5 Things To Do To Become More Financially Confident This Month
Nov 20, 2019 • 4 min read
This article is sponsored by our partners at stnce in celebration of Financial Literacy Month.
November is a very special month around here. In case you didn’t know, November is Financial Literacy Month – and there is a lot to learn and celebrate! That’s why we partnered with stnce – a financial education and resource hub that thinks about financial literacy 365 days a year. Their mission is to inspire everyone to confidently take ownership of their finances, through open and informative conversations.
So, how can we as Canadians become more confident in our financial literacy this month? Here are a few tips from our friends at stnce.
1. Talk openly about personal finance
Conventional wisdom states that you shouldn’t talk about your finances with your friends and even your family. But we don’t think this advice holds true anymore. While there are tons of books, blogs, and financial resources you can learn from, talking about what you’ve learned can empower others. Money conversations with friends and family should occur more frequently. We’re not saying you need to run and tell all your friends your annual income, but talking about saving and budgeting, or sharing investment tips, could be a good place to start. The more open we are with money, the more empowered we’ll feel, and the more financial literate we’ll all be!
2. Create a budget
Everyone talks about the importance of creating a budget. The first step to budgeting is always the hardest and the most eye-opening. When you finally sit down and take a hard look at the way you spend, the results can be a little jarring. While that $4 coffee on your way to work and $15 lunch may not seem like a lot at the time – everything does add up. When you subscribe to stnce’s blog, you’ll receive a free budgeting template. Get confidence, stories, advice and everything to do with finance delivered to your mailbox, for free.
3. Monitor your financial well-being
Understanding your credit score and credit report is an important part of your overall financial well-being. Have you checked your credit score recently? Your credit score typically ranges from 300-900, depending on the scoring model. The higher your score is, the easier it is for you to access the best financial products and services at the lowest interest rates (think personal loans, mortgages, etc.) Credit scores, in the eyes of financial institutions, reflect your behaviour when it comes to credit. For example, missed or late payments will lower your credit score, while being in the habit of paying your bills on time will improve your credit score.
Checking your credit report is also important. It reveals important information about your financial history. Financial institutions will look at credit reports to see how much they are able to lend to you. It’s important to check your credit report often to make sure everything listed on your report is accurate. Luckily, you can check both your free credit score and credit report for free with Borrowell in less than 3 minutes.
4. Save with purpose
Everyone is always talking about creating a budget and spending less, but people don’t always talk about saving with a purpose. This means that you’re not just saving for the sake of it, but you’re saving for the important things in life – a house, an unknown emergency, or even your dream vacation.
The best way to do this is to switch your low-interest savings account into a high-interest savings account. Our top pick is EQ Bank’s Savings Plus Account, with 2.30% everyday interest* and the flexibility of chequing. Plus, you can enjoy no hidden fees, convenient banking, and customer service seven days a week from 8 a.m. to midnight.
5. Ask questions!
A top tip for becoming financially literate is by asking questions. We’ve all been there – you’re sitting at a table and you have a burning question to ask but you’re too afraid of sounding “stupid.” But the irony is that the answer to your question may educate others in the room and will help everyone understand the subject a little better.
It’s important to be informed. Researching and asking questions is how we learn. In terms of personal finance, this could look like consulting with a mortgage broker or signing up for a financial education newsletter. As long as you’re always learning, you’ll be improving.
Browse stnce’s financial resource hub to find articles on finance and confidence. Plus, get a free budgeting template when you subscribe to the stnce blog!
Rachel Surman is a digital writer at Questrade and a former content marketing specialist at Borrowell. Rachel is passionate about helping educate others about credit. She's also a big fan of budgeting and saving - mainly so she can visit all the places on her bucket list.