Thank you very much, Mr. Chairman. I appreciate the opportunity to appear before you here today on behalf of the Canadian Foundation for Economic Education, or CFEE, as we are more affectionately known.
More importantly, I am pleased to have the opportunity to represent the interests of the millions of Canadians who struggle today to build a successful economic future. More Canadians than any of us would care to imagine lack both confidence and competence as they face their daily economic and financial choices and challenges. CFEE is a federally chartered, non-profit, non-partisan organization, and our goal is to help improve economic and financial literacy so that more Canadians have the capacity and the capability to build a successful economic future.
Our organization was established in 1974. Over the past thirty years we have seen this country absolutely explode with economic opportunity, but unfortunately not for all. We've seen how those who are equipped with the knowledge and skills to identify opportunity and act on it do extraordinarily well, some achieving significant wealth. But we have also seen how many other Canadians experience the stress, anxiety, and hardship that an increasingly competitive and market-driven economy can present. Lacking the same level of economic readiness that others have, these individuals are vulnerable to so many of the harsh economic forces and realities that can sweep over those who are not prepared or who are ill-prepared. We've seen the consequences of stress and ignorance through the signs of tremendous growth in cheque-cashing and payday loan operations.
And wouldn't it be wonderful if the challenge of trying to regulate these operations were partnered with declining demand? If you are like most Canadians, when you reflect upon your own economic and financial learning, you would probably agree that your preparation for economic life was less than ideal. I'm sorry to say that for today's youth, things haven't changed very much.
This means that the challenge we currently face, trying to help many in our adult population who are ill-equipped and unprepared for economic and financial decisions, may only get worse. We know that some groups within our society are more vulnerable to economic challenge and hardship than others and need particular attention—groups such as aboriginal and first nations Canadians, newcomers, past immigrants, and the elderly, who are particularly vulnerable to frauds and scams as they aim to find ways to maximize returns on their investments in a low-interest-rate world.
Some would argue that there is a more urgent need: that of basic literacy and numeracy. I would refer those who do so argue to the work that has been done in the United States, where some of the most successful programs, with the most significant impact on literacy and numeracy, have focused first and foremost on economic and financial literacy. Why? It's because to learn effectively learners need to be motivated, and they have to want to learn.
Many who are illiterate will not step up to proclaim that they need to learn. Indeed, that is what represents so many problems for literacy programs: people will not self-identify, since they don't want it to be known that they cannot read. Consider the now famous example of Jacques Demers, who did all he could to hide his inability.
If we want to address the challenges of basic literacy and numeracy, I propose to you that a key may well lie in the efforts to improve economic and financial literacy at the same time. People usually have little hesitation in acknowledging that they need help in this area, since almost anyone could be sitting in the seat beside them—a real estate agent, an engineer, a taxi driver, and so on. There seems to be no shame in admitting that one needs help in handling and managing financial and economic matters in one's life. Unfortunately, that is a sign of how pervasive the problem is.
I therefore suggest to you that there is not only an urgent need to address the challenge of economic and financial literacy, but that efforts designed to do so could at the same time make a significant contribution to improving basic literacy and numeracy skills. In the brief we have prepared for your consideration we have presented an action plan to address the problem we face in this country with economic and financial literacy.
One of the roadblocks we have faced historically, even among those concerned about the problem, is the question of what we mean by it. To try to overcome this barrier, we organized a series of forums across Canada and brought together people from all walks of life. We asked them one simple question: what do you think Canadians need to know?
I have brought with me today copies of a document entitled “Canadian Economic and Financial Capabilities Guideline”, which represents the consensus of those who've represented business, labour, government, education, social, and community agencies, and many others. We hope this helps us to overcome the historic barrier and articulates what we mean by economic and financial literacy.
However, even with that barrier overcome, a major obstacle remains, and that is the will in Canada to do something about this issue. We're willing to do our part, but to make a meaningful difference, we need to make a meaningful investment. We need the influence and resources of our federal government. We need the federal government to assign priority to this issue and put the resources behind a national, coherent, strategic initiative to help the many Canadians who want to succeed, are working hard, but are encumbered by a lack of knowledge and skills that puts them in a position of such disadvantage to others.
We hope you will agree, assign priority to this issue, assign resources to a strategic effort to address this issue, and help Canada and Canadians to address this challenge.
Thank you very much.