#GTKnowledgeIsMoney – How to Teach Children About Money

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Financial Literacy Month is about helping Canadians establish healthy financial habits. When it comes to your finances do you ever find yourself thinking “Wow, I wish I knew that years ago!”?

That’s why it’s never too early to start teaching kids about money.

That brings us to this week’s topic – How do I teach my children about money?

Teaching children about money is an ongoing process that helps them to understand money management early on and provide helpful skills to prepare them for adulthood.

Here is our step by step guide to help you get started:

  1. Get them involved
  • Teach your kids about what the different methods of payments are and how they work (ie the debit card – and the idea that there is always money there – money doesn’t grow on trees).
  • Talk to them about the budget and how much things cost and where the money comes from. Keep them on a budget (needs vs wants).
  1. Have a conversation about money and budgets early on
  • Don’t wait to have a conversation with your children about how to budget, teach them how to budget and keep the conversation going.
  1. Talk to them about credit and how it works
  • Tell them about the importance of having an emergency/savings plan.
  1. Give your kids an allowance for work
  • Pay your children an amount that you are comfortable with when they do chores around the house. If they do not do the chore, then don’t pay them as this teaches them that they must work hard to earn money.

How do you teach your kids about money? Share with us on social media for a chance to win a $500 prize using the hashtag #GTKnowledgeisMoney

#GTKnowledgeisMoney – How to Manage Money for Student Life

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Since we know a thing or two about financial counselling, Financial Literacy Month is happening throughout the month of November and focuses on strengthening the financial literacy of Canadians.

Grant Thornton Limited is sharing the #GTKnowledgeIsMoney series, focused on money tips from experts and peers.

Everyone has different financial needs at different times in their lives and it’s important to understand what steps you can take to create a better future for yourself or family.  Grant Thornton has a team of Licensed Insolvency Trustees across Canada who provide advice to clients who are looking for financial guidance and assistance. Grant Thornton offers clients help with financial counselling, debt restructuring, consumer proposals and bankruptcy.

This week we are focused on managing money as a student and how to create a budget while being in school.

Here is a list of tips to help students manage their money:

  • Use your student loans wisely: Student loans are just that, loans, and they must be paid back with interest added. Make sure to use your loans wisely, don’t use it if you don’t have to, and understand what the interest amount will be in the end.
  • Find an interesting, non-stressful way to track your spending: Often times we get so caught up in the busy school life, we just pull out the wallet and charge the credit card. Find an app or tracking tool that works for you. For example, download an app on your phone such as Mint, or create a note section on your phone, or carry around a small notebook. Then once a week, find a cozy place to review your lists, to see where you can see where your money went, and try to spend a little less the next week, and save a little money.
  • Know your budget, and use gift cards only: Figure out what your weekly spend will be on groceries, coffee, gas, and eating out and then purchase gift cards for your spending each week. Once the cards are depleted, don’t spend any more until the next week when you purchase a new card.
  • Budget how much you want to spend when going out on the town, then take cash only with you; this can help you limit what you spend and wracking up your credit cards.
  • Watch for ‘dollar drains’: These are small repeat purchases that add up to a considerable amount over a month’s time. You don’t necessarily need to deprive yourself of what you enjoy, but find ways to limit the amount you spend. An example can include making coffee at home in the morning as opposed to buying a $3 coffee every day.

Are you drowning in student debt? Our team of Licensed Insolvency Trustees help provide debt solutions to those who are struggling financially. Contact a location near you to set up a free consultation.

Do you have tips on how student can manage their money? Share it with us online using #GTknowledgeisMoney and tag Grant Thornton Limited for a chance to win $500.  Full contest details here

Check back next Monday where we’ll share our advice on how to teach your children about money.

#GTKnowledgeisMoney – How to Live Within Your Means

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Financial Literacy Month is happening throughout the month of November and focuses on strengthening the financial literacy of Canadians.

Grant Thornton Limited has launched the #GTKnowledgeIsMoney series, a campaign focused around money tips from experts and peers. Everyone has different financial needs at different times in their lives and it’s important to understand what steps you can take to create a better future for yourself or family. We want to help Canadians learn more about how to manage their finances and what they can do to strengthen their financial knowledge.

This week’s topic is about how to live within your means.

Living within your means is an ongoing process that helps you achieve your financial goals. Here is our step by step guide to help you get started:

  1. Set a budget
  • Half the battle is knowing how much money you make and what you need to spend every month.
  1. Know the difference between needs and wants
  • Go back to the basics and prioritize your spending. Create a list of the essentials that are needed to survive and budget from there.
  1. Do not rely on credit cards
  • Credit cards provide a false sense of security for your monthly budget. These funds are not free and come with a price that effects your future cash flow.
  1. Create an emergency fund
  • Saving up a nest egg for those months when expenses can run higher than your income will lessen the burden to your budget and reduce your use of credit.

Grant Thornton Limited is a team of Licensed Insolvency Trustees who provide expert advice to clients who are looking for financial guidance and assistance across the country. Grant Thornton offers clients help with financial counselling, debt restructuring, consumer proposals and bankruptcy. Find an office near you for a free consultation by clicking here.

Want a chance to win a $500 prize? All you need to do is share your money management advice online with us using the hashtag #GTKnowledgeisMoney, tagging Grant Thornton Limited on Facebook or @GTDebtRelief on Twitter.

For full contest rules, click here.

Check back next Monday to read our advice on how to manage money for student life.

#GTKnowledgeIsMoney – How to Achieve Financial Wellbeing

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Financial Literacy Month is happening throughout the month of November and focuses on strengthening the financial literacy of Canadians.

Grant Thornton Limited has launched the #GTKnowledgeIsMoney series, a campaign focused around money management tips from experts and peers. Everyone has different financial needs at different times in their lives, and it’s important to understand what steps you can take to create a better future for yourself or your family. We want to help Canadians learn more about how to manage their finances and what they can do to strengthen their financial knowledge.

This week’s topic is about how to achieve financial wellbeing.

First, what is financial wellbeing?

Financial wellbeing is defined as a state of being wherein you:

  • Have control over day-to-day finances
  • Have the capacity to absorb financial shock
  • Are on track to meet your financial goals, and
  • Have the financial freedom to make the choices that allow you to enjoy life

Achieving financial wellbeing is an ongoing, multi step process. Here is our step by step guide to help you get started:

  1. Set financial goals for the short term as well as the long term
  • Create SMART goals – Specific, Measurable, Achievable, Realistic, Time Based
  • Goals should be reviewed periodically and are likely to change over time
  • Create a Personal Financial Net Worth Statement and review annually
  1. Create a household budget
  • Track your fixed and variable household costs
  • Set limits and look for ways to reduce variable costs
  • For discretionary spending, do a “needs vs wants” assessment prior to spending
  1. Manage your available credit and use your credit to your advantage
  • Pay bills and monthly debt payments on time to improve your credit score – this helps you get the best interest rates available with the lowest collateral required
  • Review your credit score annually and ensure all errors are corrected
  • Consider closing unused credit that you do not need
  1. Manage your accumulated debt – review your debt and set a debt reduction strategy
  • List all your debt, both secured and unsecured
  • Create a debt reduction strategy that fits within your budget created above, and be reasonable with timelines (you didn’t accumulate the debt overnight, so it won’t go away overnight)
  • Target higher interest unsecured debt first as a means to improve your monthly cash flow. As cash flow improves, consider increasing your monthly debt reduction payments
  1. Save for the future / set up an emergency fund
  • Don’t neglect savings while concentrating on your debt repayment strategy. Unplanned or emergency costs often occur, and without savings available, credit is often used
  • Ensure you have life insurance appropriate to your personal situation. Obtaining life insurance at an early age is more cost effective than waiting until later years
  • Utilize RRSP’s for long-term savings. These provide a tax reduction in the year saved, however they should only be accessed at retirement due to the taxes due when liquidated
  • Utilize non-registered savings vehicles (TSFA, high interest bank accounts, non-registered mutual funds etc.) for shorter term savings, as these can be accessed in emergencies with little to no liquidation cost

Grant Thornton Limited is a team of Licensed Insolvency Trustees who provide expert advice to clients who are looking for financial guidance and assistance across the country. Grant Thornton offers clients help with financial counselling, debt restructuring, consumer proposals and bankruptcy. Find an office near you for a free consultation by clicking here.

Want a chance to win a $500 prize?  All you need to do is share your money management advice online with us.

To be eligible for the contest, entrants must:

Contest is open to all Canadian residents. Deadline for entry is Thursday, November 30th, 2017 at 11:59 pm AST. Winner will be selected through random draw. Full contest rules here. 

Tell us how you achieve financial wellbeing by using the hashtag #GTKnowledgeisMoney on Facebook or Twitter.

Check back next week to read our advice on how to live within your means.