- News Release 2009-067 -

Archived - Backgrounder

The Government announced in Budget 2009, as part of the measures to improve access to financing and strengthen Canada’s financial system, that it would bring forward measures to help consumers of financial products, including launching a task force on financial literacy.

Financial literacy is an important life skill. Canadians are faced with financial decisions throughout their lives, many of which involve significant risks and rewards. Improving financial literacy helps consumers act knowledgeably and with confidence in managing their personal financial affairs. Informed consumer decision making, in turn, contributes to the maintenance of a well-functioning and stable financial system and a stronger economy.

The Government of Canada is committed to improving the environment for financial consumers through a variety of measures that support competition, disclosure and the ability to make informed choices. Efforts to improve financial literacy are being made by many parties across the country, including the federal government through the Financial Consumer Agency of Canada (FCAC). The Government is creating the independent Task Force on Financial Literacy to develop a national strategy to reinforce collaboration and the effectiveness of these efforts.

The Task Force on Financial Literacy

The Task Force on Financial Literacy is comprised of 13 members, including the Chair and Vice-Chair. It will make recommendations to the Minister of Finance on improving the coordination of financial literacy efforts, outlining a national strategy. The task force will conduct consultations and meet with experts in order to develop its recommendations. The task force is expected to deliver its findings in the fall of 2010. It will make its report available to the public, as well as any research commissioned to develop its recommendations.

The members of the task force are: Donald A. Stewart (Chair), L. Jacques Ménard (Vice-Chair), Laurie Campbell, Marcel Côté, Patrick C. Foran, Edward (Ted) Gordon, Evelyn Jacks, Ruth Kelly, Janice MacKinnon, P. Mitchell Murphy, Greg Pollock, Bill Schwartz and Jean Vincent (see attached biographies). Members of the task force are drawn from the business and education sectors, community organizations and academia.

Current Initiatives to Strengthen Financial Literacy

There are numerous initiatives currently underway to improve the financial literacy of Canadians. All levels of government and many private sector and non-profit organizations are supporting financial education. For example, there are in-school education programs in certain provinces and budget counselling provided by many volunteer organizations. At the federal level, the FCAC has been the primary focus of financial literacy efforts.

The Government of Canada committed in Budgets 2007 and 2008 to enhance the financial literacy of Canadians by mandating the FCAC to undertake financial literacy initiatives, starting with providing educational materials for young Canadians, and sharing information with public and private sector partners. The FCAC has entered into a number of partnerships to offer innovative financial literacy programs such as The City, a web-based high school program available across the country that was developed with the British Columbia Securities Commission. The FCAC has also created a new web portal, The Money Belt, to provide financial information and tools to increase the basic financial knowledge of young Canadians and the general public.

Statistics Canada is conducting an extensive nationwide financial literacy survey that will provide the state of financial knowledge and identify the areas where greater effort is needed. This up-to-date information can be used by the task force to identify areas of strength and weakness in current financial literacy efforts.

The task force initiative complements other recent actions of the Government of Canada to protect consumers of financial products, specifically regarding credit cards and mortgage insurance. The Government’s focus is on providing the best consumer protection environment possible—one where there is competition, where information is disclosed, and where consumers are able to make informed choices.

Additional Information

More information on the task force is available at www.financialliteracyinCanada.com.