13 - Financial Literacy

Today's challenge;

Curb a spending habit today and save, donate or invest that money instead.

Financial literacy is the ability to understand and apply financial knowledge and skills to make informed and effective decisions with your financial resources.

Why is it important?

You can't pursue wellness goals if your basic needs—like food, clothing, shelter, and safety—aren’t being met. And all of these require money. Financial literacy helps you recognize that money isn’t just a tool for survival—it’s a resource that, when managed wisely, can improve your life and positively impact others.

We all waste money. In today’s consumer-driven world, companies invest heavily in advertising and social media influence to separate us from our hard-earned cash. You might be surprised by how much is spent on small, everyday things.

How can you improve your financial literacy?

• Talk to financial experts. A good financial expert will take the time to explain the financial products they have along with the pros and cons of saving and investing. They should also regularly keep you updated on how your investments are doing and suggest strategies to make sure your best interests are served. Save and invest based on your goals, not someone else’s.

  
  

• Curb your spending habits. Do you need the latest tech gadget? Are you eating out all the time? Are you paying for subscriptions or memberships you don’t use? Are your credit cards maxed all the time? Take a look at where you can save some money and correct impulse buying and overspending habits. It will free up cash for things you want.

  
  

• Take some free courses. Many people are embarrassed that they aren’t more financially literate. Since it is not usually taught in primary or secondary schools and families generally don’t discuss household finances with their children, it can be difficult to gain good information and support unless you know where to look. No matter your age or current financial situation, it is never too late to learn these skills.

Some resources to help improve your financial literacy;

• Money and Finances: Canada.ca

  https://www.canada.ca/en/services/finance.html

  
  

• Learn How to do Your Taxes:

  Learn about your taxes - Canada.ca

  
  

• Learn about Investing:

  GetSmarterAboutMoney.ca

Deep Dives

To understand basic money concepts that many of us were never properly taught, "The Richest Man in Babylon", by George Clason is a classic story that reframes money concepts. How the bigger economy works and how we can be manipulated by consumerism and other trends, you should read "Freakonomics", by Stephen D. Levitt and Stephen J. Dubner.

“The best investment you can make is in yourself”. – Warren Buffett

Checkpoint: Something to consider today...

Managing your personal finances mirror how you look after your business

finances.