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.



Investing in Financial Coaching with a Racial Equity Lens

In this moment, it is pivotal for philanthropy to support communities of color in achieving financial well-being. Combined with systems-change efforts that would create fairer economic opportunities and conditions, financial coaching is a vital component of providing needed support. Through background information, case stories, and key investment considerations, this brief focuses on financial coaching with a racial equity lens as an important strategy for helping people of color achieve equitable outcomes.



Tax Time: An opportunity to Start Small and Save Up

This paper provides a description of how having liquid savings contributes to people’s financial stability and resiliency, and the unique opportunity that tax time offers to begin saving for the short and longer term. Starting to save or continuing to save when receiving a tax refund may lead to longer term financial well-being. 

This paper also provides a few examples of how Volunteer Income Tax Assistance (VITA) programs creatively used Bureau tools, resources and technical assistance to encourage savings as well as some of the results they reported. It provides insights from a subgroup of the programs in the cohort that collected additional information from consumers on their intent to save, the various types of accounts into which they saved, and the goals they were striving for by saving. Finally, this paper offers recommendations on some strategies that can be employed to increase people’s interest and commitment to saving during the tax preparation process. 



Planning for tax-time savings

This report presents the results of a large-scale field experiment that the tax preparation company H&R Block (the Company) conducted in collaboration with the Consumer Financial Protection Bureau (the CFPB). The field experiment investigated whether customers could be encouraged, through consumer communications with and without the offer of a small financial incentive, to use a savings feature on a prepaid card to save a portion of their tax refunds from all sources, including state and federal refunds. The CFPB was particularly interested in whether consumers who receive the Earned Income Tax Credit (EITC) would be receptive to messages about saving. 



Creating Communities Where We Live – A Good Practices Guide

Creating Communities Where We Live - A Good Practices Guide is a locally-driven community-based researched project conducted in Edmonton, Alberta, by e4c and the University of Alberta Community Service-Learning program. The project seeks to add to the knowledge and practice of community care around supporting people to achieve a safe, secure, and affordable housing experience.

The 10 good practices in this guide describe structures, roles, and relationships which promote community and wellbeing for tenants who live in affordable housing. The practices are informed, in part, by research into tenant and staff experiences at affordable housing complexes run by four Edmonton housing providers.



Review of Financial Literacy Research in Canada: An Environmental Scan and Gap Analysis

The Review of Financial Literacy Research in Canada highlights past and current advancements in financial literacy research (produced by government and non-governmental stakeholders) while identifying existing gaps within the financial landscape. The overriding goal is to help strengthen the financial well-being of all Canadians. The review contains four research priorities: managing debt, navigating the financial marketplace, building savings, and budgeting.



Millennials and money: Financial preparedness and money management practices before COVID-19

Millennials (individuals age 18–37 in 2018) are the largest, most highly educated, and most diverse generation in U.S. history

This paper assesses the financial situation, money management practices, and financial literacy of millennials to understand how their financial behaviour has changed over the ten years following the Great Recession of 2008 and the situation they were in on the cusp of the current economic crisis (in 2018) due to the COVID-19 pandemic.

 Findings from the National Financial Capability Study (NFCS) show that millennials tend to rely heavily on debt, engage frequently in expensive short- and long-term money management, and display shockingly low levels of financial literacy. Moreover, student loan burden and expensive financial decision making increased significantly from 2009 to 2018 among young adults.



Managing Financial Health in Challenging Times

Managing financial health is difficult during ordinary times—and especially so in challenging times like the ones we're currently facing. Guest speaker RuthAnne Corley, the Senior Stakeholder Engagement Officer with the Financial Consumer Agency of Canada (FCAC), discusses how to manage your financial health despite external challenges.

RuthAnne joined FCAC in 2015 where she’s been instrumental in the development of Canada’s "National Strategy for Financial Literacy - Count me in, Canada" and its implementation. Prior to joining FCAC in 2015, RuthAnne managed stakeholder engagement and outreach activities at numerous federal departments and agencies.



COVID-19 financial literacy resources

CPA Canada has put together resources to help manage your finances and provide you with the tools you need during this crisis – and beyond.



Achieving financial resilience in the face of financial setbacks

The Asset Funders Network (AFN) developed this primer to inform community-based strategies that can help economically-vulnerable families to better manage financial setbacks, shortfalls, and shocks. The goal of this brief is to provide a common understanding and language for funders and financial capability programs as part of a financial emergency toolkit.