Transitioning to retirement or entering the golden years can be a major transition, especially financially. Many older Canadians find themselves facing challenges managing their money, especially when they haven’t done it before
Budgeting works differently on a fixed income. One major challenge is that expenses can always fluctuate, whether from circumstance, lifestyle changes or inflation, while your income stays the same. In general, living expenses tend to go up over time, so balancing your budget for today isn’t always enough. It’s important to build room for savings into your current budget, and focus on avoiding debt—the interest will erode your income even further.
Beware of fraud and financial abuse. According to the Government of Canada, fraud is the number one crime affecting older Canadians. It can take many forms, such as fake calls from the bank or the CRA, romance scams or even impersonating a grandchild in distress. It can also happen close to home: financial abuse, when someone uses another person’s money or property illegally, is the most common type of elder abuse, and sadly, it’s often committed by a family member.
It’s never too late to educate yourself. An important way older Canadians can protect themselves from fraud is by increasing their knowledge and confidence when it comes to managing their money. There are resources and courses that can teach this, such as Money Matters. It’s a free introductory financial literacy program for adult learners developed by ABC Life Literacy Canada that covers ways to save more effectively, managing money, protecting personal information from fraud, handling debt, financial challenges and more.
Financial literacy is for everyone. Gaining more confidence in your ability to handle your finances can help keep you on the right track and build a greater sense of independence. You can find out more and access free resources at abcmoneymatters.ca.
