Why Financial Literacy Isnt Enough

1
Why Financial Literacy Isnt
Enough
At its core, financial literacy is all
about understanding money. People whore
financially literate understand how to make
use of money and to save money for their own
economic gain. Though this may look
to be a straight forward concept,
financial literacy falls short in endorsing
the kind of healthy spending habits people
needs. Here, we have explained why financial
literacy is not enough
2
FINANCIAL LITERACY DOES NOT ENCOURAGE
The major issue with financial literacy is that
it falls short to consider ones financial or
personal circumstances.
Due to this, it cant encourage people to
make smarter spending choices. Learning to
encourage individuals to make healthier
financial decisions will need a dynamic approach.
This approach should look to increase financial
knowledge while giving access to equal
resources for all individuals.
Just as importantly, however, it should ensure
that that experiencing poverty understand that an
economic use of the resources given can change
their financialcondition.
3
For Canadians to improve their financial
literacy engagement, the financial industry
need to do a better job at building faith
connection by addressing the complex emotions,
fears, and uncertainties that so many of us
have regarding money. The responsibility is on
the financial institutions to be more responsive
to their clients. Still, you can start to affect
the change for yourself by considering financial
planners services that rate highly in
regards of responsiveness, trust, and respect
alongside their credentials and expertise.
Financially l i teracy does not
address structural issues Learning about the
significance of your credit score, how to
budget and learning about interest rates
should not be knocked off. Having a strong
insight of those areas can help improve ones
financial situation, however, in an environment
where the cost of housing, medical expenses,
housing and child care are increasing while
wages are flat, financial literacy can only
alleviate but so much.
4
Most financial literacy programs are not targeted
towards the appropriate
audience MANY STUDIES HAVE BEEN PUBLISHED IN THE
PAST FEW YEARS SUGGESTING THAT EXPERIMENTAL
JUST-IN-TIME EDUCATION EFFORTS ARE MORE
IMPACTFUL. THIS IS BECAUSE TYPICAL
FINANCIAL LITERACY SUBJECTS LIKE INCOME TAXES AND
MORTGAGE LOANS ARE NOT APPLICABLE TO STUDENTS
NOW OR IN THE COMING TEN YEARS IN SOME
CASES. IF A PERSON IS INCAPABLE TO CONNECT
THEIR KNOWLEDGE WITH ACTION, THEN HAVING
THE KNOWLEDGE DOESNT SERVE THEM. WHAT IS MISSING
IS THE TOOLS AND EDUCATION REQUIRED TO
DEMONSTRATE PEOPLE HOW TO CONNECT THIS INFO
WITH THEIR FUTURE SELVES. WHEN A PERSON BUILD
UP THE SKILLS TO SEE THE FUTURE BENEFITS OF
FINANCIAL LITERACY, THEYRE BETTER EQUIPPED TO
TAKE ACTION TODAY.
The information in this commentary is for
informational purposes only and not meant to be
personalized investment advice. P lease contact
your investment professional for investment
advice and before investing in any
product. ACPI does not publish market research
and Sunil Chugh is not registered as a research
analyst. The content is from sources believed to
be accurate and the opinions expressed are those
of the author and do not necessarily
represent those of ACPI