It’s National Financial Literacy Month (FLM), where the Financial Consumer Agency of Canada (FCAC) helps equip Canadians with practical tools and tips to manage their money in a changing world. Throughout November, the FCAC is discussing the ever-changing financial marketplace and the importance of checking up on financial health.
At Magenta, our goal is to connect people with opportunities to build a better tomorrow. This month, we’re furthering our goal by supporting National Financial Literacy Month and sharing resources dedicated to helping Canadians:
- manage their money and debt wisely;
- save for the future; and
- understand their financial rights.
For this week’s theme, “What to do in a Financial Emergency”, we’re exploring how you can equip yourself to handle financial emergencies. Whether you’re an investor, a broker, or simply looking to refresh your financial literacy, we hope this article proves useful to you.
What you can do to prepare for a financial emergency
As much as managing debt and saving for the future can help to mitigate risk, events outside your control- from personal challenges like illness or loss of income to macroeconomic factors such as recession or rising interest rates- can still threaten your financial stability. It’s a difficult topic to grapple with, after all, no one likes to plan for the worst. But in the wise words of Benjamin Franklin, “By failing to prepare, you are preparing for failure.” He might not be on our 100$ bill in the Great White North, but we’re confident his advice still applies (and we don’t think Robert Borden minds sharing the limelight, either).
To prepare for a financial emergency, the FCAC recommends the following action plan:
- Create a budget
- Make a plan to pay off your debt
- Avoid taking on more debt
- Reduce your expenses
- Set up an emergency fund
- Increase your income
You can take advantage of the action plan, free tools, and resources offered by the FCAC.
Resources you can turn to in a financial pinch
Financial emergencies can happen to anyone at any time. If you are facing financial issues, you can seek external resources to help you get through a financial emergency.
We’ve created a Financial Emergency Word Search of professionals, institutions, and trusted options you can turn to. Click on the image below to download and print a copy. Go ahead and try it out!
Did you find all the words? Click here to see the Word Search Answer Key.
How to get through a financial emergency
The good news is, you’re not alone. Your financial institutions may be able to assist you when your financial health hits a rough patch- whether that’s through offering mortgage deferrals or mortgage relief or allowing you to skip a payment cycle on your credit card (a ‘payment holiday’). For more information on what financial lifelines are available to you in Canada, please visit the FCAC’s resource for managing your money in challenging times.