SOMBA K'E/YELLOWKNIFE - Budgeting, saving, investing, borrowing, credit history, insurance needs and how to guard against financial fraud is what the Canadian Bankers Association said Canadians need to be financially literate.

Evelyn Jacks is the Yellowknife consultation session chair of the Task Force on Financial Literacy, which simultaneously started its cross-country public consultations in Vancouver and Yellowknife April 6. - Jeanne Gagnon/NNSL photo

How to achieve that was the focus of the Task Force on Financial Literacy's 15-stop cross-country public consultation tour, which started in Yellowknife and Vancouver last week.

The tour, expected to end May 13, will hear from Canadians on how to improve their financial knowledge, so individuals are better equipped to plan for the future, to get through economic slowdowns and to ride out major life events. Following the public consultations, the 13-member task force will report to federal finance minister Jim Flaherty in December.

The task force defined financial literacy as "having the knowledge, skills and confidence to make responsible financial decisions," according to documentation provided.

But financial literacy depends on a person's age, employment and marital status, as well as economic situation, said Evelyn Jacks, Yellowknife consultation session chair.

"To some degree, people who participate in the economy already need or have some type of information," she said. "The issue is what information do they need to plan for their future and make responsible and best choices for themselves today."

Individuals and organizations appearing before the panel spoke of the importance of saving for retirement and, for instance, the sustainability of pensions plans said Jacks.

"The conversations range from recommendations or observations around how the school system can help people attain better financial literacy skills to the integration and the importance of family life in the role, what roles families have in helping children better understand money matters," she said.

The Centre for Northern Families sees many families go from living on income support to borrowing money for furniture or a vehicle when they get a job working at the mine, said its executive director Arlene Hache, who appeared before the task force. But when the mine closes or slows down, those same families can't manage their debt, she added.

"We work with people who don't have money and we have seen a large breakdown in families who, all of a sudden, have money because of the economy around the diamond mine," she said.

"It could improve if people were given more information, more resources to know about how to manage debt." Hache said a "huge gap" exists in Yellowknife and the territory between people with money and those without. Among poorer individuals, she said there is a poverty mentality that follows a survivor pattern.

"When you're trying to live on nothing, saving money isn't really what you're thinking about. You're just thinking about how to put food on the table or how to pay your rent," she said.

As many students drop out of school, Hache said, not all the resources concerning financial literacy should be provided through the education system.

As a financial planner with Investors Group, John Williston, who did not appear in front of the task force, said he deals with people with little or no knowledge of how finances work to others with a more sophisticated background. He added most people that walk through his door have an average understanding of finances.

"They know how to establish credit. They know that they should probably do something toward retirement planning but they don't know maybe what," he said.

"As far as investing, mutual funds are probably a good way to approach it but maybe they're not sure how or how to diversify it or work with that. I mean they do have a general understanding of the responsibilities that they need to have." Williston helps individuals with financial planning, retirement, estate and insurance planning as well as businesses that, for instance, want to offer benefits to employees.

"I think it's very important that people understand at least the basics," he said. "If they understand enough, at least, that they should reach out for professional help, then they're in good shape."