FCAC releases Progress Report on Canada’s National Research Plan on Financial Literacy 2016-2018

April 26, 2018
Ottawa, ON

The Financial Consumer Agency of Canada (FCAC) today released the Progress Report on Canada’s National Research Plan on Financial Literacy 2016-2018. The purpose of this report is to share important findings with financial literacy practitioners and researchers in order to help advance collective efforts to improve the financial well-being of Canadians. The report includes research findings about the importance of financial confidence as a complement to financial knowledge; ways of applying insights from behavioural economics to enhance financial literacy interventions; and efforts to develop culturally-relevant financial literacy resources for Indigenous Canadians as well as many other important findings.

This report is the culmination of the leadership role played by FCAC in advancing evidence-based research on financial literacy. This effort was preceded by the release of Canada’s National Research Plan on Financial Literacy 2016-2018, and the formation of the National Research Sub-Committee, whose members spearheaded the projects outlined here.

Some key findings

• Canada ranks third globally on financial knowledge, attitudes and behaviour. Eighty-five percent of Canadians rate their financial knowledge as average or above, however, only 61 percent are able to answer five of seven (70 percent) of financial knowledge questions correctly.
• Money is the main source of stress for many Canadians. More than half of Canadian adults are interested in accessing financial education through their workplace. The most highly-sought programs are those that teach about how to plan and how to save.
• 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.
• Financial knowledge on its own is not enough to lead to financially desirable behaviours. Financial confidence is a key complementary factor that contributes to financial behaviours and financial well-being.
• It is important for students to 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.
• Targeted financial literacy interventions delivered through a mobile application increases knowledge and confidence related to budgeting among non-budgeters. These interventions also enable non-budgeters to begin budgeting.

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