Curious as to how financial health varies across your city? A new composite index by Prosper Canada and the Canadian Council on Social Development (CCSD) measures household financial health at the neighborhood level, says the Investment Industry Regulatory Organization of Canada (IIROC) as Canada’s Financial Literacy Month begins.
Cross Canada Check-Up, a report released Thursday by Prosper Canada and the CCSD, highlights findings from Canada’s neighbourhood financial health index (NFHI), which examines how financial health is distributed across communities, IIROC says in a news release. The analysis is part of a multi-phase Prosper Canada research initiative sponsored by IIROC.
When comparing neighbourhoods and regions, the report takes into account the following factors: household incomes, liquid assets, real estate assets, consumer debt, mortgage debt and neighbourhood poverty.
“This latest collaboration provides an important view into the financial health of Canadians, which directly influences their saving and investing behaviour,” Lucy Becker, IIROC vice president of public affairs and member education services, says in a statement. “This research will be a valuable tool for policy-makers, regulators and those working with Canadians to enable them to save and invest in their futures.”
“Our key findings will enable policy makers to look below national data and beyond income data alone, for a more in-depth understanding of the dynamics underlying national trends in household financial outcomes,” Prosper Canada CEO Elizabeth Mulholland says in a statement. “The NFHI will also equip local communities with new information they can use to identify and address financial vulnerabilities.”
Advisors can use the tools provided here and here to examine the financial health or vulnerability of the communities they serve.