Canadians and Their Money

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III. Lifelong LearningThe Task Force believes that financial literacy is an essential life skill for allCanadians and that it is acquired through lifelong learning. In this section,our recommendations are grouped into three sections:1. FoundationsWe discuss the importance of the formal school system in buildingfoundational knowledge about financial matters, and the value of havingfinancial literacy officially recognized in Canada as an essential skill.2. Beyond the ClassroomMoving beyond the classroom, we explore ideas to deliver financial educationduring those life events when people are likely to be receptive to it andprepared to practise it – for example, acquiring one’s first credit card, applyingfor a mortgage, pursuing a career and preparing for retirement – the rationalebeing that people retain more of what they learn when the information isspecifically relevant to their circumstances at the time (see Figure 9).3. Learning and BehaviourFinancial education, by itself, is not necessarily appropriate for everyone, orat all stages of life. We identify behavioural incentives and mechanisms thatmay also encourage people to act in financially positive ways, particularlywhen it comes to saving and investing for retirement.Taken together, formal classroom education, timely informal education at key lifeevents and the application of insights gleaned from behavioural research shouldhelp elevate Canadians’ financial literacy so they can make wise financial choicesthroughout their lives.30TASK FORCE ON FINANCIAL LITERACY – III. Lifelong Learning
Figure 9: Life EventsReceivingunexpected moneyCoping with illnessand disabilityDealing withdying and deathCaring for aloved oneLiving yourretirementBeing victimizedby fraudGetting separatedor divorcedPlanning forretirementStarting abusinessLosing a jobHaving a babyGetting marriedOpeningan accountGetting anew jobAcquiring aneducationBuying a carBuyinga homeBased upon information from Investor Education Fund: www.GetSmarterAboutMoney.ca1. FoundationsAs a nation, we must move quickly to build the foundations for lifelong financiallearning. We believe this starts with a basic recognition in Canadian society thatfinancial literacy is necessary for successful participation in our modern economy.Reaching young Canadians is essential. Although previousgenerations of Canadians usually learned their financial lessonsoutside the classroom – as they joined the workforce andassumed the responsibilities of adulthood – the challenge intoday’s society is much greater. As more financial decisionsare faced by Canadians at younger and younger ages,grasping financial principles early in life is crucial to beingbetter prepared to participate in the Canadian and globaleconomy and avoiding pitfalls in financial decision making.“Young people must develop a positiverelationship with money and learnthat their relationship with money isa life skill and as important as theirrelationship with language, reading orarithmetic. They need to learn thatmoney is actually a tool to help themachieve what they want in life.”– Financial Planning Standards CouncilTASK FORCE ON FINANCIAL LITERACY – III. Lifelong Learning 31
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 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: • Enable stakeholders to be activ
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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