Financial Literacy and Economic Disparity among Canadian Students, Evidence and Policy Pathways

The acquisition of financial literacy is fundamental to navigating the complex landscape of postsecondary education costs and debt management in Canada. Research suggests that financial competency profoundly influences student retention and long-term economic stability, yet current institutional frameworks often fail to account for disparate baseline knowledge levels among varying student demographics [3].

Economic inequality is frequently exacerbated by the distribution mechanisms of financial aid. Evidence indicates that systems prioritizing merit-based awards often inadvertently disadvantage students from marginalized class backgrounds who possess high financial need but lack access to traditional financial support networks [1]. This misalignment creates a barrier to equitable educational attainment, where the burden of rising tuition costs necessitates robust financial planning and literacy skills [3].

This report evaluates the nexus between financial literacy, institutional aid policy, and economic outcomes for students. Utilizing a synthesis of peer-reviewed international literature and national policy indicators, the work identifies key areas where academic institutions can intervene to promote economic fairness. By bridging the gap between individual financial awareness and institutional support, this study provides actionable recommendations for fostering a more equitable postsecondary environment for all Canadian learners.