Canada’s approach to financial literacy

Jane RooneyFinancial Literacy Leader

Institute for Financial Literacy Annual Conference on Financial Education

April 2, 2015

Overview

• Canada’s approach to financial literacy• Mandate of the Financial Literacy Leader• Milestones 2014–2015

Defining a financial literacy approach

• Financial markets and products are more complex• Financial literacy is having the knowledge, skills, confidence to

make responsible decisions

FCAC: The Financial Consumer Agency of Canada

• Opened 2001 • Mandate:

• to strengthen oversight of consumer provisions of federal laws, regulations and voluntary commitments

• to expand consumer education in the financial sector

2001

Task Force on Financial Literacy

2011:

•Thirty recommendations, including appointment of a leader.

2001 2007 2011

Financial Literacy Leader

Mandate:

•Collaborate and coordinate initiatives that strengthen the financial literacy of Canadians

•Develop and implement the national strategy for financial literacy

National Steering Committee

• Drawn from public, private and not-for-profit sectors

• Guide and contribute to development of national strategy for financial literacy

Consultations

• Three phases:• Seniors

• Priority groups: Aboriginal peoples, newcomers to Canada, people with low incomes, people with disabilities

• Young and adult Canadians

Strengthening Seniors’ Financial Literacy

Goals for seniors:

• Prepare for future •Improve access to and understanding public benefit programs•Combat financial abuse of seniors

Strengthening Seniors’ Financial Literacy

Support from public, private and not-for-profit sectors:

•Credit union movement: identify possible abuse•Canadian Bankers Association: sessions for seniors•Government: new online tools

What we heard

• One size does not fit all• Use “teachable moments”• Communicate clearly• Collaborate for success

Canadian Financial Literacy Database

Canadian Financial Literacy Database

• One-stop resource • over 860 resources

from 75 organizations

• Networking tool

• Self-assessment quiz

Building collaboration

• Inter-departmental Committee on Financial Literacy

• Reaching out to provinces

• National Steering Committee

• Financial literacy networks

Evaluation

• Surveys

• Feedback from stakeholders

• Canadian Financial Capability Survey• Fielded every 5 years

• Evaluation toolkit • Developed in collaboration with stakeholders

Will financial literacy result in better decisions?

• Further research• Factors affecting decision-making

• Behavioural economics

• “Nudging” behaviour

International collaboration

• International Network for Financial Education (INFE)• High-level Principles on National Strategies for

Financial Education

• Policy handbook and checklist

Contact us

ItPaysToKnow.gc.caConsumer Services Centre: 1-866-461-FCAC (3222)

Follow @FCACan on Twitter

Subscribe to FCACan on YouTube

Like Financial Consumer Agency of Canada (FCAC) on FacebookLike Financial Literacy Month in Canada on Facebook

Follow Financial Consumer Agency of Canada on LinkedInJoin the Financial Literacy in Canada group on LinkedIn