Recently I read a blog that questioned why learning Shakespeare plays is taking priority over learning about finance in our schools. We can all recall at least one Shakespeare play, but if asked how long it would take to pay off your credit card’s $10,000 balance with making only the minimum monthly payments, we may be stumped. The subject of PERSONAL FINANCE has not been included in our school system leaving our youth to rely on their parents as financial role-models. Not a bad idea, however, not all parents are as diligent or prepared as others to teach their children about proper personal finance.
If we were all taught about lending, saving, and how to calculate interest by the age of 18, most of us would be more prepared and savvy with managing our money than we are today.
Currently, under the Ontario Ministry of Education, students must earn the following compulsory credits to obtain the Ontario Secondary School Diploma:
- 4 credits in English (1 credit per grade)
- 3 credits in mathematics (1 credit in Grade 11 or 12)
- 2 credits in science
- 1 credit in Canadian history
- 1 credit in Canadian geography
- 1 credit in the arts
- 1 credit in health and physical education
- 1 credit in French as a second language
- 0.5 credit in career studies
- 0.5 credit in civics
- 40 hours of community involvement activities
- The provincial literacy requirement
I recognize the above-mentioned curriculum does generate well rounded students who should be academically ready for college and university. However, as soon as a student enters college or university, he or she will be thrown into the ring of credit management. It could be that a student has taken a loan to help finance his or her education, or perhaps a credit card has been issued in his or her name to help pay for books, rent or “emergency” purchases. Whatever the case, students would undoubtedly manage their credit and budget in a more responsible manner if personal finance had been part of their high school curriculum.
What is the Government doing to help teach financial literacy to our youth?
In response to the need for financial literacy, the Government of Ontario has committed to make financial literacy a part of every student’s learning from grades 4-12 in the 2011/2012 academic year. In order to assist teachers with planning their programs while incorporating financial literacy knowledge and skills, the ministry of education has developed scope and sequence documents to connect financial literacy education topics across the curriculum. The scope and sequence documents are to be updated periodically to reflect newly released curriculum documents. It is the hope and expectation of our ministry of education and provincial government that our youth benefits from this program. Time will tell, as the saying goes.
In addition, the Government of Ontario recognized November 2011 as “Financial Literacy Month”. Books about this topic, like Pat Foran’s “The Smart, Savvy Young Consumer”, were introduced and the media broadcasted messages from financial experts across the province about financial literacy for all to hear.
The big question is will our youth be any different from the current Canadian consumers who continue to respond to retail offers piling on personal debt to “keep up with the Jones’”? Doesn’t the student today have more gadgets, phones, computers and learning aids than a student had back in 1980? The lure from retailers is greater than ever for our youth. Is it possible that our youth will believe that wealth is only created through risk and investment and have little to do with saving and conservative spending? We hope not.
Perhaps one day soon, there will be an official subject added to our school’s curriculum called PERSONAL FINANCE.
Until this time, we must continue to teach our children the value of a dollar and the sensibility of having a savings account. Coupled with the teachings our provincial school board, our youth should be better armed to take on the wild world of credit.
For more information about how to manage your finances, visit www.occa.ca.
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