The Building Blocks of Financial Literacy
By iA Private Wealth, November 10, 2021
November is Financial Literacy Month. It’s a great initiative, but in reality, every month is a good time to learn about personal finances. As you gain more knowledge, you’ll become a better saver, spender, consumer and investor.
It can pay to shop
The world of financial products is more complex than ever, given the growth of online platforms. With so many financial institutions and so many products to consider, it can be overwhelming.
Before making a decision, shop around and weigh your options. Let’s say you want to open a bank account. Conduct an online search and learn what services each bank provides and what features each account type offers. Do you require a physical branch nearby, or will you do most of your banking virtually? Based on your circumstances, determine which account best meets your needs.
Know your rights and responsibilities
To satisfy regulatory requirements, financial institutions use clear, plain language in their contracts and other documents. For instance, banks provide easily understood information about their credit products, while investment managers publish materials like a Simplified Prospectus and Fund Facts document that highlight a product’s key features and risks. You should read these materials before signing any agreement, as understanding all terms and conditions will ensure you know what you’re getting into.
Watch for scams
Protecting assets is the responsibility of every individual. Fraud and cybercrime are on the rise, targeting those who are vulnerable or careless. Scammers may call, email or text you, posing as a someone from a recognizable company or government agency. They often use aggressive tactics and threats that pressure you to provide banking or credit card information. If you question the identity of someone claiming to represent a legitimate organization, get their name/contact details and call the organization to confirm.
Understanding investment products
Everyone wants to build wealth for the future, but there are many investment products to choose from – and some are highly complex. Your advisor can help you choose products that best match your investment objectives, time horizon and risk tolerance.
An iA Private Wealth Investment Advisor can help you navigate the financial marketplace as you work to achieve your wealth goals. Speak with one today.