Why consumers choose to buy the products and services they do is an interesting phenomenon to understand. With the number of options available today in every sector, it’s important to understand how and why people make these decisions. This applies in the financial sector as well.
Consumers seem to instinctively understand that when it comes to retail products, streaming services or any other purchase they are considering, that shopping around is the logical choice. The internet has made it simple to compare products and make the best choice for their needs. Do people treat their financial products with the same degree of thorough investigation?
By taking the time and effort to shop around, consumers can make better choices about their financial products. This is a crucial step that can lead to better financial outcomes for individuals and families. This leads to a more prosperous and financially stable populace, which is good for everyone. Consider these three product and service categories and why you, as a consumer, should take the time to shop around.
By Using the Wrong Payment Cards, Canadians Are Leaving a Lot of Money on the Table
Payment cards are everywhere. 80% of Canadians prefer to use a card for payment instead of cash. It’s no wonder that you are flooded with offers for cards all the time. There seems to be a new credit card for every day of the week. In Canada alone, there are 76 million Mastercard’s and Visas in circulation! How do you determine what are the best credit cards for you?
First, you need to have a plan for why you need or want a card in the first place. What will you use it for? How will it benefit you? Do you plan on leveraging the rewards program? Are you looking for a lower interest rate? Do you care about an annual fee?
These questions are important as they will determine the factors you consider when picking a card. For over 80% of Canadians, the rewards program was a deciding factor in choosing their card. 70% of all Canadians pay off their balances in full monthly but for those who carry a balance over, a lower interest rate might be a key feature in a card they choose. For interest rates, many cards that offer low rates, some as low as 10%.
Canadians are using cash less often, particularly when it comes to larger purchases. Having a card that matches your needs and provides you with the most beneficial rewards is key to reaching your financial goals. Many services today provide in-depth and comprehensive credit cards comparison tools.
Canadians Pay the Highest Investment Fees in the World
Having access to the investing world is one of the greatest ways for the average citizen to increase their financial wealth. This can set up their successive generations with a financial head start in life. Technology has made this increasingly simple and easy to become involved in.
Many avenues allow you to access the stock market. You can choose to go through a financial institution that will invest your money for you. You can go through a stockbroker who will advise and guide you on the best choices, for a commission. The other option is to use an online brokerage or a robo-advisor. This allows for self-directed and DIY investing.
It is important to understand your goals as well as your market or industry knowledge to make the right decision. Many platforms have similar services but the amount of investor information can differ. There may be some tips or advice you would find on one and not another. For example, did you know that Canadians pay the highest mutual fund fees in the world? Knowing this may affect what you choose to buy and invest in.
The fees also differ from platform to platform. If you are doing your own investing to save on commission, you most likely want to pay less in fees. With all these options, how do you make the best choice for you and your future goals? Comparison tools distill all the important features and benefits and organize them in an easy to understand format. These platforms have collected and compared all of the Canadian online brokers and robo-advisors.