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FINANCIAL LITERACY - CANADA - JULY 2018

Published By :

Mintel

Published Date : Jul 2018

Category :

Banking

No. of Pages : N/A

A concerted effort from government, industry, the school systems and the general public is required to improve the financial literacy of Canadians as its importance has perhaps not sufficiently caught on in the public consciousness.

Table of contents
OVERVIEW
Regional classifications
Income
EXECUTIVE SUMMARY
The issues
Only 6% of Canadians are unbanked
Figure 1: Ownership of financial products, May 2018
Rising cost of education makes student loans the top financial challenge
Figure 2: Financial challenges, May 2018
Online courses are of most interest to Canadians
Figure 3: Interest in methods of financial education, May 2018
Older Canadians are careful financial managers
Figure 4: Attitudes related to budgeting (% agree), by age, May 2018
The opportunities
Better financial literacy can help young Canadians
Figure 5: Financial challenges, by age, May 2018
One in five parents are interested in financial apps for their children
Figure 6: Agreement with “I have an emergency savings account that equals at least 3 months of my household income”, men vs women 18-34, May 2018
Parents with young children are financially stressed
Figure 7: Attitudes related to budgeting (% agree), parents vs non-parents, May 2018
What it means
MARKET FACTORS – WHAT YOU NEED TO KNOW
Canada’s population is ageing
Diminished capacity among seniors has consequences
Immigration drives Canada’s population growth
Financial literacy initiatives rolling out across Canada
Advocis helping Canadians build financial savvy to shape their futures
MARKET FACTORS
Canada’s population is ageing
Figure 8: Population aged 0-14 and 65+, as of 1 July 1995-2035*
Diminished capacity among seniors impacts their financial literacy
Immigration and financial literacy
Figure 9: Population growth, 1985/86-2015/16
Financial literacy initiatives rolling out across Canada
New programme builds on Manitoba’s success in financial education
Ontario launches plan to teach high school kids financial skills
Advocis helping Canadians build financial savvy to shape their futures
INDUSTRY DEVELOPMENTS AND INNOVATIONS – WHAT YOU NEED TO KNOW
Mylo and financial rounding apps
BlackRock invests in Acorns
Mogo reaches 600,000 members
Credit Karma launches Canada's first free credit monitoring service
Caution urged for Canadians investing with crypto-asset trading platforms
INDUSTRY DEVELOPMENTS AND INNOVATIONS
Mylo and financial rounding apps
Other apps
BlackRock invests in Acorns; Acorns integrates with PayPal
Mogo reaches 600,000 members
Bank of Canada partners with Creative Destruction Lab
Caution urged for investing with crypto-asset trading platforms
Credit Karma launches Canada's first free credit monitoring service
LendingArch’s new rate comparison technology
KEY PLAYERS – MARKETING CAMPAIGNS
Kick start your training with Finfit
Figure 10: RBC’s Finfit email, April 2018
Ally Bank announces a new debit card for kids
Acorns Later, a new retirement planning tool from Acorns
Figure 11: Acorns Later, May 2018
Erica
Figure 12: Bank of America’s virtual assistant “Erica”, May 2018
Capital One Financial superpower campaign
Figure 13: Discover your financial superpower, Capital One, June 2018
THE CONSUMER – WHAT YOU NEED TO KNOW
Only 6% of Canadians are unbanked
Rising cost of education makes student loans a financial challenge
Canadians are interested in online courses
Most Canadians pay their bills on time
Men more likely to have a financial plan
Few young women have an adequate emergency financial cushion
PRODUCT OWNERSHIP
Only 6% of Canadians are unbanked
Figure 14: Ownership of financial products, May 2018
Potential solutions for servicing the unbanked
Women have a lower investment ownership
Figure 15: Ownership of financial products (select), by gender, May 2018
Payday loans can spiral into a debt trap
Lifestage is a key determinant of product ownership
Figure 16: Ownership of financial products (select), by age, May 2018
FINANCIAL CHALLENGES
Rising cost of education makes student loans the top financial challenge
Figure 17: Financial challenges, May 2018
Saving for children’s education is among the top three parental challenges
Figure 18: Financial challenges (select), parents vs non-parents, May 2018
Saving for retirement is the top challenge for 35-54s
Figure 19: Financial challenges, by age, May 2018
Paying down credit card debt/day-to-day bills are among the top challenges for 18-34s
Better financial literacy can help young Canadians
FINANCIAL EDUCATION
A quarter of Canadians are interested in online courses
Figure 20: Interest in methods of financial education, May 2018
Few gender differences exist
Figure 21: Interest in methods of financial education (select), by gender, May 2018
Younger Canadians are more interested in financial education
Figure 22: Interest in methods of financial education (select), by age, May 2018
One-on-one meeting with a financial professional key for 18-34s
Other methods of financial education
Asian Canadians more interested in financial education opportunities
Figure 23: Interest in methods of financial education (select), Asian Canadians vs overall, May 2018
A fifth of parents are interested in financial apps for their children
TURF Analysis
Half of Canadians can be educated through meetings, online courses and apps
Figure 24: TURF Analysis – Interest in financial education, May 2018
Figure 25: Table – TURF Analysis – Interest in financial education, May 2018
BUDGETING AND SAVINGS
Most Canadians pay their bills on time
Figure 26: Attitudes related to budgeting (% agree), May 2018
Older Canadians are careful financial managers
Figure 27: Attitudes related to budgeting (% agree), by age, May 2018
Over a third of higher-income households have an emergency financial cushion
Few young women have an adequate emergency financial cushion
Figure 28: Agreement with “I have an emergency savings account that equals at least 3 months of my household income”, men vs women 18-34, May 2018
Parents with young children are financially stressed
Figure 29: Attitudes related to budgeting (% agree), parents vs non-parents, May 2018
Around three in 10 have a financial advisor
Figure 30: Attitudes related to saving (% agree), May 2018
Three in 10 are “automatic” savers
Around two in five 45-64s contribute regularly to their retirement savings
Figure 31: Attitudes (select) related to saving (% agree), by age, May 2018
FINANCIAL PLANNING
Men more likely to have a financial plan
Figure 32: Attitudes related to financial planning, by gender, May 2018
Reinforcing the importance of financial planning/advice
Around two in five 18-44s would like to learn how to manage their finances better
Figure 33: Attitudes related to financial planning, by age, May 2018
KNOWLEDGE OF FINANCIAL TOPICS
Majority of consumers are knowledgeable about credit cards
Figure 34: Knowledge of financial topics (% agree), May 2018
Older consumers are more knowledgeable about financial products
Figure 35: Knowledge of financial topics (% agree), by age, May 2018
Only around one in five Canadians follow the stock market
Figure 36: Knowledge of financial topics (% agree), May 2018
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Abbreviations and terms

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