Financial Literacy for Canadian BIPOC Women
Are you a woman of colour in Canada looking to take control of your finances and achieve financial freedom?
If so, you’re not alone and SNIWWOC is definitely a community you’ll be glad you discovered!
As racialized women in Canada, we face unique financial challenges that require an understanding of financial literacy and its importance. We need to be aware of the tools available to promote our financial well-being, as well as how to overcome the obstacles we may face when managing our money.
Let’s start with what “Financial literacy” means. It is the knowledge and skills needed to make informed and successful decisions regarding our personal finances. It involves understanding the basics of budgeting, saving, investing, and financial planning.
Having this knowledge helps us to set SMART (specific, measurable, achievable, relevant, and time-bound) goals and make wiser decisions with our money. Overall, you will notice how much easier it will be to reach your financial goals and secure economic stability.
Financial literacy is an incredibly important skill for anyone to have, but for BIPOC (Black, Indigenous, People of Colour) women in Canada, it is especially crucial. While the economic imbalance between BIPOC communities and the rest of Canada are clearly documented, there are still many who either don’t know how or aren’t able to access the knowledge and resources to take advantage of the financial tools available to them.
Having financial literacy means finally understanding our own financial situations in ways that make sense to us.
Financial literacy isn’t just about saving though, it is a powerful skill that can help you negotiate better wages, manage debt, and identify financial scams which are, sadly, targeted at people who may have fewer options than others.
It can also help BIPOC women become more involved in the larger financial system. This can include getting involved in the stock market, opening up a business, or simply taking advantage of the financial services available to them. By having a better understanding of their financial options.
It is more than just the economic benefits, financial literacy can help women of colour feel more confident in their own ability to manage their money and courage to pursue their goals.
Fortunately, there are steps you can take to get on the path to financial literacy and the freedom that it can offer.
First, it’s important to understand the financial impact of racism and discrimination on BIPOC communities. Systemic racism has resulted in lower incomes and lower levels of wealth for racialized individuals and families.
This means that traditionally, BIPOC women have needed to work harder and save more to achieve the same financial freedom as their non-racialized counterparts. This is and can feel wildly unfair when we’re already dealing with other barriers to self-determination.
We’ve heard it before and there is a reason for its recurring theme: it is important to develop a financial plan that is tailored to your individual needs and goals. This means setting a budget that accounts for your income, expenses, and any debts you may have.
It also means setting a timeline to achieve your financial goals. This could include short-term goals like building an emergency fund and paying off debt, as well as longer-term goals like saving for retirement.
We don’t often feel like we can have the luxury of planning. I know that for me, budgeting for retirement or even an emergency fund can feel unattainable when every month, money comes in and goes out too quickly to make these plans. For women of colour, hearing that we need to make a plan isn’t something new but it can come with some inherent negativity and the violence of assumption.
Tailored plans refer to a plan that suits your specific situation at the moment, if that means you can only put away $100, $50, $5 or even as little as $1 then that’s okay and is a great step in the right direction!
The goal is to create a habit of planning and budgeting so that you have the necessary resources, skills and tools to take the next steps in your financial journey. It’s important to make use of the financial resources that are available to BIPOC women. For example, the Canadian government offers several tax credits and benefits specifically designed to help BIPOC women. The Canadian government is committed to providing support for BIPOC Canadians, particularly women, to ensure that they have access to the financial resources they need to thrive.
The government provides several funding opportunities for BIPOC women, including the;
Through the Career Focus Program, the government provides financial assistance to BIPOC women who are seeking to develop their skills and gain knowledge and experience in order to better position themselves for employment.
The Apprenticeship Incentive Grant is available to individuals who are enrolled in an apprenticeship program and provides additional funding for supplies and tuition.
Finally, the Job Bank provides assistance for job seekers and employers with job matching, job postings, and career advice. Make sure you check the official government pages to see which programs are available to you as they are updated regularly.
Overall, financial literacy is a key tool for BIPOC women in Canada. By understanding the principles of financial literacy, we can regain power over one aspect of our lives- our finances.
Having confidence in the choices we make about something as important as our finances is already invaluable. Building an empowered and robust community means reducing the stressors and barriers we face.
Financial literacy is one step in your financial journey, a journey that SNIWWOC is proud to be helping you with along the way.