Every week, we look at the ABCs of cash flow management.
K is for Knowledge
Some believe that knowing how to manage cash flow is a basic skill. But financial literacy is low in Canada, and there are few good resources available to those looking for financial tips.
Often, people are simply told to spend less than they make and to avoid buying things they can’t afford. But such statements aren’t helpful if, for example, people are overwhelmed and in need of more prescriptive advice.
Along with battling bad financial habits, people are trying to understand increasingly complex financial systems.
It doesn’t help that few financial professionals have been offering standardized cash flow management advice. Considering all factors, how can we expect our clients to independently build financial knowledge and effectively manage their cash flows?
Read: Be deft with debt
As time goes on, more clients will need cash flow advice. You can get ahead by starting the conversation and by helping your clients come up with detailed, written plans.