We live in a world with increasing complexities and growing demands on our money. No wonder the Government of Canada and policy makers are focused on financial literacy to improve the well-being of Canadians. In general, we consider ourselves to be financially savvy, but plenty of studies–with alarming results–show there is room for improvement.
A 2016 BMO Bank of Montreal Poll on the basics of a Tax Free Savings Account (“TFSA”) revealed that even though 17 per cent of respondents say they are “very knowledgeable”, only 3 per cent were able to correctly answer eight basic true or false questions. Further, the Canadian Financial Capability Survey, 2014 conducted by Statistics Canada found that only 8.7 per cent of men and 5.5 per cent of women considered themselves “very knowledgeable” financially. Contrast that to 17.3 per cent and 23.1 per cent of men and women, respectively, who self-identified as “not very knowledgeable” when it comes to their level of financial knowledge.
To promote and advance financial literacy among various segments of the population, the Federal government created the Task Force on Financial Literacy, with Canada’s first Financial Literacy Leader appointed in 2014. National Strategy for Financial Literacy – Count me in, Canada supports our government’s goal that all Canadians have the knowledge, skills and confidence to make responsible financial decisions. Since 2014 many worthwhile initiatives have begun with different public, non-profit, and private sector organizations mobilizing efforts towards the same vision.
The ACPM (The Association of Canadian Pension Management) Retirement Literacy web site is one such initiative. This site is designed to strengthen the retirement income readiness of Canadians and their families. It differs from other available resources by utilizing quizzes that are designed to improve the users’ familiarity with terminology, while increasing retirement subject-matter knowledge. So, if you have ever wondered how you fare when it comes to your retirement literacy – maybe its time to take a quiz!