The following information was presented to the Task Force on Financial Literacy in Vancouver, BC, on April 6, 2010, by Kate Trethewey, Literacy BC Research Analyst. The Task Force on Financial Literacy is on a cross-country tour to gather information from Canadians from April 6 to May 13, 2010. They will then provide advice and recomendations to the Minster of Finance on how to improve Canadians' financial literacy.

Financial Literacy Task Force Presentation

Click here to see a PDF of the complete "Everyman Bank" handout (PDF-will open in a new window).

Financial Literacy “means having the knowledge, skills and confidence to make responsible financial literacy decisions.”

That said, please take a minute to review the financial literacy materials I have provided [see pamphlet on the left]. This pamphlet contains banking information from five different banks about the most basic banking services. Most banking clients will use at least one of these services.

You may find it difficult to read this pamphlet. I have replaced any word that requires a grade 12 or higher reading level with a Latin word. Forty percent of Canadians do not have the skills needed to understand simple banking information. 

If this pamphlet were all the information you had, how would you access these banking services? How would you feel about asking a banker to explain what these words mean? If you still had questions, would you have the confidence to ask for further clarification? If you did not feel comfortable asking a banker for help, would you ask a friend? How would that make you feel? How likely would you be to seek out the support you would need to open a chequing account, create a monthly budget or plan for your long-term financial stability?

Adequate literacy skills are essential for increasing Canadians' financial literacy.

If Canada’s financial literacy strategy does not address basic literacy, it will not succeed. Vulnerable consumers are vulnerable, in part, because they have a fundamental difficulty with the written word and/or numbers.

A recent study published by Social and Enterprise Development Innovations found that  financially vulnerable individuals, for the most part, receive financial advice in informal and very personalized ways such as a one-on-one conversation with a trusted service provider. When working with the financially vulnerable, trust is paramount. Existing literacy programs have worked very hard to build that trust with their learners.

Unfortunately, most literacy programs in Canada face uncertain and inadequate funding. To strengthen our nation’s financial literacy, literacy programs in Canada need adequate, stable funding. This will ensure that these programs continue to help financially vulnerable people gain the skills they need.

In addition, professional development programs on financial issues should be developed for literacy practitioners. The more the educators know about financial matters, the more they can help their clients.

Increasing the literacy skills of the financially vulnerable is the first step in developing their financial literacy. Community-based literacy programs already have the trust of this group. By ensuring that literacy programs are well funded, and have professional development opportunities, Canada can take an important first step in helping financially vulnerable people.