For Canadians with diabetes, planning ahead is about more than managing costs – it’s about building a future that considers your health, your goals, and the unexpected. Here’s how an advisor can support you.
What’s your financial literacy score?
November 25, 2025
By Sun Life Staff
Find out if you have financial literacy skills to manage your money and investments wisely – or if you need a little help. Test your financial knowledge and see how you score.
Did you know that November is Financial Literacy Month in Canada?
For over 10 years, Financial Literacy Month has focused on helping Canadians better understand their finances and empowering them to:
- manage money and debt wisely,
- save for the future, and
- understand their financial rights and responsibilities.
What does “Financial Literacy” actually mean?
Financial literacy is your knowledge and application of personal finance concepts like:
- budgeting,
- investing,
- managing your money,
- planning for the short and long term,
- protecting your income,
- paying off debt, and
- planning for retirement.
The goal of Financial Literacy Month is to help Canadians gain financial confidence and make informed financial decisions. This is especially important during challenging times.
To help find out how much you know, take the quiz below and test your knowledge of a few key financial terms.
Why knowing your financial literacy score matters
Knowledge is power. A quiz can set the foundation of financial literacy, which can lead to more informed money choices. This includes daily budgeting, choosing the right insurance products for your family, long-term retirement planning, and more.
Strong financial literacy also helps you recognize potential scams and avoid costly mistakes. It empowers you to compare financial products wisely, understand the true cost of borrowing, and maximize your savings potential. Most importantly, it gives you the confidence to take control of your financial journey.
Take a quick financial literacy test right now
Choose the statement you think best answers each of the following questions. Then, add up your responses to see your financial literacy score.
1. What can affect the amount of interest that you would pay on a loan?
a. Your credit rating
b. How much you borrow
c. How long you take to repay the loan
d. All of the above
2. Which of the following can hurt your credit rating?
a. Making late payments on loans and debts
b. Staying in one job too long
c. Living in the same location too long
d. Using your credit card frequently for purchases
3. Which of the following will help lower the cost of a house?
a. Paying off the mortgage over a long period of time
b. Agreeing to pay the current rate of interest on the mortgage for as many years as possible
c. Making a larger down payment at the time of purchase
d. Making a smaller down payment at the time of purchase
4. A credit report is...
a. A list of your financial assets and liabilities
b. A monthly credit card statement
c. A loan and bill payment history
d. A credit line with a financial institution
5. If each of the following persons had the same amount of take-home pay, who would need the greatest amount of life insurance?
a. A young, single woman with two young children
b. A young, single woman without children
c. An elderly man, with a spouse who is also retired
d. A young, married man without children
6. By using unit pricing at the grocery store, you can easily compare the cost of any brand and any package size.
a. True
b. False
7. If the inflation rate is 5% and the interest rate you get on your savings is 3%, your savings will have at least as much buying power in a year's time.
a. True
b. False
8. Do you pay tax on the earnings on investments held inside a Registered Retirement Savings Plan (RRSP)?
a. Yes, the same rules apply to registered and non-registered investments.
b. Yes, but you only pay tax on the earnings when you withdraw the funds.
c. No, you only pay tax on contributions that are above your annual allowable limit.
d. No, the earnings are tax-free.
9. What are capital gains ?
a. Income earned in a given tax year.
b. Profits on the sale of investments.
c. Interest paid on guaranteed investments.
d. Annual pay increases.
10. What is a payout annuity?
a. An annual dividend payment.
b. An annual interest payment.
c. An annual income tax refund.
d. A way to convert savings into regular income payments.
Financial Literacy Quiz answers
Now, compare your answers against the correct answers to see what your financial literacy score is.
Question |
Answer |
|---|---|
1. What can affect the amount of interest you would pay on a loan? |
D – All of the above |
2. What can hurt your credit rating? |
A – Making late payments on loans and debts can hurt your credit rating. Always try to pay by the due date and make at least the minimum payment. |
3. What will help lower the cost of a house? |
C – By making a larger down payment, you will have a smaller mortgage loan amount. This could allow you to save on interest charges over the life of the mortgage. |
4. A credit report is… |
C – A loan and bill payment history. It's a good idea to check your credit report at least once a year. |
5. If each of the following persons had the same amount of take home pay, who would need the greatest amount of life insurance? |
A – A young single woman with two young children would need the greatest amount of life insurance. |
6. By using unit pricing at the grocery store, you can easily compare the cost of any brand and any package size. |
True – Unit price is the cost of a single unit of measure of an item. By using unit pricing at the grocery store, you can easily compare the cost of any brand and any package size and determine any savings. |
7. If the inflation rate is 5% and the interest rate you get on your savings is 3%, your savings will have at least as much buying power in a year's time. |
False – Your savings will not have as much buying power in a year's time if the inflation rate is 5% and the interest rate you get on your savings is 3%. Inflation increases the cost of goods and services you buy, and reduces the buying power of your savings over time.
|
8. Do you pay tax on the earnings on investments held inside a Registered Retirement Savings Plan (RRSP)? |
B – Yes, but you only pay tax on the earnings when you withdraw the funds. |
9. What are capital gains? |
B – Profits on the sale of investments |
10. What is a payout annuity? |
D – A way to convert savings into regular payments |
* The quiz was sourced, in part, from the Government of Canada’s Financial literacy self-assessment quiz.
What’s your financial literacy test score?
What did you score out of 10? See what your score says about your financial literacy:
Your score |
What does it mean? |
|---|---|
|
9-10/10
|
You know your stuff. You understand financial terminology. This should help you to continue to make financially literate decisions to reach your goals.
|
5-8/10 |
You’re almost there. Looks like you’re taking financial literacy seriously. Keep up the good work as you continue to become more financially literate. |
| 0-4/10 | You’re on the right path by taking this quiz. The fact that you did so shows you know how important financial literacy is. Hopefully this quiz identified some areas for you to learn more and increase your financial literacy. |
How to improve your financial literacy score
Enhancing your financial literacy is a journey that can lead to better financial decisions and improved overall financial well-being. Here are a few quick tips you can use right now to boost your financial knowledge:
Learn the basics of budgeting and saving
- Track your expenses meticulously using apps or spreadsheets.
- Using tools like a budget calculator, create a realistic budget that accounts for necessities and discretionary spending.
- Set up automatic transfers to build an emergency fund.
- Aim to save at least 10-20% of your income, adjusting as needed.
Build confidence around credit and reduce debt
Understanding credit and managing debt are crucial aspects of financial literacy. Focus on maintaining a good credit score by paying bills on time and keeping credit utilization low. When dealing with debt, always pay more than the minimum to reduce interest charges. Be aware of interest rates on loans and credit cards and prioritize paying off high-interest debt first. Learn more about how you can reduce debt and improve your finances
Get help from a professional
If you need help with your finances, consider working with a Sun Life advisor. Our advisors can guide you through options for life insurance and retirement planning, ensuring you're prepared for both expected and unexpected life events. They can also answer any questions you have and assist you in creating a comprehensive financial roadmap that meets your specific financial goals and needs.
Connect with an advisor near you.
Keep learning — one step at a time
Financial literacy is an ongoing process. Commit to learning one new financial concept each month and applying it to your personal finances. Remember, small, consistent steps can lead to significant improvements in your financial well-being over time.
This article is meant to only provide general information. Sun Life Assurance Company of Canada does not provide legal, accounting, taxation, or other professional advice. Please seek advice from a qualified professional, including a thorough examination of your specific legal, accounting and tax situation.
