FCAC releases progress report on financial literacy

By The IJ Staff | April 27 2018 09:45AM

Photo: Freepik

The Financial Consumer Agency of Canada (FCAC) released the Progress Report on Canada's National Research Plan on Financial Literacy 2016-2018 April 26. The report found that Canada ranks third globally on financial knowledge, attitudes and behaviour.

FCAC says the purpose of the report is to share important findings with financial literacy practitioners and researchers “to help advance collective efforts to improve the financial well-being of Canadians.”

The report found that while 85 per cent of Canadians rate their financial knowledge as average or above, only 61 percent are able to answer five of seven (70 percent) of financial knowledge questions correctly.

The main source of stress

The main source of stress for many Canadians is money, says FCAC’s report, which revealed that more than half of Canadian adults are interested in accessing financial education through their workplace.

To develop financially desirable behaviours, knowledge is not enough on its own, found the report. “Financial confidence is a key complementary factor that contributes to financial behaviours and financial well-being,” says FCAC.

Unique barriers to financial well-being

The report also found that Indigenous Peoples face unique barriers to their financial well-being. “These barriers need to be addressed in the design, delivery and measurement of financial literacy interventions,” says FCAC.

The report recommends that students learn to manage money early in life. “For example, students that have bank accounts and students who discuss money matters with their parents once or twice a week score better on a financial literacy assessment compared to their peers who do not,” says the report.

To learn more, consult the report here.