Financial Literacy Matters – More Than Ever!
Date posted: August 26, 2020
Financial literacy helps us make informed financial decisions. It helps us manage our money when times are good and during crises, including the COVID-19 pandemic.
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 accompany the COVID-19 pandemic 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 2019, 40% of working Canadians were feeling financially stressed. (The Canadian Payroll Association’s NPW 2019 Employee Research Survey Results)
- In 2019, 36% of Canadians indicated they were struggling to manage their daily finances or pay their bills. (Canadians and their Money: Key Findings from the 2019 Canadian Financial Capability Survey)
- 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)
- Financial literacy, resources and tools are helping Canadians to manage their money. (Canadians and their Money: Key Findings from the 2019 Canadian Financial Capability Survey)
- In 2019, 49% of Canadians reported having a budget. (Canadians and their Money: Key Findings from the 2019 Canadian Financial Capability Survey)
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.