CPABC in Focus November/December 2014 | Page 30

Working to Improve Financial Literacy and Why It Matters By Fanny Romeyn, CPA, CA L Fanny Romeyn is the controller at Decoda Literacy Solutions. iteracy pervades almost all aspects of modern life, including personal finances. Financial literacy is defined as the ability to understand how money works in the world—including how it is managed. The term also refers to the set of skills and knowledge an individual needs in order to make informed and effective decisions regarding all of their financial resources, whether large or small. The ability to make informed financial decisions is essential for all Canadians, regardless of income level or wealth status. These decisions have an impact on the financial security, well-being, and prosperity of individuals, families, communities, and society as a whole. Policy-makers and financial service providers often assume that all individuals are equipped with the skills needed to make important financial decisions on their own, but research does not support these assumptions. In 2011, a whopping 72% of Canadians said they are not confident that their math and money-management skills will help them plan for a secure financial future.1 US and cross-border tax is our business. Let us help you with yours. US citizens resident in Canada Cross-border business activities Canadians with US investments US tax return preparation Liz McLeish, CA Sidhartha Rao, JD | LLM Warren Dueck, CPA | FCA Lori Lui, CGA Steven Flynn, CPA | CA Daren Raoux, CPA | CA How limited literacy and numeracy skills affect financial literacy Accessing and understanding financial information, tools, and advice can be challenging even for individuals who are skilled at reading and at working with numbers. For those with lim ]Y]\