Ipsos Reid / The Province Financial Literacy Poll Final Results September 16, 2010

Methodology These are the findings of an online Ipsos Reid / The Province poll of 1,376 adult British Columbians conducted using Ipsos Reids online household panel between August 22 and 29, 2011. A survey with an unweighted probability sample of this size and a 100% response rate would have an estimated margin of error of 2.7 percentage points, 19 times out of 20. The margin of error would be larger within sub-groupings of the survey population. These data were statistically weighted to ensure the sample's regional and age/sex composition reflects that of the actual BC population according to 2006 Census data. Ipsos Reid Contact Kyle Braid, Vice President, Ipsos Reid Public Affairs, (778) 373-5130

RESULTS
Overall Assessment of Personal Financial Management

Q1.

How would you rate yourself on each of the following aspects of personal financial management?
Total % 18-34 yrs % 7 43 36 12 2 35-49 yrs % 19 38 32 9 1 50-64 yrs % 13 39 38 8 1 65+ yrs % 16 49 30 4 1

Your level of knowledge of what to do: Very good Good Fair Poor Very poor
13 41 35 9 2

Total Good Total Poor

Very good Good Fair Poor Very poor

55 10
9 32 40 14 5

50 15
4 29 47 12 8

57 10
12 30 38 16 4

53 9
9 29 39 18 4

65 5
9 32 40 14 5

Your performance at actually doing what you should do:

Total Good Total Poor

40 19

33 21

42 20

38 22

40 19

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Assessment of Basic Financial Tasks

Q2.

More specifically, how would you rate yourself on each of the following?
Total % 18-34 yrs % 15 32 31 20 3 35-49 yrs % 23 36 28 8 4 50-64 yrs % 21 35 32 10 2 65+ yrs % 28 41 24 6 1

Controlling your spending: Very good Good Fair Poor Very poor
21 35 30 12 3

Total Good Total Poor

Making and sticking to a budget: Very good Good Fair Poor Very poor

56 15
15 30 35 14 5

47 22
14 23 43 13 7

59 13
15 36 31 15 4

56 12
14 31 33 18 4

69 7
22 34 32 9 4

Total Good Total Poor

Investing your savings: Very good Good Fair Poor Very poor

46 19
13 32 28 17 10

37 20
10 28 26 19 17

51 18
15 33 25 19 8

45 22
12 33 33 15 7

55 12
20 40 25 11 5

Total Good Total Poor

45 27

38 36

48 27

45 23

59 15

Personal Financial Plans and Information

Q3.

Which of the following types of personal financial plans and information do you have?
Total % 18-34 yrs % 38 34 16 8 43 35-49 yrs % 49 46 23 21 29 50-64 yrs % 47 37 20 19 35 65+ yrs % 60 40 13 20 23

Detailed records of how your money is spent A personal or household spending budget A debt reduction plan A written financial plan to achieve your financial goals None of these

47 39 18 17 34

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Good Understanding of Financial Terms

Q4.

Please indicate whether you have a good understanding of each of the following financial terms.
Total Yes % 18-34 yrs Yes % 55 60 51 45 34 40 41 34 41 24 28 20 15 11 6 7 35-49 yrs Yes % 75 66 60 64 59 59 57 59 54 40 41 41 34 22 20 15 50-64 yrs Yes % 77 67 62 66 70 66 63 57 45 48 40 45 39 28 26 12 65+ yrs Yes % 75 75 65 60 74 64 69 61 36 49 39 42 41 30 31 12

Registered Retirement Savings Plans (RRSPs) Tax Free Savings Accounts Life insurance Fixed or variable mortgage Term deposits Compound interest Guaranteed Investment Certificates (GICs) Mutual funds Registered Education Savings Plans (RESPs) Bonds Stock market Deposit insurance Common stocks Treasury bills Preferred stocks Exchange Traded Funds

70 66 59 59 58 56 56 51 45 39 37 37 31 22 19 11

Monthly Savings

Q5. Q6.

Do you put aside money each month for long-term savings or emergency expenditures? [IF YES] On average, how much money do you put aside each month for long-term savings or emergency expenditures? (Please provide your best estimate)
Total % 18-34 yrs % 21 16 42 21 35-49 yrs % 36 23 20 21 50-64 yrs % 32 23 26 19 65+ yrs % 20 33 18 29

Yes, a certain amount each month Yes, although the amount varies per month Only when I have money for savings that month No

28 23 28 21

Average Per Month (among those saying either Yes response) Median Per Month (among those saying either Yes response)

$635 $400

$715 $450

$482 $300

$573 $300

$829 $300

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Barriers to Achieving Financial Security

Q7.

Which of the following, if any, are significant barriers to you achieving financial security?
Total % 18-34 yrs % 53 48 43 29 14 15 35-49 yrs % 47 33 29 15 11 26 50-64 yrs % 43 22 23 15 5 39 65+ yrs % 35 9 18 8 3 52

Unexpected expenses High level of debt (including mortgage) Difficulty saving money on a regular basis Difficulty controlling your spending Lack of understanding of how to save/invest None of these

46 30 30 18 9 31

Biggest and Second Biggest Expenses

Q8.

Which of the following are your two biggest expenditures right now?
Biggest Second Biggest Total % 30 7 15 14 14 7 11 20 4 15 44 33 25 23 14 <1 1 89 57 18-34 yrs % 29 4 20 14 15 14 9 14 4 15 11 7 02 06 45 08 02 64 2-6 35-49 yrs % 45 9 13 18 16 7 6 23 2 15 24 35 22 12 12 0 - <1 59 54 50-64 yrs % 27 9 13 15 13 4 11 22 6 16 32 64 24 23 22 11 10 11 67 65+ yrs % 13 4 11 8 94 20 22 6 16 11 42 99 24 33 12 10 12 13 14

Mortgage Debt payments (other than mortgage) Rent Food for home Transportation Education Investing Health care Entertainment Food away from home Clothing Something else None of these

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Important Financial Goals

Q9.

Which of the following are important financial goals to you right now?
Total % 18-34 yrs % 65 32 46 37 36 10 19 29 5 5 35-49 yrs % 53 58 37 32 31 18 27 9 7 3 50-64 yrs % 44 58 32 21 19 18 7 3 5 5 65+ yrs % 29 16 35 23 18 23 2 1 2 15

Paying off debt Saving for retirement Keeping up with my day-to-day expenses Saving for a rainy day Saving for a significant purchase (car, vacation, etc) Making money investing in the financial markets Saving for childrens education Saving to buy a home Saving to buy a second home (investment, recreation property) None of these

50 44 38 29 27 17 15 11 5 6

Confidence at Meeting Financial Goals

Q10. [IF AT LEAST ONE GOAL] How confident are you that you will achieve your current financial goals?
Total % 18-34 yrs % 22 46 30 2 35-49 yrs % 19 45 30 6 50-64 yrs % 17 53 24 7 65+ yrs % 21 59 19 1

Very confident Confident Not very confident Not at all confident

19 50 26 5

Total Confident

69

67

64

69

80

Confidence of Secure Retirement (Among Retired)

Q11. [IF RETIRED] How confident are you that you will be financially secure throughout your retirement?
Total % 18-34 yrs % Sample Size Too Small 35-49 yrs % Sample Size Too Small 50-64 yrs % 21 52 16 11 65+ yrs % 21 55 22 3

Very confident Confident Not very confident Not very confident

21 54 19 6

Total Confident

75

73

76

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Confidence of Secure Retirement (Among Non-Retired)

Q12. [IF NOT RETIRED] How confident are you that you will be financially secure when you retire?
Total % 18-34 yrs % 10 48 30 11 1 35-49 yrs % 15 38 30 15 2 50-64 yrs % 10 41 27 20 2 65+ yrs % Sample Size Too Small

Very confident Confident Not very confident Not very confident Do not plan to retire

11 43 29 15 2

Total Confident

54

58

52

50

Importance of Learning about Personal Financial Management

Q14. In your view, how important is

Total %

18-34 yrs % 85 13 0 1

35-49 yrs % 76 22 1 0

50-64 yrs % 76 24 0 0

65+ yrs % 81 18 1 0

it for parents to teach their children about personal financial management?

Very important Important Not very important Not very important Total Important Very important Important Not very important Not very important Total Important

80 19 1 0

99
61 34 5 0 95

99
54 35 10 1 89

98
64 34 3 0 97

100
62 34 4 0 96

99
65 33 3 0 97

learning about personal financial management to succeeding in life?

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