A new initiative is taking aim at improving the financial literacy of high school students, equipping them with essential money management skills they’ll need in the real world. While many young Canadians graduate with a solid grasp of subjects like Shakespearean sonnets and algebra, they often lack the practical financial knowledge that’s crucial for adult life. A 2008 survey by Environics found that six out of ten young Canadians are in debt, with credit card debt leading the pack, followed by student loans.
To tackle this issue, a fresh financial education program has been launched. Called The CiTY, this 11-module course has been developed by the Financial Consumer Agency of Canada in collaboration with the British Columbia Securities Commission. The program targets high school students aged 15 to 18, guiding them through the potential pitfalls and benefits of credit. It’s an innovative online resource that’s teacher-led and designed to engage students through interactive, hands-on learning. The aim is to make complex financial concepts more accessible and relevant by providing practical exercises and scenarios that reflect real-life situations.
“The CiTY is all about giving students a strong start with the financial skills they’ll need for life,” explains Julie Hauser, a media relations officer at the Financial Consumer Agency of Canada. She emphasizes the importance of understanding how to manage money, budget, and grasp the true cost of living, especially as students transition to independence after leaving home.
The CiTY’s primary focus is teaching students to distinguish between needs and wants, a fundamental concept for effective budgeting and financial planning. The program goes on to cover topics like money management, expense tracking, savings growth, wise credit usage, debt avoidance, insurance, investments, and fraud prevention.
One of the standout features of The CiTY is its use of eight ‘life stage characters’ who each face different financial challenges. These characters allow students to see the consequences of various financial decisions, making the lessons more relatable and impactful. As they progress, students also learn how to create a financial plan in preparation for life after high school.
For educators, The CiTY provides a comprehensive toolkit including lesson plans, overheads, student handouts, quizzes, and financial documents. Key worksheets are available for students to download, save, and update either at school or from home, making the learning process flexible and accessible.
The program has already seen significant uptake, with 19,461 students and 4,213 teachers registered so far. Additionally, 2,177 teachers across Canada have been trained to deliver The CiTY’s content. While some may argue that credit cards are more relevant to university-aged students, Hauser points out that many high school students are already using debit cards, often unaware of the fees they might incur.
Given the concerning financial literacy rates among Canadian youth and the global financial challenges highlighted by the credit crunch, Hauser believes it’s crucial to start teaching these concepts early. “The CiTY is about setting young people on the right financial path and helping them understand how their choices can impact their financial future,” she says.
This program represents a proactive step towards ensuring that the next generation is better prepared to manage their finances effectively, starting from a young age.
