The month of November represents Canadian Financial Literacy Month (FLM), this year marking its sixth official running. It’s an initiative run by the government that helps raise awareness among Canadians in regards to personal finance. The purpose of FLM is to educate, promote and strengthen the financial skills and knowledge of Canadians, aiming to help them better manage and sustain their finances.
When it comes to small business owners and enterprises, financial literacy is even more important. Because entrepreneurs are more likely to intertwine their business and personal finances, developing financial skills that can help them make informed and sound decisions about their business is integral.
The theme for FLM 2016 is “Managing Money and Debt Wisely”, with an underlying focus on budgeting, sourcing, and planning finances for individuals and entrepreneurs. During this month, organizations across Canada are encouraged to share resources, host workshops, seminars and other key events to help Canadians learn how to manage their finances successfully. You can learn more about FLM events by clicking here.
As a business owner, you can always improve your skills and knowledge when it comes to finances. Here are 3 things that you can do to improve your financial literacy:
- Learn More There are numerous resources available for personal and small business finance that can help you learn more about financial skills and budgeting according to your needs. We recommend the Financial Consumer Agency of Canada – a credible source that provides a wealth of information and is an excellent starting point for those looking to learn more about debt management and planning their finances.
- Asses Your Habits According to a survey by the Canadian Payroll Association, almost half of Canadians claim that they are living paycheck to paycheck, and are experiencing difficulty in meeting financial obligations if their pay is delayed. Business owners often find themselves in the same scenario, having little cash on hand to make important business decisions such as purchasing bulk inventory to attain a discount or renovate their store before high season.Take the time to break down your monthly income/revenue and expenses, and analyze if you are on track with your businesses financial goals. Don’t know where to start? Using one of these tools or calculators should probably be a good start.
- Educate Yourself
Financial literacy workshops and seminars led by credible and experienced financial experts and organizations are a great way to learn how to manage your finances. Financial literacy classes are also available as online courses or self-help books for individuals who prefer to learn from home. Personal finance-related podcasts are another great option for productivity junkies who want to boost their financial literacy while commuting or exercising!
As a responsible leader in the FinTech industry, Kingsmen Capital is committed to supporting FLM 2016 – Managing Money and Debt Wisely, by raising awareness and the importance of financial literacy in the community. We will be using the hashtags #FLM2016 throughout the remainder of November to share information on social media. We hope you will join the conversation!