For most of us money management was not a subject taught in our schools. Today it is recognized that financial literacy should start at an early age and should be taught in schools. The Ontario government recently announced that this would be a subject that would be included in the 2020 curriculum which would be a win-win situation for both children and their parents enabling children to achieve a more stable financial future. Other provinces across the country are now also making financial literacy a priority in schools.
According to Doretta Thompson CPA Canada's financial literacy leader, "financial wellness is a continuum from knowledge, to competency to confidence in making sound financial decisions". "Kids who learn the basics of budgeting, saving, credit and wants versus needs are better prepared to make good financial decisions through post secondary education and beyond." In BC a new provincial curriculum was introduced in 2019 after it was shown that a number of students were graduating with a lack of financial skills.
Experts believe that talking about money and financial management goes beyond dollars and cents, it is also about making choices and being aware of the trade-offs those choices require. The classroom setting gives children the opportunity to ask questions about money such as creating a budget to allow them to save up for a toy. It is important that teachers are comfortable teaching financial literacy especially if they are struggling in their own financial situation.
Teaching money management in school is a good foundation for kids to learn but it is important that parents engage with their children about what they are learning. Other strategies for parents including giving kids an allowance and teach kids about spending and saving, involving them in family financial decisions where appropriate for their age and reviewing the kid's first pay stub to make sure that they understand about deductions and taxes.
Although it can be difficult for parents to discuss money with their kids it is a good idea to use every day examples to teach about money in a way that make it relevant to them. Examples can pop up all the time such as when grocery shopping or getting gas.
From an article by Ethan Rotberg