November is many different things to many different people. It’s “Movember,” a month to raise the awareness of cancer among men. But that’s not all. It’s also financial literacy month, a month dedicated to raise the awareness of financial literacy. Financial literacy is such an important topic, yet it’s still not mandatory in schools in Ontario. That needs to change. Let’s take a look at why financial literacy matters, as well as the benefits of being financially literate.

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Financial Literacy in Ontario

We learn about science, math and the arts, but when it comes to financial literacy, it’s often up to parents to teach their children. Ontario has made some progress on financial literacy in recent years, but there’s still more work that needs to be done. Since 2011, the province has been working to revamp how financial literacy is taught in schools. The province is aiming to include financial literacy for students in grades 4 to 12. Topics taught include money, personal finance, budget and money management.

While this is a step in the right direction, it’s still up to the individual teacher to decide what’s covered. The fact that the teachers teaching financial literacy may not understand it themselves is a concern as well.

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The Benefits of Being Financially Literate

With half of Canadians living paycheque to paycheque, there’s never been a better time to learn about financial literacy. Perpetually low interest rates have led to Canadian households going on a borrowing frenzy, pushing household debt to an all-time high. Household debt is so high it has the government worried. Much of that debt is from mortgages. To slow down the debt binge, the government recently introduced new mortgage tightening rules.

Being financially literate has many benefits. When you’re financially literate, you’re less likely to get into trouble with consumer debt. You’ll know how to manage debt and use credit cards responsibly. When you manage your money better, you’ll have more money left over to save and invest. You’ll better be able to save for long-term financial goals like homeownership and retirement. You’ll also be a better investor. You’ll understand key investing concepts like asset allocation and diversification.

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Financial Literacy Gives Confidence

Walking through the doors of a bank can be intimidating. Whether you’re getting a mortgage or a car loan, it can be nerve-racking. When you’re financially literate, it gives you the knowledge and confidence to make important financial decisions. You’ll understand the difference between stocks, bonds, ETFs and mutual funds. Investment fees are so important, but far too many of us are complacent about them. Being financially literate means you’d understand the benefits of ETFs like those offered by Smart Money Invest – better performance and lower fees.

Financial Literacy month is all about education. Take advantage many of the free events going on across the city. Attend an event on a topic you’ve always wanted to learn about like investing. By improving your financially literacy, it will pay off – literally – for the years to come.

Happy financial literacy month everyone!

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