Tackling My Finances as a Millennial

Hey peeps!

 

This week is Credit Education Week, which is intended to highlight the importance of talking about finances, feeling supported and being equipped to plan for a positive financial future. Now, I KNOW — no one likes talking about their finances. BUT! It’s Financial Literacy Month in Canada and I’m using it as an opportunity to start a progressive conversation about money.

Having Credit Education Week in November feels very fitting, as this time of year has historically been tough on my wallet. During this time of the year, my work in the entertainment space usually slows down. While most people earn their salary over 12 months, I earn most of my yearly income over the span of eight months. As such, I’ve had to work on budgeting and developing my financial literacy skills to ensure that I have enough funds to last throughout the year.

In 2016, when this “eight-month income” structure started — I was NOT equipped to deal with it. I managed to run out of most of my savings by mid-winter, so I had to really cut back on spending until work picked back up. Fast forward to 2017, with more of an understanding about income fluctuations, I made sure to scale back my holiday spending to avoid running into the same issue.

The cool thing is, I am not alone. Capital One and Credit Canada Debt Solutions surveyed Canadians this year to better understand their views on financial literacy, debt, and credit education. Here are the top three statistics from the survey I found most surprising:

  1. 57 per cent of Canadians said they felt overwhelmed and stuck with their financial situation
  2. Almost 6 in 10 Canadians (58 per cent) say they didn’t get the financial education they needed when they were young
  3. 49 per cent of Canadians admit they do not know their credit score. This figure is highest in Ontario, where a full 56 per cent say they do not know their score

 

So, what does this all mean? We could all benefit from support and education when it comes to financial literacy and credit education. Capital One and Credit Canada have partnered to bring Credit Education Week to life across the country. This year’s theme is #MyMoneyVision, and it’s an opportunity for all of us to envision and work towards a brighter financial future.  You can attend a session on credit education to talk about setting goals and being mindful about money. Visit the Credit Education Week Canada website to find an event near you. If you can’t attend in person, join the #MyMoneyVision conversation online.

 

To avoid feeling stuck in your financial situation, Capital One Canada shares the following tips:

 

TIP #1

Track spending and identify areas to cut costs on an ongoing basis. If I wanted to cut back on unnecessary spending, I would scale back my barber visits by 50 per cent (I love my haircuts, but they definitely make a dent into my wallet!) and opt for public transit over rideshare.

 

TIP #2

Get ahead of debt and scrap together savings (even if the amount is small to begin with!) to create an emergency fund so you’re better prepared for unexpected events. I know this is easier said than done but preparing a little emergency fund can make a big difference in the long run.

 

TIP #3

Make credit card payments on time to build habits that can help improve your credit score. Personally, I prefer to make credit card payments two times per month. That way, I can split my monthly bill in half each time, which makes tackling my debt a lot less scary.

 

TIP #4

Ask for help when you need it. Surround yourself with a network of people you can depend

on during times of hardship to provide emotional support and advice during difficult times. Whether it’s a parent, friend, or family member, find someone that you can communicate your thoughts to. It’s a great way to ensure that you’re always receiving a second or third perspective on your situation.

 

TIP #5

Ensure you have access to credit, especially for emergency situations. Establish and repair your credit with a card such as Capital One’s Guaranteed Mastercard.

 

Do you have money management tips that you swear by? Leave them in the comments section!

 

-MR

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