By Katie Wicks The Toronto Star, March 24, 2018 2:27 p.m.
EST Students and parents need to pay attention to the financial security of their students and their families, the chair of the Canadian Council of Chief Executives said in a report released Wednesday.
Financial security is a term that encompasses many different aspects, but a key component is the ability to take advantage of a range of financial tools to better manage their finances, according to the CCEO.
Financial literacy is one of the CCEC’s key objectives.
According to the report, students and families need to understand how to manage their financial situations, and be prepared to take on financial risks if they are not adequately prepared.
According to the survey, the top five financial tools used by Canadian students and adults are: cash, debit and credit cards, credit cards and bank accounts, and bank and savings accounts.
Cash is the most popular method of payment for students.
A student’s primary financial source is their primary bank account, while the majority of Canadian adults use a personal savings account.
A majority of respondents (56 per cent) said that they had a primary financial account and about four-in-ten said they had an ATM.
The CCEO said that a large majority of adults (85 per cent or more) have a savings account at some point in their lives.
However, it said that fewer than half of respondents say that their savings account is at least five years old.
Many students and seniors have an overdraft account, a category in which they have enough money to cover expenses such as travel, groceries, rent and transportation, but they cannot put it to good use.
In Canada, students, parents and grandparents have the right to have an emergency account, the CCEP said.
The CCEO found that more than half (52 per cent of respondents) of respondents had an emergency fund of some kind, while nearly a third (32 per cent), or approximately 2.5 million people, had an overdrawn fund.
The financial literacy survey was conducted by the CCCE between March 23 and April 6, 2018.
The survey’s margin of error is plus or minus 4.8 percentage points, 19 times out of 20.