How teaching children about finances can set them up for success

From balancing a budget to filing taxes, should high school students learn about financial literacy at school?

It’s never too early to start learning about finances.

JA Nova Scotia, also known as Junior Achievement, offers programs from those in Grades 3 to 12.

“We make sure right from the beginning: what is money? How do you use it? How do you use it wisely? What is spending?” said Carmen Boyko with JA Nova Scotia. “When we get to the older grades, it’s even taxes and investments.”

The programs are free for schools to use with the materials provided by JA Nova Scotia. There are also free programs people can do from the comfort of their own home to help their children build a financial foundation.

“In total, there are five financial health programs that are specific to that around budgeting, money management, goal setting, that kind of thing for students,” she said.

Mandatory testing

Finances are now being put at the forefront for students in Ontario. It was recently announced that high school students will soon need to pass a financial literacy test in order to graduate.

“I think if you learn all of that before you actually have to implement it, you’re just going to find stronger footing when you graduate,” said Boyko.

While mandatory testing is currently not a requirement for high school students in Nova Scotia, the provincial government said teaching children financial literacy is important to help them be prepared to manage money as adults.

“That’s why we made it an immediate priority upon forming government to introduce financial literacy throughout grade levels to ensure students learn more at each stage of their education to set them up for success,” said a spokesperson with the education department in an email to CTV News.

“Since 2021 we have introduced Life 11, a new high school course that helps students learn practical money skills they can use in real life.”

The idea of making finances mandatory in schools is a welcome idea in Nova Scotia.

“So many people leave the high school system without having those real-life skills and it would just be super beneficial,” said Katie Cochrane.

“If they don’t understand the value of a dollar, how to do taxes, how to budget, they’re going to put themselves in potentially big holes,” said Wayne Prinsloo.

‘Setting patterns’

Adding money management to the curriculum could help students in more ways than one.

“If we can train them on money and understand it, feel comfortable in it, we’re removing, as a society, one of the things that may be stressing out the younger people of today,” said financial planner Wendy Brookhouse.

While it can be tough to talk about money, it’s a conversation parents should consider.

“They may not be talking about money in an overt way, but they’re teaching their kids about money by their actions, by how they talk about it amongst themselves. Do they fight about it? They’re already setting some patterns for their kids whether they realize it or not,” she said.

Brookhouse also noted that with information at our fingertips and the growing reliance on social media, it’s important for young people to figure out if what they’re seeing online is true when it comes to finances.

“It’s about confidence. The ability to critically think about something and to know where the true answers are. Where’s the right place to get the resources in order to make those financial decisions?” said Brookhouse.

For more Nova Scotia news, visit our dedicated provincial page