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Are you financially literate? You may not be as good as you think

The majority of Canadians say they’re financially literate, but not all of them can pass this test. (CNBC)

You consider yourself pretty financially savvy. You’ve been saving in your TFSA, know your credit score, and have a pretty balanced asset allocation in your RRSPs. But, like many Canadians, you may not be as financially literate as you think you are.

In a recent survey for LowestRates.ca conducted by Ipsos, 78 per cent of Canadians said they believe they are financially literate. However, when given a short financial savviness test (the same questions as the quiz below), only 43 per cent of people passed.

The questions were based on common queries sent to LowestRates.ca, a personal finance product comparison site.

“Financial literacy continues to be a hot topic and we know it needs to improve, but Canadians need to be honest with themselves about what they don’t understand,” saidLowestRates.ca CEO Justin Thouin in a press release.

Only 31 per cent of millennials surveyed passed, while 52 per cent of baby boomers and 45 per cent of gen X test-takers got more than half right. Men performed better on the test than women (48 per cent of men passed, while only 39 per cent of women passed).

You can read the full report here, and can test your own level of financial literacy by taking the quiz.