Canada’s Task Force on Financial Literacy kicked off a national consultation process Monday, calling for public input on how to improve financial literacy in Canada.

The task force, which was appointed by the federal Minister of Finance in June 2009, has released a consultation document outlining key issues pertaining to the ways Canadians make financial decisions. Through extensive research on the state of financial literacy initiatives in Canada and abroad, the group of 13 members has identified nine key topics for consultation.

“Today is an important milestone in our work,” said Donald Stewart, chair of the task force and CEO of Sun Life Financial, in a conference call on Monday.

He said the task force’s research so far has revealed areas of “obvious concern” in terms of the state of financial literacy in Canada. For instance, he pointed to findings showing that a quarter of Canadians are weak in key areas of planning and budgeting, and 30% are not preparing for retirement. In addition, he noted that personal debt relative to income has been climbing for two decades, and is at historic high levels.

“These and other findings send a clear message: it’s time to make financial literacy a priority,” Stewart said.

Some of the topics for consultation include borrowing and debt, saving and investing, planning for retirement, and protecting against financial fraud.

The consultation document outlines the financial literacy initiatives currently in place, including various provincial education programs, the provincial securities commissions’ investor awareness campaigns, and websites and other resources from private-sector financial institutions. While it acknowledges the strengths of some of these initiatives, the task force hopes to create a plan that will bring these pieces together, improve them as much as possible, and make them available across the country.

“The Task Force is seeking to create a framework for collaboration among all Canadian stakeholders,” the document says.

The task force indicates that the private sector – and financial advisor community in particular – has a key role to play in enhancing financial literacy.

“The research that we’ve commissioned to date shows that financial advisors are the most important and most influential source of advice,” said Stewart. “They obviously are going to play – and do play – a very critical role in ensuring that customers are well served for the basis to make responsible financial decisions.”

The public consultations will be held over a six-week period, beginning April 6th, and will feature meetings in 15 cities across the country. Based on the information it obtains, the task force will develop a national plan to improve Canadians’ financial knowledge. The group expects to present its recommendations to the Department of Finance by the end of 2010.

Finance Minister Jim Flaherty welcomed the launch of the consultations.

“All Canadians are working toward a personal goal, be it retiring, buying a home or attending college or university,” said Flaherty. “As these goals have financial implications, Canadians would benefit by becoming better consumers, investors and savers.”

IE