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Boosting financial literacy: three researchers make the case for increased financial literacy education, led by CPAs

Faculty Advisor

Date

2021

Keywords

financial literacy, CPA Canada, financial products

Abstract (summary)

Financial literacy, or more specifically the lack thereof, has been in the news for some time. Financial literacy can be defined as the possession of appropriate knowledge and skills required to manage one’s own financial resources properly. This lack of financial literacy is ever more concerning, given the global trends towards more complex financial decisions that individuals must make. For example, Canada and other countries have seen a trend of defined benefit pension plans replaced by defined contribution pension plans, shifting the financial risk for retirement income from the corporation to the individual. In addition, individuals have greater access to financial transactions through internet purchasing, the advent of cryptocurrencies, crowdfunding, and crowd financing. Put together, individuals today are making considerably more financial decisions throughout their lives due to increased access to new financial products and longer lifespans. Yet, despite its growing importance, existing academic research has consistently shown that the average financial literacy of individuals is quite low across various demographics and countries.

Publication Information

Feils, D., Malin, M. & Perez, E. (2021, November). Boosting financial literacy: Three researchers make the case for increased financial literacy education, led by CPAs. Dividends, (Fall 2021, Winter 2022), 6-7.

DOI

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Article

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