Linda MacKay is the senior vice-president of retail savings and investing at TD Canada Trust
It's hard to argue against improving financial literacy in Canada when more than 60 per cent of adults rate their financial knowledge as fair or poor, according to the Financial Consumer Agency of Canada's 2014 Canadian Financial Capability Survey. The survey also found that eight in 10 young Canadians aren't confident in their financial knowledge.
However, how we make improvements is a matter of some debate and discussion. Good financial habits definitely start at home, so parents clearly have a very important role to play.
The learning should not start and stop there, though. School is an excellent place for young Canadians to learn about smart money-management habits and practices. Essential to this idea is understanding how we teach financial literacy in schools, including how it is incorporated into school curriculums.
That's why TD, in support of Canada's National Financial Literacy Strategy, commissioned a study on the state of financial education in Canada. The report, prepared by the Canadian Foundation for Economic Education, confirms that while every province provides some form of financial education to students, financial literacy rates across the country indicate that "some" is not enough.
The report did, however, find widespread support for giving teachers more training in the area of financial education, along with help in locating, evaluating and using the many resources and programs that already exist to teach financial literacy.
So where best to start?
The report focuses on curriculum directors and others from departments and ministries of education, school-board officials, teachers, resource providers and some other key stakeholders. Across these diverse individuals, five key themes emerge:
- Nothing is regarded as more important than the need for effective professional development for teachers.
- There is a need to demonstrate the value of financial literacy to parents, education leaders, teachers, students and other key stakeholders, supported by solid research and evidence.
- Consensus is needed on the essential elements of financial literacy, including the knowledge, skills and behaviours students should be acquiring.
- The many financial-education resources already available or under development should be evaluated by a trusted source with expertise and experience to ensure quality and relevance and to maintain their currency and accuracy over time.
- Financial education should start at a younger age to enable behavioural development, rather than at higher grades, where the challenge becomes more one of behavioural modification
Clearly, no single entity can do all of this. Nor should they. The real benefits will come from collaboration among those involved in the delivery of high-quality, relevant and useful financial education to young Canadians. The Task Force on Financial Literacy has said that strengthening financial literacy requires a multifaceted, multistakeholder approach. .
This report is intended to be a catalyst for discussion and action by education, curriculum-design and financial-education experts. Now that we know where we're starting from, it should be easier to develop a plan to get to where we want to be – better together.