Teaching Financial Literacy

Jeff BalchFinancial Consumer Agency of Canada

Financial Literacy

…having the knowledge to understand personal and broader financial matters, skills to apply that knowledge and understanding to everyday life, and the confidence to use the skills and knowledge to make responsible financial decisions that are appropriate to the individual’s situation. - National Task Force on Financial Literacy, 2009

"Ontario students will have the skills and knowledge to take responsibility for managing their personal financial well-being with confidence, competence, and a compassionate awareness of the world around them.“ A Sound Investment: Financial Literacy Education in Ontario Schools, 2010

Why Financial Literacy?

• research, conducted by Ipsos Reid found that money is one of the least discussed issues between parents and kids.

Why Financial Literacy in Schools?

Why Financial Literacy in Schools?• A poll by Harris/Decima suggests that

Canadians feel that they are knowledgeable about finances yet:• Current deb to equity ration sits at 161% • Use of debt is being used to not only cover big

tickets items but also to cover day-to-day living

Why Financial Literacy in Schools?• Average debt load for post-secondary is

approx. $26,000• A BMO survey suggests the paying for

the school is the number one stress• Stats Canada records that the national

student debt load is now over 15 billion

Why Financial Literacy in Schools?• 2 million Canadians use payday loan

stores and they borrow 2 billion annually• Amount and types of fraud continue to

grow

Why Financial Literacy in Schools?• 2 million Canadians use payday loan

stores and they borrow 2 billion annually• Amount and types of fraud continue to

grow

Why Financial Literacy in Schools?• Teens think they'll earn $90,000 a year

by age 30• http://bit.ly/13nNI4Z

Why Financial Literacy in Schools?• Teens think they'll earn $90,000 a year

by age 30• http://bit.ly/13nNI4Z

Why Financial Literacy in Schools?

Practical Strategies to Create Fiscally Healthy Students

•Giving them the tools to make sensible decisions on a day-to-day basis

THE CITY

Financial Life Skills Resource

Financial Consumer Agency of Canada British Columbia Securities Commission

Using"The City”

• Benefits• Comprehensive – developed for High Schools• Hard copy or PDF/HMTL• Web or Instructor lead• Stories• Suggested Lesson Plans• Forms for each character in “The City”

What’s Inside The Binder

Lesson Organization

• Overview, class time, key words, materials

Fictional Characters

• Story and discussion

Reality Check

• Apply discussion to their own financial lives

Home Connections Reflection/Summary

Evidence for Assessment Extension Activities

Online Modules

• Parallel in-class modules

• Use interactive format

• Extend reach to new audiences

• Engaging approach to teaching financial life skills

Suggested Approach to “The City

• Readers Theatre (demonstration)• Using the Website (demonstration)

Financial Basics

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Using Financial Basics

• Benetit• FREE STUDENT WORKBOOK (or pdf)• Instructors Guide and PowerPoint• Shorter • Videos and web tools • Informational websites

What’s Inside

• Benefits of financial literacy • Budgeting • Managing your expenses • Credit and debt management • Saving and investing • Financial planning • Protecting yourself

Interactive Tools and Websites

• Latte Factor• Cost of credit

Suggested Approach

• First time – used workbooks• PDF files to create own booklets• Used videos as discussion or intro to class• Pick and choose only those modules you want

Trainer’s Toolkit

• Primarily developed for adult learners• Modular based• Ice breaker activities• PowerPoint for each module• PDF Guide

Suggested Approach

• School Council – Parents Workshops• Use videos as introductions or discussion pieces• Online activities to supplement lesson material• Use PowerPoint slide or reuse to customize

lesson presentation

Just Do It

Questions