Financial literacy education needs a boost in Canadian schools

By Jennifer Heil, Olympic Champion and Team Visa Athlete & Melissa Cassar, Visa Canada

Financial literacy needs to play a larger role in schools and after school initiatives.

A new survey commissioned by Visa Canada leading up to the Because I am a Girl youth summit on September 23 in Toronto found that 81 percent of parents are confident their child will be ready to manage their personal finances after graduating from high school, and that parents generally feel girls are better equipped than boys when it comes to money management, however the reality is the reverse. Statistics Canada data shows that single women aged 25 – 65 are less confident when it comes to managing finances than men.

Three-quarters of Canadian children have been taught about saving and budgeting by age 12, the vast majority of kids have a personal bank account, and approximately half have a source of income beyond a family allowance. Yet the Canadian Payroll Association reports many Canadians are not as financially literate as the above would suggest. So, why is there a disconnect between parents' confidence and the reality of when Canadian children grow up?

The problem may lie in the source of financial literacy education. On the one hand, it's encouraging that nearly 86 percent of parents are teaching budgeting to their children at home. On the other hand, not all parents are necessarily qualified nor do all have time. Less than 35 percent of kids receive information about financial literacy at school, which is where they should be learning about such crucial skills as avoiding debt and saving for big-ticket items, like university. The Task Force on Financial Literacy recognizes the importance of having this as part of the curriculum, and this past February, presented its report and recommendations on a national financial literacy strategy to the Government of Canada to help ensure Canadians grow up with the knowledge, skills and confidence to make smart financial decisions.

The internet can also be a great tool for learning about financial literacy; 11 percent of kids are already taking advantage of online budgeting resources. As part of its commitment to the Clinton Global Initiative to improve lives worldwide, Visa has pledged to reach 20 million people with financial education by 2013 – and has already surpassed the half-way point in meeting that goal. Visa is also providing financial literacy modules designed especially for Because I am a Girl clubs across Canada.

Parents are doing their part to teach financial literacy at home, and we encourage them to use tools developed by money management experts. Looking at our education system, it's time Canadian schools put a stronger emphasis on financial literacy as a key life skill. Resources are just a click away.

Visa Canada is doing its part to increase financial literacy awareness in Canada by providing free, classroom-ready educational modules, which are available at http://practicalmoneyskills.ca/resources/freematerials/classroom/ . Jennifer Heil was inspired to get involved with Plan Canada's Because I am a Girl initiative to help young women become more empowered on both a local and global level, knowing that being financially literate will build the groundwork for future success. Jenn has created her own personal fundraising initiative with the Jenn Heil Challenge and donations can be made at www.BecauseIAmAGirl.ca.

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