--- title: "Empire Life Blog Rethinking financial literacy: Four core basics for young adults" description: Real financial literacy isn't just about saving your money until tomorrow. It’s about building habits that make your money grow.  image: https://blog.empirelife.ca/hubfs/GettyImages-1214053525.jpg --- × #### Subscribe ### Subscribe to Email Updates Signing up for our Blog offers you the opportunity to subscribe and receive email notifications for Investment or Insurance type content only from The Empire Life Insurance Company and Empire Life Investments Inc. You may cancel your subscription to the newsletter at any time by clicking on [unsubscribe](http://www.fastandfull.ca/hs/manage-preferences/unsubscribe-simple) or, by contacting The Empire Life Insurance Company or, Empire Life Investments Inc. **The Empire Life Insurance Company** 259 King Street East, Kingston, Ontario K7L 3A8, Canada Toll Free: 1 800 561-1268 Email: insurance@empire.ca or investment@empire.ca **Empire Life Investments Inc.** c/o 259 King Street East, Kingston, Ontario K7L 3A8, Canada Toll-free telephone: 1 855 823-6883 Email: mutualfund@empire.ca Close [Facebook](https://www.facebook.com/Empire-Life-Insurance-142465432433812/) [Linkedin](https://www.linkedin.com/company/empire-life-investments) [Twitter](https://twitter.com/empirelifeins) Subscribe [EN](https://www.empire.ca/blog) | [FR](https://empire.ca/fr/blogue) [![Empire Life | Empire Life Investments](https://blog.empirelife.ca/hubfs/Logo/Combined%20Blog%20Images/combined-logo.png)](https://www.empire.ca/blog) # Insurance, Investments and Group Benefits ## Navigate life with confidenceTM - Insurance - [Insurance](https://www.empire.ca/blog/topic/insurance) - [Helpful Tips](https://www.empire.ca/blog/topic/helpful-tips) - [Customer Service](https://www.empire.ca/blog/topic/customer-service) - Investments - [Investments](https://www.empire.ca/blog/topic/investments) - [Investment Views](https://www.empire.ca/blog/topic/investment-views) - [Off the Cuff](https://www.empire.ca/blog/topic/off-the-cuff) - [Group Benefits(1)](https://www.empire.ca/blog/topic/group-benefits) - [Personal Finance (1)](https://www.empire.ca/blog/topic/personal-finance) ## [Rethinking financial literacy: Four core basics for young adults](https://blog.empirelife.ca/blog/rethinking-financial-literacy-four-core-basics-for-young-adults) [Investments](https://blog.empirelife.ca/blog/topic/investments), [Personal Finance](https://blog.empirelife.ca/blog/topic/personal-finance) Posted by [Empire Life Investments](https://blog.empirelife.ca/blog/author/empire-life-investments) Nov 12, 2026, 2:00:00 PM Empire Life Investments Placements Empire Vie ![GettyImages-1214053525](https://blog.empirelife.ca/hs-fs/hubfs/GettyImages-1214053525.jpg?width=805&height=537&name=GettyImages-1214053525.jpg) Real financial literacy isn't just about saving your money until tomorrow. It’s about building habits that make your money grow.  You've got $5. Do you grab that slice of pizza now, or leave the money in your chequing account? For a lot of young people, hanging on to that $5 feels like the responsible move. But money just sitting in a bank account isn't really saving. You're only putting off spending it. Meanwhile, inflation slowly chips away at what that $5 can buy. That's how so many young adults end up "saving to spend" instead of "saving to invest." With the high cost of living and a tough job market, keeping cash on hand can feel like the safest bet. Financial literacy goes further than holding off on a purchase, though. It's about getting your money to work for you. Financial Literacy Month¹ is here, so it's a great time to brush up on four money basics every post-secondary student and young adult should know.   **1. Budget on a tight income:** Rising costs and debt can make it feel like your finances are out of your hands.² You can't control the economy, but you can control your cash flow. - **List your monthly income.** Include student loans, grants and part-time pay so you know your baseline. - **Cover essentials first.** Track fixed costs like rent and groceries. - **Tackle high-interest debt.** Put any surplus toward credit card balances to stop interest from compounding against you.   **2. Automate your savings**: Many young people skip saving because a small amount feels pointless. It isn't. For example, at a 5% average annual return, $15 a week grows to over $4,300 in 5 years and nearly $10,000 in 10 years. | **Horizon** | **Annual Deposit** | **Total Contributed** | **Calculation** | **Total Value** | | --- | --- | --- | --- | --- | | Year 5 | $15 × 52 weeks = $780/year | $3,900 | $780 × (1.055 - 1) / 0.05 | $4,309.99 | | Year 10 | $15 × 52 weeks = $780/year | $7,800 | $780 × (1.0510 - 1) / 0.05 | $9,810.76 |   - **Set up an automatic transfer.** Move $10 to $20 every payday, about the cost of a meal. - **Use a separate savings account.** Choose one that earns interest. - **Save before you spend.** Your savings grow before you touch your main balance. - **Try it:** Map out your savings goals with the tool at [Budget Calculator | Empire Life](https://www.empire.ca/forms-and-tools/budget-calculator).   **3. Let compound interest work early:** Time is your biggest investing asset, because it drives compounding growth. You don't need a lump sum to get started. - **Start small and stay regular.** Steady contributions beat waiting for the "right" amount. - **Give your money time.** Markets will go up and down, but investing early gives your money longer to grow and helps lower the risk of short-term losses. - **Benefit from [dollar-cost averaging](https://www.empire.ca/docs/pdf/INV-1314-DollarCostAverageFlyer-EN-web.pdf).** When you are starting out, market volatility can make anyone nervous. With a regular contribution plan, your money naturally buys more of your chosen fund when prices drop and fewer when they rise.³ Over time, this approach can help calm your nerves and smooth out the effects of market fluctuations.   **4. Check in monthly:** Most young adults underestimate their spending. Young Canadians often feel the sticker shock of prices adding up, and perceived inflation can differ from actual inflation.⁴ - **Review your bank account once a month.** - **Look for recurring charges and surprises.** Check subscriptions and unexpected fees. - **Cut what you don't need.** The earlier you catch it, the more you keep.   Managing your money is more about creating habits that support the life you want to build, not complex calculations. Building a roadmap today helps you take control of your cash flow and build real wealth over time. To start planning on your money wisely and explore the best way to maximize your budget, speak with your advisor or visit [empire.ca](https://www.empire.ca/). --- 1 Financial Consumer Agency of Canada. (2026, August 27). *Financial Literacy Month*. Government of Canada. [https://www.canada.ca/en/financial-consumer-agency/campaigns/financial-literacy-month.html](https://www.canada.ca/en/financial-consumer-agency/campaigns/financial-literacy-month.html) 2 Mental Health Research Canada. (2025, November). *A generation under pressure: Economic and employment challenges on youth mental health*. [https://www.mhrc.ca/generation-under-pressure](https://www.mhrc.ca/generation-under-pressure) 3 For more information regarding benefits of dollar cost averaging, please visit [*Dollar Cost Averaging- Stay calm and invest regularly*](https://www.empire.ca/docs/pdf/INV-1314-DollarCostAverageFlyer-EN-web.pdf)[(2026)](https://www.empire.ca/docs/pdf/INV-1314-DollarCostAverageFlyer-EN-web.pdf) 4 Gauthier, J., & McCormack, C. (2024, March 27). *Housing, wealth and debt: How are young Canadians adapting to current financial and housing pressures?* (Catalogue No. 36-28-0001). Statistics Canada. [https://doi.org/10.25318/36280001202400300004-eng](https://doi.org/10.25318/36280001202400300004-eng) This blog reflects the views of the author as of the date stated. This information should not be considered a recommendation to buy or sell nor should it be relied upon as investment, tax or legal advice. Empire Life and its affiliates does not warrant or make any representations regarding the use or the results of the information contained herein in terms of its correctness, accuracy, timeliness, reliability, or otherwise, and does not accept any responsibility for any loss or damage that results from its use.  ® Registered Trademark of The Empire Life Insurance Company. ™ Trademark of The Empire Life Insurance Company. 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