Teaching financial literacy to your children clean copy for library

What is the attitude of young adults towards money

Steps parents can take toward educating their kids about money

Financials lessons that can be taught by specific age ranges

The vast majority of Canadians (99 per cent) agree it is important to develop good financial habits early in life

Study done BMO Financial Group-April 16, 2013

Ninety-six per cent of Canadians agree that teaching financial literacy will contribute to personal and household financial stability and help the Canadian economy

Nearly half of Canadians (43 per cent) believe that children under nine years old should have a basic understanding of finances, while 79 per cent believe pre-teens should have a solid grounding on personal finance matters

Only 18 per cent of parents spend a lot of time discussing money and financial matters with their kids

Comparatively, parents spend significantly more time talking to their children about school (62 per cent), their hobbies (50 per cent), their friends (47 per cent) and their future (37 per cent) than about financial matters

61 per cent of parents agree that they wish they had been instilled with the importance of savings at a younger age.

94 per cent of parents agree that if Canadian youth are taught about savings at an early age it will lead to better financial management practices in the future

The poll was carried out by Ispos Reid on behalf of a number of Canadian credit unions and interviewed 1,527 Canadian adults, including 431 parents, from coast to coast from March 19 to 26, 2014

Only 44 per cent of parents speak with their children about money, finances, budget and savings, with only 16 per cent involving their children in money management decisions. One in five (19 per cent) Canadians do none of these things.

67 per cent of parents state their child do not save any money each month.

Information

from National Report Card on Youth

Financial Literacy (NRCYFL) study

by The British Columbia Securities

Commission (BCSC) -October 2011

Majority agree it is important to learn about financesat an early age.

90,735

$31,648

0 20,000 40,000 60,000 80,000 100,000

Expections

Actual

College Students Salary Expectations

Over half (51%)carry debt

LifeValues Quiz Smart about

Money.org

Inner Values

Social Values

Physical Values

Financial Values

Social LifeValues

1. Start

Young

2. Teach through allowance

The Gift System

The Reward System

The Income System

3. Get them

thinking about

budgets

4. Help them

understand the

consequences

of debt

5. Talk about

Investing

Goal

You may have to wait to buy something you want.

You need to make choices about how to spend money.

Lesson learned

Delay gratification

Helps differentiate needs vs wants

If you want it, you will need to save for it

It starts with 3 simple questions:

Save: What is something that you will need to save for?

Spend: What is something you want to spend your money on right now?

Share: Who is someone you love and want to share your money with?

Review the list with the children.

Now have them compare one item against the next and choose which one they want more

A Chair for My Mother by Vera B. Williams

Miss Rumphius by Barbara Cooney

A Money Adventure by Neale S. Godfrey

Berenstain Bears, Trouble with Money by Stan & Jan Berentain

How the Moonjar was Made by Eulalie Scandiuzzi

Kristy and the Clever Cash Cow by Michael Schweizer

Goal

Saving for short-term goals to long-term goals

Lesson learned

Recognize needs versus wants

Helps differentiate needs vs want

Introduce budgeting

Introduce the power of compounding interest

End of Year 1 $250

End of Year 2 $256

End of Year 3 $262

Total Interest $768

Young Teens(Ages 13-15)

Establish a clothing allowance

Explain how credit works and why it costs more to charge items.

Teach your teen how to read financial information

Older Teens(16-18)

understand the pros and cons of different payment options such as cash, debit cards and credit cards

understand different kinds of basic investments (GICs, stocks, bonds and mutual funds)

understand the concept of “living within your means” and

Importance of saving for college

Goal

Money management

Lesson Learned

You should use a credit card only if you can pay the balance off in full each month

Emergency fund

Start saving for the future

Practical Money skills

Financial Consumer Agency of Canada

Get Smarter about Money

Make Talking

about money A

part of your life

3i Financial Investment Services Inc.

9040 Leslie Street, #221

Richmond Hill, ON L4B 3M4

mayawariyar@3ifinanical.com

C: 647.383.8037

This presentation is for

information purposes

only; anyone wishing to

act on the information

presented should consult

their advisor