Most Canadians feel they lack financial education and confidence in managing money, based on survey results released on Monday by Edward Jones.
Nearly two-thirds (64%) of polled Canadians said they didn’t receive financial literacy education in school and are looking for ways to upgrade their knowledge, the survey found. Also, 84% believed learning about money in school would have helped them manage their personal finances with less stress.
More than three-quarters of respondents (78%) who said they learned at least a bit about money management rated their money management skills as good, compared to 59% of those who didn’t have that knowledge.
Teens can open a TFSA and first home savings account at age 18, and accumulate RRSP contribution room as soon as they earn income and start filing taxes, noted Julie Petrera, senior strategist, client needs, with Edward Jones, in an interview. Some basic financial knowledge is important so that Canadians can understand those accounts and how they work, she said.
Edward Jones has created four free online financial education modules on debt management, taxes, buying a home and having money conversations with family, the firm said in a release.
Financial literacy education would ideally be integrated into the school curriculum, as every student has the right to learn about money management, Petrera said. “Some parents are not in a position to educate their children about money,” she said, and she noted that cultural differences can exist regarding whether families speak about money.
The survey also found that respondents who did receive financial literacy education in school were more likely to say they would manage their money better with a financial advisor (78%) compared to those who didn’t receive that education (69%).
Advisors can build trust with clients’ family members by encouraging them to attend meetings that could impact them, Petrera suggested.
For example, when a client makes an estate plan, family members should be included, she said, and the advisor can educate next of kin on how the plan will affect them.
“An advisor can be a great source of continuity,” Petrera said. Those family discussions can help advisors retain clients as assets are passed to the next generation.
The online survey was conducted by Pollara Strategic Insights between Aug. 30 to Sep. 3, 2024, among 1,516 Canadians aged 18 or older. The results were weighted using Statistics Canada data to be representative of the Canadian population.