Financial Literacy

James Rajotte Introduces Motion on Financial Literacy

Monday, November 21, 2011

Ottawa, ON - On Tuesday, James Rajotte, Member of Parliament for Edmonton-Leduc, introduced and debated M-269, a motion aimed at improving the financial literacy of all Canadians.

 

“We live in a world today where technology is constantly changing, as is personal finance. Only a few decades ago, credit cards were a luxury item. Debit cards did not even exist. Online banking and buying could not even be conceived as they happen today. Mortgage products were standard and choice was limited,” says Rajotte. “Today, Canadians are faced with increasingly complex financial decisions that have greater potential consequences, and at a younger age than ever before. Each financial decision has consequences, for individuals and families and for our economy as a whole.”

 

During the motion’s first hour of debate M-269, Mr. Rajotte called on the government to continue their efforts to advance financial literacy in Canada.  In 2009, the Minister of Finance established a national Task Force on Financial Literacy.  Mr. Rajotte believes that the recommendations of the task force should be implemented.  Accordingly, the motion reads:

 

“That, in the opinion of the House, the government should help improve financial literacy in Canada by: (a) working to implement the recommendations of the Task Force on Financial Literacy; (b) creating, promoting, and continuously upgrade a single source website for financial literacy to increase public awareness and ease access to information for Canadians; (c) requiring federally regulated financial institutions to publicly disclose their contributions to financial literacy initiatives; (d) ensuring the Financial Consumer Agency of Canada works with willing provinces and territories to promote financial literacy to youth through the educational system; and (e) designating November as "Financial Literacy Month".

 

The final report released by the Task Force on Financial Literacy found that only 51 percent of Canadians maintain a personal budget and that Canadians with high levels of education are more likely to have a budget.  The report also found that 31 percent of Canadians struggle to pay their bills.

 

“Proper planning through financial literacy will help Canadians meet their financial obligations and allow them to plan for the future,” Rajotte continued.  “It is our responsibility to ensure that Canadians have access to the best information and education available.”

 

The motion will be debated for a second hour early in the new year, and Mr. Rajotte is hopeful that all Parliamentarians will support this crucial initiative.

 

Canadians and Their Money: Building a Brighter Financial Future was released by the Task Force on Financial Literacy in December, 2010.  It is available at http://financialliteracyincanada.com/pdf/canadians-and-their-money-1-report-eng.pdf.

 

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Task Force on Financial Literacy

 

In the 2009 budget, the Minister of Finance, Jim Flaherty, announced his intention to establish a national task force dedicated to the issue of financial literacy. Appointed in June 2009, the Task Force on Financial Literacy was comprised of 13 members, drawn from the business and education sectors, community organizations and academia. It’s website is available for reference purposes here: http://financialliteracyincanada.com/index.html.

 

The Task Force on Financial Literacy was tasked with providing advice and recommendations to the Minister of Finance on a national strategy to strengthen the financial literacy of Canadians. This strategy outlines the following:

·       the overall objectives, as well as a focused, concrete plan of action for strengthening the financial literacy of various segments of the population;

·       ways to leverage existing resources to enhance financial literacy in Canada;

·       the best means of promoting financial literacy in Canada;

·       a framework for collaboration among all stakeholders, including government organizations at all levels, which would maximize financial literacy efforts in Canada and reduce duplication;

·       ways in which the different stakeholders should collaborate to advance the state of financial literacy research in Canada; and,

·       methods of assessing the progress made in implementing a national strategy, including identifying appropriate timelines and milestones for achievement.

The Task Force drew on global “best practices” and built on the strengths of successful initiatives that are already in place, in Canada. The Task Force submitted its final report at the end of 2010, which recommends to the Minister of Finance a national strategy on financial literacy. The Task Force made its report available to the public.

 

Useful Resources  

· Department of Finance Canada
· Task Force on Financial Literacy
· Financial Consumer Agency of Canada 
     · Educational Programs 
     · Consumer Education  
     · Tools and Calculators
· Canadian Bankers Association
· ABC Life Literacy Canada
· Canadian Life and Health Insurance Association - “Virtual Shoebox” to keep track of important family documents and information
· Junior Achievement 
    · Economics for Success for Students  
    · Dollars with Sense for Students
· Canadian Foundation for Economic Education
· Junior Economic Club of Canada 
· Initiatives sponsored or led by banks in Canada
· Jonathan Chevreau - Financial Post 
· Rob Carrick - The Globe and Mail