Canada Financial Literacy

There is a growing concern about the level of the financial literacy among Canadians. A survey conducted on behalf of Financial Planning Standards Council (FPSC) found 42% of our population has extreme financial anxiety, partly because a majority of them are unaware of even the most basic economic concepts, this is unfortunate because the key ingredient to a stable economy is having an informed user. Although learning about aforementioned topic does not guaranty a solution for a pecuniary situation knowing the fundamentals of finances inside and out will indisputably assist your finances. Primarily, Financial comprehension is one of the key components to our economy without it we could not function as an entirety. Furthermore, younger individuals
should be addressed about this pressing topic before they are required to actually use their skills making the margin for mistakes minor. Ultimately, having a plan can help ensure young individuals to have a future unharmed by careless mistakes made in their past causing them to accumulate debt or a low credit score. Understanding both finance and the economy is paramount because little actions can cause large consequences, the moment Canada’s population understands this basic principle we will have a truly stable economy. Financial Literacy exercises Canadians financial habits; subsequently, it can give them more disposable income which they can reinvest into our economy due to an increased amount of spending.
Debt is borrowing from future income, if Canadians are unable to manage their money correctly they might not have any money to manage at all. Financial advisors can not stress enough about the fact on how action have consequences. Having debt can decrease your credit score, be very costly and keep you from accomplishing financial goals. This will cause Canadians to have difficult leasing a house or even a car, these items are essential for a job and if you are neglected from these necessities’ it is extremely difficult to have a steady income income which you have already borrowed from in the first
place. As a have previously mentioned a towering amount of young individuals have little understanding of finance and economics. They are unknowingly spending and borrowing without knowing the possible repercussions. Going to university is an opportunity for many young individuals to expand their knowledge as they venture into the early phases of adulthood, although it can be quite costly. For most people University is their first experience of independence, which means their parents are not advising them what they should or should not do. It is no secret that being financially literate can have a lasting impact on your day to day life, which means people in university should be educated in a subject that has the ability to alter their future. But is that enough? These students need to be informed before they actually need to utilize these skills because in most cases it's already too late. In conclusion, students should be targeted throughout high school, so even the people who make the choice not to go to university can greatly benefit from these fundamentals.

The secret to success is financial success and the key to financial success is quite primitive, spend less than you make.
Unfortunately, we as Canadians have become a society that wants things instantaneously, we are willing to go into debt in order to get things now. Interest means we are willing to pay more for virtually the same product because impatiens has transcended our reason. The uttermost undemanding method to regulate your finances is to have a budget and pursue it. What Canadians can do is help you construct a model in which you can follow, this consists of relative wants vs needs. This does not mean you are unable to have things that you desire, but it is more beneficial to pay for your necessities prior to anything you yearn. Undoubtedly expenses are discretionary, it is all about you as an individual, no person can dictate your expenses because every person requires/wants different commodities. As Canadians become better with their financial planning, it will help them prepare for retirement (a point in time where you have no income), this will enable you to spend your money as well as transfer it to future generations. You manage your money don’t let your money manage
you.