With the goal of restoring investor confidence in financial markets, the Investment Fund Institute of Canada (IFIC), is hosting a Financial Literacy Forum in Toronto on June 10.

“Investor education is needed to restore confidence in the global financial markets. Our objective is to engage people in the conversation, to find out what the real issues are, and to share how the financial services industry is working to address them in Canada and throughout the world,” says Pat Dunwoody, forum organizer and IFIC vice president member services & communication.

According to a March 2009 report by the Certified General Accountants Association of Canada, more than twenty percent of Canadians who are currently in debt say that they are in over their heads and can no longer manage their debt load. “Reports like this underscore one of the larger issues, which is access to cheap credit,” says Tom Hamza President at The Investor Education Fund, one of Canada’s leading financial literacy organizations and a panelist at IFIC’s Financial Literacy Forum.

Adds Hamza, “There has been a growing issue with financial literacy as Canadians have assumed more financial responsibility for their retirement and education, yet have not received the education needed to cope successfully. Market downturns remind us of the extent of the problem. The first step in solving this is to get young people to understand why they need to save and to invest and to build good habits so that they can benefit from this knowledge.”

“In our experience, not reading the ‘fine print’ or understanding one’s cell phone contract is often a young person’s first poor financial decision,” says Casey Cosgrove, a Literacy Forum panelist and Director of the Canadian Centre for Financial Literacy (SEDI). SEDI works with community organizations to increase financial literacy among low income Canadians.

“Financial literacy is not just an issue with low income Canadians. Understanding the consequences of ones decisions and making poor consumer choices affect all Canadians regardless of their socio economic status. All Canadians need access to information that allows them to make the best financial decisions,” adds Cosgrove.

The financial services industry is working to address this issue with outreach programs and best practice awards. IFIC established the IFIC Investor Education Award in 2006 as part of the Canadian Investment Awards. The Award recognizes industry-produced educational resources which lead investors to a better understanding of mutual funds, financial planning or investing.

“The sustained market volatility we have been experiencing has directly impacted many investors. While we cannot change the markets, we can help investors better understand and navigate through these turbulent markets,” says Andrew Berwick, Director Investment Marketing, Fidelity Investments Canada ULC, a forum panelist and the chair of IFIC’s 2009 awards task force.

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