Lessons in Financial Literacy

The federal government launched a Financialwhat happens if you become in debt. Incentives
Literacy Task Force in the Ontario school systemcan be offered for them to help their family cut
last June. It is aimed at their grade 4 to 12back on expenses such as heating bills or
students in hopes of teaching them how to avoidtelephone and cell phone bills. Parents can also help
the financial debt Canadian's are currentlytheir children learn about saving by putting away a
experiencing due to the Great Recession. It's a lifesmall portion of their allowance each week,
lesson many Canadian's missed out on beforeteaching them how to save for a larger purchase.
account balances plunged deep into the red. TheThis will help them be able to make sound
hope is that a financial literate population willdecisions, manage money and eventually, handle
create more stability in the economy.credit.
The Financial Literacy Task Force will beA recent Harris-Decima poll found that 60% of
responsible for integrating financial lessons into thebaby boomers are currently supporting their adult
schools by teaching young people how loans andchildren. Even though they expected their children
credit work. After a 20-year trend of increasingto be financially self-sufficient by the age of 21,
household debt due to reduced saving, dwindlingmany have admitted it will most likely be delayed
pension plans and easy credit, financial planninguntil they're 25. Older members of the
must be integrated into the minds of Canadians.demographic, referred to as Generation Debt, are
It is hoped that by educating children aboutaccumulating debt at an alarming rate.
money matters will help avoid some of theSome of this younger generation are taking on a
mistakes many of their parents have made andmassive amount of debt to get a post secondary
inadvertently taught their kids. The financialeducation which leaves them financially loaded
mind-set has gone from 'Can I afford it?' to 'Can Idown once they graduate, seeing 20% of them
afford the payments?' Our perspective on moneymoving back home. Teaching your children about
has really changed over the last two decades andfinancial responsibility is necessary in today's world.
these bad habits are being taught to children whoIf you need help or advice due to bad credit or
have very little exposure to managing money orwould like to consolidate debts, there are private
budgeting.financial lenders who specialize in bad credit loans.
It is important to sit down with your children andThey could be the answer to helping you now,
involve them in the family budgeting process,and your children in the future.
explaining to them what a budget means and