Why is financial literacy important for young Canadians?
Youth financial literacy puts them in control of their own decisions and finances which is important especially in today’s society where the cost of living is on the rise. Children need to learn early in life that there are differences between needs and wants and how this impacts our financial decisions. It will ultimately play a key role in making them lead a happier and more financially stable lifestyle.
What’s something you wish you told your younger self when it comes to money management?
I would tell my younger self that a healthy financial life begins with effective money management skills. Apart from creating a budget and sticking to it, many other financial practices can alter the course of your life drastically.
There are many strong pieces of financial advice that I would tell my younger self:
- Contribute towards your retirement fund
- Get life insurance when you are still young
- Make an effort to learn about investments
- Don’t spend money on frivolous things
- Focus on your strengths
- Don’t use too many credit cards
- Spend money on experiences
- Save for rainy days
- Build your contacts and career network
- Learn about the stock market
What are your top money management tips for new businesses?
Being a small business owner is all about following your dreams and calling your own shots. But it’s also about managing your money responsibly and keeping a tight grip on your finances.
- Create a Budget and Adjust Accordingly
- Get Your Cash Flow Organized – When you’re getting your business started, keep track of all income and expenses from day one — even if most of your numbers are zero.
- Establish an Emergency Fund – An emergency fund isn’t just for personal finances. Business owners should have one, too. Odds are, your business will eventually face a less than a stellar month or an unexpected expense, so it’s essential to plan for these cash crunches.
- Remember That Time Is Money – New business owners often start out with one person running the show. Marketing and sales, accounting and product design, shipping and customer service — it’s all in a small business owner’s job description. But as you grow, it’s important to know which tasks you excel at and which ones you probably have no business doing.
- Running a small business is no easy task, but it’s easier when you stay organized and disciplined.
- When you dive in and get comfortable with your business finances, you’ll have a better idea of how your business is really doing, where improvements are needed and where growth is possible.