SURVEY

Majority of Middle-Income Canadians Report Lacking Basic Financial Education

Primerica, Inc. (NYSE: PRI), a leading provider of financial services and products to middle-income families in North America, released its latest Financial Security Monitor^TM (FSM^TM) survey for Canada reflecting how middle-income families feel about their finances. The survey highlights significant concern about Canadians’ financial education and economic outlook, particularly amid growing inflation.

The survey found more than two-thirds (68%) of families feel their education did not adequately prepare them for managing their finances in adulthood. Specifically, a majority report that schools did not properly teach them basic financial principals, including the impact of taxes on their finances (85%), how to take out and pay back loans (81%), planning for the use and repayment of student loans (78%) or setting a household budget (77%).

The lack of financial education may be why nearly three-quarters (72%) of Canadians believe access to a financial professional should be universal. However, less than two-fifths (38%) think they can afford one.

"At a time when many Canadians feel uncertain about inflation and their financial futures, our survey highlights significant gaps in financial education and preparedness, as well as the misconception that financial advice is too costly for middle-income families," said John Adams, CEO of Primerica Canada. "We have long recognized these households need support, and we continue to advocate for making this type of support affordable to help Canadians of all income levels build and maintain financial security.”

The survey also highlights broader attitudes around financial uncertainty and local economic conditions. While a majority (65%) report feeling good about their own personal finances, three-quarters (75%) of middle-income Canadians rate the economic health of their province as poor. The survey also found Canadians remain highly concerned about inflation (61%) and physical health (61%), while expressing less worry overpaying for food (39%) and retirement savings (36%).

“Middle-income Canadians who feel left behind when it comes to financial education and guidance are increasingly turning to life insurance companies and the individuals that represent them for advice,” said Gary Edwards, Ph.D., co-founder and research lead of Golfdale Consulting. “Given that we know the trust factor is there, the focus should now be on ensuring access remains in place, so financial guidance is in reach for anyone that needs it.”