The Financial Consumer Agency ofCanada has commissioned several surveys of the knowledge, attitudes and behaviours of consumers of financial products and services.

FCAC Commissioner Ursula Menke sharedthe following conclusions:

■■ Although Canadians often feel that they are well informed about the financial world, the findings clearly indicate otherwise.

■■ Many consumers do not know as much as they should about the products and services they use. In many cases, they lack even the basic financial knowledge necessary to make good decisions about their money.

FCAC believes that financial literacy initiatives will help Canadians increase their financial skills, understand the importance of applying those skills and make the kind of decisionsthat will improve their financial well-being.

Gary Rabbior of the Canadian Foundationfor Economic Education presented a number of trends from Statistics Canada.

These demonstrate that Canadians couldbenefit from more information on financial management. Canadians’ high debt-to-incomeratio makes them vulnerable in tight economic conditions. The ratio is one indication of the need for a more financially literate population.

Mr. Rabbior noted the following:

■■ For every $1.00 of disposable income,Canadians owed $1.16 in 2005.

■■ The personal savings rate in 2005 inCanada fell to less than zero. In the 1980s it was 20%.

■■ From 1982 to 2001, consumer debtincreased by 152% and disposable income by 42% in Canada.

■■ Canada’s debt-to-income ratio rose from55% in 1983 to 105% in 2003.

Credit Canada raises awareness of the importance of money management and credit management by educating individuals and families and providing free, confidential,

comprehensive counselling. In spring 2007,Credit Canada surveyed 4,487 randomly selected adult Canadians. The survey

revealed the following:

■■ 30% of Canadians feel they will not be able to retire at age 65.

■■ 53% of Canadians do not contribute  to their Registered Retirement Savings Plans each year.

 

92% feel that Canadians have more debt than they did five years ago but only 7% think that it makes more sense to carry a larger amount of debt now than five years ago.

■■ 80% of Canadians do not know their credit score.

■■ 86% of Canadians believe that more Canadians are in credit distress now than five years ago.

■■ 61% of Canadians do not have a financial advisor.

■■ 52% of Canadians are not aware of any free credit or debt  counseling  services available in Canada.

These trends indicate a need for financial literacy training to help Canadians prepare for

times of economic uncertainty. Canadians need the knowledge and capacity to effectively

manage their finances today so that they can plan and build a stronger future.

(Laurie Campbell, Credit Canada)

For the Canadian Securities Administrators(CSA), the Innovative Research Group

conducted two surveys on financial literacy, each involving more than 5,000 Canadians:

the 2006 Investor Index and the 2007 Investor Study. The aim was to discover what investors do and do not know about investments, as well as how they behave when investing. The survey results demonstrate the importance of

understanding the link between knowledge and  behaviour  change. When evaluating program effectiveness, measurement of both reach and behaviour change is crucial. (Roslyn Russell,

RMIT University, Australia)

The findings indicated that investors believed in the importance of saving, research and planning, but there was no evidence that this belief shaped their behaviour. Following are highlights of the findings, presented by Tamera Van Brunt of the Alberta Securities Commission:

Beliefs

■■ 96% of survey respondents agree that it is important to save for the future.

■■ 92% agree it is important to research beforethey invest.

■■ 88% believe it is important to have afinancial plan.Behaviour

■■ One quarter of respondents have no savings for the future.

■■ 49% don’t do any homework regarding their investments.

■■ 58% do not have a financial plan.

The findings underlined the importance of investing in efforts to ensure that people understand why they need to be more financially responsible. The findings also underlined the need to encourage Canadians to act on their beliefs, change their behaviour and take responsibility for managing their own money.

The Fondation Claude-Massé financed a 2004 survey conducted by P. Beaudoin and J. Robitaille, assessing young people’s

knowledge and use of credit. Marie Lachance, Director of the Consumer Studies Program at Université Laval, presented the findings of this survey of 980 French-speaking Quebecers aged

18 to 29. Ms. Lachance compared the results with similar research conducted in 1994 by the Government of Quebec’s Office de la protection du consommateur. The comparison showed that over the 10-year period between the first and second survey there were increases of:

■■ 75% in the number of credit cardholders;

■■ 27% in the number of credit cards in use;

Something Need To Be Done Urgently

We Cannot Sit Idle and see  this Epidemic  Ruining the dreams of Our Children and  Future Generation To Come.

But We Cannot Do It Alone.

We are in the process of Filing a Online Petition.

Asking Govt Of Canada.

To Make Financial Education A Compulsory Part Of School Curriculum

To Put a Warning Sign On All Credit Application,that misuse of Credit can have a very bad effect on Personal Ability to borrow credit in the future.(Like there is Warning Sign Against Smoking On Cigerete Packs).