ABC Life Literacy Canada

Financial Literacy For Adult Learners

Nearly 50% of Canadians struggle with simple tasks involving math and numbers making financial literacy key to improving the life of adult learners.

What is financial literacy?
Financial Literacy is having the knowledge to understand personal and broader financial matters, skill to apply that knowledge and understanding to everyday life and the confidence to use the skills and knowledge to make responsible financial decisions that are appropriate to the individual’s situation. (Task Force on Financial Literacy)

What is numeracy?
Numeracy is the knowledge and skills required to apply mathematic operations, either alone or sequentially, using numbers embedded in printed material, such as balancing a chequebook, figuring out a tip, completing an order form or determining the amount of interest on a loan. (IALS)

Without understanding the basic skills involved in managing one’s money, it is very difficult to break the cycle of poverty which is why ABC Life Literacy Canada is working to develop Money Matters™, a financial literacy program for adult learners across Canada. Money Matters™ would help adults enrolled in literacy programs make appropriate decisions about managing their personal finances, as well as increase confidence in dealing with money. Individuals require basic numeracy and financial literacy skills to live a productive and engaged life.

Facts

• For adult learners their lack of numeracy skills combined with their lack of financial literacy skills compound the difficulty in pursuing a better life for themselves and their family
• 35% of Canadians do not have any savings or investments
• Only 27% of private sector workers are covered by employer-funded pension plans
• The average savings in an RRSP is only $55,000

Higher literacy and numeracy levels affect...

• Social, economic and physical well-being
• Opportunities for social and family interaction
• Participation in community activities
• Employability
• Career advancement
• Corporate efficiency

Financial literacy is an essential skill that needs ongoing attention - today's labour markets dictate that individuals have a high level of financial literacy. If left unchecked, the low numeracy skills in Canada could affect Canada’s ability to compete in the global economy.

Additional Useful Information
Submission to the Task Force on Financial Literacy
Task Force on Financial Literacy (Official Site)
Test your math skills at the Test of Workplace Essential Skills site