The importance of money has never been greater than in today’s economy. With inflation rates at an all-time high, it is crucial for students to learn how to manage money properly.
According to a 2023 survey by Edward Jones Canada, nearly 95 per cent of Canadians believe it is more important now that students learn how to manage their money.
As important as financial literacy is, Canadian youth are not taught money management basics.
According to the Edward Jones Canada survey of 1,517 adult Canadians between Oct. 20 and 23, 2023, only 46 per cent said they had enough knowledge of financial literacy when they graduated high school.
Teaching financial literacy while students are still in school is the best way to teach them about their finances and how to make money grow.
The Ontario government has taken a step in the right direction to ensure students learn financial literacy in high school.
According to a 2023 Ontario government press release, they have introduced a new financial literacy graduation requirement.
Starting in 2025, students will have to score 70 per cent or higher to meet the financial literacy graduation requirement in Grade 10 mathematics.
With this new addition to graduation requirements, the Ontario government wants to provide students with the skills to create and manage a household budget, save up for a home, invest properly, and protect from financial fraud, according to the 2023 press release.
The government will also implement a new requirement which entails making the Education Quality and Accountability Office’s (EQAO) test for Grade 9’s worth at least 10 per cent of their final grade.
Learning financial literacy in high school is not early enough. Financial literacy should be taught in elementary school.
High school students, particularly Grade 10 students are already eligible to work a part-time job in Ontario.
According to the government of Ontario, the minimum age to start working in Ontario is 14 years old.
Students in Grade 10 are already old enough to start working and earning paychecks. When students have money and don’t know what to do with it, that could lead them to be financially irresponsible.
Students must learn financial literacy before they start earning paychecks so that are prepared and know how to manage their money.
Learning financial literacy in elementary school can instill the skills and knowledge of how to manage money at a young age.
Grade 8 is the right time for students to learn money management. Before entering the workplace, they should know how money works and how to manage it well.
According to the government of Canada, topics to discuss with students are the importance of money, how to work towards making money, and how to start saving money.
The key is to start them talking about money and familiarize them with the concept of money so they are comfortable talking about it to their parents.
Once they are comfortable talking about it openly, they'll have a better understanding of how money works.
Now, when students are entering Grade 10, they are more prepared and will have a better understanding of how money works, instead of just learning about it for the first time.
When students land their first job and receive their first paycheck, they now understand what to do with their money. This ensures students are making smarter financial decisions and starting to save for the future.
Financial literacy is crucial in student development because it can help them make tough financial decisions in the future that can benefit their lives for a long time.
