Infographic: Emerging themes in financial literacy research

Infographic: Emerging trends in financial literacy research
Text version: Infographic: Emerging trends in financial literacy research

Results to-date of Canada’s National Research Plan on Financial Literacy 2016-2018

About the National Research Plan on Financial Literacy

A Research Sub-Committee worked together with the research community to generate key empirical evidence and inform the implementation of the National Strategy on Financial Literacy – Count me in, Canada

“Smarter” financial literacy

Studies used the Canadian Financial Capability Survey to explore financial literacy influencers.

Key findings:

  • Financial confidence is a better predictor than financial knowledge when it comes to day-to-day money and debt management.
  • High levels of both financial knowledge and confidence are important for longer-term planning and saving.
  • Overconfidence among seniors and near-seniors is associated with poorer long-term financial decisions.

Application for practitioners

Use a learning-by-doing approach to increase financial confidence and knowledge.

Behavioural insights

Studies focused on understanding consumer behaviour to drive better financial decision-making.

Key findings:

  • “Nudge” interventions help solve problems such as behavioural biases.
  • Choice architecture and other behavioural techniques enable consumers to save and pay down debt sooner.
  • Simplified and “just-in-time” information helps to bridge the gap between knowledge and decision-making.
  • An online environment is ideal for social norming and anchoring techniques.
  • Targeting financial education to non-budgeters through a mobile app, increased knowledge, confidence and behaviour.

Application for practitioners

Complement financial education using just-in-time reminders, social norms, and anchoring.

More targeted financial literacy

Studies focused on how to better target financial literacy efforts toward specific populations, in particular Indigenous Peoples, and workplaces.

Key findings:

  • Indigenous Peoples face unique barriers to their financial wellness.
  • More than half of Canadians are interested in workplace financial education, particularly related to planning and saving.

Application for practitioners

Program evaluations can provide valuable insights into what works and for whom.

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