Canadians and Their Money

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An Essential SkillDuring our consultations, some participants urged that financial literacy be deemedan “essential skill” by the Government of Canada, the argument being not only thatfinancial literacy has grown in importance but also that giving it this label wouldengage educators and employers while helping to “integrate financial literacyinitiatives across a broad range of existing federal and provincial programs.” 8“Alterna recommends that financial Currently, nine workplace essential skills are officiallyliteracy be recognized as an essentialrecognized by the Government of Canada and comprise whatlife skill for all Canadians and thatefforts, particularly those undertaken is known as the Essential Skills Framework. Financial literacy isby the education sector, be funded, not among them. Originally developed by the Government ofintegrated and coordinated in orderCanada to define and raise awareness of the competenciesto maximize the positive impact ofevery dollar invested.”needed to succeed in the workplace, this framework has– Alterna Savings & Credit Union evolved to include skills that people need for life and lifelonglearning. The categories are: core academic skills (reading,document use, numeracy and writing); thinking and continuous learning;interpersonal skills such as oral communications and working with others;and applied skills (computer use). Within the numeracy category, a moneymath component is defined as “financial transactions, such as handling cash,preparing bills or making payments.” 9Figure 10 illustrates the type of tasks an individual would be expected tosuccessfully achieve at each level of “money math” skills.This framework has proven successful in Canada, particularly in engagingemployers and educators. It has been adapted, in part or in full, to guide thedevelopment of workplace training activities, primary, secondary and postsecondaryschool curricula, and the matching of recent graduates to jobs.It is our understanding that Human Resources and Skills Development Canada iscurrently undertaking a complete review of the Essential Skills Framework to ensure8 Social and Enterprise Development Innovations (SEDI). (2010). “SEDI Submission to the Task Force on FinancialLiteracy.” Toronto: SEDI.9 Ibid.32TASK FORCE ON FINANCIAL LITERACY – III. Lifelong Learning
Figure 10: Essential Skills – Money MathLEVEL 5Forecast prices when the critical factors must be estimatedbased on an analysis of past indicators and projections offuture trends.LEVEL 4Make mental calculations involving considerable translation with ahigh degree of speed and accuracy.ComplexityLEVEL 2LEVEL 3Total bills/accounts including calculation of two or more of the following:discounts, taxes, interest, etc., or components charged by a rate, e.g.,mileage charge. Approve such bills for payment. Prepare pay cheques usingrates of pay, deduction schedules, bonus calculations, etc.Total accounts/bills including calculations of one of the following – a simple discount,taxes, interest, etc., or including calculations of components charged by a rate, e.g.,mileage charge. Approve such bills for payment. Handle foreign currency in a cashtransaction. Exchange between currencies, deducting fee.Sample tasksLEVEL 1Enter amounts in cash register. Total simple bills. Make change. Receive payments.Source: Human Resources and Skills Development Canada. “Readers’ Guide to Essential Skills Profiles.” 10that it is in line with the current environment. Given this review, weurge that the framework be updated to include financial literacy,either as a distinct skill category on its own or integrated acrossexisting categories. In doing so, we further ask the Government ofCanada to adopt the Task Force definition of financial literacy as“having the knowledge, skills and confidence to make responsiblefinancial decisions,” which received considerable support fromCanadians during our consultations.“We believe that financial literacy isan essential skill for all Canadiansand should be treated by policymakers and practitioners as such.It would also send a clear messageto Canadians that financial literacy isa fundamental skill they can benefitfrom daily throughout their lives.”– Social and Enterprise DevelopmentInnovations (SEDI)Recommendation 3The Task Force recommends that the Government of Canada include financial literacy as anessential skill in its Essential Skills Framework.10 Human Resources and Skills Development Canada (HRSDC). Essential Skills Research Unit. (2010).“Readers’ Guide to Essential Skills Profiles.” Table 1: Money Math. Retrieved from HRSDC website:www.hrsdc.gc.ca/eng/workplaceskills/essential_skills/general/readers_guide_whole.shtml#a26TASK FORCE ON FINANCIAL LITERACY – III. Lifelong Learning 33
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 and 34: • Enable stakeholders to be activ
Page 35: Figure 9: Life EventsReceivingunexp
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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