Canadians and Their Money

More documents

Recommendations

Info

Financial Literacy Challengesand Opportunities in Canada“Our economy is built on millions of everyday financial decisions by Canadians. Recent eventshave shown us that there are major risks and that financial literacy is an important life skill.Whether it is a question of saving for retirement, financing a new home or balancing the familychequebook, improving the financial literacy of Canadians will add to the stability of our financialsystem and make our economy stronger.” 4– The Honourable James Flaherty, Minister of FinanceRecognizing the ever-increasing value and importance of financial literacy to individualCanadians, families and the nation’s prosperity, the Government of Canada createdthe Task Force on Financial Literacy in June 2009 with the mandate to makerecommendations on a national strategy to strengthen financial literacy in Canada.The Concept of Financial LiteracyWe have defined financial literacy as having the knowledge, skills and confidence tomake responsible financial decisions. Within that definition,• Knowledge refers to an understanding of personal and broader financial matters;• Skills refer to the ability to apply that financial knowledge in everyday life;• Confidence means having the self-assurance to make important decisions; and• Responsible financial decisions refers to the ability of individuals to use theknowledge, skills and confidence they have gained to make choices appropriateto their own circumstances.Armed with financial knowledge, skills and confidence, Canadians are better able to:• Make day-to-day choices about how to spend their money and stay on top offinancial obligations;4 Department of Finance Canada. (2009). “Minister of Finance Launches Task Force on Financial Literacy.”Media release 2009-067. Toronto, June 26. Retrieved from www.fin.gc.ca/n08/09-067-eng.asp10TASK FORCE ON FINANCIAL LITERACY – Financial Literacy Challenges and Opportunities in Canada
• Navigate the ever-changing financial marketplace and buy the products andservices that make the most sense for their own needs;• Plan ahead about how to use their hard-earned dollars for life goals, such asbuying a home or preparing for retirement;• Deal with local, provincial and national government programs and systems thatare often complicated and confusing, even to experts;• Evaluate the financial information and advice they get, whether from friends, themedia or professionals; and• Make the best use of the resources they have, including workplace benefits,private and public pensions, tax credits, public benefits, investments, homeequity, access to credit and consumer spending power.The Current Situation: Why Now?Canadians today have to make an ever-larger number offinancial decisions, at an ever-younger age – and thesedecisions are increasingly complex and fraught withconsequences. Yet too many people remain underequippedwhen it comes to understanding money matters,and some groups are particularly vulnerable in this regard.“Financial literacy has always been anessential ingredient in personal and financialsuccess, however, it is hard to imagine atime when financial literacy has been moreconsequential for Canadians. Economicconditions are in a state of rapid change,challenging everyone to react quickly tonew dangers and opportunities. Inactionor inappropriate responses can jeopardizethe financial health and wellness of manyof us; we all need the tools to take charge ofour financial situation with confidence.”– The Financial EducationInstitute of CanadaCanadian and international polls, surveys and studies haveconsistently shown that many consumers – young and old,rich and poor – have real challenges with financial literacy,from reading financial statements to managing credit cardsto planning for retirement. The findings of StatisticsCanada’s 2009 Canadian Financial Capability Survey confirmed this. The largestof its kind in the world, the survey gathered information about the financial habits,behaviours and attitudes of Canadians. The survey found that:• Only 51 percent of Canadians had a budget. Those with higher levels ofeducation were more likely to have a budget;• Thirty-one percent of Canadians were struggling to meet their bills and payments;TASK FORCE ON FINANCIAL LITERACY – Financial Literacy Challenges and Opportunities in Canada 11
Page 1 and 2: Report of Recommendations on Financ
Page 3 and 4: Table of ContentsAcknowledgements..
Page 5 and 6: AcknowledgementsContributions of ma
Page 7 and 8: www.financialliteracyincanada.comTh
Page 9 and 10: touches all residents, our recommen
Page 11 and 12: 3. Lifelong LearningWe believe that
Page 13: ensure, at the highest level, accou
Page 17 and 18: Figure 1: National Average Scores,
Page 19 and 20: Figure 3: Ratio of Household Debt t
Page 21 and 22: Figure 4: Key Results from the 2003
Page 23 and 24: Figure 6: National Strategy on Fina
Page 25 and 26: GovernmentsGovernments are uniquely
Page 27 and 28: play a crucial role in providing fi
Page 29 and 30: Figure 7: Shared Responsibility - M
Page 31 and 32: term. Further, the mandate should n
Page 33 and 34: • Enable stakeholders to be activ
Page 35 and 36: Figure 9: Life EventsReceivingunexp
Page 37 and 38: Figure 10: Essential Skills - Money
Page 39 and 40: We commend those authorities who ar
Page 41 and 42: Governments may consider leveraging
Page 43 and 44: considering the purchase of a finan
Page 45 and 46: “lunch and learn” seminars and
Page 47 and 48: The Role of Professional AdviceThe
Page 49 and 50: In some cases, programs reach many
Page 51 and 52: Student Loans Directorate at the De
Page 53 and 54: The UAS is also “designed to incr
Page 55 and 56: Throughout the public consultation
Page 57 and 58: since 1982. His report, entitled
Page 59 and 60: Take-up of Government BenefitsEarli
Page 61 and 62: Programs for SavingIn our deliberat
Page 63 and 64: programs. We encourage, as a supple
Page 65 and 66:
When it comes to online learning, h
Page 67 and 68:
Public Awareness CampaignCreative a
Page 69 and 70:
Fraud Prevention and EducationWe pr
Page 71 and 72:
Self-Assessment ToolStudies and sur
Page 73 and 74:
contests could also be used to fost
Page 75 and 76:
ear a responsibility to communicate
Page 77 and 78:
The federal, provincial and territo
Page 79 and 80:
4.5.Planning ahead (thinking about
Page 81 and 82:
students have acquired some of the
Page 83 and 84:
and offer funding and professional
Page 85 and 86:
To that end, the Government should
Page 87 and 88:
Important research gaps remain, how
Page 89 and 90:
Conclusion: The Way ForwardSuccess
Page 91 and 92:
AppendicesAppendix A: Summary of Re
Page 93 and 94:
19. The Task Force recommends that
Page 95 and 96:
Appendix B: Members of the Task For
Page 97 and 98:
2520151050Most Canadians are making
Page 99 and 100:
2520151050Few Canadians keep themse
Page 101 and 102:
Appendix E: Selected BibliographyTh
Page 103 and 104:
Ipsos Reid. (2009). CSA Investor In
Page 105 and 106:
Standing Senate Committee on Bankin
show all

Canadians and Their Money

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?