Canadians are increasingly worried about their finances, and many are likely to be unprepared for an unexpected setback. A recent survey conducted by Forum Research Inc. found that only a quarter of Canadians have an emergency fund, while the Financial Planning Standards Council reports that finances are a daily concern for four in 10 Canadians. Canada’s Aboriginal population living off reserve, Canadians with lower levels of educational attainment, low-income earners and newcomers face even higher financial stress.

 

The good news is that increasing financial literacy and confidence can have a real and far-reaching impact on financial outcomes. While less than half (46 percent) of Canadians have a budget, 93 percent of those who do always or almost always stay within it, according to the Financial Consumer Agency of Canada. Research has also found that people with greater financial knowledge and confidence engage in more financial planning for their future, including investing in retirement savings plans and managing their debt better.

 

This is where financial literacy programs can step in. Financial literacy is about more than just raising knowledge about banking and personal finances, though those are foundational steps in getting started. It is also about empowering people to ask questions, set financial goals and work to achieve them with the tools at their disposal. If we want to raise the financial well-being of Canadians, especially low-income Canadians and underserved populations, we must start with programming that is free, accessible and relevant to their needs, with a focus on building confidence and trust in the financial system.

 

ABC Life Literacy Canada’s Money Matters program helps learners build spending plans, explore different ways to save, learn about credit and develop strategies for talking about finances with their family through a series of accessible workbooks that can be adapted to any learning environment. This fall, ABC is launching Money Matters Online, which will allow learners in remote areas to access the workbooks at their own pace. Money Matters was developed by ABC Life Literacy Canada with support from founding sponsor TD Bank Group. Visit abcmoneymatters.ca to find out more.