Live within your means

Welcome to week two of Financial Literacy month and the second challenge from Cariboo Chilcotin Partners for Literacy.

Welcome to week two of Financial Literacy month and the second challenge from Cariboo Chilcotin Partners for Literacy. Household debt in Canada is 167 per cent, which quite simply mean for every $1 that the household earns, it spends $1.67. Instead of saving for things, we take on debt and end up paying more for almost everything that we buy.

• Canadians are saving less and spending more, which is leading to historically high rates of household debt.

• Spending more than you earn makes you less resilient to economic surprises.

• Being smart about debt means understanding the difference between good and bad debt and how to manage both.

Here are some great tips from ABC Life Literacy on how to take control of your financial future and improve your own financial literacy.

Increase your knowledge, increase your confidence. When you feel good about your own money management skills, you will feel more confident talking about money with your children.

Create a spending plan and share it with your kids. Write down all anticipated costs — and talk about the difference between needs and wants.

Encourage your kids to journal about money. Have your children write down the cost of each and every purchase that they make. At the end of a week, use the journal to initiate a conversation about money and priorities. Start a tax-deferred RESP for your child’s post-secondary education right away. Explain to your child that money is being saved now for their future education. Studies show that children are more likely to attend university or college if they know that there is money earmarked for their education, regardless of amount.

Get children to save at least 10 per cent of their allowance. Talk to your kids about the benefits of the “pay yourself first” approach.

Spend and save your way to financial sustainability. For more information and free resources, email kirsten@caribooliteracy.com.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

RCMP ask for assistance from public in hit and run of Canoe Creek pedestrian

The 33-year-old man was sent to hospital with serious injuries

Williams Lake Highway 20 bump to be repaired once load restrictions are lifted

A historical slide area is actively causing ripples in the road

First annual Forest Service Road Clean Up For Wildlife goes until May 31

Taking place from May 16-31, the contest is open for anyone to enter

LIVE: Procession to honour Snowbirds Capt. Jennifer Casey comes to Halifax

Snowbirds service member died in a crash in Kamloops one week ago

Facing changes together: Your community, your journalists

Thanks for helping the Williams Lake Tribune continue its mission to provide trusted local news

RCMP facing ‘systemic sustainability challenges’ due to provincial policing role

Provinces, territories and municipalities pay anywhere from 70 to 90 per cent of the cost of the RCMP’s services

One man dead after standoff with Chilliwack RCMP

The Independent Investigations Office of B.C. is investigating the RCMP’s role in the death

B.C. employers worry about safety, cash flow, second wave in COVID-19 restart

A survey found 75 per cent of businesses worry about attracting customers

Ex-BC Greens leader Andrew Weaver says province came close to early election

Disagreement centred on the LNG Canada project in northern B.C.

Canada’s NHL teams offer options to season-ticket holders

Canadian teams are offering refunds, but also are pushing a number of incentives to let them keep the money

B.C. premier says lessons to learn from past racism during response to pandemic

B.C. formally apologized in the legislature chamber in 2008 for its role in the Komagata Maru tragedy

Snowbirds to remain at Kamloops Airport indefinitely after fatal crash

small contingent of the Snowbirds team is staying in Kamloops, acting as stewards of the jets

Most Read