Learn financial life skills

(NC) - This year, instead of resolving to lose weight, get fit, or become a top-notch organizer, why not learn something newthe financial skills you need to manage your money. Financial life skills involve knowing where to get financial information, understanding concepts like savings, budgeting, and financial planning, and knowing how to avoid becoming the victim of fraud.

New research shows that four in 10 adult Canadians have been approached with a fraudulent investment scheme. Half were introduced to the fraud through someone they trusted, such as a friend, family member, or work colleague. One in 20 Canadian adults, or 5%, have actually become a fraud victim.

The British Columbia Securities Commission (BCSC) recently launched the InvestRight.org website to help investors develop their financial life skills. Here are the most important tips on the site to share with friends and family:

Learn the 5 red flags. We'd all like to find a great investment that guarantees financial security, but some offers are just too good to be true. If someone offers you "guaranteed high returns with no risk", an investment based on "insider tips", or a "tax free offshore investment", watch out. The investment might be a scam. Other red flags to watch for are investment pitches that promise you can "profit like the experts", or try to pressure you into an investment because friends or family have invested and "your friends can't be wrong".

Know your risk tolerance. How much risk do you feel comfortable with? How much risk can you afford to take? Your appetite for risk will depend on your personal goals, life stage, lifestyle, and knowledge. Take the BCSC's InvestRight risk test at www.investright.org/risklimit.aspx to find out your personal risk tolerance.

Discover the basics of investing. The complex world of stocks, bonds, mutual funds, and options can be intimidating. We know the importance of earning a return on our money and planning for retirement, but we may not know how to start an investment program that will meet our financial goals. Take the time to research the basic dos and don'ts before you invest your hard earned money.

Report suspected scams. The BC Securities Commission investigates complaints about the sale, recommendation, or marketing of securities in British Columbia. If you suspect that an investment opportunity is really a scam, report it by calling the BCSC at 1-800-373-6393.

- News Canada