As we mentioned earlier this month on social media, November is Financial Literacy Month! Becoming financially literate is a lifelong process, and we’re never done adding tips to our information banks (just as we’re always adding dollars to our actual banks).
So we’ve asked Motive Financial employees to see what financial tips they wish they’d known sooner that they’d like to share. Here’s our top 7 tips:
1. Pay yourself first
Julie, Motive Internet Banking Agent II, Motive Financial
This tip is a classic! When you receive your paycheque from work, consider setting an automatic transfer to your savings account so that saving becomes automatic. You’re paying yourself first with your paycheque, and then can use the remaining dollars to take care of the rest of your expenses and bills.
2. Avoid impulse purchases
Janice, Internet Banking Agent II, Motive Financial
We have addressed this tip in social posts before. The impulse monkey can be a tough one to shake! But if you’re able to break an impulse spending habit and avoid those spur-of-the-moment, don’t-need-it-but-gotta-have-it purchases, you’re miles ahead in your journey to financial security.
3. Put your money in a savings account that has withdrawal restrictions
Pam, Internet Banking Agent III, Motive Financial
Once you’ve paid yourself, that balance can look very tempting after awhile. Consider using a savings account that has withdrawal restrictions to help you resist the urge to move money around. Our Savvy Savings account offers this plus the added incentive of a 2.05% interest rate. Need we say more?
4. Compare ”needs versus wants” for certain purchases
Barb, Internet Banking Agent III, Motive Financial
Okay, we sympathize: sometimes you really do need that latte in the morning when you’re running late and your automatic brew didn’t start. But truly consider the ‘need vs want’ rhetoric that’s motivating your purchases. The more you avoid the ‘wants’, the more you save for the big goals you have.
5. Use the exchange network for ATM transactions for lower fees
Zong, Internet Banking Agent III, Motive Financial
Bank fees are one of the most unnecessary things to spend money on. There are so many ways to avoid these sneaky ‘small’ fees that over time add to quite the sum. Look for exchange network ATMs to withdraw money without fees, and only spend what you withdraw.
6. Set reasonable limits on non-necessities and stick to them
Pat, Assistant Manager, Motive Financial
While being fiscally prudent, it’s important to also acknowledge that sometimes you’ll want to grab a bite on the go, or treat yourself to a luxurious latte on the way to work or replace some staple clothing that has been worn out. Set reasonable limits on what you intend to spend on these non-essentials, and check in on your budget to ensure you’re sticking to it!
7. Plan ahead as much as possible! Cook meals ahead of time so you aren’t tempted to go out as often
Adam, Manager, Motive Financial
Batch cooking can be a lifesaver. Not only are you able to buy in bulk and save on the cost of groceries, cooking meals ahead of time lets you come home and unwind instead of stressing about what to make for dinner that night, which can lead to grabbing the keys and heading to a restaurant.
We hope you enjoyed this and our other shared financial literacy learnings and workshops this month!