Inflation and your household budget
Inflation tells us how much prices have changed year-over-year. It’s noticeable in the cost of everyday things, for example the price of a candy bar today compared to 20 years ago. Over time, increases in inflation tend to be offset by increases in wages, since inflation and wages both tend to increase gradually. However, a more sudden increase in inflation can cause financial stress, due to sharper increases in the cost of living. If your paycheque suddenly doesn’t stretch as far, that means it’s a good time to take a look at your personal finances.
Financial Health & Wealth
You worry about your family's physical, mental and spiritual health. You take care of yourself and make sure you and your family are healthy, safe and happy. Many people do not realize that you also need to be financially healthy. Financial wellness is understanding and managing your own money. Money is a big way that others control and influence our lives. Sometimes we need to depend on others to give us money and tell us what to do with money. Opening a bank account, understanding where your money is coming from, and saving money will help you to become financially independent and financially healthy. This report from The Native Women's Association of Canada covers the importance of financial health and has sections on financial information covering bank accounts, insurance, budgeting, saving, credit cards, car loans, income taxes and housing.
Housing insecurity
Read more about homelessness, affordability, at risk-populations and human rights on the Government of Canada's website. Learn about: Housing and human rights: the Federal Housing Advocate's work on the right to adequate housing, unmet housing needs and systemic homelessness. Canada's Homelessness Strategy: funding to help urban, Indigenous, rural and remote communities address their local homelessness needs. Understanding Veteran homelessness: Information for organizations and individuals working to support the homeless, including homeless Veterans.
5 benefits of paying down debt with your tax refund
The average Canadian tax return amount in 2023 is $2,072 and that money can go a long way when it comes to meeting your financial goals. But remember, this isn’t a cash windfall; it’s YOUR money that the government borrowed from you, so Credit Canada recommends using it for needs versus wants. More specifically, consider using it to help pay down your debt.
Credit scores and credit reporting in Canada
While your credit score is a number to quickly show how creditworthy you are, your credit report is more detailed. It covers your entire credit profile and includes information such as personal information, credit account (including credit cards, lines of credit, mortgages...), bankruptcies... Watch this video by Scotiabank to learn what a credit score is and why it matters. Then learn how to check your credit score for free in Canada. You may also learn how borrowing can impact your credit score. If you check your credit report and your credit score is low, follow these tips for how to help increase credit scores.
Responsible or sustainable investing
While there is no official definition of responsible or sustainable investing, many investors would like to adopt an investment approach that combines environmental, socials and governance (ESG) factors with traditional financial research. The Autorité des marchés financiers has compiled information about ESG factors, the challenges of investing while taking ESG factors into account.
The multiplying movement: the state of the children’s savings field 2022
The Multiplying Movement: The State of the Children’s Savings Field 2022 shares findings from Prosperity Now’s 2022 Children’s Savings Account (CSA) program survey. The report highlights the incredible growth of the field with over 4.9 million children and youth with CSAs across the US. In addition, this report analyzes trends among CSA programs and spotlights new programs across the country. As you will see in the report, the CSA field shows no signs of slowing down.
Steps to offering a financial lifeline
There are many reasons why someone might be struggling financially. Job loss, health challenges, or a sudden financial emergency could cause hardship, preventing someone from staying afloat. In times like these, it’s not uncommon for someone to ask for help from friends or family. Before agreeing to help, make sure you will not be putting your own financial future at risk.
Women living in subsidized housing in Canada
Using data primarily from the 2021 Canadian Housing Survey, this study applies a gender lens to examine the characteristics of Canadians living in subsidized housing. It examines the experiences of renters in subsidized housing and their satisfaction with their dwelling and neighbourhood, drawing comparisons with their counterparts living in non-subsidized rental housing.
Missing for those who need it most: Canada’s financial help gap
A new study by national charity Prosper Canada, undertaken with funding support from Co-operators, finds that Canadians with low incomes are increasingly financially vulnerable but lack access to the financial help they need to rebuild their financial health. The report, shows that affordable, appropriate and trustworthy financial help for people with low incomes is a critical but missing piece in Canada's financial services landscape. People with low incomes are unlikely to find help when they need it to plan financially, develop and adhere to a budget, set and pursue saving goals, file their taxes outside of tax season, and access income benefits. Executive summary: Canada's financial help gap L’aide qui manque pour ceux qui en ont le plus besoin Sommaire Exécutif: L’écart en matière d’aide financière au Canada
Threats and intimidation to pay your tax bill? How to spot tax season scams
During the income tax filing season, scammers pose as representatives of the Canada Revenue Agency (CRA) in an attempt to trick you into sending payment for fictitious "debts" or into providing sensitive personal information that they can use to commit fraud. Learn more on how to spot tax season scams and what to do if you are the victim of fraud.
More Canadians are finding it difficult to meet food, shelter and other necessary expenses
In 2022, the Consumer Price Index rose 6.8%, the highest increase since 1982 (+10.9%). Prices for day-to-day goods and services such as transportation (+10.6%), food (+8.9%) and shelter (+6.9%) rose the most. Canadians felt the impact of rising prices. Data from the Canadian Social Survey (CSS) show that the share of persons aged 15 and older living in a household experiencing difficulty meeting its necessary expenses trended upward from just under one-fifth (19%) in the summer of 2021 to just under one-quarter (24%) in the summer of 2022. By the end of 2022, more than one-third (35%) of the population lived in such a household.
7 reasons to file a tax return
There are many good reasons to keep up to date on your tax filing each year. You may file a tax return even if you don’t have any income. It could help you access certain refundable tax credits and other benefits.
Why care about care? Our economy depends on it
This brief lays out how care impacts economic recovery, family economic security and asset building, equity and justice, and the well-being of children, older adults, and people with disabilities. COVID-19 highlighted the importance of caregivers, as parents have become remote learning facilitators and professional caregivers have become front-line workers. Investing $77.5 billion per year in the care economy would support more than two million new jobs— 22.5 million new jobs over 10 years. And that number does not include return of family caregivers to the workforce, enabled by adequate support. A $77.5 billion annual investment in new jobs translates into $220 billion in new economic activity. Read the brief Watch the webinar View the webinar slides
Annual report 2022
The Asset Funders Network engages philanthropy to advance equitable wealth building and economic mobility. For 18 years, AFN has provided a forum for grantmakers to connect, collaborate, and collectively invest in helping more people achieve economic security. This report reflects their work over the past year working across 7 issues areas:
Income in retirement: Expectations versus reality
In 2014, a group of non-retired Canadians aged 55 or older was asked about their financial expectations for retirement. New data from 2020 reveal how this same group of Canadians - now retired- is doing financially.
Consumer Vulnerability: Evidence from the Monthly COVID-19 Financial Well-being Survey
The Financial Consumer Agency of Canada’s (FCAC) COVID-19 Financial Well-being Survey, which began in August 2020, is a nationally representative hybrid online-phone survey fielded monthly, with approximately 1,000 respondents per month. The survey collects information on Canadians’ day-to-day financial management and financial well-being. As of September 2022, the survey results show that over the past several months, financial hardships have increased for many Canadians due to the rapidly evolving economic environment. While financial vulnerability can affect anyone regardless of income, background or education, hardships have increased more for those living on a low income, Indigenous peoples, recent immigrants, and women, due to the disproportionate financial impact of the pandemic on these groups (households with low income, Indigenous people, new immigrants, and women.) This brief report provides an overview of survey results collected between August 2020 and September 2022. In publishing this report, FCAC’s goal is to provide insight into the financial well-being of Canadians, to identify which groups are experiencing greater vulnerabilities and hardships, and to inform and target our collective response as financial ecosystem stakeholders.
The top 6 differences between TFSAs and RRSPs
Confused about whether to contribute to an RRSP or TFSA? Both offer tax advantages to help you reach your savings goals. If you need to choose between the two, you can learn about the differences in this article by the Ontario Securities Commission (OSC).
Rising prices and the impact on the most financially vulnerable: A profile of those in the bottom family income quintile
This study uses the 2022 Portrait of Canadian Society Survey to examine the impact of rising inflation on the lowest income Canadians. Using multiple pre-pandemic data sources, the study takes a closer look at people living in the bottom family income quintile, examining their family income, debt and assets levels, as well as some indicators of economic hardship.
Consumer Price Index: Annual review, 2022
The Consumer Price Index (CPI) rose 6.8% on an annual average basis in 2022, following gains of 3.4% in 2021 and of 0.7% in 2020. The increase in 2022 was a 40-year high, the largest increase since 1982 (+10.9%). Excluding energy, the annual average CPI rose 5.7% in 2022 compared with 2.4% in 2021. Price increases were broad-based in 2022, with prices up on an annual average basis in all eight major components. Canadians felt the impact of inflation, as prices for day-to-day basics such as transportation (+10.6%), food (+8.9%) and shelter (+6.9%) rose the most. Both goods and services prices rose at a faster pace compared with a year earlier. Prices for goods were up 8.7% on an annual average basis in 2022, led by higher prices for non-durable goods such as food purchased from stores (+9.8%) and gasoline (+28.5%). Prices for services increased 5.0% in 2022, led by homeowners' replacement cost (+9.5%) and other owned accommodation expenses (+10.0%). Year-over-year price growth accelerated each month in the first half of the year, reaching a high of 8.1% in June, and slowed in the second half of the year.
Banking for newcomers to Canada
Banks offer extensive information on how newcomers to Canada can get started in their new country, including checklists, information, financial services and advice. Here is some basic information to get you started. A list of bank resources at the end of this article may also help with the financial transition to Canada.
Housing conditions among racialized groups: A brief overview
In response to Canada's Anti-Racism Strategy, Statistics Canada's Centre for Gender, Diversity and Inclusion Statistics is releasing a second set of five data tables on social inclusion. Over 20 new indicators, for a total of over 120 indicators, can now be used to examine various socioeconomic facets of racialized Canadians.
Service Matters: Numbers Speak Volumes
The Annual Report by the Office of the taxpayer's ombudsman provides key achievements, identifies Canada Revenue Agency (CRA) service issues and outlines trends in complaints. In addition, the report includes three recommendations to the Minister of National Revenue and the Chair of the Board of Management to improve the CRA’s service to Canadians.
Weathering the storms: modernizing the U.S. benefits system to support household financial resilience
For most households in America, financial shocks are inevitable. The car will break down. The house will need a repair. A key earner for a household will be laid off. These shocks can be devastating to household finances. And while the COVID-19 pandemic, which we are still recovering from, was a once-in-a-generation economic and health shock for households and our economy, we also know that it is just one example of the uncertainty and volatility of the world we now live in. When public and private benefits—such as unemployment insurance and paid sick leave—are not accessible and not designed or delivered in a timely manner to effectively support families in weathering financial shocks, families suffer. To effectively modernize our benefits system to help people weather financial shocks—both small and large— requires an evidence-based framework focused on what households need to be financially resilient and on opportunities for benefit leaders to address those needs. This paper lays out the framework by:
Research to help FSRA improve the lives of vulnerable consumers
Financial Services Regulatory Authority of Ontario commissioned a research study that focused on consumer attitudes, how consumers are engaging with financial services, and consumer characteristics such as vulnerability. Insights from the research are allowing FSRA to better understand the realities of consumers’ changing financial lives and helping to identify key opportunities to respond to the needs of vulnerable consumers. 2022 Consumer Research Study highlights. 2022 Consumer Research Study full report
Tips to keep your credit card safe
Your credit card can help you make purchases quickly without needing to have cash on hand. Follow these tips by the Ontario Securities Commission to use your credit card safely.
Insights into the risks and benefits of digital financial services for consumers
One of the consequences of social distancing and other restrictions, during the pandemic, such as those on business operating hours, is that consumers spent more of their time searching for information, shopping, and streaming entertainment on-line. With more free time on their hands and money in the bank, a larger percentage of the population took up an interest in investing, often through on-line brokerage platforms or in the cryptoasset markets. Because consumers have been spending more time on-line since the start of the pandemic, they have been more exposed to on-line fraud. In addition to phishing and malware, consumers are dealing with known scams but in digital form, often on social media. For some consumers, the evergrowing number of reliable and accessible information sources could lead to information overload, also known as “infobesity, where there is so much information that the consumer cannot process it all. Infobesity can lead to decision paralysis. In this paper the AMF make the most of their 360-degree view on the financial industry’s digital transformation to review the main changes that occurred in each of their areas of focus, describe the risk of digitalization for the consumers of financial products and services and present the potential opportunities that have been identified to mitigate these risks.
Welfare in Canada, 2021
Using data provided by provincial and territorial government sources, Welfare in Canada, 2021 describes the components of welfare incomes, how they have changed from previous years, and how they compared to low-income thresholds. Access the report here. During the launch event, the report’s authors, Jennefer Laidley and Mohy Tabbara, broke down the latest welfare income data from all 13 provinces and territories and presented the key takeaways. Recorded on November 24, the Welfare in Canada, 2021 launch event started with a brief presentation of the report’s key findings, followed by a panel discussion. Presenters: Moderator:
Ottawa should soften bite of benefit clawbacks for low-income families
Canada’s tax system has a punitive impact on lower income families with children hoping to earn more money, according to a new report from the C.D. Howe Institute. In “Softening the Bite: The Impact of Benefit Clawbacks on Low-Income Families and How to Reduce It,” authors Alex Laurin and Nicholas Dahir reveal how benefit reductions serve as hidden tax rates and reduce the effective gain from working to generate additional income. Read full report here.
The impact of COVID-19 on financial capability and asset building services.
The forced transition from in-person to online activities as a result of the COVID-19 pandemic has had a profound impact on how families and communities buy groceries, acquire medical care, and utilize social services. This rapid shift has raised important questions about how to address access and equity. AFN and the University of Wisconsin-Madison Center for Financial Security (CFS) conducted this study to better understand the transition to remote services among financial capability and asset building (FCAB) programs, which includes financial education, counseling, coaching, emergency assistance, benefits navigation, housing supports, workforce development, and other related services. The insights from this study can inform strategies for FCAB services going forward. This brief reviews recommendations for funders and organizations seeking to learn from the financial capability service delivery models employed in the COVID-19 pandemic, especially related to replication of findings that lead to more equitable delivery practices, improved accessibility of services, and greater financial improvements for clients. Six region-specific briefs complement the national findings - Indiana, Louisiana, North and South Carolina, Oregon, Texas, and Washington. This brief is generously supported by JPMorgan Chase & Co., MetLife Foundation, and Wells Fargo. If you missed the live webinar, watch the recording here.
OSC study finds many investors overestimate their knowledge
The Ontario Securities Commission (OSC) published the results of a survey assessing Canadian investors’ financial literacy. As individuals take on more responsibility for their own investing, it is essential that they have enough financial knowledge to effectively participate in Canada’s capital markets. Investors’ knowledge, attitudes, skills, and behaviours are all contributors to having a successful investing journey.
Government grants and bonds for education savings
Saving for your child’s education can be difficult, especially if you are trying to save for multiple goals or pay down debt at the same time. The federal government offers contributions to your child’s Registered Education Savings Program (RESP) through its grant programs: the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB).
4 Reasons to keep saving even when inflation is high
When inflation rates go up, it can be tempting to look for ways to grow your money at rates higher than the rate of inflation. Investing can feel more appealing than the average savings account. While it’s important to stay the course on your investing goals, don’t neglect your savings. There are many reasons why a savings account is still worth tending to, even during tough times. If you’re making ends meet and still have extra to put aside, keep these tips in mind.
Financial Vulnerability of Low-Income Canadians: A Rising Tide
This report provides a call to action for more targeted support from policymakers, financial institutions and community non profit organizations for low-income households and Canadian households who are more financially vulnerable. This is particularly important given inequities, systemic barriers and challenges many of these households face, along with difficulties in accessing financial help.
Accessible financial services incubator
Drive through a low-income neighborhood in virtually any American city and it quickly becomes apparent that the area’s financial health is at risk. The giveaway? The abundance of payday lenders. According to the St. Louis Federal Reserve, there are now more than 20,000 of these organizations across the country—which tops even the ubiquitous McDonald’s storefront by roughly 40%.1 These alternative financial services providers offer short-term loans at interest rates that can top 400%. They appeal to desperate consumers with no access to traditional, more affordable credit and offer an immediate fix that can lead to months, if not years, of financial pain. In its Payday Lending in America series, the Pew Charitable Trusts reports that Americans spend roughly $7.4 billion (B) on payday loans each year. Could traditional financial institutions find a way to deliver credit to this consumer niche without compromising their own health? The Filene Research Institute, a consumer finance think-and-do tank, hypothesized that the answer was yes. Read the full report.
Research study: Crypto assets 2022
This study by the Ontario Securities Commission examines Canadians’ crypto ownership and knowledge. It found 13% of Canadians currently own crypto assets or crypto funds. The study also found most Canadians did not have a working knowledge of the practical, legal and regulatory dimensions of crypto assets. Crypto assets were believed to play a key role in the financial system by 38% of those surveyed. The study provides a profile of crypto owners, their reasons for purchasing crypto assets or crypto funds, the role of financial advice, impact of advertising, and the experience of crypto owners with crypto trading platforms.
Canada’s new working class: A modern understanding of the 6.5 million Canadians in the working class
The pandemic has accelerated a polarization of jobs that has become a structural trend in the Canadian economy. Previous Cardus research has shown that this polarization of the labour market between low- and high-skilled occupations, with a declining share of jobs available for mid-skilled workers, has led to an “hourglass economy.”
Yet, even while the share of the labour force employed in professional occupations rises, the working class retains the largest share of workers in the Canadian economy, making them an important political economy constituency. But who is the working class in Canada? This paper seeks to answer this question by proposing a modern taxonomy of the workforce and a picture of the working class that draws on a rich body of demographic, economic, and labour-market data.
Pilot study: Buy now, pay later services in Canada
A key component of the Financial Consumer Agency of Canada’s (FCAC’s) mandate is to monitor and evaluate trends and emerging issues that may have an impact on consumers of financial products and services. Technological innovations in financial services and shifting consumer behaviours have resulted in a steady increase in retail e-commerce sales over the past several years, and the COVID-19 pandemic has had a significant impact on how consumers make retail purchases. Retail e-commerce sales reached record levels during the pandemic. This has further contributed to the proliferation of buy now, pay later (BNPL) services in Canada.
Income support, inflation, and homelessness
A good deal of attention has been paid to the question of what these high rates of inflation in housing and food costs mean for Canadians. Much of the concern has focused on the implications for middle-income Canadians hoping to purchase a home, while squeezing their household budgets. But what do these rates of inflation mean for Canadians with very low income? For them, high rates of inflation in the price of food and shelter mean more than having to delay thoughts of homeownership. For them, the threats are considerably more serious.
Financial literacy around the world: insights from the S&P’s rating services global financial literacy survey
The Standard & Poor's Ratings Services Global Financial Literacy Survey is the world’s largest, most comprehensive global measurement of financial literacy. It probes knowledge of four basic financial concepts: risk diversification, inflation, numeracy, and interest compounding. The survey is based on interviews with more than 150,000 adults in over 140 countries. In 2014 McGraw Hill Financial worked with Gallup, Inc., the World Bank Development Research Group, and GFLEC on the S&P Global FinLit Survey.
Advancing equity: the power and promise of credit building
Credit is an essential ingredient for economic security and mobility. Without a high credit score and affordable, available capital, it is nearly impossible to get by financially, let alone get ahead. Our economic system, and the American Dream it is supposed to feed, is based on the belief that anyone has access to credit and can build economic security, wealth, and intergenerational transfer. This brief will analyze what is not working within our credit system and identify what philanthropy can do to reimagine a system that builds economic security and mobility for everyone, especially people of color and immigrants. An equitable credit system would create pathways to narrow the racial wealth gap instead of continuing to widen it. Solutions include nonprofit organizations and community A webinar is also available and you can view the webinar slides here.
development financial institutions (CDFIs) delivering financial products that are designed for the people who have been most excluded from the credit system, seeding their journey toward economic security, as well as systemic changes to make economic security and mobility more fairly attainable.
Evaluating the impact of income volatility benefits on gig workers
Gig workers account for approximately 25 to 35% of the national workforce. When considering workers earning low to moderate incomes (LMI), these percentages are likely higher. Gig work provides reported advantages including flexibility, supplemental income, and independence. However, it also brings unique financial challenges such as complicated taxes, low and unpredictable wages, and difficulty accessing benefits. Due to these barriers to financial security, gig workers are often unable to build an emergency savings reserve. Commonwealth launched the Financial Benefits Project pre-pilot to further explore the financial needs of gig workers and to outline recommendations for employer benefits that reduce the impact of income volatility. In combination with schedule stability and predictable wages, income volatility benefits have the potential to help workers earning LMI manage from day to day, particularly given the reduction of COVID-19 supports. Across two cohorts, Commonwealth evaluated the impact of three interventions on financial hardships for 138 gig workers enrolled in the project. Participants were eligible for up to $1,000 in funds over a four-month period through weekly stipends, emergency grants, and emergency loans.
Rising adoption of contactless payments and digital wallets: 3 key takeaways
Over the last two years, digital payment solutions, including peer-to-peer apps, digital wallets, and contactless payment solutions, have grown in popularity and adoption. With 125 million American mobile payment users predicted by 2025 Commonwealth sought to understand the potential for these payment apps as a channel to advance inclusive and equitable financial access.
Emergency savings preparedness and perceptions
According to Employee Benefit Research Institute (EBRI), workers with household incomes of $75,000 or more are more than twice as likely to say they feel they can handle an emergency expense than those with household incomes of less than $35,000. This report outlines the results of the 2022 survey that polled nearly 2700 Americans 25 and older.
The impact of the enhanced child tax credit on lower-income households
The American Rescue Plan, one of the most significant policy responses to alleviate child poverty in decades, made fundamental changes in enhancing the Child Tax Credit (CTC). In response to the pandemic, the law expanded the CTC for tax year 2021 to ensure a minimum level of economic support to all families raising children. Commonwealth, SaverLife, and Neighborhood Trust Financial Partners followed up with CTC-eligible families after most filed their 2021 tax returns. We conducted interviews and surveys to assess the impact of the enhanced credit on families’ financial health. Although we focused on the second half of the CTC payment, which was delivered as a lump sum payment as part of the tax refund, we also asked recipients about their tax filing experience and what a continuation of an expanded credit would mean for their families.
Emergency savings features that work for employees earning low to moderate incomes
Workers earning low to moderate incomes (LMI) continue to face challenges in financial security. The COVID-19 pandemic exacerbated the financial situation of many workers earning LMI. Along with the current macroeconomic environment, it has become even more challenging to build liquid savings for unexpected expenses. In this brief, we will share insights from our latest research with DCIIA Research Retirement Center on how employers and service providers can build and offer emergency savings solutions that are inclusively designed for workers earning LMI.
How Canadians bank
Banks in Canada are meeting the evolving preferences of their customers as powerful new technologies change the way people bank and how they pay for goods and services. Banking is transforming at a record pace, bringing innovation and new potential to empower Canadians’ lives in a digital world. This survey and other findings form the basis of How Canadians Banks, a biannual study by the Canadian Bankers Association and Abacus Data that examines the banking trends and attitudes of Canadians.
Preparing for financial emergencies
Some emergencies in life can affect you financially. You could get sick, lose your job, or have a costly repair to your car or home. One of the best ways to cope with unexpected financial changes is to have an emergency fund. Ideally, this fund would provide enough money to cover your essential living expenses so you can avoid taking on debt.
Multicultural and newcomer charitable giving study
While much research has been conducted on how giving is correlated to factors like educational attainment or income level, the influence of ethnicity has been elusive. This research attempts to better understand how newcomers to Canada and second-generation Canadians perceive and approach giving and volunteerism.
What to do if you are defrauded
Financial fraud can be stressful and time-consuming experience. It can affect you both financially and emotionally. If you are defrauded, or suspect that you may have been defrauded, follow the steps outlined in this article.
Social determinants and inequities in health for Black Canadians: a snapshot
The following snapshot aims to highlight how Anti-Black racism and systemic discrimination are key drivers of health inequalities faced by diverse Black Canadian communities. Evidence of institutional discrimination in key determinants of health is also presented, including education, income, and housing. Finally, national data is shared demonstrating inequalities in health outcomes and determinants of health. Readers are invited to reflect on how racism and discrimination may contribute to these inequalities.
A guide to the best robo-advisors in Canada for 2022
Robo-advisors first arrived in Canada in the beginning of 2014 presenting young and middle-income investors the option of having their savings passively managed in a bundle of exchange-traded funds (ETFs) matched to their goals and risk tolerance for about a penny on the dollar per year: A perfect set-it-and-forget it solution for people with better things to do. Fast forward to today and the honeymoon atmosphere has dissipated. Against the backdrop of an extraordinarily long-lived bull market in stocks, active management has made a comeback (not least in the ETF space), exotic asset classes like cryptocurrency are on the rise, and new competition is coming from asset-allocation ETFs that do the job of portfolio management all in one security. Suddenly robo-advisors find themselves having to prove their worth anew, all the while trying to establish a profitable business model in a low-margin corner of the investment universe. It’s surprising, really, because amid all the competition their fee structures and value proposition are as good as or better than ever. Investors now must probe deeper in their choice of robo-advisor, asking tough questions around performance, risk and the composition of portfolios. The 2022 survey of the Canadian robo industry shows, they’re not all the same.
Social assistance summaries
The Social Assistance Summaries series tracks the number of recipients of social assistance (welfare payments) in each province and territory. It was established by the Caledon Institute of Social Policy to maintain data previously published by the federal government as the Social Assistance Statistical Report. The data is provided by provincial and territorial government officials.
Types of fraud
Fraud comes in many forms. Learn about the different types of fraud and ways to protect yourself using the links below. Fraudster trick (email spam attack)
2022 Canadian Retirement Survey
The key takeaways from the 2022 Canadian Retirement Survey are: Read the full presentation conducted for Healthcare of Ontario Pension Plan.
Empower U Financial Coaching
Financial empowerment consists of five complementary strategies including financial literacy and coaching; taxes and access to benefits; safe financial products; savings and asset building; and consumer protection. Empower U serves primarily as a financial literacy and coaching and savings and asset building intervention (although partners also contribute to the other interventions). The Sustainable Livelihood Model identifies five distinct sets of assets including personal, human, social, physical and financial. The Empower U program activities are grounded by two overarching philosophies: Financial Empowerment (as defined by Prosper Canada) and the Sustainable Livelihood Model (adapted by the Canadian Women’s Foundation, based on the work of the University of Sussex Institute for Development Studies). Focusing on financial literacy and coaching, Empower U has developed an individual financial coaching component to the overall program.
Empower U Evaluation Report
For a family living in poverty, every day is about making tough choices – to pay rent or buy groceries? Having the means to attain the basic necessities, is one thing. Having the skills, confidence and access to resources to manage finances in ways that build pathways out of poverty is something far different. Thanks to the generosity of partners, supporters and donors of Empower U, families can move beyond just managing the day-to-day challenges of poverty. Participants in the program learn valuable money management skills and are given the means to build savings and assets to create financial stability. A future where they and their families can thrive.
Turning aces into assets
Ontario has just become the first province to open its legal gambling market to private internet gaming providers. As of April 4, 2022, Ontarians can play casino-style games online and place bets on sports, including single games, through sites regulated by iGaming Ontario. According to the provincial regulator, the launch of iGaming marks the triumph “of a legal internet gaming market” over “its previous grey market standing.” But as with all forms of gambling, this development has a dark side. It was only a matter of time before Ontario expanded its gambling market—not because of popular demand, but because the provincial government is addicted to gambling money and is eager to seize any opportunity to get more of it, regardless of the costs to the people it is supposed to protect. This report provides the background of gambling in Ontario, outlines the new risks with iGaming and offers four policy options.
How to build financial health in Native communities
American Indian and Alaska Native (AI/AN) peoples have long faced barriers to asset building. More than half of AI/AN populations are un- or underbanked, financial services often don’t operate on reservations, and access to capital is difficult. Native peoples have been excluded from financial wealth accumulation through government asset stripping, industry redlining, and simple neglect, thanks to historic (and ongoing) discrimination, exclusion, and racism baked into government and private-sector policies. Solutions are within reach. Recently, the Financial Security Program, the Oklahoma Native Assets Coalition, Inc (ONAC), and the Center for Native American Youth hosted an event featuring Native leaders representing various geographies, experiences, and tribal affiliations. The group discussed experiences in building assets and Indigenous perspectives on generational financial wealth. Finally, the speakers gave recommendations on how foundations, corporations, non-profits, and others can partner with tribal governments and Native-led nonprofits to build financial wealth in Native communities. ONAC has produced a “List of Eighteen Suggestions to Better Support Native Practitioners Administering Asset Building Programs in their Communities”.
101 solutions for inclusive wealth building
Having wealth, or a family’s assets minus their debts, is important not just for the rich— everyone needs wealth to thrive. Yet building the amount of wealth needed to thrive is a major challenge. Nearly 13 million U.S. households have negative net worth. Millions more are low wealth; they do not have the assets or liquidity needed to maintain financial stability and invest in themselves in the present, nor are they on track to accumulate the amount of wealth they will need to have financial security in retirement. This report examines what it will take to create truly shared prosperity in the United States. It is focused on solutions that would grow the wealth of households in the bottom half of the wealth distribution, and it explores reparative approaches to building the wealth of Black, Indigenous, and other people of color (BIPOC).
Together, these groups represent at least half of all U.S. households.
Guidance on digital delivery of financial education
Innovative uses of digital technologies in the delivery of financial education can serve multiple complementary objectives and effectively support the building blocks of financial education. This Guidance was developed to assist policy makers in deciding when to adopt digital delivery, and how to effectively design and implement digital financial education initiatives, by offering non-binding actionable directions. It builds on the work undertaken by the OECD and its International Network on Financial Education, including the G20/OECD-INFE Policy Guidance Note on Digitalisation and Financial Literacy and international comparative analyses on how public authorities design, deliver and evaluate digital financial education initiatives, notably in the context of the COVID-19 pandemic. The report on digital delivery of financial education design and practice builds on over 70 case studies from members of the OECD International Network on Financial Education, contributes to a better understanding of how public authorities worldwide are designing, delivering and evaluating digital financial education initiatives, and prepares forthcoming work on the development of high-level international guidance on the digital delivery of financial education.
Action-oriented public health resources on financial wellbeing and financial strain
Improving people’s financial circumstances has never been more critical. Disadvantaged population groups have experienced even higher levels of financial strain and poor financial wellbeing during the pandemic. This has negatively impacted their physical and mental health. To support efforts to build back better and fairer communities in the wake of COVID-19, the Centre for Healthy Communities led an international collaborative, participatory, multi-method project to develop resources to support action on financial strain and financial wellbeing. These resources were designed for practitioners and decision-makers working in organizations and governments in a wide variety of sectors and jurisdictions. This project resulted in an action-oriented Public Health Framework on Financial Wellbeing and Financial Strain and a companion Guidebook of Strategies and Indicators. These resources are meant to support organizations and governments acting on any area related to financial strain and financial wellbeing, such as education, employment, or social safety net, to name a few. The Framework, which draws on health equity and health-in-all-policy principles, presents 17 evidence-informed high-impact areas for governments and organizations to intervene. The Guidebook offers evidence-informed targets and strategies for initiatives, as well as sample indicators for monitoring and assessment for each of those 17 entry points for action.
2022 Budget submission
Prosper Canada has submitted a budget to highlight that a plan is needed to ensure that vulnerable people are not made to repay unmanageable CERB/CRB debts, to pay back the income people lost when their refundable tax benefits were clawed back because of CERB, and to guarantee that CRB and CWLB are not clawed back from refundable tax credit payments in the 2021 and 2022 tax years.
Protecting aging investors through behavioural insights
This report identifies behaviourally informed techniques dealers and advisers can use to encourage their older clients to provide the necessary information for enhanced investor protection measures.
Access to Identification for Low-income Manitobans
Government-issued identification (ID) is essential to gain access to a wide range of government entitlements, commercial services and financial systems. Lack of ID on the other hand, represents a critical barrier that prevents low-income Manitobans from accessing these services and benefits, and ultimately results in further marginalization and deepening poverty. Other provinces are now recognizing that ID is necessary to navigate the modern world and are doing something to support those who fall through the cracks. A new study, Access to Identification for Low-Income Manitobans researches what can be done to address these challenges and offers recommendations to reduce barriers to ID for low-income Manitobans.
Hunger, Poverty, and Health Disparities During COVID-19 and the Federal Nutrition Programs’ Role in an Equitable Recovery
The health and economic crises brought on by the coronavirus 2019 (COVID-19) pandemic has made the federal nutrition programs more important than ever. An unacceptably high number of people in America do not have enough to eat, and it is likely that the economic recovery for families who struggle to put food on the table will take years.
Recovery will be particularly challenging for those groups that have suffered disproportionate harm from COVID-19. Inequities, also referred to as disparities, “adversely affect groups of people who have systematically experienced greater obstacles […] based on their racial or ethnic group; religion; socioeconomic status; gender; age; mental health; cognitive, sensory, or physical disability; sexual orientation or gender identity; geographic location; or other characteristics historically linked to discrimination or exclusion.”
Household Food Insecurity in Canada, 2017-2018
Food insecurity – inadequate or uncertain access to food because of financial constraints – is a serious public health problem in Canada, and all indications are that the problem is getting worse. Drawing on data for 103,500 households from Statistics Canada’s Canadian Community Health Survey conducted in 2017 and 2018, we found that 12.7% of households experienced some level of food insecurity in the previous 12 months. There were 4.4 million people, including more than 1.2 million children under the age of 18, living in food-insecure households in 2017-18. This is higher than any prior national estimate.
Economic Abuse: Coercive Control Tactics in Intimate Relationships
This infographic explores 3 forms of economic abuse and associated tactics used to coercively control intimate partners. These abusive tactics are compounded by economic systems that systemically oppress groups including Black, Indigenous, and people of colour; people with disabilities; people with precarious immigration status; and gender-oppressed people. Economic abuse consists of behaviours to control, exploit, and sabotage an individual’s resources. It limits the individual’s independence and autonomy. Compared to financial abuse which usually only focuses on money, economic abuse includes a more expansive range of behaviour that affects things like employment, food, medicine, and housing. Economic abuse is often used to coercively control individuals, such as intimate partners. It occurs in conjunction with further forms of abuse, like physical and sexual violence. Economic abuse can make it more difficult for survivors to escape violence since they may not have the resources to secure long-term housing and employment while meeting basic needs for themselves and potentially their children.
Survey on savings for persons with disabilities
Residents in Canada who have a severe and prolonged mental or physical disability are eligible for the Disability Tax Credit (DTC). This opens the door to other programs, one of which is the RDSP. Less than one-third of eligible residents in Canada (up to age 59) have a Registered Disability Savings Plan (RDSP)—about 31.5% in 2020. To understand why more eligible residents in Canada do not have an RDSP, Employment and Social Development Canada asked Statistics Canada to conduct the Survey on Savings for Persons with Disabilities. Its goal was to collect data from residents in Canada who were eligible for an RDSP but did not open one. These respondents included both persons with disabilities and family members or others who care for persons with disabilities, since the holder of the plan may not be the same person as the beneficiary in all cases. These data show that, in general, eligible residents in Canada lack information about the RDSP, with many not being aware it exists and a substantial portion reporting not having enough information or money to open one.
A guide to protect yourself against investment fraud
Today’s investment landscape offers such a range of products, investing tools, and information that the average investor may feel overwhelmed. As advancements in technology continue to accelerate, new online investing platforms and opportunities are showing no signs of slowing down any time soon.
And as the world of investing continues to innovate, so do the tactics of fraudsters when designing and carrying out scams against unsuspecting victims.
In this guide, we discuss investment fraud and some key things you should know before investing, including helpful tips to protect yourself from investment scams.
Mapping the road toward increased accessibility to the child tax credit
Last year, the expanded Child Tax Credit (CTC) helped to lift nearly four million children out of poverty and provided economic relief to millions of struggling households. However, many first-time and lapsed filers from underserved and vulnerable populations missed out on these critical benefits. Locating and serving eligible low-income youth, formerly incarcerated individuals, people experiencing homelessness, immigrants, survivors of domestic violence, and isolated tribal populations has presented a challenging opportunity to free tax prep service providers across the country. This research highlights the key findings and recommendations to increase the accessibility to the CTC.
15 percent of Canadians are ‘underbanked’ — here’s what that means and why it’s a barrier to equitable recovery
Research shows that 15 percent, or close to five million Canadians, are underbanked, and three percent are completely unbanked, meaning that they have very limited or no access to financial services within the traditional banking sector. Ironically, underbanked individuals often come from low-moderate income backgrounds which put them at a higher need for accessible financial services. However, factors like low credit scores, high credit card fees, and non-sufficient fund fees are major barriers that shut Canadians out from banks. Instances of explicit racism while banking, which include being handcuffed when trying to open a bank account, have further diminished the trust in banks for many Black, Indigenous and people of colour.
Annual report 2021
AFN's 2021 Annual Report gives a high level review of our work last year, including some snapshots into the place-based initiatives in our regions. Across our regions, AFN is working with grantmakers on collaborative efforts to advance equitable wealth building and economic mobility. One example the Annual Report highlights is the Bay Area Small Business Vulnerability Mapping Project. Last year, Bay Area AFN worked with the Urban Displacement Project to develop an online mapping tool highlighting vulnerable businesses owned by people of color. The multistage process also explores the feasibility of a permanent infrastructure for collecting data, monitoring business health, and recommending policies.
Understanding Systems: The 2021 report of the National Advisory Council on Poverty
Canada’s National Advisory Council on Poverty’s second Annual Report, Understanding Systems, is the first report to provide a glimpse into poverty since COVID-19. Based on community engagements with Canadians and provinces/territories over the last year, the Council has recommended five broad strategies to reduce poverty in Canada. The pillars of the strategy are as follows: In a recent webinar, three Council members shared what strategies can make the greatest impact. Read more to learn about the key takeaways from the discussion.
Annual report of credit and consumer reporting complaints: an analysis of complaint responses by Equifax, Experian and TransUnion
This report summarizes the information gathered by the Consumer Financial Protection Bureau (CFPB) regarding certain consumer complaints transmitted by the CFPB to the three largest nationwide consumer reporting agencies - Equifax, Experian and TransUnion.
Children’s savings accounts: a core part of the equity agenda
Education after high school, or postsecondary education (PSE), is an important determinant of individuals’ future opportunities, as well as their health and even lifespan. Children’s Savings Accounts (CSAs) are programs that aim to increase access to PSE by building parents’ and children’s educational expectations and a “college-bound identity” starting early in children’s lives. CSAs are a vital part of the equity agenda that remain critically important even as other strategies are put in place to broaden postsecondary access. CSAs programs provide children with savings accounts and financial deposits for the purpose of education after high school or other asset building. CSA program designs, enrollment procedures, and financial incentives vary widely across the U.S. CSAs have been flourishing at the local, city, and state levels over the past two decades. CSAs’ unique value comes down to programs’ financial investment in children coupled with their capacity to bring children and families into frequent contact with information about planning for PSE, savings, and high expectations for the future.
Household food insecurity during the COVID-19 pandemic
This study presents data on levels of household food insecurity in the 10 provinces from the September to December 2020 cycle of the Canadian Community Health Survey. In this survey, household food security status within the previous 12 months was measured using a scale that has been routinely used to monitor levels of household food insecurity in Canada. This provided the ability to draw comparisons with pre-pandemic levels. Both before and during the pandemic, certain population groups were more vulnerable to food insecurity in their household. They included people with lower levels of education, those who rent their dwelling, those in lone-parent-led households and those in households reliant on social assistance as their primary source of income. Compared with the pre-pandemic period of 2017/2018, levels of household food insecurity were either unchanged or slightly lower in fall 2020 among groups vulnerable to food insecurity.
Singles in deep poverty neglected by pandemic supports
In 2020, the federal government spent over $160 billion on COVID-19 pandemic response measures. These expenses were critical in supporting recently unemployed workers and affected businesses in a time of uncertainty. However, supports through programs like the Canada Emergency Response Benefit (CERB) and the Canada Recovery Benefit (CRB) were not extended to those who had less attachment to the labour market, such as a large proportion of social assistance recipients. This pattern of exclusion has continued with the more recent Canada Worker Lockdown Benefit, which was created to support workers affected by new pandemic-related shutdowns, and not people who were already living in deep poverty before the pandemic. The pandemic benefits are intended to support people during a specific time of crisis — but what about those who have been living with low and insecure incomes for decades? This report analyzes the welfare incomes of 53 example households, divided into four types, focusing here on unattached singles considered employable, as they are the most likely to be living in poverty.
Eyeing the ID: Bio-metric Banking for Saint John
NB Social Pediatrics and the Saint John Community Loan Fund recently surveyed 157 New Brunswick and Nova Scotia residents about their experiences with finances, banking, and ID to better understand if biometrics or ID banks could be effective solutions for people living without ID. Eyeing the ID: Bio-metric Banking for Saint John identifies access to identification, as well as stringent identification requirements as the most prevalent barriers to receiving services in the community and were also inherently linked to other barriers, such as housing and finances. For example, lack of address was identified as a barrier to accessing an ID because government agencies require a mailing address to send ID documents to customers, but lack of ID is also directly linked to precarious housing because you often need ID to be placed on local subsidized housing lists, and to set up power and utilities. Cyclical barriers to services could be improved by addressing ID requirements and making ID more accessible. The top three solutions identified to mitigate ID barriers were biometrics, ID banks, and an ID acquisition service. Also available in French: Un regard sur l’identification : Services bancaires à identification biométrique à Saint John
Ethnography of vulnerable newcomers’ experiences with taxes and benefits
This report presents the findings of an ethnographic research project undertaken by researchers at the Accelerated Business Solutions Lab (ABSL) at the Canada Revenue Agency (CRA). It is the second of a series of ethnographic reports on the experiences of vulnerable populations. The objective of this study is to develop the CRA’s understanding of newcomers’ experiences as they first encounter the Canadian tax and benefit system. These findings illuminate potential directions for improving tax and benefit information and services available for newcomers.
The Role of Credit Unions in Providing Alternatives to Payday Lending
High levels of household indebtedness in Canada has been a concern for policymakers at all levels of government over the past decade. As the economic costs of COVID-19 grow, household indebtedness becomes a faster growing and increasingly more serious concern.
While responsive government policy, such as the federal government’s Canadian Emergency Response Benefit (CERB), has curbed some short-term impacts on indebtedness, the program was developed to fill a temporary gap. The most vulnerable households are low-income households with limited access to credit, who frequently turn to high cost payday lending for financial relief. While regulations on the payday lending industry have increased substantially, low-income Canadian households remain left with few, if any, practical alternatives.
The low-income households in greatest need of alternatives are the financially excluded, specifically the underbanked and the unbanked.
At the same time, it is important to recognize that not all payday loan clients are in low-income households. A 2016 report by the Financial Consumer Agency of Canada states that close to 40% of payday loan borrowers have household income of $55,000 or greater and 20% having income of $80,000 or greater.
Thus, payday loan borrowers are not a homogeneous group.
Some Canadian credit unions have developed payday loan alternatives for the financially excluded, however, these more reasonably priced loans are only accessed by a very small portion of would-be payday loan clients.
The objective of this research is to review the alternative payday loan products currently offered by Canadian credit unions, to identify the barriers to offering more payday loan alternatives, and to make recommendations to expand the offerings.
Welfare in Canada, 2020
Maytree released the 2020 edition of the Welfare in Canada report. For each province and territory, this report provides data and analysis on the total welfare income that households receiving social assistance would have qualified for in 2020, including COVID-19 pandemic-related supports. Welfare in Canada is a series that presents the total incomes of four example households who qualify for social assistance benefits in each of Canada’s provinces and territories in a given year. Welfare in Canada, 2020 looks at the maximum total amount that a household would have received over the course of the 2020 calendar year, assuming they had no other source of income and no assets. Some households may have received less if they had income from other sources, while some households may have received more if they had special health- or disability-related needs. The report looks at: In addition, this year the report includes a new section that looks at the adequacy of welfare incomes in each province over time, an analysis that hearkens back to past reports prepared by the National Council of Welfare. Also, please note that this report measures the adequacy of welfare incomes relative to both the Market Basket Measure (MBM) – Canada’s Official Poverty Line – and the Deep Income Poverty threshold (MBM-DIP), which is equivalent to 75 per cent of the MBM. This analysis will replace the low-income threshold comparisons in future reports. We hope these additions will be helpful for those using the report. In each jurisdiction, the total welfare income for which a household is eligible depends on its specific composition. For illustrative purposes, this resource focuses on the welfare incomes of four example household types:
Financial Coaching Initiative: Results and Lessons Learned
In 2015, the Consumer Financial Protection Bureau launched the Financial Coaching Initiative, a pilot program that provided financial coaching services to veterans and economically vulnerable consumers. Professional coaches were embedded into 60 host sites across the country, where they provided free, one-on-one help to consumers to address their personal financial goals. A range of organizations served as host sites, such as one-stop career centers, social services organizations, and legal aid groups. Over four years, the Financial Coaching Initiative served over 23,000 consumers, demonstrating that financial coaching can be successfully implemented at scale in many different settings for a wide range of consumers. This report and summary brief describe the basic structure of the Initiative, present data about the program’s results, and summarize key lessons learned for practitioners and organizations interested in coaching.
Gathering a Bundle for Indigenous Evaluation
This guide brought together by the Indigenous Learning Circle (ILC) in Winnipeg's North End details how to conduct an Indigenous-grounded evaluation process. While not a comprehensive guide to complete an evaluation, the Bundle builds upon what is understood about evaluation and provides a guide that can be used in planning, designing, implementing and reporting based upon Indigenous values and principles. The Bundle provides a common understanding of the purpose of evaluation; how it can be beneficial for community; and Indigenous principles, values, considerations, and methods that could be used in the design and implementation of evaluation. It can be used by community organizations and staff to understand evaluation and increase community members’ capacity to actively participate in evaluation efforts in their programs and organizations.
The Comeback Generation: Pandemic is inspiring Gen Z to build financial resilience
The coronavirus pandemic has tested the limits of Canadians over the past 20 months. What began as a health crisis quickly morphed into an economic crisis, with the spread of COVID‑19 shocking large segments of the economy and leaving many without paycheques. While no generation has been unaffected by the pandemic, the economic impact was distributed unevenly. Many younger Canadians in Generation Z, or Gen Z, have had their education disrupted, career plans changed, and financial prospects diminished largely because they are overrepresented in the highly affected service sector, according to a new survey by the Canadian Bankers Association (CBA). The survey was published to mark Financial Literacy Month, which takes place each November, and found that more than half (53 per cent) of Gen Z respondents (aged 18‑25) felt the pandemic upended their financial security, with that number rising to 73 per cent for those in less stable financial situations. At the same time, nine‑in‑ten (88 per cent) Gen Zers are feeling optimistic about their financial futures, and nearly all of them (98 per cent) are actively making plans to strengthen their financial resilience. "Gen Z was dealt a disproportionately tough hand during the pandemic, but it has also shown incredible resilience in channeling its natural gifts for perseverance, adaptability and motivation," says Neil Parmenter, President and CEO, Canadian Bankers Association. "Despite the setbacks, younger Canadians are eager to forge ahead, be prepared for the unexpected and build bright futures as our economy recovers."
Who Doesn’t File a Tax Return? A Portrait of Non-Filers
The Canada Revenue Agency administers dozens of cash transfer programs that require an annual personal income tax return to establish eligibility. Approximately 10–12 percent of Canadians, however, do not file a return; as a result, they will not receive the benefits for which they are otherwise eligible. In this article, we provide the first estimates of the number and characteristics of non-filers. We also estimate that the value of cash benefits lost to working-age non-filers was $1.7 billion in 2015. Previous literature suggests either a rational choice model of tax compliance (in which the costs of filing are weighed against its benefits) or a more complex behavioural model. Our study has important consequences for policy-making in terms of the administrative design and fiscal costs of public cash benefits attached to tax filing, the measurement of household incomes, and poverty rates.
Start at the Beginning; a Person-Centered Design and Evaluation Framework for Policies to Boost Household Cashflow and Beyond
The financial hardships households faced in the midst of the pandemic reveals the scale of the precarity that millions of households were experiencing well before the crisis began. This highlights the urgency of the need to reimagine our system of benefits—both public and private—to effectively and equitably support households to recover from this pandemic and build security for the future. The Aspen Institute Financial Security Program (Aspen FSP)’s Benefits 21 initiative is dedicated to integrating and modernizing the American system of benefits to ensure all households have financial security and can live economically dignified lives.
The Financial Resilience and Financial Well-Being of Canadians with Low Incomes (detailed)
The financial resilience and financial well-being of Canadians with low incomes: Insights and analysis to support the financial empowerment sector detailed report, provides data and insights on the financial impact of the pandemic on Canadians with low incomes and their financial health, resilience and financial well-being in June 2021 compared to June 2018. The report is authored by Seymour Management Consulting Inc., the leading independent authority on financial health in Canada. Data levers the Seymour Financial Resilience Index ™ and five years’ of national longitudinal Financial Well-Being studies data. The report, commissioned by Prosper Canada and the ABLE Financial Empowerment Network, is relevant for Governments, Financial Institutions, NPOs, organizations and leaders working to help improve the financial well-being of Canadians. It paints a stark picture on the disproportionate impact of the pandemic on low-income Canadians and those who are more financially vulnerable. The Index, with a pre-pandemic baseline of February 2020, is complemented with targeted analysis of June 2021 and June 2018 Financial Well-Being studies. Data also relates to impacts on well-being dimensions and challenges in accessing support from Financial Institutions and NPOs. Read the summary report, The Financial Resilience and Financial Well-Being of Canadians with Low Incomes (summary)
Countervailing Power: Review of the coordination and funding for financial counselling services across Australia
In 2019, the Australian Government committed to additional actions to improve the financial outcomes of Australians, including undertaking an immediate review of the coordination and funding of financial counselling services that disadvantaged Australians rely on. The review noted the benefits of financial counselling to the community, including early intervention and prevention of further financial hardship, advocacy support, and referral to other services for complex issues. The review also highlighted the challenges faced by the financial counselling sector, including increasing demand, fragmented delivery, and the array of complex situations and financial products that can lead to financial hardship. The review:
Medical-Financial Partnerships: Cross-Sector Collaborations Between Medical and Financial Services to Improve Health
Financial stress is the root cause of many adverse health outcomes among poor and low-income children and their families, yet few clinical interventions have been developed to improve health by directly addressing patient and family finances. Medical-Financial Partnerships (MFPs) are novel cross-sector collaborations in which health care systems and financial service organizations work collaboratively to improve health by reducing patient financial stress, primarily in low-income communities. This paper describes the rationale for MFPs and examines eight established MFPs providing financial services.
Encouraging tax filing at virtual clinics
In 2020, The Behavioural Insights Team partnered with United Way and Oak Park Neighbourhood Centre to develop and test an email intervention to increase participation in tax filing clinics. An "active choice" email (sample email) significantly increased response rate and attendance to virtual clinics.
Asset resilience of Canadians, 2019
Canadians were more asset resilient just prior to the pandemic than they were at the turn of the millennium. That resilience continues to be tested as we enter the second year of the pandemic. For the purposes of this article, a household is asset resilient when it has liquid assets that are at least equal to the after-tax, low-income measure (LIM-AT) for three months. To be deemed asset resilient in 2019, a person living alone would require liquid assets of approximately $6,000. A household of four would require $12,000 or $3,000 per person to meet the minimum LIM-AT threshold for three months. Recent Statistics Canada data have shown that savings rose sharply during the pandemic, despite the economic upheaval, and that those in the lower income quintiles have seen their income rise as a result of government support programs, such as the Canada Emergency Response Benefit (CERB). Although the data in this release predate the pandemic, they provide an important benchmark to monitor the economic well-being of Canadian households during a time of unprecedented change.
A statistical portrait of Canada’s diverse LGBTQ2+ communities
Statistics Canada presents a demographic and social profile of Canada's diverse LGBTQ2+ communities based on published analyses. Much of the data in this release focus on LGB Canadians (lesbian, gay, bisexual), since Statistics Canada has been collecting detailed information on these communities since 2003.
Low-income persistence in Canada and the provinces
Each year, some Canadians fall into low income, while others rise out of it. For example, over one-quarter (28.1%) of Canadians who were in low income in 2017 had exited it by 2018. This study examines the low income exit rate in Canada—an indicator that can be used to track the amount of time it takes for people to rise out of low income. Although a potential surge in low income in 2020 as a result of the COVID-19 pandemic was avoided by temporary government support programs, the rising long-term unemployment rate in 2021 suggests a possible increase in poverty and low-income persistence in the future.
Increasing education savings for families living on low incomes: An outcome harvest evaluation
Momentum is a changing-making organization located in Calgary, Alberta that works with people living on low incomes and partners in the community to create a thriving local economy for all. In 2008, Momentum launched the StartSmart program to support families living on low incomes to open Registered Education Savings Plans (RESPs) to access free government education savings incentives such as the Canada Learning Bond (CLB). Momentum subsequently partnered with community agencies and advocated for systems level change in order to reach more families and scale up CLB uptake. This report captures the collective efforts and outcomes of Momentum and community partners regarding increasing the Canada Learning Bond (CLB) uptake in Canada, as well as lessons learned. The report highlights include: