Chief Financial Commentator, CTV
We have so often heard about the importance of teaching youth about money. But it appears parents aren’t all that financial savvy either. According to a survey conducted by Ipsos Reid for LowestRates.ca, 78 per cent of respondents claimed to be financially literate.
But, when asked a series of questions to test their financial knowledge, nearly 60 per cent failed.
The quiz consisted of 15 true-or-false questions and the results suggested that Canadians are especially unclear about terminology concerning mortgages, auto insurance and tax-free savings accounts. To make matters worse, of those who passed, most obtained a C or D grade.
Test your knowledge by answering the following statements with ‘true’ or ‘false’:
(answers at article’s end)
Men were significantly more likely than women to believe they were financially literate, as 84 per cent rated themselves as excellent or good, compared to 73 per cent of women. Canadians who rated their financial literacy high were more likely to pass the quiz, but even then, fewer than half of them passed the test.
Baby boomers (52 per cent) and Gen Xers (45 per cent) were more likely to pass than millennials (31 per cent). While millennials were more likely to rate their financial literacy as excellent, they were the generation most likely to fail the quiz.
The survey showed strong financial literacy correlated with more educated Canadians. Nearly nine in 10 (87 per cent) university graduates described their financial literacy as either excellent or good, compared to 77 per cent of those with a high school diploma.
Seems young and old alike have some work to do on their financial knowledge.
Quiz answers: 1 – False, 2 – True, 3 – False, 4 – False, 5 – True, 6 – False, 7 – True, 8 – True, 9 – False, 10 – True, 11 – False, 12 – False, 13 – True, 14 – False, 15 – False.