Why Financial Literacy is Important to Me
Editor Update
It is hard to believe a year has passed since writing this article. We are still facing the same pandemic we were a year ago, but on a more personal level, my life has considerably changed. I got married, purchased a new vehicle, welcomed my first child into the world (do not recommend having a child during a pandemic—that was rough), and purchased what we hope to be our forever home to raise our family in (also do not recommend selling/buying a home with a three-month-old during COVID—not as fun as you would expect).
Having experienced several significant life events within such a short period of time has reinforced the importance of financial management. The conversations between my wife and I were no longer about us. They were about our growing family and how our decisions would impact our child. Our conversation about monthly spending and saving now included the additional cost of having a baby as well as the monthly cost of saving towards his educational future within a Registered Education Saving Plan (RESP).
When we were looking for our new home, it had to be forward-thinking. Will this space be enough when we have multiple children? How big is the yard? Can the children play without hazards? What is the school zone like? What is the proximity to our family? The number of factors that went into this decision was overwhelming. Not to mention the current housing market. But after viewing the house twice, putting in an offer and winning—we had a new forever home all within 24 hours from our first visit.
Thankfully, both my wife and I are very structured with our finances. We were able to sit down within that 24-hour period and build a new budget. We based our budget on what our current home could sell for, what the new home would cost, and determined the annual insurance on the new home including rough figures for heating, water, electricity, and property taxes. Our financial management is what allowed us to buy our forever home.
Understanding this is not the norm for everyone, but please remember it is never too late to start building a budget and planning for the future. If you would like help with supporting your employees in financial literacy and savings for retirement, feel free to say hello at csantos@oakhouse.com.
It is hard to believe that it has been one year since the world’s first positive COVID-19 test. The pandemic has impacted everyone in some way, shape or form. For many, it highlighted the importance of understanding and managing personal finances, and why having an emergency fund is critical. As I look back on this year, it has provided me with the opportunity to reflect on why I got into this business in the first place.
I come from a family of six, including my parents and three older siblings. We did not grow up in what I would consider a poor household, but I would not have classified it as middle class either. My parents were always able to provide us with shelter, food, and clothing, but we could not afford certain luxuries like family vacations. When I turned 16 years old, I got my first job. I used my earnings to pay for my school fees, uniform, cell phone, and athletic needs. I paid for my driving school and driver’s test, car insurance, and gas for when I used the family car. Upon graduation, I went to a three-year college program, which I paid for out of pocket by working part-time, sticking to a budget, and living at home.
Growing up, I held a grudge against my parents for making me pay for all these items on my own when most of my friends had a lot of it handed to them. Looking back now, I appreciate learning the value of a dollar along with the skills of budgeting and saving at such an early age. I can confidently say that this was not a life lesson my parents were intentionally teaching me—it was circumstantial.
At the start of 2008, I began my career in the financial services industry. I quickly realized that many Canadians did not understand their finances or the benefits of budgeting. This was highlighted by the crash of 2008 and subsequent pullbacks in the market. Being able to see firsthand how many people struggled during this time really shifted my focus. I knew then that I never wanted to feel the pressure and desperation I saw in others who were facing the loss of their home.
I knew I wanted to help other Canadians manage their finances properly, so in 2016, I obtained my Certified Financial Planning designation. My focus is to consult on the implementation and management of Group Pension and Retirement programs. One of the most important things I can do is support active communication with employees and ensure that ongoing education remains available to them. My passion to help others begins with teaching youth the same lessons I had to learn myself – understanding financial literacy and building positive habits at a young age supports a healthy financial future. I volunteer with Junior Achievement Canada teaching foundational courses in elementary schools, personal finance in high school and mentor in an after-school ‘company program’ where students learn how to start up and run a successful business.
The importance of financial literacy, budgeting, and saving is more front and centre today compared to any time before. I look forward to the potential of our youth, knowing that financial literacy education is supported in school through not-for-profit organizations.
We all have a "financial lesson" story to tell. Let us know if this resonates with you or your employees. We would love to partner with you to help support your teams in financial literacy and savings for retirement. Feel free to contact me at csantos@oakhouse.com.
Chris Santos, CFP
Group Retirement Consultant