Canada’s approach to financial literacy Jane Rooney Financial 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
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
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
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