From tax to savings, study reveals knowledge gap
When it comes to financial terms many Canadians are pretty switched on but a new survey from Angus Reid Institute shows there are some knowledge gaps.
As tax-filing season approaches, researchers asked how confident people are in several key financial terms.
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Tax related terms generally did well with 82% confident in their knowledge of RRSPs and 72% saying that about TFSAs.
Savings accounts and high-interest savings accounts are well-understood terms too, along with fixed mortgages and credit unions.
Bitcoin baffles most
Cryptocurrencies may be a hot topic currently, but most Canadians are not confident that they understand even the most well-known of the bunch.
Just 10% of respondents said they were ‘very confident’ in the term Bitcoin with a further 20% ‘fairly confident’. The largest share (37%) said they were not at all confident in what Bitcoin means.
However, the far more established premium bonds scored similar shares.
Less than half said that they are confident in the term ‘defined contribution pension’ and only a third are confident that they understand what corporate bonds are.
Wealth, gender knowledge gap
Male respondents and those ages 55 and older are consistently more likely than women and younger respondents to say they are confident in their understanding of the financial terms on the list.
Wealthier Canadians are also more likely to feel confident in key financial terms, perhaps unsurprisingly given that they are more likely to invest.