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
C: 647.383.8037
This presentation is for
information purposes
only; anyone wishing to
act on the information
presented should consult
their advisor
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