With so few Canadians getting financial education, no wonder they are struggling

Almost half of Canadian consumers have never had any financial education according to a new poll from Equifax Canada.

With Financial Literacy Month ahead throughout November, the survey also highlights how money worries are impacting Canadian households with younger people the most likely to be concerned about multiple elements of their financial situation.

For example, 52% of respondents aged 18-34 are experiencing anxiety about their personal debt levels, significantly higher than the overall average of 39% across other age groups. More than one third of the younger cohort said they have missed a bill payment, well above the 23% of other respondents.

Overall, 45% of poll participants said they are concerned about paying off their debts including mortgages and student loans, however just 18% have sought out professional help to do so.

And despite concerns about fraud and identity theft, 32% of respondents never check their credit reports, one of the best methods of early detection of identity theft. Although younger respondents are more likely to check credit reports they are less likely to think they could fall victim of identity theft and less likely to have anti-virus protection on their devices.

“Financial education is an essential building block towards financial resilience to help people make informed financial decisions and protect their well-being,” said Julie Kuzmic, Equifax Canada’s Senior Compliance Officer, Consumer Advocacy. “We need to talk about money more to empower Canadians of all ages and backgrounds to build financial resilience.”

Mortgages and second jobs

With interest rates pushing up the cost of mortgages and many Canadians facing renewals, 36% of those taking part in the poll said they are concerned about renewals at higher rates and how that will impact their financial future.

Around one third said they have taken on a second job to cover additional mortgage costs and 35% are worried about job security. Younger Canadians are more likely to have taken on “side hustles” (69% versus 47% of other age groups) or to consider taking on second or third jobs (48% versus 30%) to increase their income and meet their financial obligations.

“It doesn’t take much to become entangled in debt, especially in our current economic climate, as we shared in our recent Market Pulse Quarterly Credit Trends report for Q2,” said Kuzmic. “Watching your credit reports and scores in the context of your fluctuating debt levels is crucial to manage your financial well-being and access financing now and in the future.”