In 2024, a stark reality emerged regarding Canada’s literacy landscape: a significant portion of the adult population, precisely 20 per cent, found themselves at the two lowest proficiency levels on the Organisation for Economic Co-operation and Development’s (OECD) six-point literacy scale. This troubling statistic, which measures the ability of adults to understand and use written information in their daily lives, paints a concerning picture of foundational skills across the nation. The gravity of this situation was further underscored by the Government of Canada’s release on September 8th of the latest Canadian results from the OECD’s Programme for International Student Assessment (PISA). The PISA 2025 report revealed that in 2025, a disquieting 22 per cent of Canadian 15-year-olds were reading below their expected grade level. Compounding this issue, 26 per cent of these same 15-year-olds demonstrated math and numeracy skills below their grade level. These figures represent a concerning upward trend from the previous study conducted in 2022, where 18 per cent of students read below grade level and 22 per cent lacked adequate math skills. The message emanating from these national assessments is unambiguous: Canada is facing a widespread decline in literacy, and the situation is deteriorating.
Mélanie Valcin, President and CEO of United For Literacy in Montreal, is at the forefront of sounding the alarm about this escalating crisis. Valcin emphasizes that as literacy rates have fallen, the demands placed on individuals to navigate an increasingly complex world using these fundamental skills have concurrently risen. She highlights the profound and often underestimated connection between numeracy and literacy, asserting that children and adults struggling with these core competencies should be recognized by the financial services industry as representing a critical and systemic risk. Valcin posits that financial advisors and professionals within the financial services sector possess a unique capacity to contribute to the improvement of Canadian literacy. This imperative stems not only from an underlying moral obligation to support societal well-being but also from the tangible benefits that a more literate populace brings to the advisory profession itself.
"Literacy has always been essential, but it’s even more essential today because of the advent of AI, because we need digital and critical media literacy, because we’re facing a world where more decisions are made for you as we’re fed by an algorithm," Valcin stated in a recent address. "Those core skills like numeracy, reading, and writing need to be even more sharp so we can interpret what’s being force-fed to us, decide if it’s credible, and build our skills on how we will use these technologies." Her remarks underscore the evolving nature of literacy in the digital age, where discerning information and making informed decisions are paramount.
The Multifaceted Roots of Canada’s Literacy Challenges
Valcin attributes the decline in Canadian literacy to a complex interplay of factors, noting that lower literacy rates are disproportionately concentrated among individuals from lower socioeconomic backgrounds. Families ensnared in the intergenerational cycle of poverty often find themselves trapped in a parallel cycle of low literacy. When individuals are stretched thin by a lack of financial resources, time constraints, and pervasive exhaustion, their capacity to provide their children with the necessary educational support to foster literacy development can be severely compromised.
While acknowledging the strength and dedication of Canada’s provincial public education systems, Valcin points out that they are often strained by the immense responsibility of serving a diverse student population with a wide range of needs. This can lead to some students inadvertently falling through the cracks, particularly those who lack additional support from their families and communities. The challenges faced by these students are often exacerbated by the lingering effects of the COVID-19 pandemic, which disrupted traditional learning environments and may have widened existing educational disparities. For instance, reports from the Canadian Teachers’ Federation have indicated increased learning gaps in foundational skills following prolonged periods of remote learning.
Beneath these socioeconomic foundations lie layers of technological advancements that, if not managed judiciously, can detract from the development of essential reading, numeracy, and critical literacy skills. The rapid-fire stimulation offered by digital devices often erodes the sustained attention spans that are crucial for engaging with complex texts and developing deep comprehension. This phenomenon, sometimes referred to as "digital distraction syndrome," can impede the acquisition of knowledge and critical thinking abilities. The proliferation of readily available, often unverified, information online further complicates matters, necessitating a higher degree of critical media literacy to distinguish fact from fiction.
The deteriorating state of literacy extends its negative ramifications far beyond the publishing and news industries. Valcin advocates for a broader definition of literacy, terming it "Big L Literacy," which encompasses a comprehensive suite of skills including numeracy, financial literacy, and critical media literacy. As this expanded set of literacy skills declines, individuals, communities, and indeed the entire Canadian society face escalating risks. On an individual level, a lack of these skills can impede upward socioeconomic mobility and perpetuate cycles of poverty, limiting opportunities for personal and professional growth. At the community level, declining literacy can lead to reduced civic engagement, a diminished pool of potential leaders, and a less informed populace. Societally, this erosion of literacy can weaken the public discourse necessary for holding leaders accountable and ensuring that economic policies are responsive to the needs of the citizenry. For financial advisors, Valcin warns, this trend translates into a shrinking pipeline of future entrepreneurs, high-earning professionals, and potential clients.
The Compelling Case for Advisors to Champion Literacy
"A lot of the young people that might be struggling in school right now because they have lower literacy and numeracy skills will still become adults that will enter the job market and might one day become a client," Valcin stated, directly addressing the self-interest that should motivate advisors to pay heed to declining literacy rates. This pragmatic perspective highlights the long-term implications for the financial services industry, which relies on a stable base of financially literate and capable individuals to thrive.
Beyond this inherent professional incentive, Valcin also acknowledges the philanthropic spirit often characteristic of the financial advisory profession and their unique ability to demonstrate the tangible link between numeracy and literacy and material success. She firmly believes that advisors are exceptionally well-positioned to advance the cause of literacy through several straightforward yet impactful avenues.
One of Valcin’s key recommendations is for advisors to begin their literacy advocacy within their own client families. This involves actively introducing clients’ children to fundamental financial literacy skills and concepts. Advisors can collaborate with clients to develop age-appropriate financial education plans for their children, offering guidance on how parents can gradually instill an understanding of crucial concepts such as saving, budgeting, spending, and even the basics of taxation. This proactive approach not only benefits the children but also strengthens the advisor-client relationship by demonstrating a commitment to the family’s long-term financial well-being.
Furthermore, Valcin suggests that advisors can forge valuable partnerships with local schools and educators. By reaching out to elementary and middle school teachers, advisors can offer their expertise to deliver financial literacy lessons, particularly to students in these formative years when curiosity about money and financial matters tends to be at its peak. Such collaborations can bridge the gap between theoretical financial knowledge and practical application, providing students with essential skills that will serve them throughout their lives. The timing of these interventions is crucial, as research by organizations like the Jump$tart Coalition for Personal Financial Literacy consistently shows that early financial education leads to better financial decision-making in adulthood.
These individual actions, though seemingly small in scale, can collectively yield profound positive impacts for individuals, communities, and Canadian society as a whole. Valcin is a firm believer that advisors can initiate significant change by embracing this role. "One person who teaches many will have an impact, now imagine what happens if many people start teaching," she passionately argued. "If we always stop and ask what difference it makes to give one workshop, we’ll never change anything." Her sentiment underscores the power of collective action and the ripple effect that dedicated individuals can create within their spheres of influence.
Broader Implications and the Path Forward
The declining literacy rates in Canada are not merely an educational concern; they represent a complex societal challenge with far-reaching economic and social implications. The World Bank has consistently highlighted literacy as a cornerstone of economic development, linking higher literacy rates to increased productivity, innovation, and poverty reduction. In Canada, a nation that prides itself on its educated workforce and strong social fabric, a decline in foundational skills poses a threat to its global competitiveness and its commitment to social equity.
The PISA results, which are part of a triennial international study, provide a crucial benchmark for evaluating educational systems worldwide. Canada’s consistent performance, while often strong in absolute terms, has shown concerning trends in recent years, particularly in reading and mathematics. This suggests a need for a comprehensive review of educational strategies, pedagogical approaches, and resource allocation to address the identified deficits. Experts in educational policy have suggested exploring innovative teaching methods that cater to diverse learning styles, investing in early childhood education programs, and providing targeted support for students from disadvantaged backgrounds.
The rise of artificial intelligence and its increasing integration into various aspects of life further amplifies the importance of robust literacy skills. As Valcin rightly points out, AI can automate certain tasks and provide information rapidly, but it also necessitates a higher level of critical thinking to evaluate the outputs, understand the underlying algorithms, and ensure responsible use. Digital literacy, encompassing the ability to find, evaluate, create, and communicate information using digital technologies, has become an indispensable component of overall literacy. Without these skills, individuals risk being marginalized in an increasingly digital economy and society.
The financial services sector, in particular, has a vested interest in promoting literacy. Financially literate individuals are more likely to save for retirement, make informed investment decisions, manage debt effectively, and avoid financial fraud. This translates into a more stable and prosperous client base for advisors and a healthier financial ecosystem overall. Initiatives aimed at improving financial literacy, such as those championed by Valcin, can lead to reduced reliance on social assistance programs, increased entrepreneurship, and a stronger tax base.
Looking ahead, a multi-pronged approach involving government, educational institutions, community organizations, and the private sector will be essential to reverse the trend of declining literacy. Public awareness campaigns, sustained investment in educational resources, professional development for educators, and community-based literacy programs are all critical components of a comprehensive strategy. The proactive engagement of financial advisors, as suggested by Mélanie Valcin, represents a powerful and accessible means of contributing to this vital national effort. By recognizing the interconnectedness of literacy, individual well-being, community strength, and economic prosperity, Canada can begin to address this pressing challenge and build a more literate and resilient future for all its citizens.
