Canadians are Postponing Retirement to Help Their Adult Children

Couple-postponing-retirementHalf of Canadians surveyed are willing to postpone retirement for their children according to a study by BMO Wealth Management. Even more worrying is that 24 per cent said they’d be willing to go into debt to help their children succeed. Ironically, one of the top reasons parents cited for their financial concern about their children is that they will incur debt that they can’t manage.

According to Statistics Canada, today’s youth are more educated, staying at home longer and putting off their entry into a treacherous labour market where unemployment rates for young adults are twice the national average. This is daunting information but not insurmountable. Parents and their children can find a way through the morass by learning about how to manage their money better.

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Financial Literacy; It’s Never Too Early To Learn

With increasing debt loads affecting youth, and unemployment rates double the national average, understanding how money and credit ratings work is paramount and a part of their educational needs.

kids_money_little_girl_piggy_bankStarting with their allowance, children can learn about how to manage their finances. The key is thinking about how much money you have and where you want to spend it. Children and adults alike are often driven by impulse and don’t think before acting. An environment where youth are responsible for identifying only their wants and not their essential needs is a dangerous precedent that can affect them throughout their lives. It’s simply too easy to spend freely and then find out you don’t have enough left, forcing you into debt.

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Financial Literacy and Education Key to Good Credit

Canadians are highly-educated in areas like academics and trades. But one of the most important areas that is often lacking is their degree of financial literacy.

Learning how to manage debt and build a solid credit rating requires education. Creditaid has developed a financial literacy program to help Canadians Build or rebuild their credit, Learn valuable budgeting skills that will guide them into a future of financial health, and Save money to spend on life’s most important things.

BuildLearnSave-LogoBuild Learn Save is an 18 month credit building program designed to educate participants about budgeting, credit, and debt while their credit is being re-established in order that they can be in a position of financial health upon program completion.

Building a healthy credit rating is not something that we commonly learn in school. Many people do not understand the repercussions of a poor credit rating and how it can affect many aspects of their lives. For instance, a $20,000 car financed over 7 years will result in approximately $350 in payments for a person with a good credit rating but $850 with a poor one.

This difference in cost is only one example of the kind of problems faced by those with poor credit. Renting an apartment, buying a car or house, using credit cards to buy online or guarantee a hotel room, car rental, or airplane seat—all are affected by a poor credit rating.

Financial literacy is a way for Canadians to find their way out of debt and build a solid credit rating that will stand them in good stead for their future.

Call Creditaid to find out more about the Build Learn Save program. Our friendly and understanding staff will let you know if your situation fits the bill and if we can help you to get started on the road to a healthy financial future.