A government initiative to improve the financial knowledge of Canadians will enable them to ask better questions of their financial advisors, understand the rationale behind a financial plan and be better able to stick to it, a conference sponsored by the Investment Funds Institute of Canada in Toronto was told Wednesday.

“A big part of my job is to get people to change their behaviour,” said Jane Rooney, who was appointed last spring as Canada’s first Financial Literacy Leader by the Financial Consumer Agency of Canada, a body working to inform consumers about financial products and services. “The goal is to help people gain the knowledge, skills and confidence to make good financial decisions throughout various stages of their lives. “

Rooney’s mandate is to collaborate and coordinate activities with various stakeholders in the financial industry to develop initiatives that will raise the bar when it comes to Canadians’ financial acumen. The program will help Canadians learn how the financial system works, how to manage money and how to make appropriate choices for their individual goals and circumstances, Rooney told the conference.

Research has shown Canadians are weak in a variety of financial areas, she said, including keeping track of their money, planning ahead, staying informed, choosing products and making ends meet. Less than half work with a budget, and the majority does not know how much to save for retirement.

“Our goals is to arm people with the information they need to enhance their skills in budgeting and other activities, and give them the confidence to ask the questions that will help them understand financial products,” she said. “They need the tools to understand the product, the risks, the cost and the protection behind the product, so they can make a decision if that’s the investment product they want to use.”

The financial literacy program will tie specific life events to informational tools, she said. For example, for consumers buying a home there will be opportunities to learn about mortgages, and families expecting a child can reach out for information on saving for education.

“Different savings vehicles will have different ‘nudging techniques” she said.

Tom Hamza, president of the Toronto-based Investor Education Fund, told the conference it could be helpful to have online tools and specific exercises that will help Canadians understand financial basics and make calculations that pertain to their own circumstances.

“People need to learn some of the basic building blocks, such as understanding inflation and compound interest,” Hamza said. “Rather than just learning about a mortgage, they could focus on a tool that allows for their own inputs and makes the topic relevant to them.”

He said lack of knowledge and trust are top barriers to Canadians’ investing confidence, and a recent survey sponsored by the IEF showed too much financial information is also a problem. IEF’s survey found 53% of respondents agree there is too much information about investing from too many sources, it is overwhelming and they don’t know what to believe.

However, education makes a big difference, he said. The survey found that visits to an IEF-sponsored site called GetSmarterAboutMoney.ca had a positive impact, with 79% of respondents saying they will ask their advisor better questions, 78% will learn more about investing, 69% will start or update a financial plan, and 63% will start investing or change how they invest.

Federal Minister of Finance Joe Oliver told the IFIC conference that in implementing the national strategy on financial literacy, the program will focus on three separate groups — seniors; low income, aboriginals and new Canadians; and youth and adults generally.

“Our government is leading the initiative on financial literacy – we see it as a critical life skill,” he said.