This text is part of the special Personal Finance section
Making money in Quebec, we know, is taboo. The annual salary and the amount of one’s savings are not the subjects that we broach at first glance during the middle of Christmas dinner. However, it is a fundamental question, point out specialists, who are saddened by the lack of knowledge in personal finance among the average Quebecer.
” It’s not sexy to talk about finance, admits Isabelle Garon, senior vice-president of marketing, communications, cooperation and the president’s office at Desjardins. But it’s fundamental to manage your personal finances: it’s what will get you where you want… or stop you. »
When asked how the financial literacy of Quebecers is doing, Isabelle Garon jokes “correct”, as her teenager would have answered her a few years ago. “Not good enough, I’ll answer like that,” she continues. Both young and old. »
According to a recent survey conducted by Desjardins, 70% of its members across the country consider their financial knowledge to be good. Among those aged between 18 and 30, this percentage drops to 60%. And, interestingly: 90% of young respondents want to improve their knowledge and have greater financial autonomy.
Maly Charbonneau, co-founder of Welcome Spaces, also says she is worried about the state of Quebecers’ knowledge of personal finances. Its exchange platform between clients and financial professionals launched a survey last summer among 1,000 participants aged 18 to 44 in order to draw up a financial portrait of young Quebecers.
The results are quite worrying, even among older people. The average obtained by respondents to the financial literacy quiz, containing everyday financial questions, is 62%. Among 18 to 24 year olds, this average drops to 55%. More than half of the Quebecers surveyed (56%) do not understand the basic rules of consumption taxes, and one in two respondents manage their finances without a budget.
“We also realize that many people come out of university and do not know what compound interest, a mortgage broker or GDP is,” underlines Mme Charbonneau.
A faulty education?
Moreover, 80% of respondents consider that the financial education they received at school is unsatisfactory. “Even I left university with a degree in marketing and finance and I didn’t know how to do my personal taxes,” she illustrates.
Isabelle Garon also believes that financial education should be better integrated into the Quebec school curriculum. “I sincerely think that from primary school, we should start teaching children basic concepts,” she says. Obviously, I won’t talk to a 6-year-old child about debt ratio! »
But concretely, we can teach them the fact that a plastic card does not allow them to buy everything they want, for example. Mme Garon too often sees young people who have made bad financial choices and who find themselves, at 25, with full credit cards. “This is worrying in a context where the economic situation is difficult,” she adds. The increase in the cost of living and food, the housing crisis… everything is exploding! »
A good starting point
But where do you start when you feel overwhelmed by your financial situation? The answer is simple, according to the two specialists: consult an expert. This can be with your financial institution or with organizations such as cooperative home economics associations.
“I think the first person we should do business with is a financial planner or a financial security advisor: it’s like a doctor’s general practitioner, but in finance,” explains M.me Charbonneau. And a lot of people don’t have one. This is the person who, from the start, will be able to analyze your income, your family situation, your asset management…” It is also important to “shop around” for your expert, she reminds us, to find a trusted person.
A game to test the consequences of your financial choices
This content was produced by the Special Publications team at Duty, relating to marketing. The writing of the Duty did not take part.