A national survey conducted for the Canadian Institute of Chartered Accountants (CICA) finds that many Canadians are in difficult financial circumstances or making financial decisions that threaten their long-term prosperity.
The survey by Harris Decima also finds the majority respondents believe financial literacy education must start at an early age. More than eight of every ten (84 per cent) Canadians believe young people are ill-prepared to manage their finances when they enter the workforce and 85 per cent believe that financial management skills should be taught in schools to help solve this problem.
Survey Highlights:
Financial education for children and teenagers – Seventy-eight per cent of Canadian parents have attempted to teach their children financial management skills, but two-thirds (60 per cent) believe they have not been very successful; how best to teach their children ranks second among the most sought after financial literacy skills. Note: Tips on minimizing taxes was the first.
– While Canadians believe that parents or guardians have the primary responsibility for teaching their children about money and that schools should teach financial management skills, a strong majority also believes that the financial services industry (75 per cent) and governments (68 per cent) also bear responsibility for ensuring that children and teenagers learn basic financial decision making skills.
Rising debt levels threaten prosperity – Thirty-four per cent of people surveyed reported carrying over a monthly balance on their credit cards and, among them, 55 per cent intend to carry forward a balance over the next month.
– More than one in ten Canadians (12 per cent) have borrowed to cover day-to-day living expenses, and half of them still owe against these loans.
Retirement saving rates insufficient – Of those 55 or older, 40 per cent reported they have not saved enough for their retirement.
– Among those planning to retire in the next five years, 32 per cent believe they have not saved enough to retire on.
A survey summary report is available online at www.cica.ca/flsurvey2010.
