TORONTO, ONTARIO — (Marketwire) — 11/29/11 — To mark Financial Literacy Month, which was launched by Finance Minister Jim Flaherty, BMO is releasing a series of financial tips throughout November. As part of Making Money Make Sense and BMO SmartSteps, the tips are designed to help individuals and families save and manage their day to day finances more effectively.
BMO-s Tip of the Day: Have an emergency fund that is equal to three-to-six months of your income set aside for a -rainy day-.
“The general rule of thumb is to have an emergency fund set aside that is equal to three to six months of your income to use for unexpected household expenses,” said Su McVey, Vice President, BMO Bank of Montreal.
Ms. McVey added that taking advantage of high-interest savings tools can help Canadians reach their rainy day savings goal faster. BMO offers the BMO Smart Saver Account, a high interest savings account that allows for unlimited deposits and transfers into the account, one free self-serve debit transfer each month via online, ABM or phone, and free access to BMO MoneyLogic – an online personal financial management tool to help track everyday expenses.
BMO Financial Literacy Month Tips
: Pay more than the minimum payment on a credit card balance.
: Choose a shorter amortization for your mortgage.
: Contribute to a child-s Registered Education Savings Plan (RESP) as early as possible.
: Invest in a Tax-Free Savings Account (TFSA) to maximize your savings.
: Switch to weekly mortgage payments to save interest and become debt-free faster.
: Take advantage of credit card travel insurance to lower costs.
: Start early and contribute often to your investment account, rather than waiting to invest.
: Use a line of credit to consolidate high-interest debt and save on interest costs.
: Canadians can give the gift of securities and benefit at tax time.
: Students, pay off your credit card balances and take advantage of student discounts to save money.
: Pay an extra five per cent on your mortgage every year to reduce interest costs.
: Secure your retirement by starting to save early and taking advantage of compounding growth.
Students can save money by ensuring they are in a no-fee student banking plan.
: The Registered Disability Savings Plan (RDSP) is a powerful investment option that can offer long-term financial security for persons living with a disability.
: Maximize your Old Age Security (OAS) benefits by adopting the right tax strategies.
: Stress-test your mortgage to ensure your housing costs are affordable.
: Take advantage of Canada-s numerous online personal finance resources.
: Consider taking out a loan to maximize your contribution to your Registered Retirement Savings Plan (RRSP) and take advantage of the tax benefits.
: Consolidate your purchases under a single rewards program.
For more on financial literacy, BMO encourages Canadians to visit and .
Contacts:
Media Contacts:
Matt Duffin, Toronto
416-867-3996
Sarah Bensadoun, Montreal
514-877-8224
Laurie Grant, Vancouver
604-665-7596