As Ontario teachers begin integrating financial literacy into the educational curriculum, a new study shows that students certainly have plenty to learn in this area.
The Investor Education Fund (IEF), a non-profit organization established by the Ontario Securities Commission (OSC) to develop and promote financial information, programs and tools to help consumers make better financial and investing decisions, commissioned a survey of 400 Ontario high school students in June.
The results show that only four in 10 respondents feel they are somewhat or very prepared for managing their personal finances after high school, and only about one-quarter say their schools provide them with most or all of the financial information they need. More than half of respondents, 55%, admit that their knowledge of money could be better.
Seventy per cent of Ontario high school students said they believe that learning how to manage their personal finances is important or very important, and 69% said they think personal finance lessons should be taught in the classroom, an increase of 12 percentage points from a similar study done in 2009.
“High school students are just a few short steps away from post-secondary education or entering the workforce. Learning how to use a budget, manage debt responsibly and save money are essential life skills for young adults,” said Tom Hamza, president of IEF. “Students will stand a much better chance of long-term financial success if their schools prepare them with these skills.”
The survey results suggest that students who learn more about personal finance at school develop better financial habits. For instance, students who felt their school provided most or all of the personal finance information they need are twice as likely to say they “always budget” (29%), compared to other high school students (15%). Across all respondents, 42% say they “never budget”; however this number drops to 18% in schools thought to provide all or most of the personal finance information students need.
Students’ top financial-related concern is paying for post-secondary education, according to the survey. However, only three out of 10 are actually saving for college or university. Instead, students say they’re saving for items such as clothes, entertainment and gifts.
In 2010, the Ontario government pledged to begin integrating financial literacy into the curriculum for grades 4-12, following recommendations made by a financial literacy working group.
As part of an effort to help teachers integrate personal finance into the curriculum, IEF has teamed up with the Ontario Institute for Studies in Education to develop a new suite of interactive teaching tools designed to teach students how to apply relevant financial concepts to their lives. The lesson plans and tools are available to teachers for free.
“Reaching students starting at a young age, with financial information that engages their interests, is the key to making good money habits a lifetime habit,” said Hamza. “We hope and expect that this will have a positive impact on Ontarians’ financial literacy in the long term.”