Helping Canadians Get Out of Debt
The following article originally appeared in the Manitoba Teachers’ Society Balance Wellness Magazine.
In today’s world, there are many of us that have what I will call multiple streams of income. This can come from different sources, such as two or three part-time jobs versus one full-time job. It can include a second job throughout the summer months, a side business or a combination of receiving a pension and working part-time.
Continue reading “Calculating Multiple Streams of Income”
As published in the December 2016 issue of Balance, a Manitoba Teachers’ Society publication.
By 2021, 22.8% of Canadians will be 65 years of age and older. Do we feel prepared as children and grand-children to help guide and protect them and their finances through their later years of life?
Through the busyness of our own lives, we need to keep in mind that managing finances will become increasingly difficult for our parents and grandparents as they age. When a person ages they can easily lose sight of how to handle money, and even a financially astute person can quickly move to a state of being unable to cope with their finances. If this isn’t recognized it can be very stressful and costly for the elder.
Financial success is rooted in conscious planning and decision making.
It’s important to learn about tools, tips, tricks, and reminders on a daily basis that help to support our financial goals.
For a fourth year, Creditaid is once again a proud sponsor of the Financial Literacy Calendar published by the Manitoba Financial Literacy Forum. (See April 2017 for our tip!) The Manitoba Financial Literacy Forum is a coalition of organizations and individuals working together to promote lifelong financial education and skills to Manitobans. Being financially literate means having the knowledge, skills and confidence to make responsible financial decisions – which are important resources to have at any age.
As published in the September 2016 issue of Balance, a Manitoba Teachers’ Society publication.
I am asked by individuals of all ages, “What should I be doing at this stage of my life with my finances? I am feeling stressed about what I need to be thinking about.”
Financial success is rooted in conscious planning and decision making.
It’s important to expose ourselves to tools, tips, tricks, and reminders on a daily basis that help to support our financial goals.
For a third year, Creditaid is once again a proud sponsor of the Financial Literacy Calendar published by the Manitoba Financial Literacy Forum. (See April 2016 for our tip!) The Manitoba Financial Literacy Forum is a coalition of organizations and individuals working together to promote lifelong financial education and skills to Manitobans. Being financially literate means having the knowledge, skills and confidence to make responsible financial decisions – which are important resources to have at any age.
At Creditaid, we understand that each individual has their own unique life situations. We offer many different debt solutions in order to find the best solution for each individual and circumstance. We have been helping Manitobans be debt free since 1992, and our product and service offerings continue to grow and expand to best serve our valued clients.
Click on the images below to download the calendar in your preferred language – English or French.
November is Financial Literacy Month in Canada! If you haven’t heard of this campaign before, it is a national initiative aimed at helping Canadians increase their financial knowledge. This is something we firmly believe in, here at Creditaid. We believe that when people are better educated on how the credit system works, they will be able to make better and more informed decisions when it comes to their personal finances.
If you are interested in participating in Financial Literacy Month – start by picking up or downloading a copy of the 2014 “Money Matters” calendar! The calendar will feature information and valuable money-saving resources for young people, families and individuals nearing retirement, including tips on managing debt, reducing the cost and length of a mortgage, talking to children about money and recognizing personal investment scams.
To download your copy – visit the Manitoba Securities Commission online at msc.gov.mb.ca.
Where are the Money-Smart Kids?
If basic, yet essential, information on budgeting, borrowing, saving and investing isn’t learned early in life, most young people will have a huge deficit in this very important life skill when they leave home to live on their own.
Kids need to know the meaning of credit and debt before they get out into the “real” world and begin signing contracts on cellphones and credit cards without knowing the trouble they could be getting into. Too often they find themselves with an overdue bill and no money to cover it.
Parents and schools need to band together to teach our young people the basics (at least) of money management. According to comedian James Cunningham, who has set up a national financial literacy program that is sponsored by the IEF and the Investment Industry Regulatory Organization, young people need to know how to save, invest and spend their money.
Cunningham uses humor in his program “Funny Money” to give young people the following three tips regarding money management:
1) Know how much money you have and the sources of your income and write it down. Keeping track of your money allows you to see how much money you make, what you can afford and how long it will take you to pay back a loan based on this income.
2) Take control of your money; don’t let your money control you! This means that before you get a credit card and charge a bunch of purchases, make sure you have some income so you can pay that bill off in full every month.
3) Save some money with every paycheck. You will be surprised at how quickly your money grows and you will love the feeling of taking the money you have saved and buying something outright, rather than making payments on it for the next several months.
In order for children to fully understand finances and how money “works,” they have to learn about debt. The age of your child will determine how you define debt so they can understand.
Make sure you use terms and examples that they are already familiar with.
You can begin with the concept of borrowing something such as a toy from a friend. Explain the need to return the toy to its owner. And if the toy can’t be returned in its original condition then it needs to be replaced by a similar item of equal value. Your child should be able to understand that until that item is replaced, paid for, he is in debt to the person who owned the item.
For the “tween” set you can use real money items and examples. Set up a scenario where your child wants something, a new bicycle, for instance. Write down and discuss the amount of money the bike costs, the amount of money your child has, the amount of money he earns through allowance, or anticipates receiving for a gift, etc.
Talk about whether or not he can “afford” the bike right now, and if he can pay it off within a reasonable amount of time. This discussion will include installment payments where instead of paying back the “loan” with all of their allowance each week, they pay smaller amounts so as to keep some money for their usual “living expenses.” It’s important to work financial terms into the conversation as soon as you child is able to understand them.
Then, actually carry out a transaction. Keep it written down; sign a contract, have them make payments and even set up an amortization schedule so they can see how interest works. Going through this process will give your child an excellent opportunity to learn about personal finances.
Canada’s Finance Minister was in Toronto last week to kick off the Financial Literacy Week. This initiative is a nationwide campaign aimed at helping Canadians increase their financial knowledge so that they can make more informed decisions when it comes to their personal finances.
Many Canadians have taken advantage of the low interest rates since the recession and the government warns of the dangers of piling on too much debt, and especially at this time. With a clearer understanding of financial matters and stronger financial literacy, Canadians will have greater control over their own finances and collectively build a more stable economy.
Financial Literacy Week was started in 2009 with that aim in mind. Many resources are now available online, and events are being held across the country.
What a great way to start day two of the conference with a few fun words from Dr Adele Atkinson, Policy Analyst Financial Affairs, OECD.
“Tell your money where to go, don’t ask it where it went.”