Canadians Score Low on Financial Basics: New Study

Credit Canada announces first ever ‘Credit Education Week Canada’ to build financial awareness and increase Canadians’ financial IQ

Toronto, ON – Canadians report feeling more in debt than ever with 90% saying they have more debt today than five years ago, according to a recent study sponsored by Credit Canada. Despite this feeling of indebtedness, over half of Canadians (53%) still do not have a personal/household budget. Furthermore, they remain unaware of critical information and tools that are available to help them manage that debt. For instance, the survey results showed that a large majority (80%) do not know their credit rating (or credit score), leaving them in the dark about a key factor in the cost of their debt.

"A credit score can be one of the most significant numbers in consumers’

lives. Our survey findings substantiate the need for greater education on key personal finance issues including credit, savings, and retirement planning," says Laurie Campbell from Credit Canada. "It is critical for Canadians to have the knowledge and capacity to effectively manage their finances today in order to plan for and build a stronger future."

The survey findings also highlight other significant gaps in public awareness and behaviour when it comes to personal finance. For example, one-quarter (26 percent) of Canadians do not consider the consequences of a rising interest rate when borrowing money.

Taken together these gaps mean many Canadians lack the knowledge to effectively manage their finances, a situation that could be taking money out of their pockets. To sharpen the Canadian financial IQ, Credit Canada and Capital One Financial Corporation are teaming up to co-sponsor the first ever Credit Education Week Canada that will take place November 13-16 of this year.

"Understanding the basics of credit and personal finance can have a tremendous impact on your financial well-being, both today and in the future," said Bill Cilluffo, president of Capital One Canada. "Capital One is committed to building awareness on all issues related to personal finance. We are proud to partner with Credit Canada, and we hope Canadians will take advantage of Credit Education Week events and resources to build their credit wisdom."