Interview: Talking Financial Literacy with Jane Rooney of the FCAC (audio)

Capping off our extensive coverage of #FLM2017, Nancy Snedden, our Licensed Insolvency Trustee in St. John’s, Newfoundland, spoke with the Financial Consumer Agency of Canada’s (FCAC’s) Jane Rooney, National Financial Literacy Leader on her VOCM radio show. Here are some highlights of their conversation:

This year’s theme for Financial Literacy Month was Take Charge of Your Finances #ItPaysToKnow. Over 400 people attended a National Financial Literacy Conference in Montreal and there were thousands of events across the country.

Canadian students are doing really well against other countries when it comes to financial literacy. Most 15-year-olds in every province across the country scored above average on an international financial literacy test.

It’s never too early to start talking about money. A U.S. study suggests talking about delayed gratification between the ages of three and five. By six years old, you can start talking about coins and money.

Health and financial well-being are closely linked. Productivity in the workplace diminishes if someone has financial stress.

Six out of 10 people say they didn’t know how much to save for retirement. With Canadians living longer, they’ll need to have more money for healthcare and assisted living.

Financial literacy is about knowledge, skills and confidence. Having a budget increases confidence in making financial decisions, because you can clearly see how you can change your spending habits.

If you are living paycheque to paycheque, tracking and reducing small expenses through a budget can help you pay down debt. You’ll need to keep revisiting your budget to make sure you’re living within your means.

Interest rates are most impactful on people with a fixed income, when coming up for renewal on a loan or mortgage. More and more Canadians have a HELOC (home equity line of credit), which could also see its interest rate rise.

In five years, the use of payday loans doubled—up to 4.3 per cent of the population. People are often using payday loans for necessary and expected expenses.

When you’re in a mortgage, there are ways to pay it off quickly. Accelerated biweekly payments can help you pay off your mortgage debt sooner.

Listen to Nancy’s full interview with Jane Rooney below: