Canadians know more about finances than they think they do

As FCAC launched Financial Literacy Month, a new Canada Life survey finds out what people know about managing their money

Canadians know more about finances than they think they do
Steve Randall

The 11th annual Financial Literacy Month is underway following the official launch Monday, but how much do Canadians know about managing their money?

As Financial Consumer Agency of Canada (FCAC) commissioner Judith Robertson kicked off the campaign with encouragement for Canadians to find out how to build financial resilience, a new Canada Life report provided insights into who knows what.

The report shows that people often think they are less knowledgeable about financial management than they think: 41% claimed high confidence in their knowledge, but the average score in Canada Life’s test on topics like saving, debt, investing and insurance was 71%.

However, financial literacy was lowest (56% average score) among the 21-29 age group, suggesting an opportunity for financial advisors to help young Canadians avoid or correct mistakes ahead of major life milestones. Fortunately, this cohort are the most interested in learning about finances than older groups.

"Today's market can be complex and hard to navigate – Canadians don't have to do it alone," said 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."

Financial Literacy Month

In launching Financial Literacy Month, Judith Robertson talked of the importance of financial resilience, especially in challenging times.

She also referenced FCAC’s recently renewed National Financial Literacy Strategy that lays out a framework for stakeholders to work together to create a more accessible, inclusive, and effective financial ecosystem for Canadians.

“At FCAC, we are proud to be a leader in financial literacy and our renewed National Financial Literacy Strategy is a bold step towards creating a better financial ecosystem for all Canadians,” she said. “I am excited that this year's Financial Literacy Month provides an opportunity to advance the priorities of the National Strategy. I applaud the many dedicated organizations across the country that are supporting Financial Literacy Month.”