Many of us have feared for our financial health over the past 18 months. In 2020, one in four Quebeckers expressed fears about their financial future, according to the annual survey of the Institut québécois de planning financier (IQPF). Last summer, the International Monetary Fund (IMF) reported that one in four Canadians believe they cannot cope with a financial contingency of more than $ 2,000.
In the spring of 2022, what will happen once the government financial assistance programs end? Will we be ready for a potential hike in mortgage interest rates? What about repayment of our 157 billion deficit, when the consumer price index (CPI) has just posted its biggest increase since February 2003 (4.4% in September compared to same month a year ago)?
Some 5,000 financial planners across Quebec hold a permit from the Autorité des marchés financiers authorizing them to provide advice on all aspects of your financial life related to your situation and your goals. In this Financial Literacy Month, it is important to think about raising our own level of financial education, and this goes well beyond proper planning for our retirement.
If we all work to increase our level of financial literacy, then we will make better choices that will impact society as a whole.
Despite this evidence, our collective choices are sometimes paradoxical. Although the most recent Organization for Economic Co-operation and Development (OECD) study on student financial education ranks Canada second among the G20 countries in terms of accessibility of financial literacy, the abolition the economic life education course in 2009 certainly did not help make Quebecers financial literacy champions. Our knowledge in this area is very basic, according to the International Network on Financial Education.
Admittedly, since 2017, the Minister of Education has reinstated a compulsory financial education course in 5e secondary. However, successful completion of this course is not required for graduation. The message to students is that personal finance exists, but understanding how it works is not that important.
If we analyze the content of this educational renewal, we also note that it is strictly oriented towards education in entrepreneurship and personal finance management. Yet financial literacy goes far beyond budgeting. There are many resources, each better than the next, to help us better understand financial mechanisms and ask the right questions in order to make informed choices and achieve peace of mind. The IQPF and ÉducÉpargne websites are good examples.
Devoting even a few hours a year to knowing our economic environment and understanding the financial mechanisms that allow us to achieve and maintain financial health can greatly contribute to our well-being. To this end, the IQPF recommends that a 20% tax credit for eligible financial planning expenses be granted in order to encourage people to take charge of their personal finances with the help of a professional.
There’s more. Financial well-being has been shown to translate into more engaged and productive employees.
According to a study by Manulife, financially insecure employees spend almost 33% more time worrying about their finances when they are at work. Considering the widespread labor shortage in several sectors and the fact that 93% of workers confirm that financial health has a direct impact on productivity, this issue is of importance that cannot be overlooked.
We are all responsible for our health, including our financial health. The more we know about it, the more we will be able to make informed decisions that will help reduce debt and achieve a satisfactory level of financial security. It should always be remembered that the better a person’s financial health, the more they are free to make their own choices. If we apply this principle on a larger scale, our entire society will benefit.
What do you think? Express your opinion