By the Sun Life team
Personal finance is a complex subject. But with some professional advice, you can improve your knowledge in the matter.
Financial management is essential. And many people are aware of this. Despite everything, many people accumulate debts and struggle to put money aside. Why is it so difficult to understand our finances? This is what is meant by financial literacy – or the lack of financial literacy.
What is Financial Literacy?
Essentially, it knows how to manage your finances, track your expenses and invest wisely.
Why is lack of financial knowledge such a persistent problem?
Money can be complex and technical, especially if you haven’t done any studies in this area. But the complexity of the subject is not the only culprit.
The way we teach it may also be part of the problem. The German professor Alexander Kapp developed adult learning theory in the 1830s. This theory explains, in four examples, how adults prefer to learn.
What is THE solution to improve your financial literacy?
There are simple solutions to the problem of financial literacy, like asking for professional help. An advisor can offer you their expertise and financial knowledge – while you make decisions.
Here’s how the advisor will help you improve your knowledge.
First, he can answer your budget, debts and savings.
Next, you may not be familiar with all the financial products and options available to you. But advisors do, and they can share their knowledge with you. For example :
it can help you better understand RRSPs and TFSAs,
and help you find what type of health or life insurance best suits your needs and goals.
The best advisors put as much effort into educating their clients as they recommend the right products. Ready to speak to an advisor? Find one near you. Most advisors are available for virtual meetings.
