Research Paper Topic: Financial literacy in Canada. Recently, there has been a big focus on the financial literacy of Canadians. A financial literacy committee was tasked with gaining information of...

Finance Literacy 1
Finance Literacy
Finance Literacy 2

Finance Literacy
Introduction:
With the change in education system today, financial literacy is becoming very important with
the change in different financial instruments and financial innovation across the globe. The need
and requirement of financial planning by every individual has become quite important and
evident which can be attained only after having adequate knowledge about finance which can be
implemented only after having adequate financial knowledge. It is important for the students to
have adequate knowledge about finance as it helps in different financial planning as well as
investment planning that is done by the individuals.
Financial literacy (or financial knowledge) can be stated as an input to the need of financial
education in an organization and explaining different financial outcomes that can be put forward
by the individuals so as to have adequate implementation of the financial literacy in the personal
life of individuals across the country.
The recent subprime crisis, consumer overindebtness and household bankruptcy rates have
increased the need and requirements of the financial literacy across the globe. Financial literacy
is very important as it helps the organization. It is important for the individuals to have adequate
base and knowledge about the personal financial planning so that they are able to manage their
expenses and income adequately so as to have the better focus on the future investment planning
as well as their retirement planning.
Financial Literacy results:
The research that was conducted was conducted on 75 people. ‘Selection was based primarily on
whether a study used a measure to capture an individual’s human capital specifically related to
personal finance, including terms such as financial literacy, financial knowledge or a closely
related measurement construct’ (Huston, 2010)
The adequate knowledge that was required is required by an individual in perspective of different
aspects of finance is not known by many individuals who were surveyed. Some of the main
content areas of finance literacy includes money basics which includes the aspects of time value
Finance Literacy 3

of money, purchasing power and personal financial planning; borrowings which includes the
financial planning in respect to the resources like credit cards, loans or mortgage; the other
content that is required in the financial literacy incudes content related to investing which will
include a; saving present resources through saving accounts, stocks, bonds and mutual funds, the
last part is for protecting the resources which includes the financial literacy in terms of insurance
and other risk management techniques.
These are the main aspects in which financial literacy is important to be given by the Canadian
government so as to increase the per capita income and the economy of the country. As per the
result it was concluded that out of 10, 9 people were not financially literate.
Opinion on the findings:
Financial literacy is one of the most important aspect that is required in the by an individual
which helps in the development of the individual as well as the country in whole. According to
the study, the three main barriers that the country has to facilitate the financial literacy is in
respect to the lack of the conceptualization and definition of the financials literacy, different
financial concepts which needs to be put forward to the individuals.
Ideas to increase financial literacy:
Financial literacy is one of the most important aspect in today’s world, with which the education
schools, colleges and universities needs to make a strong step in educating people about different
aspects of finance as with this the individuals will be able to have a strong analysis of the...