In fiscal 2010-2011, FCAC carried out a number of activities to continue promoting education and compliance. Among other things, FCAC:

• expanded its financial literacy program to reach more Canadians: a financial literacy workshop intended for young adults, was added to the flagship financial literacy initiative, The City.
• established a new research function to deepen its ability to address emerging consumer issues and trends. This new function will enable FCAC to better adapt its financial education initiatives to the needs of Canadians and provide the federal government with more valuable intelligence more quickly.
• implemented a stronger compliance framework to assess compliance risks of regulated entities. In future, this platform will be integral to FCAC’s monitoring work.
• renewed its website, making it more interactive, accessible and user-friendly. The restructured site presents financial information based on main life stages. It’s now easier and faster to find the information needed to make informed financial decisions.

In an effort to reach out to even more Canadians, FCAC worked with its partners to develop, deliver and promote its programs in diverse communities from coast to coast to coast. “One of the most exciting examples of this partnership approach is FCAC’s new Financial Basics workshop for young adults,” says FCAC Commissioner, Ursula Menke.

To create this workshop, FCAC teamed up with the Investor Education Fund of Ontario, and worked in collaboration with financial author and journalist Ellen Roseman. To deliver the workshop, the Agency worked with various organizations, including the Association of Canadian Community Colleges, which facilitated presentation of the workshop at ten colleges across the country during 2010-2011.

In 2010-2011, FCAC also launched a public awareness campaign to assist first-time home buyers and owners about to renew their mortgages. The campaign featured ads in public transit that drew attention to FCAC’s suite of mortgage resources. The Agency also teamed up with members of the real estate industry to distribute financial information further targeting these Canadians.

As a leader in financial literacy, FCAC intends to continue playing a key role for Canadians by conducting activities and initiatives that will help them acquire the knowledge, skills and confidence they need to make informed financial decisions. “Building on the groundwork we have laid, we will find other ways to help all Canadians get the financial information they need, when they need it,” concluded Ms Menke.

To consult the Annual Report, or to get in touch with us, go to the Agency’s website at fcac.gc.ca.

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Financial literacy means having the knowledge, skills and confidence to make responsible financial decisions. Financial Literacy Month will raise awareness of the need for financial literacy and encourage Canadians to seek information, programs, and services to help strengthen their financial knowledge.

The FLAG members, in collaboration with FCAC, have joined forces to develop a series of activities and events across the country. To support Financial Literacy Month, FLAG and FCAC have launched a new website to help inform Canadians about the multiple programs and services offered by many organizations across the country: financialliteracymonth.ca also contains links to the Financial Literacy Month in Canada Facebook page and LinkedIn group, which the organizers will use to share relevant information and engage with partners and the public.

“We’re pleased to launch the FLM website, which will be a key resource for details on the dates and locations of activities linked to Financial Literacy Month. It will highlight the programs, services and tools right across the country that will help Canadians strengthen their financial literacy,” said Laurie Campbell, Executive Director of Credit Canada.

“As the Government of Canada’s lead agency on financial literacy, we are pleased to be working with FLAG to bring Financial Literacy Month to Canadians,” says Ursula Menke, Commissioner of the Financial Consumer Agency of Canada (FCAC).

In addition to FLAG members and FCAC, several national, provincial, community-based and not-for-profit organizations will also participate in Financial Literacy Month to raise awareness of the need for financial literacy in Canada and to encourage Canadians to reinforce their financial knowledge. The FLM website lists the activities that will be offered by all participating members across Canada in November 2011. Activities range from those for all Canadians, to those especially developed for people with specific needs, such as seniors, youth, students and teachers.

For more information, visit financialliteracymonth.ca.

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• identify the expenses involved in moving and any options for reducing costs, such as living with one or more roommates
• make sure you take into account all the related costs, not just your rent.

FCAC also suggests separating your expenses into three distinct categories:

Deposits: When you move, you usually have to pay the landlord the first and last months’ rent. In some provinces, you may also be asked to provide a security deposit to cover any damage you may cause to the apartment. You may also have to pay deposits for electricity, heating and phone bills.

Settling-in expenses: Think about the cost of the moving truck and the pizza for the friends who are helping you. Settling-in costs also include household items, such as furniture, dishes, small appliances, cleaning products and so forth. And think about the fees that Canada Post charges to forward your mail ($72.50 in the same province or territory or $90.00 between provinces).

Ongoing expenses: Some recurrent expenses will have to be paid, over and above the monthly rent. These include insurance for your possessions and premises, as well as groceries, parking or transit, cable, Internet, land or cell-phone line, and laundry costs.

Living alone versus with roommates

A roommate or two can help reduce ongoing expenses, amenities and other household expenses. However, looking for roommates can be an obstacle course. Make sure you write down carefully what you are looking for. Once you have found your roommate, make a list of your respective responsibilities. How will the rent and other expenses be divided and how will you share household tasks?

Now you have to sign the lease. Make sure to ask what is included and who you should call with any questions or complaints. FCAC suggests that you read the tip sheet ”Before you Sign any Contract: 10 things you need to know”.

Follow @FCACan on Twitter
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“I would like to congratulate the winners of our contest, students Julia Lussier, Cameron Leake and Jessica Godin. Their new laptops will give them easy access to The City, and help them continue to track and manage their personal finances,” said Ursula Menke, FCAC Commissioner. “The City is a great resource that teaches students financial skills that will benefit them now, and in the years to come.”

The City was developed by FCAC and the British Columbia Securities Commission in order to help educators teach young people the fundamentals of managing personal finances.

The City teaches money management, through eight characters facing common financial circumstances at different life stages. Students learn the difference between needs and wants, budgeting, managing money, building savings, using credit wisely, the benefits of insurance and avoiding fraud. Learning these lessons in the virtual world helps students to avoid making financial mistakes in the real world.

To be eligible for the contest, students were required to complete four modules of The City and score 100% on a follow-up quiz. The three winners, who are from Bridgetown, Nova Scotia, North York, Ontario and Vernon, British Columbia, were randomly selected from the eligible group.

Simonds High School in Saint John, New Brunswick will receive a SMART Board ^TM thanks to teacher Jan Leblanc, who enrolled her class in The City. “The City was a fantastic interactive program for my students,” said Leblanc. “They enjoyed working online compared to working in a regular classroom environment.”

The City is available free of charge at fcac.gc.ca. FCAC’s website also provides other tips and interactive resources for teachers, students and parents.

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Held in Toronto on May 26-27 and hosted by FCAC and OECD, the one-and-a-half-day conference covered:

• national financial literacy strategies and surveys on financial literacy
• steps to address financial literacy gaps in credit and debt management, retirement planning and technological innovation
• evaluation of financial education programs
• the use of social marketing and communications in financial literacy programs
• capacity building and train-the-trainer programs
• financial education in the school system
• gender and financial education
• financial literacy and behavioural economics.

“The remarkable number of delegates who attended this conference shows that financial literacy continues to gain momentum, both in Canada and around the world. The information and best practices shared during this event will improve financial education and strengthen the ties that unite members of the financial literacy’s worldwide community. Increasing financial literacy is not a goal we can achieve working in silos. Building partnerships and collaboration among financial literacy advocates is crucial if we want to implement strong and efficient national strategies, and succeed in raising financial literacy levels among our fellow citizens,” stated FCAC Commissioner Ursula Menke.

Partnering to turn financial literacy into action brought together close to 400 senior officials and experts from the private, public and voluntary sectors, as well as members of the academic community.

“We are very pleased with the response of both Canadian and international participants to this conference,” declared André Laboul, head of the OECD Financial Affairs Division and chair of the INFE.  “This event took place against a background in which financial education and financial consumer protection have gained even more recognition from governments and global organisations like the G20. This calls for further and closer collaboration among public institutions and stakeholders active in the field of financial education and the OECD is fully committed to continuing to play a leading role in this field in particular through the International Network for Financial Education (INFE).”

A report summarizing the conference’s discussions will be published in the fall of 2011.

To find out more, view the #FinLitConf hashtag on Twitter, which was used by FCAC (@FCACan) and other Twitter users to gather tweets referring to the conference.

With the global financial and economic turmoil of the past few years, many Canadians and other individuals around the world have been struggling with their personal finances. “Many people are having difficulties keeping track of their expenses, making their mortgage payments, reimbursing their credit card debts, building savings for emergencies and planning for their retirement; all the while struggling to make sense of increasingly complex financial information,” explains FCAC’s Commissioner, Ursula Menke . “Given these challenges, the momentum to increase financial literacy levels in Canada and around the world is stronger than ever. That’s why FCAC and OECD are pleased to host this conference, which will focus on how we can help individuals improve their financial knowledge and the way they manage their personal finances,” said Menke.

“The current international context calls more than ever for increasing action on financial education and awareness. The OECD, through its International Network on Financial Education (INFE) of 81 countries is committed to contribute actively to the global policy debate, developing international instruments based on good practices and supporting broad data collection necessary for the design of effective financial education strategies. This effort is further enhanced through the work of the OECD Task Force on Financial Consumer Protection currently addressing G20-related developments. The global attention to these issues should encourage us to continue engaging with international bodies, policymakers, private stakeholders and the civil community to further financially empower individuals and allow them to fully participate in today’s society,” stated André Laboul, Head of the OECD Financial Affairs Division and Chair of the INFE.

The Conference’s objectives are to:

• better understand how and why individuals make the financial decisions they do
• examine how we can work toward changing attitudes and financial behaviours
• highlight key players and lessons learned in the supply of financial literacy products and services
• highlight international examples of effective financial literacy strategies
• promote networking and cooperation among organizations from the private and public and voluntary sectors with a view to discussing and exchanging best practices
• create new partnerships to further financial education.

The conference is open to invited delegates and accredited members of the media only.

For more information about this event, please visit the conference’s website: Partnering to Turn Financial Literacy into Action.

You can also follow the #FinLitConf hashtag on Twitter, which will be used by FCAC (@FCACan) and other Twitter users to gather tweets referring to the conference.

Media

Members of the media who would like to attend the conference must first register with the Financial Consumer Agency of Canada (FCAC). Please call Julie Hauser at 613-941-4168 or email media@fcac.gc.ca.

“This is a great way to bring our resources to the consumer,” says FCAC Commissioner, Ursula Menke. “Social media allows us to reach and engage Canadians in a way we couldn’t before. It offers a world of endless possibilities through which we can better raise awareness of the importance of making sound financial decisions.”

FCAC also extensively redesigned and restructured its website, fcac.gc.ca, in order to make it easier and faster for users to find the information they need to make informed financial decisions.

New design and updated information are just a start. In addition to social media applications, the website is significantly more interactive and organizes resources and information according to key life events, such as starting your first job, owning a home and planning for retirement. The site also provides improved navigation, search tools, news, consumer alerts and resources from tip sheets to publications on mortgages and other loans, saving and investing, insurance, banking and protecting yourself from fraud. Some of the most popular features are the online Budget Calculator, Mortgage Calculator, Mortgage Qualifier, Credit Card Payment Calculator and Credit Card Selector tools.

The new site also includes a number of improvements in navigation, search tools, and appearance of the sections that are geared towards federally regulated financial entities that FCAC oversees. These changes will facilitate dissemination of new information to the Industry. 

Follow @FCACan on Twitter, subscribe to FCACan YouTube Channel and take a look at FCAC’s new website, fcac.gc.ca.

This publication provides a definition of insurance, and explains how it works and why we might need it.

 “Insurance is an important part of financial planning, but the field may sometimes be daunting,” says FCAC Commissioner Ursula Menke. “This new publication is a starting point for your research: it describes the most common types of insurance, what you should know before you buy insurance and how to file a complaint.” It also provides a glossary of insurance terminology. “This publication helps Canadian consumers make informed decisions about insurance.”

FCAC stresses that before you buy insurance, you should:

1. Shop around.
2. Compare the products, not just the prices.
3. Read the policies and conditions that apply carefully and make sure you understand what is covered and what is not.
4. Reassess your insurance needs at major milestones in your life—for example, when you buy a new property or become a parent.

“The main purpose is to help Canadian consumers understand that they should identify their insurance needs before buying insurance,” explained the Commissioner. “The decision will depend on your personal circumstances and what stage you are at in your life. For example, it would be wise to buy travel medical insurance for frequent travel outside Canada. Auto insurance is mandatory if you own a car. There are many insurance products on the market, which cover different types of risks. It all depends on you, your needs and your circumstances.”

Understanding Insurance Basics is posted under Publications at the following address: moneytools.ca. 

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“I am very pleased to announce that Alberta’s Ciera Hubert from Edmonton and Andrew Pyle from Bragg Creek, as well as Kevin Bilsland from Sharon, Ontario are the lucky winners of The City contest,” said Ursula Menke, Commissioner of the Financial Consumer Agency of Canada (FCAC).  “By using The City, these students, as well as the other contest participants, had the opportunity to learn about topics that will be important to them for the rest of their lives: the basics of budgeting and savings, banking, loans, investing and overall money management. The new laptops will allow the winners easy access to The City and its tools that can help them to track their finances and start planning for their financial future,” she added.

A school in Toronto has a SMART Board™ thanks to the efforts of teacher Clarence Sze-chun Yeung, a math teacher at SATEC@W.A. Porter Collegiate Institute who enrolled his class in The City. "This was the first time I used The City.  The students really enjoyed the stories of the online characters, and were hooked on finding out what happened to them. They also learned a lot about managing their own finances,” said Yeung.

Another contest is now underway for students and teachers who enrol in The City in the second term. To be eligible, students and teachers in any Canadian province or territory must register and participate in The City before March 31, 2011. The contest rules are available on FCAC’s website, or can be obtained by calling the Agency’s Consumer Contact Centre toll-free at 1-866-461-3222.

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You have the right to open a bank account

You have the right to open a personal bank account even if you do not have a job, do not have any money to put in the account right away or have been bankrupt. In some cases, however, the bank can refuse to let someone open an account: for example, if it has good reason to believe that the person will use the account to break the law or commit fraud.

You have the right to cash Government of Canada cheques

Under Canadian law, you have the right to cash cheques from the Government of Canada for up to $1,500 at any federally regulated financial institution, free of charge. “You can cash these cheques even if you are not a client of that institution,” says Ms. Menke, as long as you can show two valid, original pieces of identification.

You have the right to know the terms and conditions of your loan

There are many types of loans available, from mortgages and lines of credit to personal loans and credit cards. When you apply for any loan from a federally regulated financial institution, it must provide you with certain important information, shown in an information box at the beginning of the credit contract. Under the Cost of Borrowing Regulations, this information must include the credit limit or the loan amount, the annual interest rate and the minimum payment for each payment period, among other key terms.

In a video success story, Monica Daga, settlement worker, helps new immigrants understand the financial system. For more information or to get FCAC publications or use our interactive tools, visit the Agency’s website at: moneytools.ca

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