Financial literacy will ease those money woes

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This article was published 24/02/2024 (600 days ago), so information in it may no longer be current.

Managing money doesn’t come easy to a lot of people.

A local not-for-profit organization is dedicated to helping anyone have access to financial literacy.

The Credit Counselling Society helps clients solve their money problems by providing free credit counselling, low-cost debt solutions and education on how to manage money.

The 2023 Financial Stress Index reveals that money-related stress is on the rise; last year, 40 per cent of Canadians were likely to cite money as a leading source of stress, compared to 38 per cent in 2022.

Financial issues, if left ignored, can lead to serious consequences such as bankruptcy, broken relationships, stress and shame. The CCS was established to provide free resources and guidance to help people confront difficult financial situations before they become unmanageable.

“The impact of education and credit counselling is huge,” said Tim St. Vincent, a partnership and education specialist with CCS, who has been helping people acquire financial literacy for almost 10 years.

“I have had many clients (where we have held multiple sessions over time) come and approach me after a session and tell me about the changes they have made, the impact these changes have made and how they have changed their lives,” he explained. “Our credit counsellors have many stories from clients who have completed a debt management program (DMP) with us and describe the impact that has had on their lives, from reducing the extreme emotional and mental health issues (financial hardship) has caused, to simply just being able to sleep at night or not jump when the phone rings, fearing that it is a collection agency calling again.

“Far too often, a notice will go out from one of our counsellors requesting emergency support because they have a caller on the line who may be in danger of hurting themselves. This is how severe and devastating debt issues can be,” he said, adding that talking about financial challenges remains a taboo in our culture.

St. Vincent says clients can be anyone from the person struggling day to day with a minimum-wage job to the high-paid executive or professional.

“Our clients range from the unemployed to doctors, lawyers, accountants and financial planners (yes, really). Even professional athletes,” he said. “We really need to dismiss the notion that only poor and poorly educated people have financial challenges; anyone and everyone can experience financial hardship. The causes are as varied as the people. What many need to realize is that they are not alone.

“There is no shame in having financial challenges. Most of us have encountered them at one time or another, including myself. The real secret is realizing you are not alone, that there is help out there, and then making that all-important call asking for help. The greatest sadness in this job is when someone comes to us for help and they are just a little too late. They have run out of time, and options are limited and we can no longer help them, and the best path forward for them is bankruptcy.

“There is nothing wrong with bankruptcy; sometimes it is the right tool for the right occasion; but it is better if we can help people before they get to that stage.”

St. Vincent notes that aside from the stigma associated with having financial issues, even the language of finances can be intimidating.

“Even that term, ‘budget,’ can be misleading,” he said. “Many people don’t like the word; it makes them feel tense, stressed and ill at ease. So I will let you in on a little secret: I don’t have a ‘budget.’ I have a spending plan. I mean, think of it: what is a budget all about? It says this is how I am going to spend my money now, and this is how I am going to save so that I can spend it in the future.

So I don’t have a budget; I have a spending plan. The change of wording can be empowering. A budget can be cold and scary, whereas a spending plan sounds empowering. You are in control. You tell someone you have a budget and they may think you are having financial challenges; you tell someone you have a spending plan and they think you are affluent.

“Simply having people realize that they are not alone, that the majority of the country is struggling with their finances is also powerful.”

With tax time around the corner, St. Vincent reminds people that they’re not financial planners and emphasizes the importance of contacting a CFP or an accountant. But for those having problems paying their taxes, a call to CCS may be helpful in learning how to budget properly, perhaps setting up a separate bank account for future tax needs or receiving assistance in finding ways to reduce debt, thereby increasing cash flow for taxes or other needs.

CCS has an excellent budget-building tool, free to the public on mymoneycoach.ca

After first opening its offices in Vancouver, CCS quickly came to see the need that existed for more non-profit credit counselling services. Today, the Credit Counselling Society has many offices across B.C., Alberta, Saskatchewan, Manitoba and Ontario.

“More than 50 per cent of the country’s population is struggling financially and over 50 per cent don’t have a budget. Coincidence?” St. Vincent asks, encouraging those struggling to contact CCS to access help.

Former CCS clients have described their services as being supportive and life-saving.

Visit: nomoredebts.org

fpcity@freepress.mb.ca