According to the results of a survey conducted by the Financial Consumer Agency of Canada, 96 percent of Canadians do not understand the breadth of their financial responsibilities when it comes to banking. The survey included 2,002 individuals and focused on the three core areas of financial information: banking rights and responsibilities, responsibilities of accounts, and credit reports. The results of the study were alarming and prove that Canadian understanding of how credit cards work has decreased dramatically over the past five years.
While some of the results were positive, such as the fact that 67 percent of the people surveyed understand that protecting their personal identification numbers (PIN) means “not even sharing it with a spouse,” other results were not so affirmative. Of those surveyed, only 95 percent were able to correctly answer half of the questions. Demographically, Canadians 55 and older could have negatively impacted the results of the study, not from a lack of general intelligence, but because they do not use all the aforementioned banking services, like ATM cards or credit cards for bad credit.
In addition to only 95 percent of the population being able to answer half of the questions, 62 percent of Canadians were unsure of how to argue a transaction on their credit account. Only four percent of those interviewed were able to answer all the true and false questions correctly. Samples of these true and false questions are: Does a person have to pay interest on a cash transaction made from a credit card if their balance was paid off? And, can a bank refuse to open an account for someone who previously filed for bankruptcy?
Although the 55 and older population, and the limitations they may have placed on this survey, were taken into consideration, the even distribution of demographic age categories of adults across the country are considered to be accurate nineteen times out of twenty or within 2.2 percent. Obviously, consumer education throughout Canada must be improved, since fiscal responsibility is one of the core aspects of personal responsibility for anyone over the age of eighteen.
Canada.eCreditCards.com can help you inform yourself, quickly and easily. By simply reading our blogs, keeping up to date with current financial news, not only in Canada, but around the world, and knowing how to decipher your credit score so you can apply for credit cards suitable for your current financial situation, you’ll be well on your way to understanding your finances and preparing yourself for your fiscal future.