TORONTO - "Financial literacy is an important life skill that empowers consumers to make the best financial decisions in their particular circumstances. While a number of initiatives are currently underway to improve financial literacy for Canadians, it is time to better organize efforts". Budget 2009.

This statement was one of the lower profile, but no less significant items in yesterday's Federal 2009 budget. The government's commitment to work with all sectors to develop a "cohesive national strategy on financial literacy" is a critically important component of any long term economic recovery plan for Canada.

Financial literacy is an issue that matters to all consumers of financial services including lower-income Canadians. The role and impact of low financial literacy levels among Canadians in the current economic crisis has been overshadowed by larger financial concerns such as access to credit. However, the inability of many consumers to make informed financial decisions is a contributing factor to issues such as rising personal debt and personal bankruptcies, increased use of fringe financial services and lower savings for longer term goals such as saving for post secondary education, retirement and specific assets such as homeownership and starting small businesses.

By having a national strategy for financial literacy we will equip Canadians with the tools and the continuing supports they need to better manage their income, savings, and investments. We will create a more financially literate country which is an objective we must achieve to be truly successful in our long term economic recovery efforts. With this initiative Canada will join a growing list of countries including the United Kingdom, the United States, Australia and New Zealand who have developed national strategies to improve the financial literacy of their citizens.

"To create a national strategy, we need leadership, people, ideas, and a mechanism", said Peter Nares, SEDI. "We applaud the Canadian government for its leadership on this issue."