Financial Literacy Month
Each November, the Government of Canada celebrates Financial Literacy Month in an effort to support the financial health of all Canadians.
Canada's payroll professionals are counted on to annually pay $928 billion in wages and taxable benefits on behalf of Canada's 1.5 million employers. Payroll is responsible for making sure these wages get to employees accurately and on time. For this reason, the Canadian Payroll Association (CPA) continues to publicize how payroll supports financial literacy for all employed Canadians.
Why is Financial Literacy Important?
Results from the CPA's National Payroll Week (NPW) Employee Research Survey show that nearly half of Canadians are living pay cheque to pay cheque.
What's more, half of employees feel that financial stress is impacting their work performance. Just 52% say they budget frequently; with a whopping 31% of this cohort saying that they keep their budget in their head. Of those that do budget, 52% say they usually or always stick to their budget.
Read the CPA's Financial Literacy Month news release for more information.
How Can I Get Involved?
Understanding Your Pay is essential to strong financial health. Our Understanding Your Pay video decodes and demystifies your pay. Share this with new hires during onboarding, with students during Take Your Kids to Work Day in November and with younger employees to support financial literacy.
Pay Yourself First!
While many don't feel as though they have control of their financial situation, the CPA's message to "Pay Yourself First" through automatic payroll deductions highlights an action-oriented, tangible solution for today, that will contribute to a more financially secure tomorrow.
"[The NPW] survey …continues to paint a picture of how Canadians feel about their financial situation. Canadians really don't feel that they have control over what they can do. The Canadian Payroll Association says, 'Why don't we help you take a little off your pay cheque so you can start paying down debt, setting a little aside and living below your means?" Pattie Lovett-Reid, Chief Financial Commentator, CTV News
The CPA's message to "Pay Yourself First" reinforces that all working Canadians should pay themselves at least 10% by setting up an automatic savings program through payroll. This message is so vital, especially in view of this year's Employee Research Survey results, because chronic under-saving by employees is still prevalent, despite their best intentions to save more.
"You need to save more. That's only the fail-proof way to reach your financial goals. Set a goal for your savings: Increase the amount you regularly put away in your emergency fund, your home down payment fund, your retirement account or whatever by 10 per cent." Rob Carrick, The Globe and Mail
Payroll supports ongoing financial management and literacy, helping Canadian employees take control of their financial futures. Talk to your organization's payroll department to find out how they can help you "Pay Yourself First!"
More Great Resources
Canadian Financial Literacy Database
Avanti's 'Pay Yourself First' Resource Library