In 2011, the average Canadian only saved 5% of their income. For comparison, people in France saved 12.5%, Italians saved 9%, and Americans saved 6%.
This average household debt for Canadians consisted of credit card debt, mortgages, loans, and lines of credit. The average household debt in Canada has increased 78% in the last two decades.
Michelle should get 1 or 2 credit cards at the most.
It is important to start building credit as early as possible. Since Michelle is good with money, she should likely get a credit card. However, it is important to never have more than one or two credit cards. Having more than two cards can become confusing and Michelle may lose control of her finances.
In 2009, the total dollar loss for victims of identity theft was $11 million, which likely isn't even the correct amount since many thefts often go unreported.
50% don't save
About half of children in Canada have parents that contribute to their education. Another 30% have parents who plan to contribute in the future, but end up not doing so.
Although transportation, food, and shelter are all necessities, it's important to know when needs turn into wants. You may need a car, but you don't need the nicest one. You may need shelter, but you don't need a the biggest house. You may need to eat, but restaurant food is more expensive than cooking at home.
A good way to check for identity theft
Credit reports are useful documents that should be obtained once a year. They are a great way to check for identity theft and make sure there are no errors in your credit score.
Paying the card with the highest interest first
It is smart to pay off the credit card with the highest interest first, as it will cost you the most in the long run. The other options are all warning signs of poor credit use.
In Canada, a grace period must be a minimum of 21 days. However, grace periods can vary greatly, so always be sure to know the grace period of your credit card.
As soon as possible
It's important to start saving for retirement as soon as possible. Even putting away $20 a month is better than nothing. It may be difficult now, but it will be a big help later!