Task force to study how Canadians make financial decisions

A task force charged with assessing the level of financial literacy among Canadians kicked off a major consultation exercise on Monday aimed at exploring how financial decisions are made here.

The Task Force on Financial Literacy released a consultation document today looking at nine major themes, including managing debt, saving and investing, retirement planning and fraud.

“Canadians face a growing number of complex financial decisions that affect their futures and steer our economy,” Finance Minister Jim Flaherty said in a statement commenting on the exercise. “That’s why it is important for Canada to have a national strategy aimed at promoting and strengthening financial literacy.”

The Task Force was established in June last year to study the state of financial literacy here, compared with other countries. Wealth advisors have expressed concern that Canadians have tools at their disposal to help them save, such as RRSPs, but are not taking full advantage of them.

The Parliamentary Budget Office warned in a report last week that Canada’s ageing population will begin to strain government finances, making it even harder to balance the budget. That’s an added incentive for the government to encourage Canadians to save more and be savvier about finance.

"Financial literacy is essential to all Canadians," said Task Force Chair Donald A. Stewart. "It has the power to enhance quality of life for Canadians and their families - at all income levels - and make Canada stronger, more competitive and successful."

Consultation sessions with task force members will be held across the company between April 6 and May 13. The public is encouraged to participate either online, in writing or in person, it said.

"We need to hear from people from every walk of life, to make sure the views, values and experiences of Canadians are reflected in the recommendations we will be making on a national strategy to improve Canadians' financial literacy," said Task Force Vice Chair L. Jacques Ménard.

Flaherty also urged Canadians to get involved in the consultation process.

“Having a national strategy to improve financial literacy will be an important means to ensure Canadians are able to make informed and prudent financial decisions throughout their lives,” he said.