Financial literacy continues to be of concern for many Canadians, and with good reason.

According to a recent financial literacy survey conducted by the Credit Counselling Society (CCS), 66 percent of Canadians consider themselves to be highly financially literate, and yet many of them continue to make simple financial mistakes.

“Good financial literacy starts with understanding how to create and manage a balanced budget and using credit wisely,” says Scott Hannah, president and CEO of the CCS. “What we found is that many people believe they are highly financially literate, but their actions tell a different story. This is something we hope to raise awareness of during Financial Literacy Month.”

Some highlights of the Financial Literacy Survey include:

  • 64 per cent of Canadians who frequently carry credit card balances claim to be highly financially literate.
  • 82 per cent of Canadians with annual household incomes of more than $100,000 claim to be highly financially literate, yet 42 percent of them do not follow a budget or spending plan.
  • Although 76 per cent of 25-34 year olds claim to follow a budget or spending plan, 70 per cent indicate that they are stressed by moderate to significant amounts of non-mortgage debt.

To financial industry experts, the disconnect between perceived financial literacy and the personal finance practices of Canadians is a clear indication that more needs to be done to bridge the financial literacy gap.

And with many organizations, including CCS, coordinating efforts to help Canadians understand and manage their personal finances throughout the month of November, there is no better time to act than now.

“Financial literacy is more than just knowing about saving and spending, it’s about having sound money management skills and confidence to make responsible financial choices,” said Hannah. “And like any skill, financial literacy is something that needs to be learned, honed, and put into practice.”

November is Financial Literacy Month. Throughout the month, Scott Hannah will be tweeting more results from the CCS Financial Literacy Survey. You can follow him on Twitter at @nomoredebts_org for the latest updates.

The online survey of 1,000 Canadians was conducted October 27-28 by Research Now, and has a margin of error of 3 per cent, 19 times out of 20.