How to teach kids about finances

The majority of Canadians (72%) say today’s generation of young adults face more financial challenges than past generations.

And while the majority (86%) say schools should play a role in teaching money management skills, parents also have to take up the mantle by transferring their knowledge to their children at a young age.

Read: Canadians earn a “B” in financial literacy

“Parental influence is crucial when it comes to teaching financial skills and values,” says Tamara Smith, vice president of Marketing and Consumer Affairs at FPSC.

“Faced with greater post-education costs, mounting debt, and a challenging employment landscape, young people need solid personal finance skills to help navigate their futures,” she adds.

Read: Financial literacy pays off for young Canadians

Those who received financial training at a young age say their parents taught them the value of money and budgeting by having them be partially responsible for sharing the costs of their wants (78%) and activities.

The research shows those who currently engage in comprehensive financial planning were likely educated by their parents (see chart)

Statement	Have Comprehensive Plan	No Planning
“My parents taught me the value of money at an early age”	81%	62%
“My parents taught me to buy only what we could afford – credit wasn’t part of our life”	76%	66%
“Growing up I was responsible for sharing the costs of some of my ‘wants’”	78%	61%

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Read: Help kids become money smart

Check out FPSC’s list of teachable moments, provided by CFP professionals. They offered examples of how to instruct children in elementary and high school, as well as ways you can teach adults entering university.

The survey comes in advance of FPSC’s Financial Planning Vision 2020 Symposium this month, which is held in honour of Financial Planning Week. The groups says financial planning should be a cornerstone of Canadians’ sound financial management.