Financial Literacy in Canadian Teenagers

Finance is important for Canadians of all generations, but financial literacy is unequal among the age groups, especially teenagers. Teenagers should become financially literate.

In the summer of 2021, a self-conducted survey answered by many Ontario teenagers stated that 71% have no financial understanding. An essential skill all young people should be capable of is planning, budgeting, and prioritizing their money independently.

Finance is part of all provinces' elementary and secondary school curriculums, regularly taught in mathematics, business, etc.

However, in interviewing teenage students, the most common claim is that “finance is hard and annoying,” stunting the drive to learn more and to remember what is being taught. Many teenagers view finance as a problematic and time-consuming headache that strikes fear inside teenage minds - chrometophobia.

A common opinion among various parents, a common opinion is that teenagers aren’t mature enough to learn the heavy responsibilities of finance. Financial talks are then avoided at home.

In Canadians and their Money: Key Findings from the 2019 Canadian Financial Capability Survey, the Government of Canada emphasized, “It is critical that Canadians strengthen their financial knowledge and confidence because financial decisions are important throughout (and sometimes even beyond) their lifetimes.” All Canadians should have financial actions, including teenagers, not limited to adults.

https://www.canada.ca/en/financial-consumer-agency/programs/research/canadian-financial-capability-survey-2019.html

Most teenagers have daily allowances for their every financial need while others have adults spend on their behalf. “My allowance is $20 per week to spend on whatever I want. I get more at the end of every week even if I haven’t used it all up,” states an Ontario teenager. If someone else personally handled your finances your entire life, would you ever feel the need to care?

All excuses for ignoring finance end when every teenager turns 18, legally entering the adult realm to manage finance independently. Unprepared, every teenager who avoids learning this essential skill will inevitably make poor financial decisions.

“Most Canadian adults I know learn finance poorly and miserably through years of mistakes,” says one of my parents. Teenagers studying and practicing finance ahead of time raises chances for success and mastery.

The Canadian Government's Financial Consumer Agency of Canada is dedicated to helping teenagers develop financial habits at young ages. The organization offers teenagers multiple online tools, including a Canadian Financial Literacy Database. Teenagers must search and explore the supporting resources manually. They will be more relevant and memorable through real-life practice.

All teenagers should take part in the stock market industry for financial practice. Buying and selling stocks involves the same statistics and costs in everyday finance while earning money for the shareholder. Stock fluctuation may lose the buyer’s money, but penny stocks are also cheaply affordable and provide the same practice. There are many online courses available to teach the fundamentals of investing.

“In my professional opinion, I do believe that investing in the stock market is a good way to become financial literate. Investing, among other things such as banking, budgeting, saving, and managing debt is building blocks that create a strong financial foundation,” states a senior banker from BMO [Bank of Montreal].

Teenagers should at least pay more attention to their school’s financial instruction and educate themselves through the many online courses and resources available; the CPA [Chartered Professional Accountant] hosts free finance sessions. Anything can be learned with effort.