Canadians and Their Money

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specific topics and to fill the research gaps we had identified. This research helpedus develop our final recommendations and is now in the public domain for use byother researchers and practitioners. The studies and their authors are identified inAppendix E. The summary report, along with the commissioned research papers,is available at www.financialliteracyincanada.com.Our review of the evidence makes it clear that Canada must move to address deficitsin financial literacy in a more focused way, and that the time for action is now. Thestatus quo is no longer an option. The good news is that important groundwork hasbeen laid: we have been enlightened about many excellent financial literacy initiativesalready in place – school-based programs, print and online materials, communityseminars and more. But there are significant gaps in access, in awareness and inthe capacity of some organizations to deliver financial education, all of which mustbe addressed if we are to raise the bar on financial literacy.Financial literacy is an ongoing – indeed, a lifelong – endeavour, for the financialskills and knowledge required of individuals will change throughout their lives. Thegoalposts for financial literacy will also not stand still, as changes continue in financialservices, government programs and demographics. This means that, as a country,we cannot rely on a short-term “fix” for the financial literacy challenge. Whatever is“enough” to know and do today will not be enough tomorrow. Instead, we believe thatCanada must make a long-term commitment to strengthening financial literacy.During our consultations, many organizations highlighted the link between the poorliteracy and numeracy skills of Canadians and their insufficient financial literacy levels.The fact that 42 percent 6 of working-age Canadians – that is, those aged 16 to 64 –have literacy levels below that required to understand and use information containedin texts and tasks that typify our emerging knowledge society and informationeconomy is a clear indication of the magnitude of the challenge (Figure 4).6 The figure increases to 48 percent if all Canadians over 16 years of age are considered, including those over age 64.16TASK FORCE ON FINANCIAL LITERACY – Financial Literacy Challenges and Opportunities in Canada
Figure 4: Key Results from the 2003 International Adult Literacy and Skills Survey49.8%of adult Canadians struggle with simpletasks involving math and numbers42%of adult Canadians strugglewith readingSource: Statistics Canada. (2010). ABC Life Literacy Canada. “Submission to the Task Force on Financial Literacy”.Our RecommendationsIn this report we outline our proposed National Strategy on Financial Literacy (the“National Strategy”) for consideration by Canada’s Minister of Finance. Under thisStrategy, we are putting forth an integrated set of 30 recommendations, with theobjective of strengthening the knowledge, skills and confidence of Canadians to makeresponsible financial decisions (see Figure 5 on page 18 and Figure 6 on page 19).Because this important issue touches all citizens, our recommendations are multifacetedand address the need for a collaborative approach in advancing Canadians’financial knowledge and skills. Whether financial literacy initiatives are undertaken bythe public education system, governments, financial institutions, employers and labourorganizations, or voluntary organizations, collaboration will be the key to success.Although our recommendations range broadly, five priorities define the overall Strategy:1.2.3.4.5.Shared ResponsibilityLeadership and CollaborationLifelong LearningDelivery and PromotionAccountabilityTASK FORCE ON FINANCIAL LITERACY – Financial Literacy Challenges and Opportunities in Canada 17
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 and 18: Figure 1: National Average Scores,
Page 19: Figure 3: Ratio of Household Debt t
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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