Despite being fresh into a new year, Canadians are still feeling the pressures of economic unpredictability and future uncertainties.
In fact, new data shows that Canadians are investing less money this season as a result of money being tight and apparently for having a lack of basic financial literacy skills.
A survey, conducted by Angus Reid for Tangerine Bank, showed that only three per cent of Canadians could identify the meaning of six common acronyms used in banks.
This includes, TFSA (Tax-Free Savings Account), RSP (Retirement Savings Plan), GIC (Guaranteed Investment Certificates), ETF (Exchange-Traded Fund), ESG (Environmental, Social and Governance) and ROI (Return on investment).
Two-thirds of Canadians were actually shocked that they failed the test, which, according to the survey, highlights the gap between Canadians’ perceived and actual financial literacy.
The data also reveals why it would be in a bank’s best interest (no pun intended) to take the initiative to help clients stay in the know and better understand the complicated financial processes and communications that exist in the world of finance.
Additionally, 50 per cent of people surveyed said a better understanding of these acronyms would make them more likely to invest and help them make their money work for them in general.
The survey also highlights how well each province is aware of bank lingo and found that overall Alberta scored higher in at least understanding four out of six acronyms the most, followed by B.C.
Ontarians seem to understand what a TFSA is more than any other acronyms with 79 per cent of respondents getting it right. However, the province still came second to Alberta who scored 82 per cent.
This study was conducted by Angus Reid and Tangerine Bank via an online survey of 1,502 Canadian adults, between Dec. 11 – 13 2023.
