The Task Force defines financial literacy as having the knowledge, skills and confidence to make responsible financial decisions .
Barely a day goes by that Canadians do not have to make a financial decision of some kind or other. Some decisions are routine, such as what groceries to buy or whether to pay by cash or by credit card. However, others are more momentous, such as deciding to open a savings account, or to go away to college or university or to take out a first mortgage.
To make decisions, people draw on their existing knowledge in a particular situation and apply it in such a way that is appropriate to their circumstances.