According to a survey by the Chartered Professional Accountants of Canada, some Canadians might overestimate their capacity to manage their money and pay off their debt. 47% of respondents gave themselves an A or B for personal finance knowledge. However, a quarter of them also admitted to overspending.

The study identifies additional gaps in personal finance management, such as 33% of respondents with consumer debt saying they are unaware of how changing interest rates affect their loans.

In the past two years, 57% of respondents with non-mortgage debt carried a credit card balance, according to the study, which was conducted online by Ipsos between June 16 and June 23.

Although it might be challenging to foresee inflation, Doretta Thompson, CPA Canada’s pioneer in financial literacy, argues that taking control of your behaviour can help you manage the outcome of your finances.

One in four Canadians said they would need to borrow money or sell something to come up with $500 in cash in a day, which indicates a problem with cash flow, as per the survey. 

The results of the survey highlight the urgent need for extensive initiatives to improve financial literacy across Canada. In addition to enabling people to manage their finances intelligently, closing the knowledge gap in this area would help build a more stable and resilient society.

A well-informed populace will be better able to navigate difficulties, grasp opportunities, and create a stronger financial future for themselves as well as the country as a whole as personal finance complexity continues to increase.