Teaching Young Canadians the Importance of Credit and Savings

 

 

 

 

 

Cashco Financial was recently featured on the CTV Morning Live Pros in the Know, a segment that provides expert advice from trusted sources on a variety of topics. As a privately held company based in Edmonton, Alberta, Cashco serves over 140,000 clients both online and through a network of 63 branches located across Canada.

At Cashco Financial, our goal is to provide relief to the thousands of Canadians whose unique needs are not met by average banking programs. Part of achieving that goal also means arming the next generation with the right tools and tips to be financial stable in adulthood. We sat down with Pros in the Know to discuss these issues and how young people can start making the right decisions today that will set them up for a bright financial future.

Helping Young Canadians Establish Good Credit and Start Saving

Appling for a low-limit credit card is one of the best ways a young person can start building up credit in a safe and responsible manner. We recommend starting with a $300 to $500 limit. This helps youth develop healthy savings habits where they can start to manage their money without going overboard on their credit limit.

Applying for a loan with a co-signer is another great way a young person can build up their credit. After a few months of making timely payments, they can start to establish a relationship with the bank while slowly building up their credit.

Setting Goals and Managing Your Money

Setting realistic financial goals at an early age is critical. Whether it’s monthly, weekly or annually, establishing a goal gives you a sense of something to work towards. It also shows you where you’re spending your money and potential areas you may need to cut back in.

Not knowing what their expenses are is one of the biggest mistakes young Canadians can make, particularly first-year university students. Moving out for the first time means you incur a whole host of new bills that can quickly add up. By tracking your costs and knowing exactly where your money goes each month you can stay ahead of the curve and put money away for when you really need it.

Educate yourself. There are hundreds of resources at your disposable all designed to help you get a handle on your spending habits. Reading blogs, watching YouTube tutorials and downloading savings apps can all help you establish the right habits now so you don’t struggle in the future.

Saving For Retirement

People often ask us when the best time to start saving for retirement is. Simply put… as soon as you possibly can. When you first start making a consistent paycheck, set aside $10 – $20 dollars each month. It might seem like a small amount, but not only does it help get you into the habit of putting money away consistently you would be amazed at how quickly it can add up after a few years.

The Moms Match Savings Account

The Moms Match Savings Account is just one of the many programs we offer at Cashco Financial that is designed to help hardworking Canadians break the cycle of debt. Moms can contribute $10 dollars a month, up to $120 dollars a year, and Cashco will match it, dollar-for-dollar. This can leave moms with up to $240 dollars in total savings after just one year.

Not only does the Moms Match Savings Account help moms put aside money for a rainy day, it starts a conversation between them and their children about the importance of saving. This is just one of the many ways Cashco Financial is supporting young Canadians and offering them hope for a financially stable future. In fact, we are proud to have given back over $82,000 dollars in savings to moms across the country.

 

 

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