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General Survey on Consumers' Financial Awareness, Attitudes and Behaviour (Executive Summary)
Management Issues
All respondents were asked about four aspects related to the management of their personal finances:
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Confidence in making effective financial decisions;
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Use of a monthly budget;
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Actions to prevent identity theft; and,
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Need for education.
Confidence in making effective financial decisions
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Findings indicate a high level of self-confidence among consumers. Overall, almost all respondents (92 percent) felt at least "somewhat" confident and almost half (44 percent) felt "very" confident.
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Considering the complexity of the financial services market and the uncertainty associated with many financial decisions, this figure is quite remarkable.
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Considering the complexity of the financial services market and the uncertainty associated with many financial decisions, this figure is quite remarkable.
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This high level of self-confidence was observed throughout the demographic groups. The only significant difference worthy of mention was that older respondents were much more likely than any other group to feel "very" confident (58 percent).
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Note that respondents with higher levels of education were not as confident as their lesser educated counterparts. Their combined "very" and "somewhat" confident figures were quite similar, the "very" confident figures were higher among the less educated (47 percent) when compared with the more educated (37 percent) respondents.
- The above observations suggest a paradox: self-confidence in making the right decisions does not increase with education or level of knowledge.
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Note that respondents with higher levels of education were not as confident as their lesser educated counterparts. Their combined "very" and "somewhat" confident figures were quite similar, the "very" confident figures were higher among the less educated (47 percent) when compared with the more educated (37 percent) respondents.
Following a monthly budget
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When asked if they followed a monthly budget, it turned out that one-third of all respondents followed 'closely', one-third 'more or less' and one-third did 'not at all' follow a monthly budget.
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Those least likely to follow a monthly budget 'closely' were B.C. and Prairies residents.
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Those most likely were Quebec residents and Francophones.
Age, gender and education did not seem associated with this habit.
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Those least likely to follow a monthly budget 'closely' were B.C. and Prairies residents.
Actions to prevent identity theft
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71 percent of all respondents said that they had taken steps or actions to protect themselves from identity theft - a figure that is quite high, but also one that indicates a substantial minority of the consumers do not pay attention to this important risk.
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There were few differences between the various demographic groups.
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Those most likely to give importance to the risk of identity theft were older respondents and those least likely were northern residents and those living in Quebec.
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Those most likely to give importance to the risk of identity theft were older respondents and those least likely were northern residents and those living in Quebec.
Need for education
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41 percent of all respondents acknowledged a need for further education, especially northern residents.
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Those least likely to feel a need were older respondents and Francophones.
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Those least likely to feel a need were older respondents and Francophones.
- It is interesting to note that more respondents who had stayed at school longer felt the need for more education / information, when compared with their lesser educated counterparts. This observation suggests that lower educated consumers are less aware of the importance to be more informed or don't feel they have the required knowledge to become more informed.
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