CONTROL YOUR FINANCES POST-GRAD

by Divora Mehari | Apr 8, 2022 | Financial Literacy

TAKING CONTROL OF YOUR FINANCES POST-GRAD

Friday, April 8, 2022

As a recent graduate, you likely have your first job and are making more money than before. This life transition also brings new major goals, such as getting your first car, finding a new apartment, taking the next step with a partner and planning a future together. With a host of new priorities and responsibilities, having a plan on how to handle your finances is important. Financial planning might seem challenging, but there are many opportunities to set yourself up for success.

Financial planning involves taking a comprehensive look at your financial situation and creating a specific plan to reach your life goals. Good planning can help you establish the right financial habits to ensure you don’t fall into the cycle of debt. Are you ready to take control of your finances?

Here are four tips to help you start off on the right foot!

Create a Budget

The choices you make post-grad have the potential to impact your financial future. Budgeting is a powerful tool that can help you reach those next steps, such as buying a house or preparing for retirement. A budget is a system that helps track your spending and determine how much money is available to spend over a period of time. Ready to get started? YNCU’s household budgeting tool can help keep you organized as you learn how to manage your money and plan for the future.

Establish Savings Goals

Once you’ve created a budget that reflects your needs, set some savings goals. This will help you understand your financial priorities and what you want out of life. Whether that be to get rid of debt or buy your first home, establishing savings goals will allow you to be more deliberate about your spending and saving. YNCU’s free financial goals worksheet is a great resource to help you set short-term and long-term goals. Writing down your goals is an effective way to track your progress and hold yourself accountable.

Build Your Credit

Did you know having good credit comes with perks? Establishing good credit can provide access to many savings and benefits, including lower-interest rates, loans and credit cards. As a young adult, this is important to save money and reach your financial milestones. There are many ways to build your credit, such as paying your bills on time, getting a secured credit card and paying off debt.

Save for Retirement

The sooner you start saving for retirement, the easier it will be to reach your financial goals later in life. There are many different ways to save for retirement, but the easiest way to get started is by opening a Registered Retirement Savings Plan (RRSP). When you contribute money to an RRSP, your funds are tax-sheltered, which means your investment isn’t taxed until the year the funds are withdrawn, allowing the total value to grow quickly.

Setting some guidelines for saving after graduation will provide peace of mind knowing that you have a plan for the future.

Interested to learn what retirement savings options are available to you? Reach out to one of our advisors to learn more here.

We hope you find these tips useful as you start to build your financial plan. If you need help getting started, our team is happy to help! Book an appointment online to meet with one of our experienced financial advisors who will design a custom plan to meet your needs.

4 TIPS TO GET OUT OF DEBT

by Divora Mehari | Mar 25, 2022 | Financial Literacy

ACHIEVING FINANCIAL EMPOWERMENT: 4 TIPS TO GET OUT OF DEBT

Friday, March 25, 2022

Thirty-eight percent of Canadians say money is the number one source of stress in their lives and debt is a debilitating financial topic over which people feel they have little control. Many individuals struggling with debt say it affects their physical and emotional quality of life. If this resonates with you, this guide is here to help you take back control.

Understand Your Financial History

In order to achieve empowered thinking, it’s important to understand your financial history and how it shapes your idea about money and financial responsibility. For example, someone who was raised in a family where money wasn’t an issue may have a different perspective than someone whose family struggled to make ends meet. Understanding how one’s experience influences the way they spend money, make financial decisions, and their ability to reach financial goals is critical to their success in the future.

Pursue Financial Education

Personal finance is not commonly taught in schools, so much of what we learn about money comes from our parents and our own pursuit of knowledge. That means in order to learn more about basic financial topics such as budgeting, saving, debt and investing, we must seek out this information. Learning these important life skills will strengthen your financial literacy and allow you to make better informed decisions when it comes to managing your debt. If you have further questions, our team is here to help! — Let’s Connect for more information.

Change Your Mindset

Your money mindset influences how you save, how you spend and how you manage debt.

When you have limiting beliefs, they become thoughts, and these thoughts turn into actions that reinforce those limiting beliefs. If you believe you’re not good with money, you may spend carelessly and doubt your ability to save or pay off debt. Achieving a positive money mindset starts with giving up the limiting beliefs you have about money.

Be Intentional with Your Money

In order to see the light at the end of the tunnel when it comes to overcoming debt, it’s important to be intentional with your money. This means being deliberate about what you spend your money on, where you spend it and how you feel when making financial decisions. Being intentional encourages you to stick to a plan in order to reach success in the future. Here are three easy ways to be intentional with your money:

Track Your Money

Tracking your income and expenses allows you to develop a clearer picture of where your money is going. This will help indicate what you can afford and any areas where you can cut back. Building self-awareness over what you spend money on will give you new insight and perspective on your finances.

Set SMART Financial Goals

Turn your vision into reality by setting SMART financial goals – Specific, Measurable, Achievable, Realistic, Timely. Goals that follow this criteria are more attainable because they outline what you want to achieve, how and when you will do it. Download YNCU’s free Financial Goals Worksheet to start setting goals today.

Create a Budget to Stay Intentional

Spending money without a budget is like trying to get somewhere without knowing where you’re going. A budget provides you with the information you need to better manage your money. YNCU’s household budget tracker is a great resource to help you be more intentional with your spending.

Achieving financial empowerment over your debt takes time and commitment. But once you get there, you’ll be able to reach your goals with ease and make better financial decisions. Ready to get started? Check out our blog, to learn more about “How to Build a Better Budget.”

WOMEN ON A LEVEL PLAYING FIELD WITH MONEY

by Divora Mehari | Mar 11, 2022 | Financial Literacy

HOW TO GET WOMEN ON A LEVEL PLAYING FIELD WITH MONEY

Friday, March 11, 2022

The gender pay gap in Canada has been an issue for decades. Women across various industries and professional levels have been experiencing economic inequality. According to Statistics Canada, women earn $0.87 for every dollar earned by men. Alongside the wage gap, there continues to be ongoing societal factors that perpetuate women being left behind when it comes to financial literacy and wellbeing.

We had the opportunity to sit down with Kim Boudreau, Certified Financial Planner at YNCU, to discuss how financial professionals can help women become more financially independent and access the same financial literacy opportunities as men. Kim shares her knowledge about the history of women and money, why women are not on the same playing field as men, and what can be done about it.

The History of Financial Inequality

In the past, women have had no decision-making power when it comes to household finances. The world consisted of traditionally male-driven workplaces and households. Dating back to the 1700s, women had no autonomy. In marriage, they simply became the property of their husbands. It wasn’t until the 1800s when the Married Women’s Property Act was passed, allowing women to own properties, assets and keep their own income.

In the 1960s, the Equity Pay Act was passed in an attempt to create more fairness in income, based on gender. In the 1970s, the Equal Credit Opportunity Act prevented credit from being denied to women on their own merit. Although we’ve come a long way, women today still lack the same financial independence and opportunities provided to men.

Kim says she still has clients who talk about the days when they were not able to get a loan or mortgage without their husbands co-signing. While men could do everything on their own merit and did not have to include their wives, women have faced challenges in their journey toward earning respect as financial equals to men.

Where Are We Today?

The representation of women in the financial industry remains an issue, especially in roles above entry-level. According to Deloitte Insights, women still only make up 24% of leadership roles within the financial services sector. Having more women in these leadership roles will help improve financial outcomes and bring in unique perspectives and ideas. It will also create mentorship opportunities for future generations.

To get to this point, it’s going to take time and proactive effort. Some effective ways for women to advocate for themselves include: education, asking questions, attending meetings, participating in discussions, meeting with other women to share ideas and create solutions and growing their confidence.

How Can We Do Better in Promoting Gender Financial Equality?

Promoting gender financial equality needs to be a collective effort in order to raise awareness and drive change. Some of the many ways financial professionals can help include: being more inclusive, asking questions directed at female clients, offering learning sessions, taking time to explain financial terms and encouraging them to ask questions and explore new resources.

Partners, family and friends can also do their part to help promote gender financial equality by encouraging women to be involved in creating and building their own financial stories. This includes understanding statements and accounts, balances, credit, retirement plans, debt and long term security and protection.

Where Do We Still Need to Go?

Although women are learning and becoming more involved with their own finances, Kim has noticed that many of her clients still defer decisions on investments, income, retirement planning, insurance and pension decisions to their spouses. This is detrimental, due to the fact that most women traditionally outlive their spouses, meaning financial decisions will impact them in the long term. Moving forward requires us to include women in discussions surrounding finances and respecting them as equals to men. This will help women feel more empowered and confident in managing their own money.

Financial Management Tips for Women

The following are some key tips and recommendations Kim shares for women looking to be better with their money:

Ask Questions

Take the initiative to meet with your financial advisor to go through everything and ask questions.

Learn The Basics

Learn how your emotional history, experience and needs are affected by money and what you’ve learned by watching your parents and family members.

For example, if money caused stress or family strain, it was likely not a topic of discussion. Whereas, if money was plentiful and opportunities were endless, then you may have been led to believe that someone would always take care of things. Learning from your own experiences can help avoid any biases based on how you were raised to perceive money matters.

Get Involved

It’s important to get involved and speak up when making important decisions and sharing opinions, thoughts, needs, concerns, wishes and ideas. Financial advisors are always open to setting up a secondary meeting if you need any further information or would like to expand your knowledge on certain topics.

Manage Your Own Accounts

Women are encouraged to manage their own accounts, especially their retirement accounts and TFSAs, and not to defer all decisions to a spouse. It’s also important to use online access to banking information, read statements, ask questions and provide feedback.

Over the past 15 years, Kim has seen several women lose their spouses in situations where those spouses had already made all of their decisions regarding money. Now these women have to manage the emotional distress of losing a spouse and sort through the details of what should be done about a pension, home, the family and a new income, when they often were not involved in any discussions and planning surrounding family finances.

Kim has sat across from many worried, upset and shocked women who have to learn this all at once. It can be stressful, intimidating and upsetting for many, but she has also seen some women become empowered, sell homes they never liked, and buy ones they love. She has seen women start over, grow their assets and provide a new life for their family. These women were able to create a new monthly cash flow and imagine a life where they’re able to decide how to spend their retirement in ways they once did not think possible.

It all begins with trust in yourself, trust in a strong financial advocate and collaboration with a financial partner who can support your vision of what you want your life to be. If you have any questions or would like to talk to Kim, she can be reached at [email protected] or P: 705-942-3008 M: 705-206-2505.

Did you know that the financial industry also faces the issue of racial inequality as it relates to money? To learn more, check out our blog, Sharing Resources: Exploring Racial Inequality & Money.

PROMOTE FINANCIAL EQUALITY

by Divora Mehari | Feb 18, 2022 | Financial Literacy

HOW TO BE AN ALLY TO PROMOTE FINANCIAL EQUALITY

Friday, February 18, 2022

Our previous blog explored financial inequality and the various societal factors that cause and perpetuate this issue. We had the opportunity to speak with YNCU’s Systems Administrator, Rabo Oshobe, about how members and financial professionals can take direct action. Rabo shares his expertise and helps us understand how to better address financial inequality, promote access to resources and improve financial literacy.

How can we support each other?

Supporting each other starts with understanding each other’s struggles and experiences. Rabo came to Canada when he was 19, after growing up in Nigeria where wealth inequality is very extreme. His father came from a poor family and his mother was able to start a business with just a high school diploma. Rabo’s father taught him the importance of education and how to apply what he learned to obtain a steady paying job.

Most people in Nigeria have not built generational wealth, which significantly impacts how people manage their finances and their interest in financial education. Rabo was shocked when he came to this country, noticing the wealth made in Canada stays in Canada. Many Canadian children have instant access to generational wealth. The money simply gets spread across family members and passed on to kids and grandkids.

The Black population now accounts for 3.5% of Canada’s total population and the majority of those working in finance are white. This places a bias on the advice and support given to the community. When Rabo arrived in Canada as a student, he wished someone would have reached out to teach him how to manage his finances. Financial literacy isn’t something that’s taught in schools, and general financial advice tends to exclude the needs and concerns of younger demographics. As many others share similar experiences to Rabo’s, more needs to be done to provide better support and access to resources.

How do we recognize financial inequality?

In order to recognize financial inequality, we need to consider different lifestyles and backgrounds. This ensures all groups and individuals receive the financial education they need based on their situations. We need to target minority families with programs, loans and education to help them get to where they need to be. Not only is this good for the economy, it allows the children in these families to get the education and opportunities they deserve.

How can we be better allies in promoting financial equality?

Having open conversations about money with your friends, family and colleagues is a great way to promote financial equality. Being open about what you earn, how you invest and your money management strategies can help those who may not have the same financial knowledge. In today’s society, community-based spaces like social media allow us to learn and share ideas when it comes to finances.

Who do we need to call on to drive change?

Not until we have a strong financial framework built into our education system will we start to see change. Ideally, we would see school systems stepping up and championing this important initiative. Financial education should be offered in schools and at all levels of education. It should also be free and readily available to everyone. Teaching children how to financially support themselves from a young age could go a long way in helping us drive change.

Whose voices need to be amplified?

The voices of minority groups need to be amplified. Historically, underrepresented people have less access to financial resources and are therefore less likely to build generational wealth. When given the opportunity, minority communities are eager to share what they know and what they have with each other in terms of resources, knowledge and money.

An amazing example of this was when the community came together to raise money for Rabos’ father to be the first to go to school in their village. This allowed him to get a good job and in turn give back to the community. The spread of wealth has a significant impact on these communities and their success.

For financial professionals, what needs to be done as an educator in this space?

If we want to drive change, we need financial professionals who are willing to openly share their skills with those who reach out from other countries. We need more people going out into the community and in classrooms to reach all groups, especially younger generations. Information should be broken down in a way that is easily understood and accessible. We should also encourage people of all cultures to have these conversations with their kids so they can get a head start with their finances.

Rabo is so grateful for the amazing team at YNCU for giving him the opportunity to work there and learn more about finance. He immediately felt welcomed by the YNCU team. He also feels his personal experiences were met with empathy and understanding.

We need more compassion when it comes to finances. Feel what people feel, match their motivation and try to understand where they are coming from. Money and mental health are heavily intertwined, therefore financial education and literacy has the potential to significantly impact someone’s life for the better.

Addressing financial inequality will take time and effort. This issue needs to be recognized by those affected by it and those who benefit from it. Not until we all have equal access to financial education and resources will we start to see true and lasting change.

To learn more about racial inequality as it relates to money, check out our latest blog, Sharing Resources: Exploring Racial Inequality & Money.