Report summary: Evaluation of the Financial Consumer Agency of Canada Financial Literacy Program

July 14, 2020

About the program

• The Program was mandated in 2007 to support, collaborate and coordinate activities to strengthen Canadian financial literacy
• Since 2015, the Program has been guided by the National Strategy for Financial Literacy – Count me in, Canada
• Program resources vary between $8 and $9 million annually

About the evaluation

• The evaluation was commissioned by FCAC to review the Financial Literacy Program’s relevance and performance.
• The evaluation was conducted by Goss Gilroy Inc. with the following guidelines:
  • Scope: April 2014 to March 2019
  • Issues: relevance, effectiveness and efficiency
  • Objective: provide recommendations for program improvement

Methodology

• A multiple lines of evidence approach (qualitative and quantitative) was taken to gather internal and external perspectives on the Financial Literacy Program.
• Data were collected via:
  • document review / data review
  • literature review
  • interviews with key informants
  • survey of FCAC educational program teachers/facilitators
  • case studies

What is the role of the Financial Literacy Program?

• The Financial Literacy Program is consistent with federal priorities and FCAC mandate
• Federal activities are well-aligned with stakeholder expectations and priorities

Is there a continued need to strengthen Canadians’ financial literacy?

• Financial indicators and products and services confirm ongoing need
• Canadian household debt-to-disposable income ratio is one of the highest in the world
• One-third of non-retired Canadians do not have a plan to save for retirement
• Financial products and services are becoming increasing complex and expanding online

What activities have been undertaken?

• Educational program development for multiple audiences, including support for novel resources such as mobile apps
• Unbiased tools and calculators for consumer education
• Promotional activities such as Financial Literacy Month
• Research to determine effectiveness of interventions, population trends and emerging issues

What has been the level of stakeholder engagement?

• All Financial Literacy Program activities are guided and amplified through stakeholder engagement
• National Steering Committee and working groups help to inform education, promotion and research initiatives
• Regular events are held (symposia in 2016 and 2018, and research conferences in 2014, 2017, 2018 and 2019) to bring Canadians and international stakeholders together
• Eighteen regional financial literacy networks are collaborated with

Participants feedback about the Financial Literacy Program

• 75% of high school teachers were satisfied with The City Program
• 90% of facilitators were satisfied with the Financial Basics Program
• 76% of participants reported increasing their knowledge on budgeting with Your Financial Toolkit
• 75% of participants claimed increasing their knowledge on managing debt with Your Financial Toolkit
• 54% of those who started budgeting with the Carrot Rewards App were still budgeting 18 months later

What has the Financial Literacy Program accomplished?

• Increased participation in educational programs and resources to increase knowledge and skills
  • 680,000 web-visits to Your Financial Tool Kit in 2018-19, almost double since 2016-17
• Targeted new educational resources to new audiences
• Provided unbiased consumer education
  • 615,000 uses of FCAC’s online tools in 2017-18, an 123% increase since 2015-16
• Increased awareness of financial literacy with over 25M Canadians reached by Financial Literacy Month in 2019
• Shared knowledge through 1,700 resources published in the Canadian Financial Literacy Database by 250 contributors
• Leveraged behavioural science insights to encourage behaviour change
• Contributed to the evidence base—Canadian Financial Capability Survey fielded for the third time in 2019 generating comparative data

Report recommendations and management response and action plan

Recommendation 1

Renew Canada’s National Strategy for Financial Literacy.

Management response: Agree

Planned action(s): Renew the National Strategy for Financial Literacy. 

Recommendation 2

Continue engagement with national and regional stakeholders and other government departments.

Management response: Agree

Planned action(s):

• Renew the National Strategy for Financial Literacy by working collaboratively with stakeholders across the country
• Develop and implement a three-year public affairs strategy that will identify the Agency’s communication, outreach and engagement activities
• Continue engagement through committees and working groups, and ongoing communication with stakeholders

Recommendation 3

Explore opportunities to develop a grants and contributions fund to support development, piloting and scaling of interventions.

Management response: Partially agree

Planned action(s): Investigate funding options not limited to grants and contributions to ensure the development, piloting and scaling of interventions.

Recommendation 4

Improve the Canadian Financial Literacy Database.

Management response: Agree

Planned action(s): Examine how to improve the Canadian Financial Literacy Database by leveraging best practices and lessons learned.

Recommendation 5

Reinforce links between insights generated by academic and FCAC research, and the needs of financial literacy practitioners.

Management response: Agree

Planned action(s): Undertake the development of an integrated and prioritized research plan in consultation with partners.

Recommendation 6

Continue to invest in awareness and promotion of financial literacy, particularly in regions where interest and take-up has been weaker.

Management response: Partially agree

Planned action(s): Establish a cross-functional approach to communication, outreach and engagement.