Canadians and Their Money

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understand the most basic banking information provided to the public, thepamphlet replaces with a Latin phrase any word that requires a grade 12 orhigher reading level – a reading level that exceeds the literacy of over 40 percentof the Canadian population.“We urge financial institutions,governments and allorganizations dealing withfinancial information toconsider the specific needs ofpeople with low literacy…it isimperative that attention bepaid to ensuring financialinstitutions use clear language,a concept already endorsedand developed by literacypractitioners.”– ABC Life Literacy CanadaSince 2001, Bank Act regulations have imposed requirements“for clear and straightforward language” that are enforced by theFinancial Consumer Agency of Canada. Despite these regulations,the lack of plain language is still a problem and has become asignificant policy priority in Canada, mainly with regard to creditcards. The Government of Canada recently adopted new regulationsrequiring federally regulated financial institutions to improve thelanguage and presentation of consumer credit card statements bysimplifying definitions, using a legible font size and presenting ratechanges in percentage terms.In our view, these regulations constitute a significant step in the right direction.We believe that similar requirements for clear communication should apply to thecomplete range of financial institutions’ consumer products and services, frombank accounts, mortgages and lines of credit to life and health insurance policiesto non-mainstream products such as payday loans. This should be a regulatorypriority of federal, provincial and territorial governments alike.We are convinced these measures are necessary so that:1.2.3.Comparison shopping and decision making can be made easier andaccessible for more Canadians;Canadians can better understand the terms and conditionsof their financial products and services; andCanadians can benefit from an increased awareness of their rights andresponsibilities as consumers, and be better equipped to exercise those rights.72TASK FORCE ON FINANCIAL LITERACY – IV. Delivery and Promotion
The federal, provincial and territorial governments should lead this initiative byexample, ensuring that their own communications, particularly those concerninggovernment programs and services with a financial dimension, adhere to clearcommunications principles.Recommendation 23The Task Force recommends, given the importance of clear communication, that thefederal, provincial and territorial governments require all financial services providerswithin their respective jurisdictions to simplify their informational materials and disclosuredocuments. Governments should lead this effort by reviewing and improving their ownpublic informational materials to ensure they meet clear communications principles.V. AccountabilityAccountability is the final piece of the financial literacy puzzle.Strengthening financial literacy relies not only on formalinitiatives, but also on taking stock of educational efforts acrossthe country, disseminating successes and tracking progressyear over year. In other countries with existing nationalcampaigns on financial literacy, monitoring, research andevaluation components have been adopted in variousforms (see Appendix D).“Recognizing that changes to humanbehaviour happen incrementally, andoften over generations, it is importantthe primary focus of evaluation beon the delivery, relevancy and levelsof collaboration in financial literacyprograms and initiatives, and thatthis evaluation be done againstclear priorities.”– Canadian Bankers AssociationIn this section we propose recommendations for building a robust nationalaccountability and evaluation framework. We outline two distinct kinds ofmeasurement capacities that must be put in place: the ability to track our nationalprogress in improving Canadians’ financial literacy levels; and the ability to evaluateindividual financial literacy programs and interventions. One key recommendation,already discussed in Section II. Leadership and Collaboration, is the appointmentof a dedicated leader to the cause of financial literacy, who would be directlyaccountable to the federal Minister of Finance. This would ensure, at the highestlevel, accountability to Canadians through Parliament.TASK FORCE ON FINANCIAL LITERACY – V. Accountability 73
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Report of Recommendations on Financ
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Table of ContentsAcknowledgements..
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AcknowledgementsContributions of ma
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www.financialliteracyincanada.comTh
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touches all residents, our recommen
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3. Lifelong LearningWe believe that
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ensure, at the highest level, accou
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• Navigate the ever-changing fina
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Figure 1: National Average Scores,
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Figure 3: Ratio of Household Debt t
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Figure 4: Key Results from the 2003
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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: ear a responsibility to communicate
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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