Financial literacy is connected to mental wellbeing and higher rates of savings. In this article, we promote some free resources and provide some tips to ensure you're maximizing the resources available to you.
No doubt, you are already being bombarded with information regarding the next financial crisis, RRSP deadlines approaching, and the importance of saving. Instead of feeling overwhelmed and helpless, try increasing your level of financial literacy. You will likely improve your sense of wellbeing and feel more empowered to handle the future.
Why Financial Literacy Matters
Here’s why financial literacy should be a priority:
Empowerment: Financially literate people are more confident in making informed decisions about their money.
Reduced Stress: Understanding financial concepts can reduce anxiety related to money management and retirement planning. According to a study by the Financial Consumer Agency of Canada, 48% of Canadians say they’ve lost sleep because of financial worries.
Mental Health: Financial stress is a significant contributor to mental health issues. The Canadian Payroll Association reports that 43% of employees are so financially stressed that it impacts their performance at work.
Increased Productivity: When you are less stressed about finances, you are more focused and productive at work. The Society for Human Resource Management (SHRM) found that employees dealing with financial stress are 5 times more likely to be distracted at work.
Free resources
The Association of Canadian Pension Management (ACPM) offers a free course for all Canadians on retirement savings. The course can be completed at any time and any pace. It includes 6 modules containing 52 lessons, including:
Importance of Savings
Individual Registered Savings Plans
Government Retirement Income
Workplace Retirement Savings Plans
Transition to Retirement.
Decumulation
Employee and Family Assistance Program
If you have a group benefits plan with your employer, it likely includes access to an Employee and Family Assistance Program. We recommend investigating your plan as free coaching, challenges, or other resources may be available.
Take Advantage of Matched Savings Program or Group Retirement Savings Programs
As advisors who assist organizations by setting up group savings plans, we're constantly surprised at how many employees decline to participate in their employer's group savings plan.
Matched savings plans mean that your contributions will be matched by your employer. With a program that offers 100% matched savings, if you contribute $25 per pay, it turns into $50 automatically - a 100% return on your investment.
If your employer offers a voluntary plan, in which you are offered the opportunity to have funds directed to a savings plan right from your paycheque, you're benefiting from immediate tax savings.
Often, people find that when savings come straight off their paycheque, they don't even miss the money. Meanwhile, they're taking important steps to increase financial resilience and wellbeing.
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