Today, the Task Force released its recommendations to the Minister of Finance, marking the completion of its mandate and a comprehensive examination of the state of financial literacy in Canada.
Our recommendations are for all Canadians. Virtually everyone stands to benefit from enhancing their financial literacy. These recommendations set out practical ways in which we can help Canadians achieve brighter financial futures.
The real work to improve the financial literacy of Canadians starts now. Increasing the financial literacy of Canadians will require ‘all hands on deck’.
Having the knowledge, skills and confidence to make responsible financial decisions is essential for Canadians in both healthy economies and during tough economic times. Each day Canadians make financial decisions - some basic, others with lifetime consequences. Today more than ever, Canadians need to know how to inform themselves and access assistance when making important financial decisions.
The report sets out the first-ever national strategy to improve Canadians’ financial skills. It contains 30 recommendations in five key areas: shared responsibility, leadership and collaboration, lifelong learning, delivery and promotion, and accountability.
We came to these recommendations through extensive research; a public consultation process that took us to every province and territory; and online and written submissions.
I invite everyone to read the report in detail on this website:
http://www.financialliteracyincanada.com/.
The time for action is now to ensure Canadians are well-equipped to meet the challenge of a lifetime of financial decision-making.
Don Stewart
Chair of the Task Force on Financial Literacy
Wednesday, February 9, 2011
Thursday, May 13, 2010
TASK FORCE CHAIR'S BLOG: May 13, 2010
Ten members of the Task Force held a second day of public consultations in a sunny and bright Ottawa Thursday, all – even representatives from the west and Toronto – invigorated by the triumph of Les Canadiens the night before.
The improving disclosure practices of the investment business were addressed by Charles Sims, Mackenzie Financial CEO, who said an industry working group is developing “a two page disclosure in simple, plain language (that addresses) how the risk profile should fit into (investors’) thought processes.”
Presenter Margot MacPherson Brewer advocated that “women’s experiences should be integrated into the Task Force’s recommendations.” She said “all women need to take responsibility for their own financial independence,” and need knowledge and support to do so.
Entraide budgétaire Ottawa (http://www.ebottawa.org/) – which provides counseling to middle and low income earners – echoed this theme, Hélène Ménard noting that, “we encourage people to come in as a couple; very few do…the burden for budget management in the family is often on the woman.”
Option Consommateurs (http://www.option-consommateurs.org ), a non-profit association that promotes consumer rights, made 15 thought-provoking recommendations, including establishing a national financial literacy coordination office with its website offering plain language tools for consumers.
Additional important social context was provided by Ken Georgetti, Canadian Labour Congress President, who expressed disappointment in “the stagnation of wages” experienced by most Canadians. “Canadians are not saving as much because they can’t afford to save,” he said. Mr. Georgetti also criticized the heavy advertising by financial institutions, saying it persuades people that, “you have to give your money to somebody else (to manage) because you’re not smart enough to do it yourself.”
After Wednesday’s public sessions, the Task Force had an opportunity to provide an informal update to the Minister of Finance, to whom we report, on some of the broader themes emerging across Canada. A more comprehensive report on our consultations will be provided to the Minister this summer. Minister Flaherty reiterated to us the importance of our work in strengthening the national fabric.
The Task Force will conclude its public, in-person consultations when two of its members convene in Iqaluit on May 27.
Don Stewart
Chair of the Task Force on Financial Literacy
The improving disclosure practices of the investment business were addressed by Charles Sims, Mackenzie Financial CEO, who said an industry working group is developing “a two page disclosure in simple, plain language (that addresses) how the risk profile should fit into (investors’) thought processes.”
Presenter Margot MacPherson Brewer advocated that “women’s experiences should be integrated into the Task Force’s recommendations.” She said “all women need to take responsibility for their own financial independence,” and need knowledge and support to do so.
Entraide budgétaire Ottawa (http://www.ebottawa.org/) – which provides counseling to middle and low income earners – echoed this theme, Hélène Ménard noting that, “we encourage people to come in as a couple; very few do…the burden for budget management in the family is often on the woman.”
Option Consommateurs (http://www.option-consommateurs.org ), a non-profit association that promotes consumer rights, made 15 thought-provoking recommendations, including establishing a national financial literacy coordination office with its website offering plain language tools for consumers.
Additional important social context was provided by Ken Georgetti, Canadian Labour Congress President, who expressed disappointment in “the stagnation of wages” experienced by most Canadians. “Canadians are not saving as much because they can’t afford to save,” he said. Mr. Georgetti also criticized the heavy advertising by financial institutions, saying it persuades people that, “you have to give your money to somebody else (to manage) because you’re not smart enough to do it yourself.”
After Wednesday’s public sessions, the Task Force had an opportunity to provide an informal update to the Minister of Finance, to whom we report, on some of the broader themes emerging across Canada. A more comprehensive report on our consultations will be provided to the Minister this summer. Minister Flaherty reiterated to us the importance of our work in strengthening the national fabric.
The Task Force will conclude its public, in-person consultations when two of its members convene in Iqaluit on May 27.
Don Stewart
Chair of the Task Force on Financial Literacy
Wednesday, May 12, 2010
TASK FORCE CHAIR'S BLOG: May 12, 2010
The Task Force is in Ottawa Wednesday and Thursday this week holding in-person consultation sessions. While time does not permit us to accommodate all of those who wished to appear, we will end up hearing from about 170 groups and individuals through the public sessions.
Pat Kerwin, of the Congress of Union Retirees of Canada (http://unionretiree.ca/ ), kicked off the day with two thought-provoking recommendations: that financial literacy education has to start early and be mandatory, as children are focused on “instant communications and instant gratification”; and that mandatory changes be made to CPP so that it pays retirees 50% of the average wage.
Building on the unique needs of illiterate people – on which several previous presenters have focused – the Movement for Canadian Literacy’s Lindsay Kennedy recommended that “financial institutions be required to provide all information in…plain language and clear writing.” (http://www.literacy.ca/ )
The Task Force was reminded of the wide variety of ways that financial literacy can be delivered by Angelo Pace of FUNancial Education, which runs Camp Ka-Ching, a summer day program for children ages eight to twelve (http://www.funancialeducation.com/ ).
Ottawa financial adviser Marc Lamontagne described the valuable information that advisers can help people traverse savings, wealth management and retirement; and urged that the fees paid to advisers be made tax-deductible. Under questioning, he allowed that there is little or no difference in the quality provided by fee-based and commission-based advisers.
The Task Force has been inundated with fascinating statistics from many presenters. One example came Wednesday from the Certified General Accountants Association, whose Carole Presseault said, “if household debt was to be evenly spread across all Canadians, each individual would have held $41,740 in debt last year.”
Don Stewart
Chair of the Task Force on Financial Literacy
Tuesday, May 11, 2010
TASK FORCE CHAIR'S BLOG: May 11, 2010
The Task Force resumed its public consultations in Toronto Tuesday, prior to heading to Ottawa for sessions on Wednesday and Thursday.
The Youth Challenge Fund (http://youthchallengefund.org/), which works to improve opportunities for Toronto's young people in the city’s 13 priority neighbourhoods, was represented by Pamela Grant. She observed that youth have a lack of opportunities to enhance their financial literacy; their needs vary widely and a single approach won’t work; and that education needs to be integrated into existing youth programs.
Similar thoughts were expressed by Fazal Khan of SkyRocketKids Foundation (http://skyrocketkids.org/), who observed that, “many children view money as a piece of plastic in mom or dad’s wallet that gets them stuff.” SkyRocketKids’ MoneyBox teaches children financial literacy and the distinctions among save, spend, give and grow.
Questions arising from prior submissions – that suggested that credit cards are too easy to obtain and that high interest rate cards are being aggressively marketed by some schools – were posed to Visa Canada’s Tim Wilson. He agreed that “consumers need to be educated before receiving credit cards,” and described Visa’s Choices & Decisions financial literacy program, now taught in more than 5,000 secondary schools.
The Financial Planning Standard Council’s Cary List, in a thought-provoking presentation, told the Task Force that, “managing money is a life skill as important as language, reading and arithmetic.”
Robin Walsh of the Canadian Bankers Association recommended the establishment of a single web portal on financial literacy for all financial institutions and organizations, hosted at the website of the Financial Consumer Agency of Canada (http://www.fcac-acfc.gc.ca/).
19 groups and individuals appeared Tuesday and over 200 submissions have been received to date; clearly, interest in the Task Force’s work is growing as our work progresses.
Don Stewart
Chair of the Task Force on Financial Literacy
The Youth Challenge Fund (http://youthchallengefund.org/), which works to improve opportunities for Toronto's young people in the city’s 13 priority neighbourhoods, was represented by Pamela Grant. She observed that youth have a lack of opportunities to enhance their financial literacy; their needs vary widely and a single approach won’t work; and that education needs to be integrated into existing youth programs.
Similar thoughts were expressed by Fazal Khan of SkyRocketKids Foundation (http://skyrocketkids.org/), who observed that, “many children view money as a piece of plastic in mom or dad’s wallet that gets them stuff.” SkyRocketKids’ MoneyBox teaches children financial literacy and the distinctions among save, spend, give and grow.
Questions arising from prior submissions – that suggested that credit cards are too easy to obtain and that high interest rate cards are being aggressively marketed by some schools – were posed to Visa Canada’s Tim Wilson. He agreed that “consumers need to be educated before receiving credit cards,” and described Visa’s Choices & Decisions financial literacy program, now taught in more than 5,000 secondary schools.
The Financial Planning Standard Council’s Cary List, in a thought-provoking presentation, told the Task Force that, “managing money is a life skill as important as language, reading and arithmetic.”
Robin Walsh of the Canadian Bankers Association recommended the establishment of a single web portal on financial literacy for all financial institutions and organizations, hosted at the website of the Financial Consumer Agency of Canada (http://www.fcac-acfc.gc.ca/).
19 groups and individuals appeared Tuesday and over 200 submissions have been received to date; clearly, interest in the Task Force’s work is growing as our work progresses.
Don Stewart
Chair of the Task Force on Financial Literacy
Wednesday, April 21, 2010
TASK FORCE CHAIR'S BLOG: April 21, 2010
The Task Force held public consultations in New Brunswick and Prince Edward Island today. I am in Charlottetown with Task Force members Laurie Campbell, Mitch Murphy and Greg Pollock.
During Wednesday’s session, Credit Counselling Services of Atlantic Canada’s Jennifer Gorman recommended that “financial education needs to be a mandatory part of the school curriculum (and it) should be consistent in content and progression across Canada.” CCSAC is doing commendable work in providing students with scholarships “to minimize their post-secondary debt and to use credit wisely.”
The UPEI Student Union presented research which shows, “Students have a serious lack of financial literacy (and) are unaware of the risks,” and urged student loan programs to provide clearer and easier to understand information. “You shouldn’t need a law degree to fill out a form for student aid,” said Student Union President Timothy Cullen.
A financial literacy course for Grade 10 students has been tested in four Island schools, Mike Leslie of the PEI Department of Education told us. “Our teachers are thrilled,” he said, “and it’s empowering students.” During a break in our session, Mr. Leslie shared course materials with the Student Union, giving students “hope” that help is on the way.
Earlier, the Task Force heard earnest pleas for changes in the Canada Pension plan, although that issue is beyond our mandate. Carl Pursey of the PEI Federation of Labour urged “forced savings” through increased mandatory deductions for CPP. That is, he said, “the only way Canadians are going to save for retirement…we feel we’re better off with the government handling it.”
About 175 groups and individuals have registered so far to meet with the Task Force at its public sessions across Canada. The Task Force is about midway through 17 meetings in 15 communities, as it visits every province and territory.
A reminder that the deadline for written submissions to the Task Force is April 30 and our online forum will run until the last day of consultations, May 13. Information is at www.financialliteracyinCanada.com.
The Task Force moves on to St. John’s on Thursday.
Don Stewart
Chair of the Task Force on Financial Literacy
Tuesday, April 20, 2010
TASK FORCE CHAIR'S BLOG: April 20, 2010
The Task Force stopped for hearings today in Montreal and Halifax. I am in cloudy and cool Halifax with my Task Force colleagues Laurie Campbell, Mitch Murphy and Greg Pollock.
The day began with a round table discussion with senior, regional labour leaders. As with many presenters we’ve heard across the country, the dialogue occasionally focused on issues beyond the Task Force’s mandate, but all of the comments were constructive and worthwhile.
One labour presenter noted “the significant illiteracy challenges in the workplace” that render many Canadians unable to understand fees charged by financial institutions. “Even pay stubs today are technical documents,” one spokesman remarked. The Task Force also heard comparisons between defined benefit and defined contribution pension plans; and some strong comments about so-called “payday lenders.”
The Credit Counselling Services of Atlantic Canada spent much of their allotted time describing what, in their view, is the over-availability of credit cards. “It’s about financial literacy,” said Tamara Kelly. “How banking has changed in the last few years! And we’ve not kept up with our education of consumers.” And another member of the delegation said of credit card disclosure documents, “Education is reading the fine print and experience is what you get when you don’t.”
The unique needs of immigrant families were described by a group called Creating Strong Habits – Financial Literacy Workshops. The vast complexities in insurance and taxation, the group’s representatives said, invoke among new Canadians sadness, fear and a lot of pressure.
As we approach the half-way mark in our in-person public consultations, the Task Force continues to be struck by the intelligence and diversity of views it is hearing. And interest by the news media is growing as well.
Please let the Task Force have your views at www.financialliteracyinCanada.com.
On Wednesday, I will report from Charlottetown.
Don Stewart
Chair, Task Force on Financial Literacy
The day began with a round table discussion with senior, regional labour leaders. As with many presenters we’ve heard across the country, the dialogue occasionally focused on issues beyond the Task Force’s mandate, but all of the comments were constructive and worthwhile.
One labour presenter noted “the significant illiteracy challenges in the workplace” that render many Canadians unable to understand fees charged by financial institutions. “Even pay stubs today are technical documents,” one spokesman remarked. The Task Force also heard comparisons between defined benefit and defined contribution pension plans; and some strong comments about so-called “payday lenders.”
The Credit Counselling Services of Atlantic Canada spent much of their allotted time describing what, in their view, is the over-availability of credit cards. “It’s about financial literacy,” said Tamara Kelly. “How banking has changed in the last few years! And we’ve not kept up with our education of consumers.” And another member of the delegation said of credit card disclosure documents, “Education is reading the fine print and experience is what you get when you don’t.”
The unique needs of immigrant families were described by a group called Creating Strong Habits – Financial Literacy Workshops. The vast complexities in insurance and taxation, the group’s representatives said, invoke among new Canadians sadness, fear and a lot of pressure.
As we approach the half-way mark in our in-person public consultations, the Task Force continues to be struck by the intelligence and diversity of views it is hearing. And interest by the news media is growing as well.
Please let the Task Force have your views at www.financialliteracyinCanada.com.
On Wednesday, I will report from Charlottetown.
Don Stewart
Chair, Task Force on Financial Literacy
Monday, April 19, 2010
TASK FORCE CHAIR'S BLOG: April 19, 2010
The Task Force began a busy week, first thing this morning, with public consultation sessions in both Montreal and Toronto. Members of the Task Force are splitting up this week, holding sessions in Moncton, Halifax, Charlottetown, St John’s and – in the north – in Whitehorse and Iqaluit. I encourage you to attend when we convene in your community, and details can be found on www.financialliteracyinCanada.com.
I would also remind you of the April 30 deadline for providing the Task Force with written submissions; details are also available on our website.
Two themes emerged from presenters today.
The first concerns the challenge of making financial literacy education interesting or compelling to the people who would benefit from it. We heard that, despite the widespread perception that traditional “financial literacy is boring,” there are many ways to make financial literacy real, interesting and engaging through peer-to-peer programming, advanced technology, real life stories and experiential learning.
In this vein, Alan Lysaght, co-producer of the ABC Guys series of books on financial management, said, “What really engages kids are stories.” Ellen Roseman, who was speaking in a personal capacity, not in her role as personal finance and consumer affairs columnist for the Toronto Star, said, “How do you get it across to people? Act it out,” suggesting compelling TV and radio commercials.
Ms. Roseman also recommended that financial literacy be expanded to include “consumer literacy,” to educate consumers on inappropriate spending, signing contracts they don’t understand, and the need to get financial advice.
A second common theme, covered by several presenters, focused on the importance of basic life values over the accumulation of material possessions. The Financial Post’s Jonathan Chevreau neatly summed up his formula for financial independence: “Freedom, not stuff.”
I will correspond with you again tomorrow from Halifax.
Don Stewart
Chair, Task Force on Financial Literacy
I would also remind you of the April 30 deadline for providing the Task Force with written submissions; details are also available on our website.
Two themes emerged from presenters today.
The first concerns the challenge of making financial literacy education interesting or compelling to the people who would benefit from it. We heard that, despite the widespread perception that traditional “financial literacy is boring,” there are many ways to make financial literacy real, interesting and engaging through peer-to-peer programming, advanced technology, real life stories and experiential learning.
In this vein, Alan Lysaght, co-producer of the ABC Guys series of books on financial management, said, “What really engages kids are stories.” Ellen Roseman, who was speaking in a personal capacity, not in her role as personal finance and consumer affairs columnist for the Toronto Star, said, “How do you get it across to people? Act it out,” suggesting compelling TV and radio commercials.
Ms. Roseman also recommended that financial literacy be expanded to include “consumer literacy,” to educate consumers on inappropriate spending, signing contracts they don’t understand, and the need to get financial advice.
A second common theme, covered by several presenters, focused on the importance of basic life values over the accumulation of material possessions. The Financial Post’s Jonathan Chevreau neatly summed up his formula for financial independence: “Freedom, not stuff.”
I will correspond with you again tomorrow from Halifax.
Don Stewart
Chair, Task Force on Financial Literacy
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