Summary Report of Results

Background Strengthening Financial Literacy Among Aboriginal People Survey Summary Report of Results On October 16, 2014, the Financial Consumer Agency of Canada (FCAC) released a consultation paper on financial literacy for priority groups with Aboriginal people being one of the priority groups. In response, AFOA Canada posted the Strengthening Financial Literacy Among Aboriginal People Survey on the AFOA Canada website to gather comments on the financial literacy needs of Aboriginal people on October 17, 2014. The online survey was closed on November 21, 2014. This Summary Report provides an overview of the results of the Online Survey. Overall Results The survey results are presented in order of questions posed on the questionnaire and include the following categories and topics outlined in Table 1 below. Table 1: Categories and Topics of Survey Questions CATEGORY OF TOPICS OF QUESTIONS QUESTIONS 1. About You 1-Population Group 2-Where live 3-Annual Household Income 4-Age Range 2. Overall Consultation Paper 5-How Financial Literacy Needs of Aboriginal People Differ from Canadian Population 6-Effective Ways to Address Needs 7-Successful/Promising Financial Literacy Initiatives to Address Needs 3. Helping Aboriginal People Budget and Plan Ahead 4. Helping Canadians Manage their Financial Affairs 8-Best Practice Programs/Initiatives to Help You Budget & Plan Ahead 9-Solutions to Barriers to Budgeting & Planning Ahead 10-Best Practice Initiatives/Programs for Aboriginal People to Manage their Financial Affairs 11-Solutions to Barriers to Managing Your Financial Affairs November 2014 1

5. Understanding and Access to Public and Private Benefits for Aboriginal People 6. Protecting Yourself from Financial Fraud 12-Most Effective Ways to Help Aboriginal People Understand Available Government and Private Benefits 13-Barriers and Solutions to Access Available Government and Private Benefits 14-Information to Ensure Aboriginal People Don t Fall Victim to Financial Abuse & Fraud 15-Ways for Governments & Others to Raise Awareness About Fraud, Scams & Financial Abuse 16-Examples of Fraud or Financial Abuse Targeted at Aboriginal People and Steps Recommended to Prevent This 7. Measuring Progress 17-Good Indicators to Measure Progress in Strengthening Financial Literacy in the Short, Medium and Long Term 18-Distinct Measures of Progress in Improving Financial Literacy & Why Suggested 1. Population A total of 62 respondents completed the on-line survey. Of these respondents, 67.74% were First Nations, 1.61% were Non-Status Indians, 4.84% were Métis and 25.81% were Non-Aboriginal. There were no Inuit respondents. Refer to Table 2 below. Table 2: Respondents by Population Group GROUP Total Population First Nations Non-Status Indians Inuit Métis Non- Aboriginal % 100% 67.74% 1.61% 0 4.84% 25.81% Number 62 42 1 0 3 16 2. Where Live The majority (74.19%) of the respondents lived off reserve with 25.81% of the respondents living on-reserve. Of the First Nations respondents, 61.9% lived off-reserve while 38.1% lived on-reserve. Refer to Table 3 below. Table 3: Where live by Population Group I live: Total Population First Nations Non-Status Inuit Métis Non- Aboriginal (62) On-Reserve 27.42% (17) (42) 38.10% (16) (1) 100% (1) (0) (3) (16) November 2014 2

Off- Reserve 72.58% (45) 61.9% (26) 100% (3) 100% (16) 3. Annual Household Income With respect to the annual household income, respondents were in the higher income ranges with the majority (57.38%) of respondents making $80,000 or more, 11.48% making $71,000 to $80,000 and 8.20% making $51,000 to $60,000. This finding was found across all population groups with 100% of Non-Status, 100% of Métis, 73.33% Non-Aboriginal and 47.62% of First Nations respondents making over $80,000. Table 4: Annual Household Income by Population Group Annual Household Income Less than $30,000 $31,000- $40,000 $41,000- $50,000 $51,000- $60,000 $61,000- $70,000 $71,000- $80,000 Over $80,000 Total Population First Nations Non-Status Inuit Métis Non- Aboriginal (62) (42) (1) (0) (3) (16) 4.92% 4.76% 0 0 0 6.67% 6.56% 9.52% 0 0 0 0 4.92% 7.14% 0 0 0 0 8.20% 9.52% 0 0 0 6.67% 6.56% 7.14% 0 0 0 6.67% 11.48% 14.29% 0 0 0 6.67% 57.38% 47.62% 100% 0 100% 73.33% 4. Age Range With respect to age range, the majority (40.32%) of respondents across the total population were 45-54 and 22.58% were 35-44. For all Aboriginal respondents, the majority were aged 35 to 54 while the majority of Non-Aboriginal respondents were older, aged 55 to74. November 2014 3

Table 5: Age by Population Group Age Total Population First Nations Non-Status Inuit Métis Non- Aboriginal (62) (42) (1) (0) (3) (16) 18-24 1.61% 0 0 0 0 6.25% 25-34 8.06% 11.9% 0 0 0 0 35-44 22.58% 21.43% 0 0 100% 12.5% 45-54 40.32% 47.62% 100% 0 0 25% 55-64 14.52% 9.52% 0 0 0 31.25% 65-74 12.90% 9.52% 0 0 0 25% 75+ 0 0 0 0 0 0 5. How Financial Literacy Needs of Aboriginal People Differ from Canadian Population Across the total population, 30 (48.39%) respondents answered this question. Of these respondents, 76.67% were First Nations; 20% were Non-Aboriginal; and 3.33% were Métis. Looking for common patterns in the data, seven responses were provided by more than one respondent. Key differences in the financial literacy needs of Aboriginal people and the Canadian population included the following. Generations of Aboriginal people lived in poverty with little to no money (26.67% of the respondents). The lack of education and high dropout rates from secondary school for Aboriginal people (16.67% of the respondents) The dependency of Aboriginal people on social assistance and income assistance (16.67% of the respondents) No legacy of financial literacy or role models for Aboriginal people (13.33% of the respondents) Limited access to financial and banking services (13.33% of the respondents) Aboriginal people have no collateral for loans and mortgages on-reserve because land and homes cannot be used (6.67% of the respondents). 6. Effective Ways to Address Needs Across the total population, 29 (46.77%) respondents answered this question. Of these respondents, 75.86% were First Nations; 20.69% were Non-Aboriginal; and 3.45% were Métis. November 2014 4

The majority (65.52%) of respondents indicated that the most effective way to address financial literacy needs for Aboriginal people was through education. Elementary and secondary school (17.24% of the respondents) Workshops (13.79% of the respondents) Online learning (6.9% of the respondents) Varied individual responses included: -individual coaching and tutoring -programs and courses offered by AFOA Canada -school curriculum -empowering the people to teach -creating a mentoring program in Aboriginal schools -incorporating financial literacy into existing programs 7. Successful/Promising Financial Literacy Initiatives to Address Needs Across the total population, 26 (41.93%) respondents answered this question. Of these respondents, 88.46% were First Nations; and 11.54% were Non-Aboriginal. There were three areas with similar responses. They are listed below. Don t know any successful financial literacy initiatives (23.08% of respondents) AFOA Canada has financial literacy programs and courses for Aboriginal people (15.38% of the respondents). Paul Martin Aboriginal Education Initiative (7.69% of the respondents) Individual respondents identified the following promising financial literacy initiatives. FLLAME Literacy Course Family Services of Greater Vancouver Financial Literacy Provincial Education Curriculum Entrepreneurs with Disabilities Program in Manitoba The Ontario Securities Commission 8. Best Practice Programs/Initiatives to Help You Budget & Plan Ahead Across the total population, 26 (41.93%) respondents answered this question. Of these respondents, 84.61% were First Nations; and 15.39% were Non-Aboriginal. There were three areas with similar responses. They are listed below. Don t know any successful financial literacy initiatives (23.08% of respondents) Banks (15.38% of the respondents). November 2014 5

AFOA Canada (7.69% of the respondents) Individual respondents identified the following promising financial literacy initiatives. Family Services of Greater Vancouver Financial Literacy Money Moron Books by Vaz Oxlade Community Futures Office in Winnipeg, Manitoba 9. Solutions to Barriers to Budgeting & Planning Ahead Across the total population, 25 (40.32%) respondents answered this question. Of these respondents, 84% were First Nations; and 16% were Non-Aboriginal. The majority (32%) of the respondents identified education and training as the solution to barriers to budgeting and planning ahead. Individual respondents identified the following solutions to budgeting and planning ahead barriers. Learn MS Excel. Role Model Program Make it free and mandatory part of a social program. Funding to allow required people to get training on an ongoing basis. Not making people feel bad that they didn t plan; marketing material for budgeting. Track spending, investments and other assets. 10. Best Practice Initiatives/Programs for Aboriginal People to Manage their Financial Affairs Across the total population, 25 (40.32%) respondents answered this question. Of these respondents, 84% were First Nations; and 16% were Non- Aboriginal. There were two areas with similar responses. They are listed below. Don t know any best practice initiatives or programs for Aboriginal people to manage their financial affairs (28% of respondents) AFOA Canada (8% of the respondents) Individual respondents identified the following best practice initiatives/programs to manage their financial affairs. Banks Social service programs November 2014 6

Community Futures, Manitoba Fraternal Insurance Company KPMG, Sudbury Put support systems in place, i.e. after school programs 11. Solutions to Barriers to Managing Your Financial Affairs Across the total population, 22 (35.48%) respondents answered this question. Of these respondents, 81.82% were First Nations; and 18.18% were Non-Aboriginal. There was very little agreement in the responses provided by the respondents with the majority (72.73%) of responses being varied. The solutions to barriers to managing financial affairs generated by respondents are listed below. Ongoing access to education, training, workshops and literature on the subject (9.09% of the respondents) Track your spending (9.09% of the respondents). Don t know (9.09% of the respondents) Understanding investments, RRSP s, TFSA, etc. Reduce credit debt as a high priority. People have to be able to read and write to understand financial literacy. Aboriginal banks to reach out to people to consolidate debt and repay then begin savings and investing. Zero based budgeting Start from the basics, monies coming in and what has to go out. Refer those who have addictions and mental stress disorders to counselling to better enable them to manage their affairs. Unforeseen circumstances that affect family How do you say no to taking on the financial responsibility of raising your grandchildren? It is cultural. Visualization being able to set a goal and achieve it with one small step at a time. Cross cultural training. First Nations always worked before contact. Working closely with other financial and accounting people who will spend the required time with grassroots people on a regular basis. 12. Most Effective Ways to Help Aboriginal People Understand Available Government and Private Benefits Across the total population, 28 (45.16%) respondents answered this question. Of these respondents, 96% were First Nations; and 4% were Non-Aboriginal. November 2014 7

The majority (53.57%) of respondents indicated that the most effective ways to help Aboriginal people understand available government and private benefits was through information sessions, community sessions, community meetings and education and training. In addition, 17.86% of the respondents identified social media, the internet and APTN as most effective ways to assist in understanding benefits. Individual respondents identified the following most effective ways to help Aboriginal in this area. Local leadership offering consultation services Community newsletters Communication, full disclosure and transparency by the Governments and private sectors Providing access to information I have seldom relied on these so I m not sure I can help here. More involvement with First Nations One to one discussions and visual diagrams Constant awareness. It seems that the only time we as Aboriginal people hear about benefits targeted towards us is when there is a political race or misuse of the benefits. The government needs to understand who native people are, not aboriginal people understanding government. The government needs to share revenues from First Nation lands and input a First Nation service tax in First Nation territories to assist those First Nations in their lands. I think that the federal consultation paper can be interpreted as a way to disengage Aboriginal people from their leadership. It stresses the benefits that the federal government provides directly to Aboriginal people and insinuates that community governments and institutions are incapable of providing guidance (which I admit is true, but the solution is not another federal program). 13. Barriers and Solutions to Access Available Government and Private Benefits Across the total population, 25 (40.32%) respondents answered this question. Of these respondents, 88% were First Nations; and 12% were Non-Aboriginal. All but two of the responses lacked agreement and varied. Two respondents (8%) indicated that not knowing where to begin or what is available was a barrier to available government and private benefits. The list of individual responses to this question can be found in the raw data (attached) for this question. November 2014 8

14. Information to Ensure Aboriginal People Don t Fall Victim to Financial Abuse & Fraud Across the total population, 26 (41.93%) respondents answered this question. Of these respondents, 84.61% were First Nations; and 15.39% were Non-Aboriginal. The majority (53.58%) of respondents indicated that information needed to help Aboriginal people avoid financial abuse and fraud was to provide education, training, information sessions and workshops. In addition, 7.69% of the respondents identified the need to have information lines and call in numbers to provide assistance and 7.69% of the respondents felt that people had to know their rights. Individual respondents identified the following to ensure Aboriginal people did not fall victim to financial abuse and fraud. Local leadership Consumer affairs, ombudsman Outside general finance analysis to point to areas that may have issues, make the general observations and community then has opportunity to questions and push for resolution or improved performance. Social media I m not aware that this is an issue though I might categorize cheque cashing as a bane on many of our peoples existence. Have policies in place when working with financials, be aware, be accountable and transparent. Financial literacy outreach at the band level. In the health department, we have Diabetes Nurse Educators who do outreach at schools, fairs, market, clinic, etc. Similar approaches would benefit the community. Abide by the old adage if it is too good to be true, it most likely isn t. Unfortunately, a lot of people (not only Aboriginal people) fall for sweet deals. Recommend that 1. Ask for it in writing; 2. Do not give any personal or bank information; 3. Do not agree to anything over the phone, unless you fully trust the person on the other side; 4. Do not get pressured into signing an agreement right away; and 5. Investigate3 the company or person to assess credibility. This is not an important issue. Fraudsters and hackers do not target poor people. Aboriginal people should be so lucky to have bank accounts with sufficient money in them to be targeted by criminals. 15. Ways for Governments & Others to Raise Awareness About Fraud, Scams & Financial Abuse Across the total population, 25 (40.32%) respondents answered this question. Of these respondents, 84% were First Nations; and 16% were Non-Aboriginal. November 2014 9

The majority (40%) of respondents indicated that way for governments to raise awareness about fraud, scams, and financial abuse was to raise awareness via posters, ad campaigns, commercials, multi-media and social media. In addition, 28% of respondents identified the provision of education, training, information sessions, video seminars and workshops as ways to raise awareness. Individual respondents provided the following responses. Providing more access to information Have more literature available. Severe punishment for financial fraud. Reveal where it has been found, what happened and how it is being dealt with or what has been done to prevent similar instances in the future. Don t point figures at one group while hiding what is happening. For example, don t come down on the First Nations differently than they would themselves. Municipal and federal governments are being accused of fraud yet their penalties are far less than those imposed on First Nations. It can t. At least not on reserves. Every dollar that the federal government spends on advertising how it is looking after Aboriginal people is a dollar that should be spent on services. 16. Examples of Fraud or Financial Abuse Targeted at Aboriginal People and Steps Recommended to Prevent This Across the total population, 23 (37.1%) respondents answered this question. Of these respondents, 86.96% were First Nations; and 13.04% were Non-Aboriginal. There were four areas with similar responses. They are listed below. Don t know any examples (26.09% of respondents) Residential school money/payments where lawyers, car dealerships and cheque cashing businesses took advantage of people (26.09% of the respondents). Car dealers charging high interest rates for vehicle loans and overcharging for auto repairs (13.04% of the respondents). Telephone scams (8.7% of the respondents) Individual respondents made the following comments. We see elders on reserve who allow their children and grandchildren to move in with them but they don t help them with the bills or rent and the elder falls behind and goes into debt. Cheque cashing companies prey on First Nations people with their services. First Nations banking with reputable institutions should be promoted.partnered for the greater benefit. November 2014 10

I ve seen door to door salespeople coming into First Nations selling unnecessary products. Some First Nations have banned salespeople from coming into their communities to reach their band members. Know the person or contractor who is hired. Do your background on this company, etc. Governments and industry extracting First Nations resources without fair compensation to those First Nations Consultants taking control of First Nations financial and banking information, giving up full control, how much is too much 17. Good Indicators to Measure Progress in Strengthening Financial Literacy in the Short, Medium and Long Term Across the total population, 25 (40.32%) respondents answered this question. Of these respondents, 84% were First Nations; and 16% were Non-Aboriginal. Because there were no common patterns and the individual responses provided were different, the list of responses to this question can be found in the raw data (attached) for this question. 18. Distinct Measures of Progress in Improving Financial Literacy & Why Suggested Across the total population, 16 (25.81%) respondents answered this question. Of these respondents, 81.25% were First Nations; and 18.75% were Non-Aboriginal. There was one common pattern in the responses: 37.5% of the respondents indicated that they were not sure about distinct measures of progress to improve financial literacy. The remaining responses were provided by individuals and can be found in the raw data for this question. November 2014 11