Teach Financial Literacy in School: Task Force

Teaching Financial Literacy in Schools
A report from the Task Force on Financial Literacy recommends all schools teach students classes in financial literacy, beginning as early as elementary school. The subject should be introduced by grade 10, it says. Currently only one Canadian province, British Columbia, offers a course in the basics of personal finance. Social and Enterprise Development Innovations (SEDI) a nonprofit organization whose mission is to help reduce poverty, defines financial literacy as "the knowledge, skills and confidence required to make responsible financial decisions."

Households in Financial Difficulty
The recommendation comes at a time when Canadians are particularly vulnerable financially. According to SEDI, the average debt for Canadian households is $1.48 for every dollar of disposable income. This is an all-time high, and surpasses the American debt load for the first time in 12 years. A separate report by the Toronto Dominion Bank shows an average national debt-to-income ratio of 127 percent, with figures as high as 160 percent in BC - perhaps an indicator that BC students are in great need of instruction in managing their personal finances.

"Despite the picture of growing vulnerability from coast to coast over the past few years, we do not believe that there is a household financial crisis in the making in any region," says the bank. This attempt to reassure the public may be lost of a majority of the population, however, as SEDI reports that "six in 10 Canadians would be at risk if their paycheques were delayed by even a week."

Financial Literacy in Quebec Schools
Coverage of financial literacy in school varies greatly across the country. Ontario and Alberta have plans to introduce the subject in the near future. In Quebec there is currently no single course that addresses economics or personal finance. Instead, instruction in this critical subject matter is lumped into one of the so-called "broad areas of learning."

This is problematic because these are areas that are assigned to no one teacher or subject, and are only assumed to be taught. While learning objectives are set out for the area of "Environmental awareness and consumer rights and responsibilities," there is no practical way for schools to determine what is being taught in the way of financial literacy skills, and no way for teachers to evaluate whether students are achieving the set objectives. Similar issues arise with subjects like sex education, career planning and computer literacy, all of which fall into the same grey area in Quebec education.

To make matters worse, the overwhelming theme of this rubric is environmental awareness, rather than a focus on actual skills of financial literacy. While students need to learn the basics of personal finance - creating a budget, personal banking and credit, saving for large expenses like university tuition or buying a home, retirement planning - the Quebec Education Plan covers only one aspect of consumer awareness. While responsible consumption should be an integral part of any young person's education in economics and finance, it would be far too easy for teachers to leave the personal financial skills out of their lesson plans completely in favour of a focus on environmental awareness and sustainable development. Kids today are well exposed to issues around the environment, beginning even before they reach school age. What they are not being taught is how to manage their own money.

Quebec's current phase of curriculum reform has been criticized by students, parents and teachers alike. While some aspects of the new approach have been welcome, the new curriculum has been difficult to implement. There have been crises over students not receiving textbooks in time to begin required courses, a change in the Education Act that removed a parent's right to opt out of religious instruction, and report cards that neither teachers nor parents could decipher. Considering the high drop-out rate in the province, and the fact that Quebec's most populated city is reported to have "the most neighbourhoods facing deep and persistent poverty" in Canada, financial education should be a high priority in the province.

Sources:
"B.C. most financially vulnerable province: TD." CBC News

"Make financial literacy a school subject: task force."CTV News

Jessica Murphy, "Quebec's poverty wall." The Metropolitain

"Programme de formation de l'école québécoise." Ministère de l'Éducation, du Loisir et du Sport (MELS)

"Teach financial literacy in schools: report." CBC News