Canadians are more financially literate than they realize: Poll

Canadians are emerging from the pandemic with a lack of confidence in their financial knowledge, with many underestimating how much they actually know, a new poll has found.

Canadians are emerging from the pandemic with a lack of confidence in their financial knowledge, with many underestimating how much they actually know about topics like savings, debt, investing and insurance, a new poll has found.

The Canada Life Assurance Co. survey asked Canadians to rate their financial knowledge, then quizzed them on financial topics ranging from inflation and capital gains to the difference between a registered retirement savings plan and a tax-free savings account.

While the average quiz score was 71 per cent, only 41 per cent of survey respondents claimed high confidence in financial matters, revealing a disconnect between the financial literacy of Canadians and their confidence.

"This was a gut check on the basic financial knowledge of Canadians, particularly as we're coming out of the pandemic," said Brad Fedorchuk, executive vice-president, group customer, with Canada Life. "What we found was a gap between their knowledge and their confidence."

The poll serves as a baseline on the financial acumen and confidence of Canadians at the start of financial literacy month, which runs until the end of November.

Financial literacy is increasingly considered an essential skill akin to reading and writing. Experts say it includes the knowledge and ability to make informed financial decisions and take steps that lead to positive financial outcomes.