November is Financial Literacy Month in Canada, and in anticipation of this, a poll was conducted by TD Bank to assess Canadian parents’ thoughts on teaching their children the value of money.
The survey yielded many interesting results, including:
25% of Canadian parents not regularly talking about money with their children.
63% avoid this talk because they think their child is too young.
33% of Canadian parents not being confident that they’re setting a healthy financial example for their children.
Only 10% of Canadian parents considering their household to be in “excellent financial health.”
45% of Canadian parents not having a household budget.
Gaurav Kapoor, who is a parent himself, decided to create an app called Mydoh, that makes money management a fun and interactive experience, something he says is important to keeping kids engaged in the prospect of financial literacy.
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When it comes to the right age to start speaking to children about the importance of money, Kapoor believes there is a prime window of opportunity.
“Between 10-15 years old is actually that sort of sweet spot, where they’re noticing a lot and they’re starting to use actual money to buy things. I think that’s the actual sweet spot where the habits are formed. And when they become more independent after 16 or 17, how they’ve approached those previous years when it comes to money is what they carry with them when they actually start making money and spending it,” said Kapoor.
The survey revealed only 11% of parents in Saskatchewan and Manitoba say that they are detailed with their financial planning, which ranks last in the country.
Parent in these provinces are also most likely to admit that they don’t know much about managing finances (24%).
Kapoor says a good stepping stone for teaching kids how to successfully manage money is to teach them the difference between their financial ‘wants’ and ‘needs,’ and encouraging financial independence.
“When it comes to the interaction between parents and kids, while parents are paying for ‘needs,’ they can start encouraging them to save and pay for their ‘wants,” he said.
“Budgeting is not rocket science, you just need to take the time as a family and be willing to talk about money,” said Kapoor.