Report finds Canadians not as financially literate as they think
Do you consider yourself to be financially literate?
According to a recent study, there is an inconsistency between Canadians’ perceived and actual financial literacy.
The study, conducted by Loans Canada, found that a little more than two thirds of Canadians—67 per cent—considered themselves financially knowledgable, and believed they made informed decisions about their finances. However, when they were tested on their financial knowledge, the results indicated they weren’t as knowledgable as they believed.
Of the 67 per cent who said they were well-versed in finances, 43 per cent are not tracking their spending habits, 66 per cent are not paying their credit card bill in full every month, 72 per cent are not saving on a regular basis, 44 per cent believe lenders are allowed to ask for up-front payments on persinal loans, and 30 per cent believe paying the minimum payment on a credit card bill prevents interest charges.
The findings also determined that 40 per cent of respondents are unaware that payday loans are the most expensive form of borrowing, and 38 per cent of respondents don’t compare lenders before applying for a loan.
Additionally, the report found that people who claim to be financially knowledgable have more debt than people who do not agree with this notion.
Those interested in reading the full report can do so here.
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