New report highlights several gaps in people's financial knowledge
Financial education is lacking for most middle-income Canadians, but many believe the professional advice they need is beyond their means.
A new report from Primerica reveals that less than four in ten respondents think they can afford to work with a financial professional, although 72% believe access to one should be universal. This means many Canadians may not be getting the help they need, right at the time when economic factors are challenging their financial security.
"At a time when many Canadians feel uncertain about inflation and their financial futures, our survey highlights significant gaps in financial education and preparedness, as well as the misconception that financial advice is too costly for middle-income families," said John Adams, CEO of Primerica Canada. "We have long recognized these households need support, and we continue to advocate for making this type of support affordable to help Canadians of all income levels build and maintain financial security.”
The firm’s Canadian Financial Security Monitor also highlights how low levels of financial education early in life impacts money management in adulthood. More than two thirds of respondents said their own financial education at school was inadequate with most citing poor teaching of basics including tax, borrowing, student loans, and household budgeting.
Positive outlook
On a brighter note, the survey also found that most participants are more upbeat about their personal finances than those of their province with two thirds saying their own situation was good or excellent while 75% felt their province’s economic health as not good or poor.
Long-term savings were reported by more respondents with most saying they have a savings account (72%) or a self-funded, tax-free savings account (58%), an increase over previous surveys, and 47% have a self-funded, registered retirement account.
However, emergency savings are not in good shape with 35% not having an emergency fund at all.
The report also notes that 61% of respondents are most concerned about inflation and health-related expenses while almost four in ten cited grocery costs and saving for retirement are providing additional financial pressures.
