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The power of financial literacy

Financial literacy is a critical life skill that helps you to make smart, responsible decisions about your money. Build your financial knowledge using these tips.


When it comes to your knowledge of finances, how confident are you? Would you be able to answer basic financial literacy questions, such as:

  • What’s the difference between a savings account and a chequing account?
  • What is compound interest?
  • What’s the difference between a variable rate and a fixed rate?
  • What is an emergency savings fund and how much should you save?

According to an Ipsos poll conducted in 2017 on behalf of LowestRates.ca, 78% of Canadians believe they’re financial literate. When it came to taking a basic financial literacy test though, almost 57% of Canadians failed.

Financial literacy is a critical life skill and just as important in life as any other basic life skill. Why? Because money is all around us and something we deal with every day. Being financially literate means you understand all things money – how it works, how it’s generated, how to manage it, how to invest it and more. It means having the knowledge and confidence to make smart, responsible decisions about your money.

Improving your financial knowledge

It’s never too early, or too late, to improve your financial knowledge. Here are a few ways you can expand your financial knowledge and confidence with money:

  1. Take the Fin-Lit Challenge: Testing your financial knowledge will you see how much, or how little, you may know. This will help you identify topics that you may want to focus on to expand your knowledge.
  2. Talk to a Financial Advisor: Your financial advisor is an excellent resource for advice and knowledge, ensuring you’re not alone when making financial decisions.  There is no such thing as a dumb question. Meet with your financial advisor often and ask questions to ensure you understand your money and financial decisions.
  3. Read a Conexus #MONEYTALK Blog: Each week, Conexus #MONEYTALK publishes a blog providing expert advice, solutions and guidance on financial topics important to you. Savings, budget, investment 101 – we cover it all. Commit to reading the blog each week to continually expand your financial knowledge.

What financial topics would you like to know more about? Share below and we’ll be sure to do an upcoming blog on them.

person holding pen looking at investments

Investment terminology 101

Choosing an investment best suited to help you reach your goals can be hard, especially if you’re unsure of what all the different investment options are. Get up to speed with the latest investment terminology here.


Financial well-being means having the confidence that you’ll be able to achieve your financial goals and dreams. Investing your money is one way to help reach these goals and dreams but knowing where or how can be overwhelming, especially if you’re just starting out.

The type of investment you choose should be based on your goals. The investment options will look different depending on if your goal is short-term or long-term. Below is a list of different investment options, their purposes and the benefits of each, to help get you started.

Registered Retirement Savings Plan (RRSP)

  • A great way to save for retirement.
  • There is a limit on how much you can contribute each year – refer to your RRSP deduction limit statement on your Notice of Assessment from the Canada Revenue Agency.
  • Variety of investment options including stocks, bonds, mutual funds and rates based on your risk appetite.
  • Any contribution you make, you can claim as a tax deduction on your income taxes. You won’t be taxed on this money until you withdraw it. The ideal time to withdraw these funds is in retirement when your income is lower, meaning fewer taxes you’re having to pay on your income.

Registered Education Savings Plan (RESP)

  • A perfect way to help you save for your child’s education.
  • Federal government grants and incentives are available to help your savings grow faster.
  • There is a lifetime maximum of $50,000.
  • Different types of plans and deposit options, working for all unique family situations.

Tax-Free Savings Account (TFSA)

  • Great way to save for just about anything!
  • Use to save for short- and long-term goals including weddings, emergencies, vacations, retirement and more!
  • Variety of term and rate options to choose from including flexible options.
  • 100% tax-free – you don’t pay taxes on money earned or withdrawn.
  • Maximum yearly contribution amount of $5,500. Unused contribution amounts carry over year over year.

Term Deposits & Guaranteed Investment Certificates (GICs)

  • A term deposit can be used to invest in RRSP, TFSA or regular savings
  • Have the potential to earn a higher interest rate than a savings account.
  • Variety of rate, term and redeemable/non-redeemable options.
  • Generally term deposits and are used if wanting a low to no risk investment option.
  • Different interest rates for different term lengths. Typically, the longer the term the better the interest rate available.

Mutual Funds

  • A mutual fund can be used to invest in RRSP, TFSA or regular savings
  • Short- or long-term marketplace investment options available.
  • Variety of options available for all risk appetites – low, balanced or high growth.
  • Investments aren’t guaranteed. Potential for larger returns but with higher risk.
  • It’s recommended you work with a trusted financial advisor for advice and fund management.

Market-Linked Guaranteed Investments

  • Great for investors who are seeking both security and potentially higher returns than the more familiar secure investments.
  • Bridge product between term deposits and mutual funds.
  • Can be invested through an RRSP, TFSA or on its own to build your wealth.
  • Investment is 100% guaranteed and your return will depend on how the stocks perform during the length of your investment term.
  • Variety of options with a variety of term lengths to fit your schedule and goals.

When it comes to the world of savings and investing, there are many things to know. We recommend sitting down with your financial advisor to understand your investment goals and determining which investment solutions are best suited for you.

Excited to get started investing in your future? We are too! Contact us today to get started!

Woman holding piggy bank

Kick-start your finances: automatic savings

You can’t spend what you can’t see, right? Set up automatic money transfers from your chequing account to your savings account to reduce the temptation of spending somewhere else and keep you on track to reaching your financial goals.


You may have heard the term ‘pay yourself first’ but what does that actually mean? For us, it means setting goals, creating a budget and putting money aside regularly to achieve those goals. An effortless way to do this is by setting up automatic saving transfers.

Through automatic saving transfers, it’s easier than ever to save money. Through the tool, you’re able to schedule reoccurring money transfers between your accounts. Because it’s done automatically, it doesn’t let you think twice about moving the money into your savings and reduces the temptation to spend it on something else. You can’t spend what you don’t see, right?

Once you have your short and long-term goals identified, we recommend opening up different accounts for those that require savings. Talk to a financial advisor to determine what type of account is best for you (e.g., TFSA, RRSP, savings account, etc.). From your budget, determine how much money to transfer into each account and how frequently you’d like to contribute. Then, using online or mobile banking, set up a reoccurring transfer each month.

If you’re paid bi-weekly or twice monthly, we recommend setting up your automatics transfers for each payday. This way, you can have smaller, more frequent transfers that add up to the same monthly amount, but don’t seem to be as large of an impact all at once.

Automatic payments take away excuses and procrastination. There’s no more saying you’ll do it tomorrow as it’s automatically done – making tomorrow, today. By taking directly out of your account, you’ll forget it’s there and won’t be tempted to spend it elsewhere. You’ll also be on track to reaching the goals you set and could be surprised at how quickly it adds up!

Paying yourself first means investing in yourself. It is one of the best things you can do for yourself and your financial well-being. Now it’s your turn – take the challenge and be one step closer to taking control of your finances today.