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Financial Literacy

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Financial Literacy

Definition: The possession of knowledge and understanding of financial matters. Financial literacy is mainly used in connection with personal finance matters. Financial literacy often entails the knowledge of properly making decisions pertaining to certain personal finance areas like real estate, insurance, investing, saving (especially for college), tax planning and retirement. It also involves intimate knowledge of financial concepts like compound interest, financial planning, the mechanics of a credit card, advantageous savings methods, consumer rights, time value of money, etc.

In the year 2000 April was designated Financial Literacy month in the U.S.

In the 2009 budget, the Minister of Finance 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 is comprised of 13 members, drawn from the business and education sectors, community organizations and academia. The Task Force on Financial Literacy was created with the ambitious mandate of providing recommendations to the federal Minister of Finance, by the end of 2010, on a national strategy to strengthen Canadians’ financial literacy.

The Task Force on Financial Literacy will provide advice and recommendations to the Minister of Finance on a national strategy to strengthen the financial literacy of Canadians. This strategy will outline 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.

In 2010 the Consultation Reportwas released entitled:

Leveraging Excellence: Charting a course of action to strengthen financial literacy in Canada

Their definition of Financial Literacy:

• “Knowledge” means understanding personal and broader financial matters.
• “Skills” are the ability to apply that knowledge in everyday life.
• “Confidence” means feeling self-assured enough to make important decisions. This is often a key factor in galvanizing people into action.
• By “responsible financial decisions”, we mean that people will be able to use the knowledge, skills and confidence they have gained to make choices that are appropriate to their own circumstances.

In this report Canadians were given the opportunity to participate through various methods. Here is the excert taken from the document.
To guide our consultations, this document identifies the issues and questions we would like to present for your consideration. Task Force members will visit communities from coast to coast to coast this spring, and meet with Canadians face to face. We also invite you to provide us with your submissions and suggestions in writing. Our final report to the federal Minister of Finance will reflect your comments and suggestions, as well as our research findings and a review of “best practices” at home and abroad.

Sample consultation questions include:

What financial knowledge and skills are essential for all Canadians?
What would you recommend to improve and/or build on existing financial literacy programs and initiatives in Canada?
What initiatives could be put in place to encourage more collaboration among the public, private and non-profit sectors?
What do we need to do to make financial education universal, relevant and accessible to
all Canadians?
What other efforts would improve financial literacy education in Canada?
What parties should contribute to financial literacy education in Canada, and what roles should the following participants perform?
What initiatives might encourage people to stop procrastinating and start making, and sticking with, a financial plan?
What can we do to counteract people’s inclination to “live for today” instead of planning for tomorrow?
What strategies would you recommend to help consumers who are overwhelmed by the
number and type of financial products that are available to them?

 

What does C.B. "Bud" Johnston//Western Libraries have to offer to assist in this exercise and beyond?

SAMPLE SEARCH RESULTS

Books


SAMPLE SEARCH RESULTS

Financial Intelligence: a manager's guide to knowing what the numbers really mean HG4028.B2B422 2006

Financial Literacy Education: What Do Students Need to Know to Plan the Future ONLINE

Financial Literacy Lessons from International Experience ONLINE


Articles
Available to current students, staff and faculty with Western Identity login.

SAMPLE SEARCH RESULTS

From: Factiva
From:
ProQuest

 

C.B. "Bud" Johnston Find Answers Quickly : Search FINANCE

Sample results:

Guides prepared by Business Library staff specifically related to FINANCE

Samples: Bonds,  Derivatives,  Financial Ratios,  Hedge Funds, Value Investing,  Investment Education for Canadians among others.

WebSites Economics and Finance Websites collected by Business Library Staff

Online Dictionaries & Glossaries to help with financial terms and concepts.
Dictionaries


 

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