Canadians and Their Money

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Figure 2: Who’s Struggling? Who’s Doing Better?AREA OF FINANCIAL LITERACYWho’sstruggling?Making endsmeet• AboriginalCanadians• Young adults• Very recentimmigrants• Low-incomeand lownet-worthhouseholdsKeepingtrack• Seniors• Adults who letothers makemost majorand ongoingfinancialdecisionsfor themChoosingproducts• AboriginalCanadians• Recent andvery recentimmigrants• Young adultsPlanningahead• Seniors• AboriginalCanadians• Very recentimmigrants• Young adults• Low-incomeand lownet-worthhouseholdsStayinginformed• Seniors• AboriginalCanadians• Recent andvery recentimmigrants• Low-incomehouseholds• Renters• SinglesWho’s doingbetter?• Seniors• High-incomehouseholds• Very recentimmigrants• High-incomeand highnet-worthhouseholds• Homeowners • People whohave takena course infinancialmatters• High-networthhouseholds“At a time in our history where we areexperiencing the highest economic volatilitysince the Great Depression, and withconsumer debt load at the highest levelit’s ever been, in our opinion the need forfinancial literacy has never been greater.”– Affinity Credit UnionClearly, as the Finance Minister reminds us, it is vital torecognize the importance to our economy of the millionsof financial decisions made by Canadians every day.Improving the financial skills of Canadians will make oureconomy stronger. This cannot be achieved without firstaddressing the challenge of financial literacy.14TASK FORCE ON FINANCIAL LITERACY – Financial Literacy Challenges and Opportunities in Canada
Figure 3: Ratio of Household Debt to Income (January 1990–September 2010)150Percentage12090601990:Q11990:Q41991:Q31992:Q2Source: Statistics Canada. CANSIM table 378–0012.1993:Q11993:Q41994:Q31995:Q21996:Q11996:Q41997:Q31998:Q21999:Q11999:Q4The Need for Action: Charting a Courseto Strengthen Financial LiteracyDate2000:Q32001:Q22002:Q12002:Q42003:Q32004:Q22005:Q12005:Q42006:Q32007:Q22008:Q12008:Q42009:Q42010:Q3Over an 18-month period, the Task Force has reviewed the financial literacylandscape in depth, examining a wide range of issues, trends and ideas todetermine a course of action for improving financial literacy in Canada. A vital partof this review was a three-month period of public consultations with Canadians.Representatives of the Task Force travelled in small teams to every province andterritory, visiting communities across Canada. We met face-to-face with over170 individuals and organizations, and received more than 300 submissionsand an additional 280 comments from Canadians through our online forum.We learned first-hand that Canadians attach great value to financial literacy andclearly want it taught in schools, workplaces, communities and online. A summaryof the main themes and suggestions from our consultations, What We Heard, waspublished in September 2010. The Task Force also reviewed existing internationaland domestic research and identified key knowledge gaps. We commissioned atotal of 13 studies by Canadian and international experts to delve deeper intoTASK FORCE ON FINANCIAL LITERACY – Financial Literacy Challenges and Opportunities in Canada 15
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 and 14: ensure, at the highest level, accou
Page 15 and 16: • Navigate the ever-changing fina
Page 17: Figure 1: National Average Scores,
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
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Canadians and Their Money

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