14 May Study shows parents vital to helping improve children’s financial literacy skills
The survey results from the 2018 Programme for International Student Assessment have recently been released, indicating that Canadian students continue to rank among the top countries worldwide for financial literacy. Canada tied for second place with Finland for the second time in a row.
The survey, which was conducted by the Organisation for Economic Co-operation and Development, surveyed 15-year-old students in 20 different countries about their financial literacy levels and habits.
The survey found that teens who talked about finances with their parents, even just once a week, scored 33 points higher in financial literacy than those who did not.
Financial literacy means having the skills and knowledge to make informed decisions about managing your money. People with financial literacy skills make better financial decisions and manage money better than those without these skills. Those who attain these skills at a younger age fare better than those who do not.
“Much of financial literacy is simply having the confidence to make financial decisions, to ask the right questions and to create and manage your budget,” says Mack Rogers, Executive Director of ABC Life Literacy Canada. “If money is never talked about in the family household, children aren’t exposed to it as much, making it harder to understand concepts like budgeting and credit.”
Talking comfortably about finances is an important part of helping kids develop a healthy relationship with money. Teaching children to be financially responsible early on will help them to understand the importance of a budget, needs vs wants and how to avoid impulse buys.
With so many parents homeschooling their children right now, and the world economy in disarray, now is a great opportunity to start speaking to your kids about money.
ABC Life Literacy Canada offers free downloadable family financial literacy materials for children aged 6 to 12 through its HSBC Family Literacy First program. These resources include stories, workbooks and activities on topics like counting money, how to earn an income and ways to save. Materials are available in English, French, and Simplified Chinese.
To access the activities, sign up for free at www.FamilyLiteracyFirst.ca.