Financial confidence plays a greater role than financial knowledge when it comes to developing healthy financial behaviour, according to a new report released on Thursday from The Financial Consumer Agency of Canada (FCAC).
FCAC’s Progress Report on Canada’s National Research Plan on Financial Literacy 2016-2018 was developed to share important findings with financial literacy practitioners and researchers in order to improve the financial well-being of Canadians.
“This report shines a light on the foundational and exceptional work of FCAC’s research subcommittee to advance the collective base of evidence for financial literacy in Canada,” says Jane Rooney, financial literacy leader at FCAC, in a statement.
“This formidable body of work will help set the direction of future research,” she adds. “The report also details the concrete applications these findings can have for both practitioners and researchers as they develop new financial literacy interventions. As such it is a unique blueprint for progress in financial literacy going forward.”
Some key findings from the report include:
> Approximately 85% of Canadians rate their financial knowledge as average or above; however, only 61% are able to answer 70% of financial knowledge questions correctly
> Money is the primary source of stress for many Canadians. More than half of Canadian adults are interested in receiving financial education through their work place, particular programs on planning and savings
> Indigenous people face unique barriers when it comes to financial well-being, which need to be addressed in the design, delivery and measurement of financial literacy interventions
> Students that have individual bank accounts and discuss finances with their parents once or twice a week score much higher on financial literacy tests than peers who do not
> Mobile applications that provide financial literacy are effective in increasing knowledge and confidence of budgeting among non-budgeters.