The federal government launched a national strategy for financial literacy on Tuesday with the aim of improving the financial knowledge and confidence of individual Canadians when making their day-to-day financial decisions.
“The strategy sets our direction,” said Jane Rooney, financial literacy leader, at a press conference in Toronto announcing the national strategy. “It’s meant to rally organizations to undertake initiatives, but it’s also a call to action to individual Canadians to strengthen their financial know-how.”
National Strategy for Financial Literacy: Count Me In, Canada is focused on three goals: to help Canadians manage money and debt wisely; to help Canadians plan and save for the future; and to help prevent and protect Canadians against fraud.
The financial literacy leader, the National Steering Committee on Financial Literacy, public, private and non-profit organizations and individual Canadians will all work to meet these targets in several ways. This includes: providing free and objective resources to help Canadians budget; making it easier for individuals to learn if they are eligible for government benefits and how to access these benefits; and raising awareness as to how Canadians can protect themselves against fraud and financial abuse through initiatives such as Fraud Prevention Month.
Financial advisors are also a part of the financial literacy strategy, Rooney said, as they can discuss budgeting and debt management with clients, for example. Advisors can also help clients understand and access the savings vehicles and appropriate products they need to reach their short- and long-term financial goals, such as saving for a house or retirement. Says Rooney: “Financial advisors have a critical role to play in all of those essential financial decisions [and] points in a person’s life.”
Financial services sector organizations, such as the Financial Advisors Association of Canada (a.k.a Advocis) and the Financial Planning Standards Council (FPSC), both based in Toronto, consider the announcement to be a positive and note that they are already working with Canadians to improve financial literacy.
“From the very beginning, we’ve been trying to get the [certified financial planner (CFP)] community to recognize the important role that professionals play in furthering the financial literacy of Canadians,” said Cary List, president and CEO of FPSC and a member of the National Steering Committee on Financial Literacy. “It’s a fundamental responsibility of financial professionals and we’re seeking opportunities to reach out to CFPs to partner on various literacy initiatives.”
For example, the FPSC connects its members to volunteer opportunities within organizations such as Toronto-based Prosper Canada, a national charity dedicated to the development and promotion of financial policies and programs to help Canadians living in poverty.
For its part, Advocis also works with Prosper Canada and has members volunteering in schools across Canada through Junior Achievement (JA Canada), said Greg Pollock, president and CEO of Advocis and a member of the Task Force on Financial Literacy.
Similarly, the Toronto-based Canadian Life and Health Insurance Association Inc. (CLHIA) also considers this initiative as a positive step forward and an opportunity for collaboration.
“This is a significant achievement and will serve as a rallying cry for public and private sectors to work together toward a common goal — giving Canadians the knowledge, skills and confidence to make responsible financial decisions,” said Frank Swedlove, president and CEO of CLHIA in a statement.
This national strategy is based on the financial literacy leader’s consultations with Canadians and the National Steering Committee on Financial Literacy as well as on results from the 2009 and 2014 editions of the Canadian Financial Capability Survey. The strategy also builds off the Strengthening Seniors’ Financial Literacy initiative that launched in October 2014.