A whopping 84 per cent of Canadians surveyed “believe financial education in school would have helped them manage their personal finances with less stress today.”

That’s just one of the findings of recent research carried out for Edward Jones Canada. The research found that 64 per cent of Canadians “did not learn about money management in school during their younger years” with most “looking for ways to upgrade their knowledge later in life,” according to an Edward Jones Canada media release.

The organization has developed four “complimentary interactive online modules” to help Canadians self-educate about such topics as “debt management, buying a home, and how to have conversations with family about money,” the release continues. You can access the modules here:  www.edwardjones.ca 

Save with SPP reached out to Maryon Urquhart, Director responsible for Community Impact Programs, Edward Jones, to get more details on the topic.

Q. What can a financial advisor help with that those with little or no financial literacy knowledge?

A. At Edward Jones, we do money differently. Our approach involves taking a wellness approach to wealth, focusing on all life pillars: Family, Health, Purpose, and Finances. These pillars are interconnected and impact one another, so we look at them holistically.

We seek to understand every client and their family’s priorities to provide personal advice. This includes developing personalized budgets that address current needs and future considerations.

Our process begins with the ‘My Priorities Quiz,’ where clients rank different life events, helping us understand what matters most to them. We also discuss our ‘Family Influence Circle’ to learn about who clients consider family, which often extends beyond blood relations.

Based on their priorities, family dynamics, risk comfort, and timelines, we develop a unique plan for each client. This plan includes an overview of their goals, strategy pros and cons, personalized recommendations for account types and investments, and an action plan.

We revisit and adjust the plan annually or more frequently if circumstances change. We understand that life evolves, goals shift, families grow, jobs change, health fluctuates – and these changes affect priorities. We partner with our clients through these changes to ensure their financial plans always reflect what’s important to them now and in the future.

Q. It’s good to see support from survey respondents regarding the availability of financial literacy education in schools. Do we know how widespread such programs are in Canada at this point?

A. Our goal is simple – plant the seeds of financial literacy early, so young Canadians can grow into effective financial planners for their families in the future.

Since launching in 2023, more than 4,100 students in 143 schools across Canada have completed our Financial Fitness training. Through real-world simulations in the classroom, students learn the essentials of investing, navigating global markets, and building a solid foundation in personal finance.

Our data shows that confidence in financial decision-making has jumped from 61 per cent to 78 per cent among students who’ve taken the course. Edward Jones is committed to providing Canadian youth with the education needed to build their financial knowledge and confidence.

Q. Are you getting a good response to your online modules (financial education)? 

A. The early results of our online financial education modules look promising. Since launching in late October, we’ve seen 855 users engage with the modules, setting a strong foundation for 2025.

We offer interactive modules for Canadians of all ages, covering crucial topics like debt management, home buying, taxes, and family financial conversations. Finance can be a learning curve for all ages, but we’re here to help smooth that curve with the tools and guidance needed to make informed decisions.

Q. What surprised you the most about the survey results? 

A. What surprised us most about the survey results was the clear divide between Canadians who received financial education in school and those who did not. Seventy-eight per cent of those who learned at least a bit about money management in school rate their current abilities as good, compared to only 59 per cent of those who did not receive any education on the subject.

Conversely, 41 per cent of those who did not learn about money management in school rate their ability to manage their personal finances as okay at most, compared to just 22 per cent of those who had some form of financial education. These findings underscore the importance of early financial literacy education.

We thank Maryon Urquhart of Edward Jones for taking the time to answer our questions.

The Saskatchewan Pension Plan has been helping Canadians save for retirement for more than 35 years. You can join SPP as an individual, or participate via the growing number of companies that are using SPP as their organization’s pension plan. See how SPP can help your future you enjoy a more secure retirement.

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Lack of access to workplace pensions, debt and inflation hamper millennial savings efforts

New research from Edward Jones Canada has found that debt, inflation and the lack of workplace retirement savings programs are among the reasons millennials aren’t saving as much as they’d like for retirement.

An article in Wealth Professional took a closer look at the findings from the research.

A key learning was that 70 per cent of millennials (people aged 26 to 41) said “they are not able to save enough for their retirement,” the article notes.

Julie Petrara of Edward Jones Canada tells Wealth Professional that “we dug a little deeper and found that 27 per cent were unable to afford to save for retirement. Twenty-four per cent said they’re not saving as much as they want to; 15 per cent don’t know how much to save; and four per cent can afford to start saving, but haven’t.”

Reasons identified for not being able to save were “debt, their job and employment situation, and lifestyle,” as well as a lack of access to pensions, the article continues.

“Group plans aren’t often an option for young go-getters who earn income from the gig economy, while millennial workers with full-time corporate jobs are less likely than workers of decades past to be offered pension plans by their employers,” the article notes.

So for those without savings programs through work, retirement saving becomes “a self responsibility,” Petrara tells Wealth Professional. And on top of that, the cost of living was seen by 49 per cent of millennials surveyed as the “biggest obstacle” for retirement savings.

For millennials, the survey found, retirement savings is seen as something that can be put on the back burner versus “more immediate financial goals, such as paying down debt, homeownership, or starting a family.”

This is understandable, states Petrara in the article. “Millennials are further from retirement than more senior generations,” she tells Wealth Professional. “If we assume everyone is focusing on shorter-term financial goals, then Baby Boomers are prioritizing retirement, while millennials are dealing with their now and next, which includes addressing the costs they’re faced with today, and those they’ll be faced with in the near future.”

Petrara suggests that millennials consider working with a financial advisor to set priorities for saving.

There’s a lot of good information here and it rings very true. Of the millennials we know, some have good pensions through full-time work. But most are part-time workers, so retirement programs are either not available or optional. If you are able to take part in any type of retirement savings plan through work, be sure to sign up and start contributing — the money will go straight into savings right from your paycheque and you’ll be paying your future self first.

If there isn’t a retirement program at your workplace, ask your employer about signing up to offer the Saskatchewan Pension Plan, which is open to any Canadian with registered retirement savings plan room. SPP will handle the lion’s share of administrative work for the employer, and you and other employees will benefit from having a plan for your future. Tell your employer about SPP for employers today!

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At a time when some have “mountain” of savings, few focus on RRSPs: study

One of the oddest side effects of the pandemic has been the fact that for those fortunate enough to be able to keep working throughout it, savings are starting to pile up.

According to the Financial Post, the overall Canadian saving rate has reached “historic highs.” So, the article says, “you might think it would be a bumper year” for Registered Retirement Savings Plans (RRSPs).

Apparently not. Citing research from Edward Jones, a brokerage firm, the article reports that “52 per cent of Canadians say they do not plan to contribute to their RRSPs,” with 44 per cent saying it’s the pandemic that is preventing them from doing so.

As well, the Edward Jones research found that of the 31 per cent who said they would invest in their RRSPs, less than a third – again, 31 per cent – said they would invest the maximum.

Now, normally you’d look at all this and say, yeah, no one has the money for RRSPs this year – pandemic, hours cut, stores closed, travel and restos no longer possible, etc.

But the article notes that Canada’s overall savings rate “is at the second highest (level) since the early 1990s as locked-down residents with little to spend their money on, squirrel it away.” By the third quarter of 2020, the Post reports, our savings rate had soared to 14.9 per cent, compared with just three per cent in 2019.

So those with savings are packing it away at a clip not seen since the early 1990s. Save with SPP remembers those years fondly, as interest rates that were in the high teens in the late 1980s were still hitting the mid-teens by the early 1990s, making those old Canada Savings Bonds a great investment.

But there’s no such investment attraction today, and the Post feels that those who are hanging onto their dollars are doing so because of “economic uncertainty.”

“What the research shows is that Canadians have had to make financial compromises like deferring retirement contributions for other more immediate priorities and are storing away cash they can easily access in response to economic uncertainty,” states David Gunn, president of Edward Jones Canada, in the Post article.

This, the article informs us, makes sense given similar results from earlier Edward Jones research, as well as a Morneau Shepell poll that found 27 per cent of Canadians “say their financial situation is worse than those (15 per cent of those polled) who say it is better.” Looking around the country, Morneau Shepell found the most financial pessimism in Alberta, with Saskatchewan residents being the most optimistic about their finances.

While it is completely understandable that those without extra cash would have to cut back on retirement saving, it’s less clear for those who are sitting on money as to why RRSPs aren’t in favour. After all, you get a tax deduction for the RRSP contributions you make. More importantly, it’s not like retirement savings are some sort of bill you have to pay – it’s an investment in your future. You’ll eventually get all the money back and then some, thanks to investment.

If you are lucky enough to be sitting on some extra cash this year, consider the possibilities and look to the Saskatchewan Pension Plan as a destination for those dollars. Founded 35 years ago, the SPP has posted an impressive eight per cent rate of return over that period, demonstrating a history of savvy investing. Your contributions, just like an RRSP, are tax-deductible, and the money saved and invested will come back to you in the form of lifetime income down the road. Don’t deny your future self retirement security – check out the SPP today.

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