Financial Literacy

Sunrise Credit Union is committed to educating the public to help individuals become become self-sufficient so that they can achieve financial stability. Providing these skills can help a person develop a financial ‘road map’ to identify what they earn, what they spend and what they owe.

Financial Literacy was defined in a 2010 Report of Recommendations on Financial Literacy as having the knowledge, skills and confidence to make responsible financials decisions.

Knowledge refers to an understanding of personal and broader financial matters;

Skills refer to the ability to apply that financial knowledge in everyday life;

Confidence means having the self-assurance to make important decisions; and

Responsible financial decisions refer to the ability of individuals to use the knowledge, skills and confidence they have gained to make choices appropriate to their own circumstances.

Statistics Canada’s 2014 Canadian Financial Capability Survey confirmed that too many people are underequipped when it comes to understanding money matters, including reading financial statements, managing credit cards and planning for retirement. The Survey revealed some other interesting statistics when it comes to Financial Literacy.

Too few Canadians have a budget.
Less than half (46%) of all Canadians budget. It is worth noting that this represents a decrease from 2009, when 51% of Canadians reported having a budget. Canadians in the youngest (18 to 24 years) and oldest (70+ years) age groups are less likely than those in between age 25 and 69 years to say they have a budget. The video below below explains Budgeting Basics...

Higher income earners have the highest debt levels—and don’t struggle to pay bills.
60% of debt in Canada is held by those under 45 years of age, with particular concentration among younger homeowners and young families. Those in a couple relationship make up the demographic group with the highest proportion carrying over $150,000 in debts. This same group is more likely than others to have mortgage debt and line of credit debt (possibly for home improvement), which suggests that they invest in wealth-building assets such as homes.

Canadians are not doing enough to secure their retirement
A strikingly high proportion of Canadians who are not yet retired say they don’t know how much they need to save for retirement—60% of the Canadian population. Overall, one third of Canadian non-retirees are not planning financially for retirement.

Completing post-secondary education goes hand-in-hand with better financial management and well-being.
Academic achievement has a visible effect on an individual’s performance in every category addressed in the CFCS 2014. In general, higher academic achievement is linked to more favourable self-reporting on most aspects of financial management and well-being.


If you’re looking for more fun videos to watch that can increase your financial literacy, visit our Wistia video page

 

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