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Regardless of the collar you don, financial literacy is part of the foundation to a stable, successful life. It means knowing how to invest, save for a big purchase, and balance a cheque book; it also means understanding your financial rights and responsibilities.
In 2012, the Parliament of Canada proclaimed November as Financial Literacy Month (FLM). This month, organizations from private, public and non-profit sectors across the country are sharing resources that encourage Canadians to make healthy financial decisions.
The theme of this year's FLM is Take Charge of your Finances! The goal is to remind Canadians about the importance of creating a budget, setting financial goals, being a smart financial consumer, and borrowing money wisely.
TDAM and Financial Literacy
At TDAM, we're in the business of making your money work for you. We believe a strong investor is a savvy investor, so we share our best practices every chance we get. In support of FLM, we'd like to offer the following tried, tested and true investment concepts. Whether you're a seasoned investor or just starting out, these tips can help you reach your goals:
- Purchasing power
To maintain your power to purchase the same items in the future, your savings should generate returns that, at a minimum, can keep pace with inflation. Investing early helps.
- Power of compounding
Compounding refers to the ability of an investment to generate earnings, which are then reinvested to generate their own earnings. This can make a huge difference in savings over the long term.
- Market timing
Many of the market’s most significant moves happen in short, unpredictable spurts. You could miss out on crucial gains, which typically come after dips in the market, by being on the sidelines for even a few days.
- Long-term growth
Negative events in the media may cause fear in investors who then stay on the sidelines at the expense of their long-term financial goals. Market volatility is normal and expected, but long-term growth can beat short-term fluctuations.
Check out the rest of our helpful Investment Concepts, as well as a range of interactive Financial Tools and Calculators. Don't forget to follow us on Twitter for more great resources and updates throughout the month.