The 2019 Canadian Financial Capability Survey: Key Findings
As the cost of living continues to rise, financial security becomes crucial to achieving life goals and overall well-being. The 2019 Canadian Financial Capability Survey (CFCS) was conducted to assess how Canadians are managing their finances, understanding financial concepts, and making financial decisions. The survey was conducted using a random, nationally representative sample of 5,000 Canadian adults.
Overview of the Survey Results
The survey found that while many Canadians have the basic knowledge required to make sound financial decisions, there are gaps in financial literacy, resulting in inadequate savings and retirement planning, and high levels of financial stress.
Financial Literacy
The survey classified financial literacy based on four fundamental categories: making ends meet, planning ahead, managing financial products, and financial knowledge and decision-making. The results showed that 61% of Canadians had high financial literacy scores, with 39% of Canadians having low to moderate financial literacy scores.
Saving and Retirement Planning
The survey found that about 35% of Canadians do not save any money, and only 31% of respondents have an employer-sponsored retirement plan. Moreover, 44% of those who have a plan do not contribute the maximum amount.
Financial Stress
The survey found that 44% of Canadians reported feeling high levels of financial stress, mainly driven by debt and inadequate savings, with women and younger Canadians being most likely to experience high financial stress.
Conclusion
The CFCS highlights the need for financial education and strengthening the financial literacy of Canadians. While many Canadians have the basic knowledge required to make financial decisions, there is a need to address the gaps in financial literacy, especially related to planning for retirement and managing debt. By improving financial literacy, Canadians can make informed financial decisions that lead to greater financial security and overall well-being.
Examples
To encourage financial literacy, the Canadian government has created several programs that address the gaps highlighted in the survey. For example, the Financial Consumer Agency of Canada offers a financial literacy database with a vast range of resources to help Canadians make sound financial decisions. Similarly, the Canadian Bankers Association has developed a program for high school students called “Your Money Students,” that teaches the basics of financial management, including saving, budgeting, and understanding credit card debt. These initiatives and others are essential in promoting financial literacy and ensuring greater financial security for all Canadians.
