Financial Literacy Matters – More Than Ever!
It’s Financial Literacy Month! We’re sharing this post from 2020 with updated statistics. For more about Financial Literacy Month, check out the website.
Financial literacy helps us make informed financial decisions. It helps us manage our money when times are good and during crises.
What is financial literacy?
Financial literacy is having the knowledge, skills and confidence to make responsible financial decisions. It includes understanding and being able to work with money and transactions, planning and managing finances, risk and reward, and the financial landscape. Financial literacy is supported by literacy, basic numeracy and the ability to apply financial knowledge to everyday decisions and actions.
Why is financial literacy important?
Financial literacy is important for financial well-being. It helps us:
- set goals
- make a plan for spending and saving
- make the best use of our financial resources
- access government programs and systems
- navigate the financial marketplace and evaluate financial products
- evaluate financial advice
- avoid financial fraud and scams
The job losses, economic downturn and uncertain future that accompanied the COVID-19 pandemic and beyond have created financial stress both individually and nationally. Financial literacy is a tool that can be used to optimize available financial resources, minimize hardship, and make a plan to rebuild financial health.
Did you know?
- In 2023, 37% of working Canadians were feeling financially stressed. (National Payroll Institute‘s Annual Survey of Working Canadians as reported in Cision)
- In 2023, 46% of Canadians are worried their money will not last. (Canadians’ Financial Well-being: Summary of FCAC survey findings)
- Many Canadians have low scores in financial knowledge and/or financial confidence. Both knowledge and confidence play a role in financial decision making. (The Link Between Financial Confidence and Financial Outcomes for Working-aged Canadians, 2016)
- In 2023, 56% of Canadians reported having a budget. (Canadians’ Financial Well-being: Summary of FCAC survey findings)
- Financial literacy, resources and tools can helping Canadians to manage their money and gain financial resilience. (A focus of the National Financial Literacy Strategy 2021-2026)
Learn more at Financial Literacy in Canada, from the Financial Consumer Agency of Canada.
Where can I find help?
If you or someone you know would like to build stronger financial literacy skills, contact the Literacy Outreach Coordinator or literacy organization in your BC community. Use this map to find them.
Related Blog Posts
Problem solving is a life skill that assists us at home, at work and in the community.
There are 14 common marks of punctuation in English. Need a refresher? Try a quiz and learn about punctuation in text messages.
Learn about resources for helping all Canadians file their taxes.