Financial Knowledge & Financially Secure Life

Eagle Bay Financial Services Newsletter
Summer 2021
Serving Indigenous Communities & Organizations since 2002
Financial Knowledge & Financially Secure Life
Learn to manage your finances
"There [are] a lot of things I didn't know about [financial management], such as credit. I am learning how to manage and budget the money better.
Most of my pain comes from the unmanageability of my finances. I almost didn't come back [to the Financial Literacy workshop] because of the pain
around it. That is probably why a lot of people didn't come back; they felt shame and guilt around their finances."
- Attendee to Financial Literacy Workshop
If you are struggling with managing your finances, you are not
alone.
Many people find controlling their finances to be a series of
complicated tasks, so they pay less attention or sometimes avoid
it. There are many reasons for this and human behavior can play
a role. The good news is that anyone can work on having more
financial knowledge by being open to learning new things.
When a person has financial knowledge, they tend to have much better financial outcomes. Particularly if they have knowledge in
several areas such as investments, budgeting, debt, and retirement planning.
If you don't know where to start, let's review some of the top 6 steps to make progress towards achieving your financial freedom.
1.Budgeting & Being Aware of Spending
An essential tool of your financial management strategy is to
follow a budget that tells the truth about your needs & financial
commitments. Take the time to get organized and know how much
you earn and spend.
For example, create a comprehensive document that lists all your
accounts. With this proactive approach, you are better prepared for
any financial crisis or difficulties.
*See page 4 for resources on how to manage your financials.
Do you have a spending Journal?
A spending journal is a cost-effective method that will
help you track your spending and stay organized. Each
time you make a purchase, keep your receipt and enter
the purchase in the notebook/calendar or review your
online banking transactions or bank statement later.
Once a week, add up all your spending and enter it into
your budget.
Page 1 of 5

Eagle Bay Financial Services Newsletter
Summer 2021
Serving Indigenous Communities & Organizations since 2002
Are your spending habits matching your
income?
Sometimes, keeping your spending habits under control can
take a lot of work; it is not easy!
Firstly, you need to be aware of what you are spending
your money on.
Little purchases add up and can put you in a position where
your spending far exceeds your income. You need to be
critical of your spending and understand the impact of
borrowing money, regardless of the amount.
2. Debt
Forty-nine percent of low-income and seventy-four middle-income
Canadian households carry debt (primarily consumer debt, not
mortgage debt).
Having a debt is not always bad. There is what’s called “Good
Debt”. In all scenarios, debt is the basically “the borrowing of
money”, but when the money borrowed is for investment that
creates value or produces more wealth in the long run, it is
considered a “Good Debt”. Examples of that are; mortgage on a
home, student loans, or a loan to launch a business. “Bad Debts”
are money taken to purchase something that will reduce in value
over time or a balance owing that you are paying high interest on.
3. Investments
There are many ways you can “invest” money. An investment is typically the purchase of something that is anticipated to grow in
value over time. In a typical financial context, investments are part of every good financial plan. However, first, you need to identify
your risk tolerance to determine the best type(s) of investments for you. Some options include;
• Annuity
• Segregated Funds
• Mutual Funds
• Securities (Stocks, Bonds & Futures)
• Exempt Market Securities
• Stocks
• Treasury Bills (T- Bills)
• Guaranteed Income Supplement (GIS's)
4. Creating a will & your estate
An estate holds all of the money and property owned by a person, usually at their death. Creating a will & planning for your estate
will help ensure all of the proceeds are managed and distributed the way you want after your death.
What are the benefits of creating an estate plan, seeking legal advice (if necessary) and creating a will?
• Ensures your wishes are put in writing.
• Sets your loved ones up for a simpler process.
• Makes you feel confident about the future with a plan in place.
Page 2 of 5

Eagle Bay Financial Services Newsletter
Summer 2021
Serving Indigenous Communities & Organizations since 2002
5. Insurance
Even though we don't think about it too much, we encounter many risks in our lives. These may include illnesses, accidents, injuries,
disabilities, hospitalization, and more… Obtaining different kinds of insurance products can be very helpful because they here to help
us avoid those major risks and overcome life's setbacks. Here are few Insurance options you may want to consider;
• Personal Health Insurance Helps pay for health expenses not covered by your workplace or healthcare plans.
• Critical Illness Insurance Provides a lump-sum payment to help you manage the financial impact of a life-altering illness.
• Long-term care insurance Helps cover the cost of care and support if you are unable to care for yourself.
• Permanent life insurance Lifetime protection with the advantage of growing cash value over time.
• Term life insurance Flexible, affordable insurance that protects the people that matter to you most if you pass away,
for a specific period of time.
6. Retirement Planning
If you are in your early 20's, 30's and 40's, it might be hard to think about
retirement; however, keep in mind that saving for retirement is easier
when you start as early as possible.
It is essential to have a strategy that sets the stage for your retirement.
Some retirement income sources include:
• Annuity
• Segregated Funds
• Mutual Funds
• Guaranteed Interest Products
• Tax-advantaged Retirement Income Plans
• Canada Pension Plan (CPP)
• Old Age Security (OAS)
• Guaranteed Income Supplement (GIS)
When planning your retirement, consider your dream life after retirement, your lifestyle goals, and your time horizon. Because
government programs only provide a portion of what you'll need, and the amount will vary based on your income and how long you
worked.
*See page 4 to learn more about retirement income sources, definitions & details.
Page 3 of 5

Eagle Bay Financial Services Newsletter
Summer 2021
Serving Indigenous Communities & Organizations since 2002
More Resources to Become Financially Literate
Financial Wellness Assessment
Did you know you can assess your Financial Wellness easily?
Manulife Insurance offers a free online resource to determine your financial position. Financial Wellness Assessment tool helps
you understand the rating of your wellness for different financial aspects such as budget, investment, retirement planning, debt
management, and financial protection.
Click Here to start your assessment and find out about your situation!
If you are looking for extra resources and learn more about how to be financially literate, please check out these resources below;
• Investments at Glance
• Sources of Retirement Income
• Identifying Your Sources of Retirement Income
• Types of Insurances
• AFOA - Intro to Banking
• AFOA - Budgeting – Good Decisions
• AFOA - Elder's Perspective
• Million Dollar Journey
• The Financial Consumer Agency of Canada YouTube Education Channel
• The Financial Consumer Agency of Canada Website
• Checklist to Manage Your Debts & Myths About Bankruptcy
Financial management seems complicated, and needless to say, very stressful.
Make it a habit to read and learn more and be open to learning more about your finances. And, please forget about the shame and
guilt around it. Educate yourself because your financial knowledge can create good outcomes in many areas of your life.
References
[1] Sun Life Financial, "Insurance", https://www.sunlife.ca/en/explore-products/insurance/
[2] Canada Life, “Estate Planning”, https://www.canadalife.com/investing-saving/estate-planning.html
[3] Sun Life Financial, “Retirement Income”, https://www.sunlife.ca/en/explore-products/investments/retirement-income/
[4] Government of Canada, “Good debt and bad debt”, https://www.canada.ca/en/financial-consumer-agency/services/financial-toolkit/credit/credit-1/5.html
[5] Prosper Canada, "Roadblock to Recovery", Pdf, https://prospercanada.org/CMSPages/GetFile.aspx?guid=901099d6-03fc-4550-9102-6f9fe91b94a3
[6] Aboriginal Financial Officers Association of British Columbia, Pdf, https://afoabc.org/wp-content/uploads/2020/10/financial-literacy-handbook.pdf
Page 4 of 5

Eagle Bay Financial Services Newsletter
Summer 2021
Serving Indigenous Communities & Organizations since 2002
Yusur Ouj
Marketing & Social Media Assistant
Yusur holds a bachelor’s degree in Business Administration with a concentration in Marketing and Entrepreneurship from Simon
Fraser University. Her primary duties include maintaining Eagle Bay`s online presence on social media platforms, creating engaging
content with our audience and monitoring accounts activities. Yusur is committed to enhancing our brand presence in digital and
non-digital forms to our audience and followers’ base. She joined Eagle Bay Financial Services Ltd in 2020 with 3 years of experience
in digital marketing and social media marketing from different industries.
Her favourite quote is “Hardships often prepare ordinary people for an extraordinary destiny.” ~C.S. Lewis
Questions?
Don’t hesitate
to contact us.
Group Benefits Questions
Danijela
danijela@eaglefinancial.ca
Group Retirement Questions
Rita
rita@eaglefinancial.ca
Marketing & Promotions
AJ
msm@eaglefinancial.ca
About Eagle Bay Financial Services Ltd.
Eagle Bay Financial Services Ltd. is an aboriginally owned and operated independent advisor agency located in BC. We specialize
in First Nations Benefits and Retirement plans and offer customized plans that meet your needs and budget. We represent your
best interest with all of Canada’s leading insurers and retirement providers. You have a choice in who represents you.
Call us at 1.866.425.6527 and experience the Eagle Bay difference!