Financial Health: Let’s Talk About It

When I was growing up, money referred to the bills and coins you had in your wallet (or piggy bank).  Young people today are less familiar with physical currency, but their need to understand financial health concepts is the same.  November is a great time to talk about money, since it’s Financial Literacy Month. This year, the Financial Consumer Agency of Canada (FCAC) is focusing on breaking the taboo around talking about money.  It’s a perfect opportunity to highlight why it’s crucial for young people to learn about money from an early age.

Why Financial Literacy Matters for Young People

  1. Building a Strong Foundation: Understanding money management early on helps young people develop a solid foundation for their financial future. It equips them with the skills to make informed decisions about saving, spending, and investing.
  2. Avoiding Debt: Financial literacy can help young people avoid common pitfalls like credit card debt and student loans. By learning about budgeting and the importance of living within their means, they can steer clear of financial traps that can lead to long-term debt.
  3. Empowering Independence: Knowledge about money fosters independence. Young people who understand financial concepts are better prepared to handle their finances when they move out, start working, or pursue higher education.
  4. Encouraging Smart Investments: Early financial education can spark an interest in investing. Understanding the basics of investments, such as stocks, bonds, and mutual funds, can lead to smarter financial decisions and wealth accumulation over time.
  5. Promoting Financial Confidence: Discussing money openly can boost financial confidence. FCAC’s research shows that talking about money increases financial confidence, which can lead to more
  6. positive financial outcomes. This is especially important for young people as they navigate their financial journeys.

How to Get Started

  • Talk About Money: Encourage open conversations about money at home. Discuss budgeting, saving, and the importance of financial goals.  Share tips that have helped you over the years (Mine? To help you stay on a budget, pay for things like groceries, gas, etc with cash.  You’ll be less likely to overspend)
  • Use Resources: Take advantage of the tools and resources available through Junior Achievement https://jaswo.org/quick-inspirations/ . These can provide valuable insights and practical tips for managing money.
  • Set Goals: Help young people set realistic financial goals. Whether it’s saving for a new gadget or planning for college, having clear goals can motivate them to manage their money wisely.

Conclusion

Financial Literacy Month is a reminder of the importance of financial education, especially for young people. By equipping them with the knowledge and skills they need to manage their finances, we can empower the next generation to achieve financial success and independence.

Karen Gallant
President and CEO
JA South Western Ontario