How to have financial literacy year-round

Financial Literacy Month is nearing its close for yet another year. We have worked to provide clients with information that focused on several financial topics this month. Just because November is coming to an end, that doesn’t mean you can’t still practice financial literacy year-round. It’s more important than ever to maintain your understanding of our economy and your own financial situation. As we approach 2023, where we expect to see some changes and potential turbulence in the housing market and economy, we encourage you to continue to develop a strong foundation of financial literacy.

Keep up with financial news

You shouldn’t just follow financial news during the month of November when it affects you year-round. Earlier this month, we discussed checking out financial publications as a way to improve and maintain financial literacy. We recommend keeping this habit if it’s something you picked up this month. Financial news covers everything including Bank of Canada decisions, inflation and interest rates, jobs and the economy, and international news. If you’re a home owner, or want to better understand how finance works in Canada and around the world, these are important topics to follow. Financial news helps you develop financial literacy year-round. It allows you to make informed decisions about your money and understand how economic changes affect your finances.

Make money goals for yourself

Since the big aim of Financial Literacy Month is to help Canadians understand money in a way that helps them make informed decisions, you can use this knowledge to create some specific financial goals for yourself. Financial Literacy Month focuses on many topics, but everyone has unique issues they’d like to work on or understand better. For example, you may be really interested in budgeting, debt management, or investing. Now that November is coming to an end, you can start making some short-term and long-term goals that relate to these topics. For instance, maybe you would like to set aside more money for emergency savings each month, or pay off a high-interest debt by a certain time. Perhaps you want to start budgeting for a home, or find a good spot to start investing. Creating and tracking money goals requires you to maintain your financial literacy year-round.

Understand basic economic terms

Of course, you should use this time to build on your existing knowledge of economic terms you may have learned during this month. You can’t truly understand finances and the economy if you don’t know what terms like inflation, recession, and stagflation mean. You certainly don’t need to become an expert in all things finance, but it’s great to build a foundation of basic terms you can recognize and define. We recently posted about important economic terms to know right now. Based on the current state of our economy and markets, it’s important to be familiar with inflation, rate hikes, and a recession. As we head into 2023, we’re expecting to see some activity with falling interest rates, a decrease in inflation, and a potential economic downturn. If you’re already familiar with what these things mean for you, you’ll be in a better position to take the best actions.

Use a broker

Finally, don’t lose contact with a mortgage broker! As much as you can practice financial literacy year-round, you’re never expected to be an expert on your mortgage or debts. The good news is mortgage brokers are professionals you can use to help you navigate any homeownership issues you may face. Whether you’re looking to refinance, consolidate debt, or buy a new home, these actions all require a thorough understanding of finances and the economy. The best thing you can do is team up with a broker to guide you through the process. Remember, we are your connection to the mortgage industry and your advocate within it.

Maintaining financial literacy year-round can take many forms. It might mean creating a new budget for your monthly expenses, reorganizing your debts, or managing your savings more efficiently. Every person’s financial situation is unique, so their approach to financial literacy will be as well. The important thing to take away from Financial Literacy Month is how you can make the best decisions for your own financial well-being. If any of those decisions involve your mortgage, we encourage you to reach out to a broker! We’re happy to help clients explore their options in a constantly changing market.

If you have any questions about your mortgage, get in touch with us at Clinton Wilkins Mortgage Team! You can call us at (902) 482-2770 or contact us here.