionals who are accredited properly.”

Brunelle also warns people not to be fooled by flashy sales pitches or too-good-to-betrue “guaranteed” offers. “Unfortunately, too many people get taken in by these types of things. Your financial advisor should be taking his or her own advice and buying the same products he or she is selling to clients.”

In the end, whether we’re flush or financially strapped, we’ve all got money on our minds. It’s time to open up about our finances and help each other stay on track to a secure financial future. t8n