Financial literacy: A great investment in healthy aging

As we age, our financial needs and responsibilities evolve. From managing retirement income to planning for healthcare expenses, being financially literate can make a big difference in your quality of life and peace of mind.

What is financial literacy? Financial literacy means understanding how money works—how to budget, save, invest, and make informed decisions about spending. It’s about knowing your rights, avoiding scams, and feeling confident about your financial future.

Why is it important for older adults?

• You may be living on a fixed income and need to make every dollar count.
• You might be supporting family members or planning your estate.
• You’re more likely to be targeted by financial scams.
• You may face unexpected medical or long-term care costs.

Tips to build and maintain financial literacy:

• Review your budget regularly. Track income and expenses to ensure your needs are covered and that you’re not spending beyond your means.
• Be cautious with credit and loans. Avoid high-interest debt and always read the fine print.
• Plan for the long term. Ensure your will, power of attorney, and other legal documents are up to date.
• Watch out for scams. Be skeptical of unsolicited phone calls, emails, or offers that seem too good to be true.
• Keep learning. Many community centres, libraries, and online platforms offer free financial education for older adults.

It’s never too late to improve your financial knowledge. Small steps today can help protect your future and give you greater confidence in managing your money.

McMaster Optimal Aging Blog Posts are written by faculty, staff, PhD students, and external collaborators, and are assessed for accuracy by members of the Portal scientific leadership team.

DISCLAIMER: These summaries are provided for informational purposes only. They are not a substitute for advice from your own health care professional. The summaries may be reproduced for not-for-profit educational purposes only. Any other uses must be approved by the McMaster Optimal Aging Portal (info@mcmasteroptimalaging.org)