Royal Credit Union’s Guide to Financial Literacy

Financial literacy is no longer a luxury—it’s a necessity. In an era of rising inflation, volatile markets, and shifting job landscapes, understanding how to manage money is critical. Royal Credit Union’s Guide to Financial Literacy is designed to equip you with the tools to make informed decisions, build wealth, and secure your financial future.

Why Financial Literacy Matters More Than Ever

The world is changing rapidly, and so are the financial challenges we face. From the lingering effects of the pandemic to geopolitical tensions disrupting supply chains, individuals and families must adapt to survive—and thrive.

The Rising Cost of Living

Inflation has hit record highs in recent years, squeezing budgets and forcing many to rethink spending habits. Groceries, housing, and utilities cost more than ever, making it essential to:
- Track expenses to identify wasteful spending.
- Prioritize needs over wants to stretch every dollar.
- Negotiate bills (yes, you can often lower your cable or phone bill!).

Student Loan Debt & the Generational Wealth Gap

Millennials and Gen Z face unprecedented student loan burdens, delaying milestones like homeownership. Strategies to tackle this include:
- Refinancing loans for better interest rates.
- Exploring income-driven repayment plans.
- Side hustles to accelerate debt payoff.

Building a Strong Financial Foundation

Budgeting Like a Pro

A budget isn’t restrictive—it’s empowering. The 50/30/20 rule is a great starting point:
- 50% of income goes to needs (rent, groceries, utilities).
- 30% to wants (dining out, entertainment).
- 20% to savings and debt repayment.

Tools like Royal Credit Union’s mobile banking app can automate tracking, so you always know where your money goes.

Saving for Emergencies (and the Unexpected)

Financial experts recommend 3–6 months’ worth of living expenses in an emergency fund. But how?
- Start small—even $20 a week adds up.
- Use high-yield savings accounts to grow money faster.
- Avoid dipping into savings for non-emergencies.

Investing in Your Future

Beating Inflation with Smart Investments

Letting cash sit in a low-interest account means losing purchasing power over time. Consider:
- Index funds for steady, long-term growth.
- Real estate (if you’re ready for the commitment).
- Retirement accounts like 401(k)s or IRAs.

Cryptocurrency: Boom or Bust?

Crypto is polarizing—some swear by it, others call it a gamble. If you’re curious:
- Only invest what you can afford to lose.
- Diversify—don’t put all your money into one asset.
- Stay updated on regulations—governments are still figuring this out.

Protecting Your Financial Health

Avoiding Scams & Identity Theft

Cybercrime is skyrocketing. Protect yourself by:
- Freezing your credit if you suspect fraud.
- Using two-factor authentication on all accounts.
- Ignoring "too good to be true" offers (yes, that prince email is fake).

Insurance: The Safety Net You Need

From health to auto insurance, coverage prevents financial disaster. Key tips:
- Shop around annually—loyalty doesn’t always pay.
- Understand deductibles before filing claims.
- Consider life insurance if others depend on your income.

Teaching the Next Generation

Financial habits start young. Whether you’re a parent or mentor:
- Use allowance as a teaching tool (save, spend, donate).
- Explain credit scores before they apply for their first card.
- Normalize money conversations—it shouldn’t be taboo.

Royal Credit Union is committed to helping you navigate these challenges. Because financial literacy isn’t just about numbers—it’s about freedom, security, and peace of mind.