Description of the programme

Recent research has shown that nearly a third of Canadian consumers struggle to cover their living expenses, and almost half rely on some form of credit to make ends meet. Existing financial literacy programmes have been criticised because they tend to focus on disseminating knowledge without developing people’s financial skills and confidence. The Financial Consumer Agency of Canada (FCAC) identified this, and in 2016 launched a tool which delivered financial literacy messages directly to consumers who do not budget. The aim of the tool was to help people build their knowledge, confidence and skills relating to budgeting, with the ultimate objective of changing their budgeting behaviour. FCAC directed the tool towards 10,716 people, of whom 54% (5,767) had a budget and 46% (4,949) did not. Individuals without a budget were targeted for two subsequent interventions.

The study

Researchers in the Education, Research and Policy Division of the FCAC conducted the research. The study employed a pre- and post- design over the course of a month, which gathered evidence regarding changes in knowledge, confidence and behaviour after using the tool. It compared changes of a treatment group (the 4,949 people who did not have a budget) before and after using three different interventions, with a control group (a new group of people, chosen randomly) who received a fourth intervention. The researchers also conducted analyses on indicators of knowledge, confidence and behaviour related to budgeting, which was analysed by age, gender, province and household income.

Key findings

Points to consider