New report from World Financial Group Insurance Agency of Canada warns of weak resilience and lack of planning
Too many Canadians have a lack of understanding about their finances and are not making plans according to a new report.
The World Financial Group Insurance Agency of Canada (WFGIAC) report surveyed consumers and its own insurance agents and found that less than half (41%) of households believe they are able to understand their personal finances.
Less than four in ten respondents indicated that they have a financial plan in place and the overall takeaway from the survey was that many Canadians are vulnerable to a financial shock such as job loss.
The study used responses to create a Financial IQ score with the general population averaging 5.3, a medium ranking, while among WFG agents those that are training scored 5.4 and seasoned professionals averaged 8.2.
"The Financial IQ study highlights that people are experiencing cost-of-living challenges that Canada has not seen in more than a decade," said Todd Buchanan, WFG President. "World Financial Group is committed to helping people build and protect their financial wellbeing. WFG will continue to measure the Financial IQ of agents and the general population in the future, to track the public's knowledge, confidence, and financial resilience in the years ahead."
Financial concerns
The research reveals that 70% of participants from the general population stated that managing the day-to-day cost of living was a key short-term financial priority.
This includes 65% of those earning more than $80,000 and 74% of those earning less than $40,000 stated covering basic costs as a top financial priority.
During the last big financial shock to Canadian households caused by the pandemic, 15% accumulated new credit card debt and 12% borrowed money from others.
