Marking Financial Literacy Month, new research examines the complexities of financial resilience to address barriers and drive solutions

November 27, 2024 | Vancouver, B.C.: Today, the Financial Wellness Lab at the Faculty of Science, Western University in partnership with Canada’s largest federal financial cooperative, Coast Capital, released a first-of-its-kind study, the Income Project, examining the contributing factors to financial wellness for people in Canada.

The depth of the Lab’s most recent research is part of its ongoing efforts to deepen understanding of the factors contributing to financial resilience and unlike any other undertaken in the country to date. Tapping into a decade’s worth of Canadian-specific data and insights, researchers studied datasets representing approximately five-million Canadians and their anonymized incomes, spending patterns, the accumulation of debt and overall financial wellness.

“There are many assumptions that we make about financial resiliency,” explains Chuck Grace, program director, Financial Wellness Lab and lecturer, Ivey Business School. “This body of research tested those assumptions in a Canadian context. The findings really pull back the curtain on where the weak links are when it comes to Canadians and their financial circumstances. While income plays a role, it’s one piece of a larger puzzle when it comes to financial wellness.”

The Income Project project found that:

• While income sets constraints for spending, saving and debt, there is certainly a tipping point beyond which income becomes a key contributor to financial resiliency; but income alone is not a clear-cut solution.
• Financial resiliency is built on a variety of factors and behaviours and Canadians who adopt optimal financial behaviours concurrently can improve their financial well-being.
• Beyond income, financial resiliency is largely a housing issue. For many Canadians, the growing gap between income and housing cost is not sustainable. This is especially true for British Columbians, wherein a significant population is at-risk due to high mortgage balances compared to income.

“As a purpose-led organization, Coast Capital is committed to helping Canadians unlock financial opportunities and grow their incomes and in turn, their long-term financial resiliency,” said Maureen Young, vice president, social purpose, Coast Capital. “Working with partners like the Financial Wellness Lab helps us, as a trusted financial partner to our members, better understand how to evolve our advice, tools and educational content to combat barriers and ultimately support people in progressing down a path to financial resilience at all income levels.”

Coast Capital’s partnership with the Financial Wellness Lab adds to the federal financial institution’s growing body of initiatives that drive their purpose of Building Better Futures Together through unlocking financial opportunities that positively impact people and communities.

Earlier this year, Coast Capital introduced the latest product innovation focused on driving income growth, its Elevate Chequing Account. The account, which boasts all of the day-to-day banking features people want such as free e-Transfers and ID Assist 24/7 identity theft protection, also offers the added benefit of free access to Coursera’s online training to help advance careers and potentially help people grow their incomes.

This announcement also comes during the 14th edition of Financial Literacy Month in Canada. This year’s national campaign is driven by research that confirms talking about money builds financial confidence and can lead to better financial outcomes. The Financial Wellness Lab study is yet another example to encourage Canadians to review the research and encourage discussion of their financial experiences.

Next, the Financial Wellness Lab is embarking on additional research, with support from Coast Capital, to identify solutions that can help Canadians build greater financial resiliency and ultimately strive for better income equality long-term. The research is a 4-year body of work, which will start in January 2025.

To learn more about the Financial Wellness Lab and the Income Project, visit: www.financialwellnesslab.ca/post/the-income-project. This research is part of the Lab’s ongoing efforts to deepen understanding of the factors contributing to financial resilience.

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About Coast Capital

At Coast Capital, we’re not dreaming about a better future, we’re building one. We’re a member-owned financial cooperative with an 80-year legacy of unlocking financial opportunities that positively impact people and communities. We believe that every Canadian deserves a financial partner who actually cares how things turn out. Driven by our social purpose, we look at everything we do through the lens of how we can help nearly 600,000 members, our employees, and communities. Ranked in the platinum category of the 2022 Corporate Knights’ Social Purpose Ranking and a proud Certified B Corporation™, we’re part of a global movement building a more inclusive, equitable and regenerative economic system. Each year, we invest 10% of our budgeted bottom line into our communities, which totals more than $100M since 2000. We’re deeply committed to making our financial cooperative a great place to work as demonstrated by some of our accolades. Coast Capital is a platinum member of Canada’s Best Managed Companies and one of Canada’s Most Admired Corporate Cultures. To learn more, visit us online at coastcapitalsavings.com.

About Financial Wellness Lab

The goal of the Lab is to develop quantitative finance and data analytics solutions that will enable Canadian households to enhance their financial resilience. Combining state-of-the-art actuarial and financial models and comprehensive proprietary datasets provided by our corporate partners, the partnership will provide insights and solutions for Canadians to help facilitate data-driven financial decision-making. Our industrial partners are committed to making these insights and solutions broadly available at the workplace or in the home.

MEDIA CONTACTS:

Phone number: 778.391.6225
Email address: media@coastcapitalsavings.com