Sun Life Financial Inc. chief executive Donald Stewart has been appointed chair of Canada's Task Force on Financial Literacy, an independent body set up to help Canadians better understand how to save and spend.

Finance Minister Jim Flaherty made the announcement in Toronto on Friday.

"I have had a strong belief for many years on the need for individuals to become empowered consumers of financial services," Stewart said of the appointment.

"So I was delighted when the government of Canada invited me, and a group of eminent Canadians, to consider and report on ways to support all generations to grow into knowledgeable managers of their personal savings, taxation, investments, debt and protection."

The task force will consult Canadians of all ages across the country and help identify ways to improve financial literacy. It will come up with a plan of action later this year, and report its findings to Ottawa in late 2010.

The committee is being formed at a time when Canadian household debt is rising and thousands of jobs are being lost as a result of the recession.

Ottawa had promised to set up an independent task force to help Canadians better understand the financial products and services that are available to them and the implications of the financial decisions that they make.

"As one of Canada's most respected and experienced leaders in our financial services sector, we are delighted that Donald Stewart has been chosen to chair this important task force," said Frank Swedlove, president of the Canadian Life and Health Insurance Association.