With the continued uncertainty in our current climate—such as inflation, a challenging job market, and a near-impossible housing situation—things aren’t looking promising for young professionals in Canada. However, there is hope.
The Importance of Financial Literacy
The underlying factor in all these challenges is finances. As you improve your financial literacy and knowledge, you will be better equipped to understand and navigate the unpredictable events life brings.
Financial literacy is the insight to make wise financial decisions. From earning to investing, learning how to manage money can enhance both the quality and stability of one’s life.
“Knowledge about managing money isn’t just about handling day-to-day expenses; it’s about unlocking opportunities for education, exploration, and growth.” – Justina Ikwu, CAUFP President (2023-Present)
There are multiple layers to financial literacy, and today we’ll focus on one topic: investing.
Many people find the term “investment” intimidating. In a world full of complex financial terminology, market instability, and thousands of investment options, it can be overwhelming. But don’t worry! Beginning to invest doesn’t have to be complicated. Take it one step at a time.
- Outline Your Financial Ambitions
What are your plans for the profits from your investments? Once your financial goals are clear, you can tailor your strategy accordingly. - Set Your Risk Tolerance
Are you risk-averse and prefer to invest in stable options, or are you willing to take risks on higher-risk investments for the possibility of greater returns? Consider what you’re comfortable losing, and make investment choices that align with your risk tolerance. - More Variety, the Better
To minimize risk, diversify your investments across different asset classes. Here are a few of the most common asset types:- Fixed Income
- Equities
- Real Estate
- Cash and Cash Equivalents
Investing is a significant decision. Connect with your bank’s financial advisors and planners to support you on your financial journey.
From informative workshops and monthly speaker series to providing access to helpful resources, mentorship, and annual socials, the Canadian Association of Urban Financial Professionals (CAUFP) offers youth and professionals opportunities to network with experts in the financial industry and receive support throughout life’s journey.
“At CAUFP, we believe that financial literacy is a crucial component of freedom. Educating our community on economic matters enables them to make informed decisions, pursue their goals, and ultimately achieve greater independence and success.” – Justina Ikwu, CAUFP President (2023 – Present)
