There are guidelines for making RRSP contributions  and we all need to follow them to benefit fully from this time-honoured tax-deduction vehicle. But the one thing you don't need to know by the contribution deadline on March 2 is the final form of your investment. Don't let yourself feel pressured by the RRSP investment advertising that's in full swing this month. What you "do" is up to you. If you aren’t ready to decide what type of investment to make, you can still make your RRSP contribution and leave it in cash, in the form of a deposit or cash balance at a financial institution or registered securities firm. Then, when you’re ready, you can choose the type of investment that fits your investment strategy.

Canada  Revenue Agency sets your contribution limit for 2008  based on your 2007 and previous years’ returns. You can find how much unused contribution room you have on your 2007 Notice of Assessment, or through CRA’s Tax Information Phone Service . To see what your 2008 contribution will put back in your pocket this year, just plug your gross income, contribution amount, and the province where you live into Morningstar Canada’s RRSP calculator .

Remember the story about Jacques Demers , the Montreal Canadiens’ hockey coach who “came out” as an illiterate adult in 2005?  He had carefully organized his life so that other people took care of anything that involved the ability to read and write.

I was a bit like Mr. Demers, only in terms of financial life skills. For years, I made do with the most basic financial literacy and was content to delegate my finances to someone else.

Sure, I kept a budget. I eventually took the time to understand what a stock  is, and a bond , and a mutual fund .  These days, I’m saving for retirement, and I meet with my financial advisor every year to evaluate my progress. I even have a financial plan (in my head). But it’s surprising how easy it is to skim the surface, not quite understanding what the advisor is saying, going along with  recommendations without asking basic questions—like, what’s this going to cost me in fees? and, is there something else that’s cheaper, or has less risk?

It turns out I’m not alone. According to BCSC research published in October 2008 called The 21st Century Investor , Canadian investors know the basics—stocks, bonds, mutual funds—but their knowledge drops off sharply when the topic shifts to more complex products  like Exchange Traded Funds , known as ETFs.

It is also clear from the research that while Canadians often understand what they should be doing, their behaviour tells a different story.  For example, almost 90% of Canadians believe that having a financial plan is important, but over half (58%) don’t have one.  Most (92%) agreed on the importance of conducting independent research before investing.  But almost half did not personally research their most recent investment. 

So if you’re ready to start increasing your financial life skills by applying those skills to better manage your money, here are some basic resources to get you started.

2 from BC Securities Commission investor education

• The City / La Zone  The BCSC developed this online financial life skills program in partnership with the Financial Consumer Agency of Canada (FCAC). It targets young adults, but just about anyone starting out should find it helpful, engaging, and easy to do.
• Guide to Investing: How to Work with Your Investment Advisor Part one of the InvestRight Guide to Investing shows how to make the most of your relationship with your financial advisor, complete with definitions, important questions to ask, and worksheets.

3 from the Canadian Securities Administrators  (CSA)

• Investing Basics  You know you should be more involved, but where to start? This guide can help.
• Investments at a Glance  Learn about different kinds of investments and what to keep in mind when considering them.
• Understanding Mutual Funds  A plain language primer on the investment type most Canadians hold either in their own portfolios or through their pension plans.  

Other stuff

• InvestRight Scam Meter Wondering if the investment you’re considering is legitimate?
• RRSP calculator  Many banks and other finance sites have them. This one is offered by Morningstar Canada . Working out what you need to accumulate to retire can be sobering exercise.
• Investment Fraud Awareness Quiz  Test your fraud awareness IQ with this quiz from the North American Securities Administrators Association .

How are your financial life skills? If you're already on your way, do you have any great sites or books to recommend? If you’re just starting out, how can we help?