Money Talks, But Do You Listen? Simple Answers for Smart Decisions
In a world where finances shape much of our lives, it’s important to educate ourselves about money—from understanding credit to avoiding scams. In the coming weeks, Noha will take a deeper dive into some essential questions and answers to help you make informed choices.
What is a Credit Score and Why Does it Matter?
What it is:
A credit score is a three-digit number that reflects how responsible you are with managing credit. It ranges from 300 to 850. Higher scores mean you're likely to pay back loans on time.
Why it matters:
A good credit score can help you to secure loans, credit cards, and even rent apartments. It can also impact your interest rates, meaning you could save money on things like mortgages or car loans.
What’s the Real Cost of Owning a Vehicle vs. Car Sharing?
Owning a vehicle:
When you own a car, you're responsible for maintenance, insurance, gas, registration, and repairs. These costs can add up over time, especially when factoring in car loans.
Car sharing:
Car-sharing services like Communauto, Zipcar or Turo allow you to rent a car when you need it. You pay for the time you use, but you don’t have to worry about the costs of ownership.
Why it matters:
If you don’t drive often, car-sharing might be more cost-effective than owning a vehicle.
How Can You Spot Financial Scams?
Red Flags to look for:
Offers that seem too good to be true (e.g., "get rich quick" schemes)
Requests for personal information (like your Social Security number or bank details) via email or phone.
Unsolicited offers from unknown companies or individuals.
Why it matters:
Financial scams can result in huge losses and identity theft. Always do research before making investments or sharing personal information.
These basic financial questions and answers are a starting point to understanding how money works and making informed decisions. Whether you're just starting to manage your own finances or looking to improve your money habits, taking the time to learn about your financial situation is key to living a more secure and fulfilling life.
The idea is to start simple and stay consistent.
PRO TIP: Start simple and stay consistent!
About the Author: Noha Fazili’s personal journey, shaped by growing up in a conflict zone, has fueled her deep passion for promoting financial literacy, particularly among women. She is driven by her belief that education is the foundation for personal and collective empowerment. Noha earned her MBA at Smith School of Business at Queen’s University in Ontatio and works in Wealth Management at Royal Bank of Canada