Financial Capability and Poverty – Discussion Paper (2004)

This discussion paper, prepared by Social and Enterprise Development Innovations (SEDI) at the request of the Policy Research Initiative (PRI) of the Government of Canada, examines the research and practice of financial literacy as a complementary strategy to asset building.

In the first section of the paper, the authors review various definitions of financial literacy, noting that there is little agreement among community practitioners or social researchers on the meaning of the term. As an alternative, they suggest the term “financial capability,” used widely in the United Kingdom to describe the state of having the skills, knowledge, and confidence to make informed judgments and decisions about financial matters.

The second section reviews the major initiatives under way in the United Kingdom, the United States, and Canada to enhance financial literacy or capability, either in the context of savings and asset building, or as stand-alone initiatives.

The final section of the paper sets out a number of issues for further consideration by policy makers, including seeking clarity and consensus on terminology; understanding the actual needs of Canadians related to financial literacy; and determining the appropriate roles for stakeholders in developing and delivering information and training.

Founded in 1986, SEDI is a Canadian nonprofit organization that helps low-income earners gain financial independence through financial literacy, asset building, and entrepreneurship.

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2013-06-05
APA citation
Social and Enterprise Development Innovations (SEDI). Financial Capability and Poverty – Discussion Paper 2004. Web. 25 Feb. 2021 <http://en.copian.ca/library/research/sedi/financial_capability/financial_capability.pdf>
Social and Enterprise Development Innovations (SEDI) (2004). Financial Capability and Poverty – Discussion Paper. Retrieved February 25, 2021, from http://en.copian.ca/library/research/sedi/financial_capability/financial_capability.pdf
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