Our Scholarship Essay Writing Prompt:
- How has the pandemic informed your outlook on your financial future, and what money lessons have you learned from such a high-impact event?
Laura’s Response:
The pandemic has greatly impacted my outlook on my personal financial future, and the financial future of the Canadian, and global economy. I have witnessed how easy it is for governments to print money in times of economic decline, and what the effects are on the economy after the money has begun circulating in markets. The effects of inflation are shocking in today’s standards, as inflation is at the highest rate in Canadian history since the 1980s. This worries me as our dollar has reduced in value, along with our buying power.
I have learned many economic lessons regarding finances in these few years of economic suffering. The first lesson is that money sitting in a bank account is decreasing in value, and as of today, the interest earned on savings in bank accounts will not match the rate of inflation. The best thing to do with money, if you have any to spare, is to invest this money into safe forms of investments, such as long-term CGI’s and other long-term federal investments.
Another lesson I have learnt is that I need to continually re-adjust my retirement budget to secure a pension and savings account that will be adequate for survival in 50 years to come. I am not sure of an exact number I will need to retire securely in the future, but with the help of financial forecasters, economists, and financial advisers, I hope to figure this out upon graduation. Thank you in advance for your consideration, and for prompting such a thoughtful question.
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