Financial problems are the leading cause of personal stress. This affects our own spirits, the integrity of our families, and the very fabric of society.
Consumer debt is at its highest level yet and the markets have been challenging this past decade. It has been difficult for our friends and families to reach their financial goals.
The Canadian government is onto this. Its task force on financial literacy released a report last year best summarized in the opening statement of the executive summary:
"The task force believes strongly that financial literacy is critical to the prosperity of Canadians and the nation. Increasing the knowledge, skills and confidence of Canadians to make responsible financial decisions will help them meet their personal goals, enhance their quality of life and make Canada more competitive."
The five areas of focus identified by the task force are a great beginning toward taking action. In order of priority, they are: shared responsibility, leadership and collaboration, lifelong learning, delivery and promotion, and accountability.
While we wait for the government to take further action, this gives us all a great framework within which to take leadership.
We must promote financial education at all levels of society.
There is a lot that you can do to become a financial literacy champion. For instance:
1. If you've had some success financially, perhaps it's time for you to give back, be a mentor to others and help guide them to the right resources. A good starting point is www.GetSmarterAboutMoney.ca.
2. Encourage your employer to hold seminars explaining the company benefit plan and how it fits into an overall financial plan. Employers are missing the boat here and maybe all it takes is a gentle nudge from you.
3. Ask your community and trade organizations to put financial literacy speakers and workshops on the agenda.
4. Challenge your financial service providers to ramp up their educational content and provide access to the resources you need to improve your financial IQ rather than just sell you their products.
5. Within your household, raise a different financial topic at the dinner table each week and discuss it.
6. Hold a multigenerational family meeting to have the difficult, but necessary discussions surrounding estate planning. SelfCounsel Press has an excellent guide called "Estate Planning through Family Meetings" for this purpose.
7. Commit to becoming a lifelong student of personal finance. Pick up the phone or send an email to your financial advisor and ask for help in the journey.
To answer a question posed by Cain in Scripture, "Yes, you are your brother's (and sister's) keeper." We all share a joint responsibility in helping others to succeed and no one is an island. Let's not let a lack of financial literacy trigger yet another financial crisis.
The opinions expressed are those of Richard Vetter, BA, CFP, CLU, ChFC. Vetter is a certified financial planner and owner of WealthSmart Financial Group in Richmond (www.wealthsmart.ca).
