Recent IEF Research Highlights Need for Canadians to Get Back to Money
Basics, Making Universal Money Truths More Important Than Ever
TORONTO, Sept. 5, 2012 /CNW/ - "Know Your Money Personality" tops the list of Canada's 8 Universal Truths about your money, presented by GetSmarterAboutMoney.ca, Canada's leading resource for financial literacy, financial education
and research from the Investor Education Fund (IEF).
According to recent research conducted by IEF, seven in 10 Canadians
agree that their personal financial situations affect their emotional
and mental health. When asked about their biggest obstacles to money
management and investing, respondents cited lack of money (48 per cent)
and too much debt (27 per cent) as top barriers. Additionally, four in
ten (44 per cent) don't save or invest for their retirement, other
financial goals or big-ticket items they want to purchase; and 42 per
cent of respondents with children say they do not save or invest for
their children's education.
"This research tells us that Canadians are feeling overwhelmed by the
demands on their finances, and as a result, they're not saving enough,"
says Tom Hamza, President of IEF. "It's human nature to feel like no
amount of income is enough, but the reality is that we all have to make
the best use of the money that we have."
To address this need, IEF developed the 8 Universal Truths about your money, guidelines that encompass the essentials of financial management that
apply to all Canadians, regardless of age, gender, culture, income and
profession. Over the next eight weeks, IEF will reveal one new
Universal Money Truth per week on www.GetSmarterAboutMoney.ca, with new content that helps Canadians apply those truths in their
everyday lives. In addition to social media activity, the content
series will include videos featuring Canadians sharing their own
personal money truths.
"Every Canadian's financial situation is different, but the basics of
financial planning are the same - no matter who you are," says Hamza.
"The Universal Money Truths are an effective way to learn the basics
and make good money management a lifelong habit."
The 8 Universal Truths about your money are:
1. Know your money personality.
Everyone has a personality: unique attributes, values, goals, worries,
tendencies, likes and dislikes that define their character. These
traits also apply to your relationship with money - you have a "money
personality." Knowing your money personality can help you meet your
financial goals. For example, if you know that you are a spender, you
could make saving a habit by setting up an automatic deposit to your
savings account every payday.
2. Know what you're saving for and have a plan to get there.
Defining goals will give you the focus to achieve them faster, and
setting a target date for your goals can help you stay motivated along
3. Know your cash flow.
Knowing how much money you earn and how you spend is key to managing
your money. Tracking it is key to making sure you have enough left over
to do the things that you want.
4. Shop around to get the best value for your money.
Most people shop around for the best price on a new TV or a litre of
milk. Comparison shopping works for money, too. The fees you pay on
financial services make a big difference over time. For example, when
you renew your mortgage, shop around for the best rate. Even one-tenth
of a percentage point can translate to thousands of dollars in the long
5. Care more about your money than anyone else does.
Even if you have an advisor or an institution committed to doing their
best with your resources, the decisions - and the results - are
ultimately your responsibility. Know what you own, track your
investment performance and hold your service providers accountable for
the services that they provide.
6. Be a saver, not a borrower.
Borrowing makes sense if it helps you acquire something that boosts your
net worth. But over time, paying back debt takes away from your ability
to save - even when interest rates are low.
7. When it's too good to be true, it usually is.
You've heard the saying, "If it seems too good to be true, it probably
is." But if investment scams actually seemed too good, no one would
ever be taken in by one. Be very critical, especially of unsolicited
requests for your money.
8. The sooner you start, the better off you will be.
Time is money - really. The sooner you start to save and invest your
money, the faster it will grow.
IEF offers unbiased financial information to consumers via www.GetSmarterAboutMoney.ca and to students and teachers through www.InspireFinancialLearning.ca and extensive classroom programs. The non-profit organization was
established by the Ontario Securities Commission (OSC) and is funded
through OSC-enforcement settlements. IEF is a key architect of
Ontario's initiative to bring financial education to students in Grades
4 through 12.
SOURCE: Investor Education Fund (IEF)
For further information:
Contact Margo Rapport