Lack of Financial Literacy Puts Albertan Households at Risk
Millions of households across Canada are faced with financial difficulties, not least in Alberta.
Insolvencies per 1,000 have steadily increased in recent years, from 2.6 to 4.4 in the five-year period ending in 2018, while thousands are constantly burdened by money worries.
While there are many contributing factors to consider, a lack of financial literacy undoubtedly puts Albertan households at risk of additional woe.
Now is the time to tackle the situation in style.
The State of Debt in Alberta
In addition to the growing rate of insolvency, research has highlighted a number of worrying trends in Alberta.
Some of the telling findings are that:
- Over 7 in 10 Albertan households are not confident enough to build a comprehensive budget.
- Over half would not survive if their household income were to drop by just $200 per month.
- Roughly half of all Canadian citizens have saved less than 25% of their retirement funds by age 50.
- The average debt in Alberta is around $30,000, which is higher than any other province.
- Nearly 1 in 5 Albertans believe that they will never escape debt.
It all paints a pretty bleak picture, especially for those that are already faced with mounting debts or living from paycheck to paycheck.
In addition to immediate financial struggles and the looming threat of bankruptcy, the damages can impact retirement savings too.
The Lack of Financial Literacy in Alberta
Education is the key to success in all aspects of life, but a lack of financial literacy across Alberta is very noticeable.
In truth, it’s a conclusion that could be labeled to any province in Canada, as well as territories in most other nations.
Nonetheless, the situation in Alberta is quite severe.
Around 90% of Albertans agree that financial illiteracy is one of the root causes of financial troubles in the region, while 96% believe that the schooling systems are at least partly to blame.
Furthermore, only 11% consider themselves to have strong financial literacy skills compared to 43% of people that stated their skills are poor.
Given the widespread acceptance of the situation, it is evident that further financial education is required to support the current generation as well as the adults of tomorrow.
Interest rates, budgeting tools and strategic debt repayments have all been identified as topics that require attention.
While it won’t necessarily compensate for the global economic troubles and general insecurities of modern life, it will go a long way to building a brighter collective financial future.
Taking Personal Responsibility
Whether changes are made to the province’s educational systems or not, anyone facing financial difficulties must take personal accountability.
Developing an increased knowledge of all financial issues will help you identify and implement the right improvements.
However, that could take a long time to master.
In the meantime, BankruptcyCanada offers a comprehensive financial advisory service that can help you understand how to reduce interest payments, prioritize your financial commitments, and seek debt relief.
To find out more or book a full consultation today, call (877) 879-4770.