TORONTO, ONTARIO--(Marketwire - Nov. 9, 2011) - 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: Start early and contribute often to your investment account, rather than waiting to invest.
|
Starting early |
Delayed start |
Monthly deposit |
$250/month x 10 years |
$500/month x 5 years |
Annual rate of return |
5 % |
5 % |
Total investment |
$30,000 |
$30,000 |
Total Gains |
$8,820.56 |
$4,003.04 |
- The above example is based on BMO's Continuous Savings Plan calculator. To calculate how getting a head start and investing regularly can impact your own investment and savings goals, please visit CSP Calculator.
"The key to saving for your future is the earlier you invest and the more you're able to put away, the more you'll have for the long term," said Serge Pepin, Director, BMO Investments Inc. "It's never too early to start. Sit down with a financial professional who can help you set up a continuous savings plan that works for you."
BMO Financial Literacy Month Tips
November 1: Pay more than the minimum payment on a credit card balance.
November 2: Choose a shorter amortization for your mortgage.
November 3: Contribute to a child's Registered Education Savings Plan (RESP) as early as possible.
November 4: Invest in a Tax-Free Savings Account (TFSA) to maximize your savings.
November 7: Switch to weekly mortgage payments to save interest and become debt-free faster.
November 8: Take advantage of credit card travel insurance to lower costs.
For more on financial literacy, BMO encourages Canadians to visit http://www.financialliteracymonth.ca/ and http://www.bmo.com/home/about/banking/corporate-responsibility/customers/financial-literacy.