A Case-Study of Financial Literacy and Wellbeing of Immigrants in Lloydminster, Canada

Oludamola Durodola,Patricia Fusch,Steven Tippins

doi:10.5539/ijbm.v12n8p37

Oludamola Durodola, Patricia Fusch + Show 1 more

Open Access

https://doi.org/10.5539/ijbm.v12n8p37

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Abstract

The sources of financial literacy education accessible to immigrants to Canada and the link between immigrant’s financial literacy and financial decisions could impact their welfare and Canada’s population growth negatively. The purpose of this qualitative exploratory case study was to explore sources of immigrant’s financial literacy education immediately they arrive Canada and the link between their financial knowledge and financial decisions. The life cycle hypothesis, rational choice theory, and bounded rationality theory grounded the study. Data collection from the purposeful sample included semi-structured face-to-face interviews with 13 adult immigrants and a focus group discussion with 6 adult immigrants, all of whom lived, worked, or owned a business in the city of Lloydminster. Data was collected between December 12 and December 19 2016. Using Yin’s 5 step data analytic procedure, the 6 themes that described the pattern between immigrant’s wellbeing and their financial literacy levels are social institutions, economic institutions, pressure impacting financial decisions, credit facility impacting financial decisions, emotions impacting financial decisions, and discount deals impacting financial decisions. The results from this qualitative study might trigger positive social change if immigrants to Canada develop their financial literacy levels and stay committed to making sensible financial decisions.

Highlights

Population growth is an important prerequisite for a country’s healthy economic growth (Nadeau, 2011), and the Canadian government’s immigration program was established to encourage economic growth in Canada. Dungan, Fang, and Gunderson (2013) noted that the inflow of immigrants into Canada has yielded significant improvement in the Canadian real gross domestic product (GDP) and GDP per capita
This study, explores the sources of financial literacy education by Canadian immigrants immediately they arrive in Canada and delve into possible patterns which might exist between the current level of financial literacy held by immigrants to Canada and their financial decisions
This paper explores the sources of financial literacy education available to Canadian immigrants immediately they arrive in Canada and explores the applicability of their acquired financial knowledge to day-to-day financial decisions

Summary

Introduction

Population growth is an important prerequisite for a country’s healthy economic growth (Nadeau, 2011), and the Canadian government’s immigration program was established to encourage economic growth in Canada. Dungan, Fang, and Gunderson (2013) noted that the inflow of immigrants into Canada has yielded significant improvement in the Canadian real gross domestic product (GDP) and GDP per capita. Population growth is an important prerequisite for a country’s healthy economic growth (Nadeau, 2011), and the Canadian government’s immigration program was established to encourage economic growth in Canada. Dungan, Fang, and Gunderson (2013) noted that the inflow of immigrants into Canada has yielded significant improvement in the Canadian real gross domestic product (GDP) and GDP per capita. The Canadian immigration program has expanded activities in the Canadian domestic labour market, eliminating the particular problem of acute skill shortages often previously observed in designated professions (Nadeau, 2011; Oreopoulos, 2011). Immigrants face a new macroeconomic environment, and new financial decisions (Oreopoulos, 2011).Financial literacy can curb rising debt (Keown, 2011; Steele & Anderson, 2016). Immigrants face a new macroeconomic environment, and new financial decisions (Oreopoulos, 2011).Financial literacy can curb rising debt (Keown, 2011; Steele & Anderson, 2016). Steele and Anderson (2016) noted that because consumers are bombarded daily with a barrage of financial decisions, coupled with a financial market that offers a wide array of debt instruments, a high level of financial knowledge is required to make monetary decisions. Keown (2011), showed that immigrants to Canada possess an extremely low level of financial education

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