{"id":50429,"date":"2023-05-09T22:58:31","date_gmt":"2023-05-09T22:58:31","guid":{"rendered":"https:\/\/nomoredebts.org\/?p=9004111222012860"},"modified":"2025-04-09T21:57:23","modified_gmt":"2025-04-10T04:57:23","slug":"tips-and-tricks-to-improve-your-money-skills","status":"publish","type":"post","link":"https:\/\/nomoredebts.org\/blog\/manage-money-better\/tips-and-tricks-to-improve-your-money-skills","title":{"rendered":"Tips and Tricks to Improve Your Money Skills"},"content":{"rendered":"

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How Much Is a Lack of Financial Literacy Costing You?
Tips and Tricks to Improve Your Money Skills<\/span><\/h1>\n

By Monika Ritchie<\/em><\/p>\n

When it comes to your personal money management, if you\u2019ve asked yourself in frustration, \u201cWhy didn\u2019t they teach us about this in school?!\u201d you\u2019re certainly not alone. If you\u2019ve ever struggled over your taxes, tried to decipher the fine print on your credit card bill, or even tried to build a household budget, you know how frustrating it can be if you\u2019re lacking the financial knowledge, skills, and confidence to get started. This lack of confidence can lead to a variety of financial issues, including overspending, debt, and poor credit.<\/p>\n

While credit and debt counselling organizations are becoming more prominent, many people, when they want to increase their level of financial literacy, don\u2019t think to seek help from organizations like the Credit Counselling Society to do that. However, along with helping individuals and families deal with their debts, financial education<\/a> is a big part of what we do. We know that there\u2019s a real cost to not having the knowledge and skills to make informed financial choices. Here\u2019s why it matters and what you can do to ensure a more stable financial future for yourself and your family.<\/a><\/p>\n

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[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_2,1_2″ make_equal=”on” custom_padding_last_edited=”off|tablet” _builder_version=”4.17.4″ width_tablet=”80%” width_phone=”80%” width_last_edited=”on|phone” custom_margin_tablet=”||-35px||false|false” custom_margin_phone=”||-35px||false|false” custom_margin_last_edited=”on|phone” custom_padding_tablet=”||0px||false|false” global_colors_info=”{}”][et_pb_column type=”1_2″ _builder_version=”4.16″ animation_style=”slide” animation_direction=”left” animation_intensity_slide=”2%” custom_css_main_element=”margin: auto;\t” global_colors_info=”{}”][et_pb_image src=”https:\/\/nomoredebts.org\/wp-content\/uploads\/2023\/05\/making-financial-decisions-700px.jpg” alt=”Making financial decisions without much financial literacy.” _builder_version=”4.20.2″ border_radii=”off|200px|20px|200px|20px” box_shadow_style=”preset2″ global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][et_pb_column type=”1_2″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_text _builder_version=”4.20.2″ custom_margin_tablet=”45px||||false|false” custom_margin_phone=”45px||||false|false” custom_margin_last_edited=”on|phone” global_colors_info=”{}”]<\/p>\n

A Lack of Financial Literacy Makes It Harder to Navigate Economic Challenges<\/h2>\n

With so many Canadians struggling to deal with the high cost of living<\/a> and their mounting debts, it’s more important than ever to have a solid understanding of how to manage your finances. Unfortunately, a lack of financial know-how can negatively impact your money and overall financial health during a time when both are already stretched thin. That is why an important part of financial literacy and money management<\/a> is having the confidence to make the choices \u2013 even the tough ones \u2013 to get you through challenging economic times.<\/p>\n

How to Create an Emergency Budget<\/a><\/p>\n

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You\u2019re Less Aware of Financial Traps and How to Avoid Them<\/h2>\n

Let\u2019s be real, most of us don\u2019t sit down with the goal of improving our money skills. However, without a little effort in this department, we could be heading straight for a financial trap and not even know it. Here are a few common money traps and why it\u2019s important to avoid them:<\/p>\n

Overspending<\/h2>\n

Without a clear understanding of how to manage your money and what influences your spending choices<\/a>, you may find yourself living beyond your means. Credit makes it easy to spend more than you earn, which can lead to mounting debt and financial stress.<\/p>\n

What Are Your Bad Habits Really Costing You?<\/a><\/p>\n

Credit Card Debt<\/h2>\n

Our credit cards don\u2019t come with instructions, so learning the ins and outs of how to use them wisely can be painful. If you\u2019re using credit cards, inform yourself about the terms and conditions that come with each card, including interest rates for purchases and cash advances<\/a>, how minimum payments<\/a> and fees work, if collecting reward points is worth it<\/a>, and how you can use your credit card without paying any interest ever \u2013 before you find yourself racking up high balances that you can\u2019t afford to pay off.<\/p>\n

Myths About Debt Payments<\/a><\/p>\n

A Low Credit Score<\/h2>\n

A lack of insight into how we should spend and save our money to achieve our goals can lead to less than healthy financial habits. These habits, over time, can negatively impact your credit score<\/a>. A low score can make it difficult to rent an apartment and obtain loans, a new cell phone contract, and even some types of insurance. A poor credit score will lead to higher interest rates and tighter terms and conditions, which will cost you more money in the long run.<\/p>\n

Credit 101: The Basics About Scores, Reports & Ratings<\/a><\/p>\n

No Emergency Savings<\/h2>\n

A rainy-day fund is key to managing an unexpected expense, like a car repair or medical bill, or tying us over if we lose some or all of our income. Learn from the most successful people<\/a> \u2013 build up your emergency savings account little by little, until you have about 6 months of essential living costs saved up for a rainy day.<\/p>\n

How to Avoid an Unexpected Financial Crisis<\/a><\/p>\n

Lack of Retirement Planning<\/h2>\n

A lack of financial literacy<\/a> can also impact your long-term financial health. Without understanding the importance of retirement planning, you may find yourself unprepared and struggling to make ends meet when the time comes. Treat preparations for the end of your working years like a marathon, not a sprint, and start as early as you can. Save a little from each paycheque in your RRSP and\/or pension, and max out any employer-sponsored matching programs to get the biggest bang for your buck.<\/p>\n

10 Steps to Retire Without Debt<\/a><\/p>\n

Tips for Improving Your Financial Literacy<\/h2>\n

It’s never too late to improve your level of financial literacy and doing so doesn\u2019t have to break your budget. Keep an eye out for free or low-cost resources, look for free courses within your community, and reach out to a trusted, professional organization to get the information and resources you need without breaking the bank!<\/p>\n