Financial Literacy Month: Problems and Solutions

November is Financial Literacy Month. Each day I’ve been posting tips, snip-its, and common financial problems people face to my social media accounts:

Facebook: www.Facebook.com/McEachernFinancial
Instagram: ScMcEachern 

The Problem: Most Canadians cannot afford a $500 unexpected expense.

Does this statistic startle you? It certainly scares me.

Your furnace quits, or you have to take 3 days off work because of a sickness, or a family member in another province passes away and you want to attend the funeral – most Canadians would face financial hardship if one of these events occurred. Are we too busy living in the now to plan for tomorrow?

The Solution: Start an Emergency Fund Today

Find $25 a week ($100/m) and start saving some money for the unexpected. There are many tips and tricks to accumulate $500 rather quickly and most won’t have an impact on your lifestyle. Sell some things you no longer use, work a few more hours, lower a bill or cancel one altogether. Then put this money into a separate savings account where you won’t be tempted to spend it!

The Problem: Most People Are Overpaying for Services

When was the last time you reviewed your internet bill? Your phone bill? Your bank fees? Every year companies come out with new services and/or products to keep competitive. Sometimes that means lower fees! Sadly, they likely won’t tell you unless you ask!

The Solution: Look Into Your Service Fees

Call or research your local provider online. Then call the competition for a quote. Shop around and compare! A few minutes of work can save you lots of money over the year.

The Problem: Millennials Don’t Buy Travel Insurance

This statement is a broad generalization – I work with quite a few millennials who do, in fact, buy travel insurance. That being said, I’ve spoken to many who have no idea that it’s even a thing! Let me tell you this: out-of-country medical bills hurt the wallet! An x-ray that is fully covered by OHIP in Ontario, Canada can cost $300+ in the USA. A two-day stay in a hospital can cost more than $1,000!!

The Solution: Buy Travel Insurance

The likelihood of needing travel insurance is quite low, but luckily that’s reflected in the premium costs. For just a couple dollars a day, you can ensure a relaxing trip with no unexpected emergency medical bills.