Get ready for tax season: Building financial literacy skills that help alleviate stress

Tax season can be a stressful time for many people, but it doesn’t have to be.

ABC Life Literacy Canada, a national non-profit organization, is committed to teaching financial literacy through its program to give people the confidence they need to make informed decisions about their money.

“Many Canadians struggle with understanding their finances,” says Alison Howard, the organization’s executive director.

“It’s one of those topics that is quite delicate because, as an adult, you’re just expected to know these things. It just goes with being an adult.”

Helping people since 2011

Howard has been the executive director of the company since January 2022, but has been in the non-profit sector for around 20 years. Over that time, she appreciated the work ABC did and eventually found an opportunity to join the team.

She says the organization’s ABC Money Matters program, which has been running since 2011, has helped more than 80,000 people.

“Money Matters is a free introductory financial literacy program for adult learners and is designed to help learners build confidence and reduce their anxiety in managing their money,” Howard says.

Sponsored by TD Bank Group, volunteers teach workshops through this program.

“We’re not always taught these things within formal education programming, so it is difficult to know where to go to get an objective, unbiased opinion or information on finances,” Howard says.

Basic financial concepts

Many people simply have not received the education they need to understand basic financial concepts like filing a tax return, which can result in self-doubt and even embarrassment for some.

“The first step is to recognize that you are not alone. Lots of people have questions about these things and there are free resources out there to help,” Howard says.

“Our Money Matters program offers lots of information on different topics such as spending plans, banking basics, borrowing money, ways to save, smart shopping, and more.”

Experts sit down with participants to better understand the different types of government benefits they might be entitled to.

“We see increasing your financial literacy as a bridge to independence and to help you achieve your goals,” Howard adds.

A tough economy breeds hard choices

Even with this knowledge, Howard says many Canadians are struggling with the economy and may need help making hard decisions.

“High inflation these days is forcing individuals and families to make tough choices. And so having a solid understanding of your finances and how to manage them is critically important to ensure that your needs are met.”

Attaining financial literacy also benefits families by allowing parents to equip children with financial knowledge and skills to take with them into adulthood.

“Financial literacy helps people have the confidence and abilities to become more engaged in their community, which increases civic engagement,” Howard says.

“People will participate more in community programming or events and are more likely to vote.”

For most people, the 2022 return has to be filed on or before April 30, 2023, and any payments are due April 30, 2023.

Here is a list of ABC Life Literacy Canada resources.