Nov. 04 2025
By Mélanie Valcin, CEO, United for Literacy, and Thanuja Sangary, Senior Consultant, Sangary Consulting
Every November, Financial Literacy Month reminds Canadians that understanding money is key to building a stable future. Managing personal finances, planning, and making informed choices are skills that shape every stage of life.
As leaders working respectively in the literacy and essential skills and the financial services sectors, we have the same aspiration: helping people develop the abilities they need to reach their goals. Financial literacy is crucial to that journey. It allows individuals to budget, save, invest, and make informed decisions about their lives. But the foundation of financial literacy begins much earlier, with the ability to read, write, and understand numbers.
According to the Programme for the International Assessment of Adult Competencies, one in five Canadian adults performs at the lowest level of literacy. That means twenty percent of working-age adults may find it difficult to read documents, compare interest rates, or interpret a bank statement. Without essential skills, managing money becomes harder, and financial education is less effective.
Literacy is more than a personal skill: It is a national economic asset. When literacy rises, productivity grows, inequality falls, and communities become stronger. Research shows that even a one percent increase in average literacy can add tens of billions of dollars to Canada’s economy. This would result in a stronger job market, healthier families, and successful local businesses that together form the foundation of a resilient economy.
In the financial sector, comprehension and confidence shape how people act. Many hesitate not because they lack motivation but because information feels overwhelming. People require clear and inclusive education to make informed choices.
The risk of being taken advantage of rises for those with lower literacy or limited access to clear financial information. When people struggle to interpret financial information, such as to weigh the cost of borrowing or understand the risks of investments, it creates the perfect storm for unfair practices. What begins as a misunderstanding can quickly turn into long-term financial hardship. When people understand how money works, they protect and advocate for themselves, their families, and their communities. Building literacy skills helps individuals recognize warning signs, ask questions with confidence, and make choices that support their financial well-being and contribute to a more secure economy. Through United for Literacy’s accessible programs, learners who normally face barriers to participation can build these skills.
This is why collaboration across sectors is so important. Governments and financial institutions have all made major investments in financial literacy. This is to be celebrated. Now, the next step is to connect these efforts with initiatives that build literacy, numeracy, and digital literacy. When these skills advance in unison, people move from learning to doing, and knowledge transforms into empowerment.
To get there, we need to
Invest early and consistently. Build literacy and numeracy from early childhood through adulthood. The skills learned before age five shape a lifetime of understanding, problem solving, and money management.
Integrate literacy into financial education policies and programs. Financial education is most effective when it builds on strong reading, writing, and numeracy skills.
Use clear, inclusive, and practical language. Everyone should be able to understand and use the financial information they receive in schools, banks, or community settings.
Support the community organizations that make learning accessible to people who were excluded from formal education. Stable investment helps these organizations offer welcoming spaces, flexible schedules, and trusted relationships.
Track progress and measure what matters. Do not stop at knowledge tests. Also measure gains in literacy, confidence, and participation in community and economic life.
When people can read, understand, and use financial information, the effect is widespread. Parents can guide their children. Workers can make informed choices about benefits and retirement. Entrepreneurs can plan for growth. Communities prosper when citizens have the tools to participate fully. .png)
Financial literacy also carries an intergenerational impact. When parents model sound financial behavior and share their understanding with their children, those lessons last a lifetime. Early exposure to healthy financial habits helps break cycles of stress and instability, empowering the next generation to make informed, confident decisions.
Our conclusion is simple. We believe that literacy and financial literacy must advance together. A solid literacy base allows people to better understand financial concepts, and strong financial skills help individuals and families build stability and independence. If we want a more resilient and inclusive economy, we need to invest in both at the same time.
This Financial Literacy Month, let us focus not only on numbers in accounts but also on the words and understanding that make those numbers meaningful. By working together across sectors, Canada can ensure that every person has the knowledge, confidence, and skills to build a secure and informed financial future.
