Money Management: Learn from the Experts

Dragons’ Den’s Vincenzo Guzzo and Wes Hall weigh in on the importance of financial literacy for all Canadians.

Why is financial literacy important for young Canadians? GUZZO: With the cost of living reaching an all-time high, young Canadians must develop and smartly use financial skills, which means having the ability to manage personal finances, plan, budget, and even invest. Financial literacy should be taught, and early on! It's the key to building a healthy and fruitful relationship with money.

HALL: Financial literacy pops up in all aspects of our lives very early, from how much to pay for a game, and whether it's wise to spend money on popular video game sites without any tangible returns, to what you do with that money you made selling lemonade. Do you put it in a piggy bank or do you invest it in a financial instrument that can allow the money to grow?

What's something you wish you could tell your younger self when it comes to money management?

GUZZO: The movie business has always thrived, but the pandemic served as an unprecedented life lesson. I would tell my younger self to plan for rainy days no matter what.

HALL: Saving isn't just about putting money in the bank but about how you make that money work to your benefit. I recall in my younger years I would spend every cent I earned as it came in. But in my early twenties, I realized that the value of building equity was far greater than that of mindlessly spending.

Why is it important for Canadians to invest in their wealth?

GUZZO: Simply saving money may help in case of emergency spending. This has its obvious merit, but it's limited. Smart investing is the way to put Canadians’ money to work, outpace inflation, and potentially build their wealth. It’s a question of security and peace of mind.

HALL: It's not just about driving a nice car or living in a nice neighbourhood. Wealth allows you the flexibility to tackle important social issues through philanthropy, whether that be education, health care, or racial justice. Let’s say you're from an underserved neighbourhood — you can then use your wealth to help others in that neighbourhood escape poverty. If you came from poverty, it's important that you return and help as many people as possible. Wealth allows you to pay that forward.

What are your top money management tips for new businesses?

GUZZO: Make sure you have the money before investing. Be organized and focused. Keep a record of everything. Patience and tenacity are key. Surround yourself with talent (you can’t be good at everything.) Invest in the people you hire. And know this: you will work harder for yourself than you would for anyone else. That means that you'll sacrifice a lot in order to start and develop your business. Make sure you’re ready to take that on.

HALL: Watch the bottom line. In translation: watch how much money you earn versus how much you spend. Many business owners focus on the money they bring in (revenue), which is fine to an extent, however, though you may be doing a good job bringing money in, only governments can spend more money than they make and stay in business. Don't overspend on anything.