Despite having low confidence in their financial knowledge, Canadians know more than they think, found a new survey from Canada Life.
The poll tested Canadians' knowledge of general financial topics like saving, debt, investing and insurance. Before taking the 10-question quiz, each respondent rated their confidence in their financial knowledge. Despite only two out of five Canadians (41 per cent) claiming high confidence, the average grade on the quiz was 71 per cent, says Canada Life.
"The survey shows a gap between confidence and actual understanding," stated Brad Fedorchuk, Executive Vice-President, Group Customer, Canada Life. "The COVID-19 pandemic has emphasized the importance of having a solid financial plan and financial literacy has become more important than ever. Financial literacy is more than knowing terminology and understanding different investment strategies – it's about how you use your level of understanding to make choices that can put you on the right financial path."
Canadians aged 21 to 29 had the lowest average quiz score (56 per cent) among all age groups. However, the survey noted that younger Canadians (21 to 29 and 30 to 39) are more interested (56 per cent and 51 per cent) in learning about the topic over the next six months than any other age group, says the insurer.
"Today's market can be complex and hard to navigate – Canadians don't have to do it alone," stated Hugh Moncrieff, Executive Vice-President, Advisory Network and Industry Affairs, Canada Life. "Every Canadian has their own unique needs, and an advisor can help every step of the way. Their guidance and expertise can help ensure you're making the right choices and building the financial confidence you need to set you on the right financial path."
