Lusardi-Mitchell created the global standard. In Canada: 27% of adults can answer all three Big Three questions correctly according to OECD/INFE data. Canada ranks above OECD average.
Why financial IQ matters
People with high financial IQ: - 3.2x more likely to have emergency fund - 4.7x more wealth by 50 - 68% less debt overload - 2.4x better investment decisions
The 10 essential concepts (Canadian context)
- Compound interest
- Inflation
- Diversification
- Bank of Canada policy rate
- RRSP, TFSA, FHSA, RESP
- Debt overload (TDS/GDS)
- ETFs (VEQT, XEQT, VFV)
- Credit reporting (Equifax, TransUnion)
- Credit cards minimum payment trap
- Rule of 25
The 3 zones
Basic IQ (47%) | Intermediate IQ (26%) | Advanced IQ (27%)
Compound interest
Canadian example: CAD 10,000 at 7% for 30 years: - Simple interest: CAD 31,000 - Compound interest: CAD 76,123
Difference: CAD 45,123. Time beats amount.
How to raise your IQ in 90 days
Month 1: Foundations
- Read "Wealthing Like Rabbits" by Robert Brown
- Canadian Couch Potato blog
- Money Sense magazine
Month 2: Application
- Calculate TDS/GDS
- Calculate FI number
- Audit subscription leaks
Month 3: Deepening
- Open Wealthsimple Trade or Questrade
- Understand TFSA vs RRSP optimization
- Read Million Dollar Journey
Resources
- FCAC financial literacy
- CRA RRSP/TFSA tools
- Bank of Canada education
Based on Lusardi-Mitchell + OECD/INFE Canada data.
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About the author
Enrique 'Kike' Faúndez is an Information Systems and Management Control Engineer from Universidad de Chile, with master’s degrees in Finance from Universidad de Chile and Industrial Engineering from Pontificia Universidad Católica de Chile. He has 15+ years of experience in regulated financial services across finance, operations, and digital product development. He founded CashControlly in Santiago, Chile, with the conviction that personal financial control should not be a privilege, but an accessible and well-designed tool.
- Master's in Finance, Universidad de Chile
- Master's in Industrial Engineering, Pontificia Universidad Católica de Chile
- Information Systems and Management Control Engineer, Universidad de Chile
- AI and ITIL certifications
- 15+ years in regulated financial services
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