HOW YOUNG ADULTS CAN BUILD A SOLID FINANCIAL FOUNDATION
Whether they’re moving into an apartment, going to university, getting a first car or indulging in a dream vacation, when young adults plan these types of big projects, they start thinking about how to manage money and set financial goals.
These projects are also an excellent opportunity to learn the basics of personal finance. The financial habits people acquire when they’re young are particularly important since they usually last a lifetime.
saVing and inVesting
That first major project is what makes most people understand why it’s so crucial to save money. It’s usually then that they start looking for ways to make money grow. While some may turn to their parents for advice, it’s also good to know that other sources are available to get familiar with investment basics.
“The TesAffaires.com website is a good starting point for learning how to make informed investment choices,” said Valérie Sauvé, financial education analyst at the Autorité des marchés financiers (AMF). “Essential information on diversification, the relationship between risk and return, the investor profile and choosing a professional are all there, and in plain language.”
Using Credit ProPerlY
Misusing credit is often one of the first financial mistakes young adults make. To avoid this, they need to know how credit cards work and how to balance a budget as soon as possible.
“A credit card calculator is available on TesAffaires.com,” Sauvé said. “It will show, for instance, how many months it could take to pay back the card if you only make the minimum payment each month. It will also show how much you’ll be paying in interest charges. This is a concrete way to see the costs that can hang over people’s heads when they misuse credit. Start tracking credit and consumption habits early, and use a budget calculator like the one on TesAffaires.com. It’ll lead to better financial planning and investment choices later on.”
getting insUred For tHe First time
Home and auto insurance are often the first insurance products people get. However, too few people fully understand these products when they buy them.
“Understanding the terminology and shopping around to get the best premium possible are valuable for a young adult, who wants to make good use of their money and avoid unpleasant surprises,” Sauvé said. “Young consumers who want to buy a car can find lots of material on TesAffaires.com that will help them make informed choices about car insurance.”
aVoiding FrAUd
Young adults can be victims of fraud, especially since they’re easily targeted on social media.
“Always think twice before disclosing personal information, and don’t invest without first doing some checks,” Sauvé advised. “Always verify whether the company or the person offering an investment product is registered with the AMF. To avoid being a victim of fraud, find out about the different types of schemes targeting young adults by visiting the section on fraud at TesAffaires.com.”
are YoU a teaCHer?
In fall 2017, a Secondary 5 financial education course may become mandatory. To that end, the AMF joined forces with the Office de la protection du consommateur (OPC) and the Commission des normes, de l’équité, de la santé et de la sécurité du travail (CNESST) to provide educators with the appropriate tools to teach this subject. These and many other tips and tricks can be found in the Teachers’ section on TesAffaires.com.
The AMF provides a wealth of information to youngsters through this website, allowing teens and young adults to make informed financial decisions. Teachers can also find activities designed to introduce students to personal finance on the site.
For more information, visit TesAffaires.com, the Autorité des marchés financiers’s youth-oriented website.