Government and private sector working together to find
solutions
OTTAWA, April 11, 2006 -- According to Why Financial
Capability Matters, a report on the symposium Canadians and Their Money,
oftentimes Canadians may not be well prepared for financial decision-making.
The symposium, organized by the Financial Consumer Agency of Canada (FCAC),
Social and Enterprise Development Innovations (SEDI) and the Government of
Canada's Policy Research Initiative (PRI), was held last June to study the
issue of financial capability and to determine what can be done to improve the
situation in Canada.
Financial capability begins with an understanding of basic finances combined
with the ability to apply that knowledge to make sound financial decisions.
Faced with mounting debts, smaller savings, ongoing basic literacy and numeracy
challenges, and the growth of payday loan businesses and pawnshops, the
evidence points to the need for increased financial capability in Canada.
Canadians and Their Money was the first symposium of its kind in this field,
and brought together more than 150 senior experts from government, the private
sector and community representatives from Canada, the United States and Europe
to learn about existing research, policy and practice in the area of financial
capability.
Research presented at the symposium confirmed that financial capability is
gaining ground as a relevant and important field of study, both in Canada and
abroad. Consumers around the world are struggling to make sense of increasingly
complex financial information and make sound financial decisions - and many are
failing to do so effectively.
"We expect people to make informed decisions about their finances, but we
offer little in the way of financial education and support," said Peter Nares,
Founding Executive Director of SEDI, a national non-profit organization that
develops innovations in policy and programs to help low-income Canadians become
more self-sufficient.
Bill Knight, Commissioner of FCAC, a federal government agency mandated to
protect and inform financial consumers, adds: "Improving financial capability
will help Canadians develop the skills and confidence to be aware of financial
opportunities, know where to go for help, make informed choices and take
effective action to improve their financial well-being."
The report Why Financial Capability Matters makes several key
recommendations for future action to improve financial capabilities, including
a national research agenda, an exploration of ways to improve and coordinate
public policy around financial capability, a more active role for the private
sector and an increased emphasis on the role for the community sector in
serving vulnerable groups.
To obtain or to view a full copy of the report, please visit www.policyresearch.gc.ca or contact Marissa Martin at:
(613) 947-1437.
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For more information, please
contact:
Susan Murray
Director, Consumer Education and Public
Affairs
FCAC
(613) 941-4220
murray.susan@fcac.gc.ca
Peter Nares
Founding Executive Director
SEDI
(416) 665-2828 x229
pnares@sedi.org
