About half of Qubeckers can be considered knowledgeable about financial topics, finds a new survey from the Autorité des marchés financiers (AMF).
The new research published Wednesday by the AMF follows a report released yesterday by the Canadian Securities Administrators (CSA) examining the investment knowledge, behaviour, and expectations of Canadians generally.
The AMF’s survey is accompanied by a new tool, the AMF Index, which aims to measure the knowledge and behaviour of financial consumers in Québec alone.
The initial index reading finds that Quebeckers “are aware of and adopt” more than half of a set of behaviours that the AMF considers essential to efficiently manage personal finances, make informed financial decisions, and prevent fraud. The overall average score from a survey of approximately 1,500 individuals that manage their household’s finances is 58.5%, it says.
It also finds that half of Quebeckers can be considered “knowledgeable”, due to their scores on topics relating to investments and insurance. Generally, these consumers are over age 54, are retired, have a university education, own their own home and earn an annual family income of over $100,000. Despite their strong financial knowledge, the AMF notes that they perform relatively less well in terms of their responsibility for doing routine checks and asking questions to their advisors.
The index classifies another 30% of the population as “ambivalent” consumers, meaning that they have good knowledge of the right moves to make, but they do not regularly apply them. It reports that they are typically single, rent their home, are under age 55 and make their own financial decisions, but occasionally consult a representative.
Finally, about 20% of Quebeckers are classed as “indifferent” consumers, with only a vague understanding of financial issues, and little interest. They are typically either in the 18-24 age group, or the 75 and older age group, generally earn a modest income, and have a low level of education, it reports.
The survey also found that Quebeckers who have a relationship with an advisor of some sort score higher on the index, with an average of 61.6% compared with 49.7% who don’t rely on a rep.
“The AMF Index is a useful resource for developing and adapting our educational tools and better targeting consumers who could benefit from more knowledgeable behaviours. We’re trying to increase the impact of our financial awareness campaigns,” said Mario Albert, AMF president and CEO.
Data were collected between April 18 and May 11.