Appearance before the Standing Committee on Finance (July 7, 2020): National Strategy on Financial Literacy

Issue

COVID-19 has had a negative impact on the personal finances of Canadian households, including in the areas of debt levels and saving rates.
The National Strategy for Financial Literacy aims to help Canadians manage money and debt, plan and save for the future and prevent and protect against fraud and financial abuse.
It has become even more important to help Canadians find the resources, tools and support services they need to recover from the pandemic and improve their financial wellbeing.

The Strategy mobilizes and engages stakeholders across Canada to undertake initiatives that contribute to its goals.
A Summative Evaluation found that the strategy fostered collaboration, increased activities, and brought focus and attention to the needs of vulnerable populations.
The Strategy is being renewed according to the summative recommendations, CFCS, and the impact of COVID-19.
Public consultations will occur in August and the Strategy will be launched in November, which is FLM.
Financial literacy is a shared responsibility, bringing together private, public and non-for-profit orgs. across the country.
FCAC works collaboratively with 18 Financial Literacy Networks across Canada (Approx. 600 orgs).

Canadian household debt represented 177% of disposable income in 2019, up from 168% in 2018.
1 in 6 Canadians say their monthly spending exceeds their income. (CFCS)
1 in 4 say they borrow to buy food or pay for daily expenses. (CFCS)
People under the age of 65 and those with household incomes under $40,000 are more likely to run short of money or say their monthly spending exceeds their income. (CFSC)

FCAC is committed to collaborating with organizations from all sectors to strengthen the financial literacy of Canadians and to help them recover from the financial impact of the pandemic.
The renewal of the Financial Literacy Strategy will be guided by evidence-based research, stakeholder insights and consultations with Canadians and will account for the impact of the COVID-19 pandemic on the personal finances of Canadians. The new strategy will be developed and launched in fall 2020.
The Financial Literacy Strategy will strengthen the knowledge, skills and confidence of Canadians and contribute to their financial wellbeing and to the economy.