Canadians and Their Money

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Executive SummaryFinancial literacy is critical to the prosperity and well-being of Canadians. It is morethan a nice-to-have skill. It is a necessity in today’s world – and, moving forward,should be treated as such by policy-makers, educators, employers and otherstakeholders across the country. The time for action is now.In reflecting upon its mandate, the Task Force recognized that progress in financialliteracy requires a common understanding of purpose among all participants. Ourdefinition of financial literacy as having the knowledge, skills and confidence to makeresponsible financial decisions received considerable support from Canadiansduring our public consultations and in the submissions we received. As such, weask the Government of Canada and other stakeholders to adopt the Task Forcedefinition of financial literacy.The Need for a Comprehensive Strategy to Improve Financial LiteracyOver an 18-month period, we conducted and commissioned a considerable volumeof research, examined international best practices in the field, consulted widely withCanadians and met frequently to deliberate on our findings. The result of this workis the basis for the proposed National Strategy on Financial Literacy (the “NationalStrategy”), for consideration by Canada’s Minister of Finance.The National Strategy aims to strengthen the knowledge, skills and confidence ofCanadians to make responsible financial decisions. Under a framework of sharedresponsibility, stakeholders will collaborate with a designated leader to ensureeffective implementation, sustain momentum and leverage resources. As an essentialskill, financial literacy requires lifelong learning at home, at school, at work, and inthe community. The diverse needs of Canadians will be met by enhancing existingprograms, improving access, communications and delivery, and buildingawareness. Ongoing evaluation of progress will ensure accountability.Under this Strategy, we are proposing an integrated set of 30 recommendations, with amission to strengthen the financial literacy of Canadians. Because this important issue4TASK FORCE ON FINANCIAL LITERACY – Executive Summary
touches all residents, our recommendations are multi-faceted and emphasize theneed for a collaborative approach. Whether financial literacy initiatives are undertakenby schools, governments, financial institutions, employers, labour organizations orvoluntary bodies, collaboration and coordination will be essential to success.Five PrioritiesAlthough our recommendations are wide-ranging, five priorities define the Strategy’soverall objective of strengthening the knowledge, skills and confidence of Canadiansto make responsible financial decisions. Our specific recommendations build on thetopics identified in our consultation paper Leveraging Excellence (February 2010),such as education, borrowing, saving and communication. These topics werecommented on by Canadians during our public consultations and are summarizedin our report What We Heard (September 2010).The five priorities of the proposed National Strategy are:1.2.3.4.5.Shared ResponsibilityLeadership and CollaborationLifelong LearningDelivery and PromotionAccountability1. Shared ResponsibilityThe mission of strengthening the financial literacy of Canadians is a sharedresponsibility among many stakeholders. This mission will not be realized without thecombined efforts of individuals, families, governments, educators, financial servicesproviders, employers, labour organizations, businesses and voluntary organizations.Over the course of our work, we were impressed by the many programs, websites,seminars and course materials that have been developed with the objective ofimproving the financial literacy of Canadians. However, practical mechanisms arestill needed to facilitate collaboration across sectors in a way that maximizes theTASK FORCE ON FINANCIAL LITERACY – Executive Summary 5
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: www.financialliteracyincanada.comTh
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 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
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Programs for SavingIn our deliberat
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programs. We encourage, as a supple
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When it comes to online learning, h
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Public Awareness CampaignCreative a
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Fraud Prevention and EducationWe pr
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Self-Assessment ToolStudies and sur
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contests could also be used to fost
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ear a responsibility to communicate
Page 77 and 78:
The federal, provincial and territo
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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
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To that end, the Government should
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Important research gaps remain, how
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Conclusion: The Way ForwardSuccess
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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
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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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