Young people sometimes lack financial skills to manage their finances. Too often they get confused when they have to make decisions. To help them out, they should familiarize themselves with the financial strategies to apply in the future.
Today, due to the variety of ways to get informed, there is a need to teach youngsters the financial literacy. Parents and teachers are doing a great job to educate young adults about money. On the other hand, there are many financial advisers and courses which are very helpful for the inexperienced young adults. For example, Canada offers lots of possibilities for them to become financially secure. Every province has its own programs depending on the clients’ needs. For example, payday loans in Winnipeg are suitable for the college students to cover their unexpected needs.
Canada’s proficiency in financial literacy
The researchers say that working on good saving skills and building up spending habits earlier in life reflect positive behavior in adulthood. According to OECD (Organization for Economic Co-operation and Development), Canada’s score corresponds to a Level 3 out of five levels. This shows a scale of financial proficiency.
The existing level means that Canadian students can understand simple financial operations, terms and conditions. They try to plan their budget based on their income. However, they are not capable to handle difficult financial tasks such as managing the bank accounts, which leads us to Level 4.
Which skills do Canadians lack?
This is the confirmation that young people need a little help to reach Level 5. That level defines more competitive knowledge how the income tax works and so on. Frequently, younger generations go for help to the professional accountants to do that task. Furthermore, do you know that Canada is at the top of the countries that have a high financial literacy? It goes after China and Belgium.
Around one of four students in the 15 countries is unable to perform simple spending habits: only 1 of 10 students can figure out how to control the income task processing.
It’s obvious that Canada is a developed country with the strong economy, which shows good results in financial literacy among young adults. Canadians demonstrate having financial skills and part of them were learned in the classroom. This is very good for their future. They will be able to organize their expenses and build up the annual budget. As a result, they will be strong citizens of their country and can pursue their goals.
Parents and schools increase the students’ financial awareness
Good financial skills developed in early childhood directly determine the way people will lead in the prospective future. The report shows that schools are not the only places where students get the primary information. The practice also shows that students, who don’t have any account, perform worse than those, who have at least one. Parents also play an important role in educating their children to manage finances. It’s very good when kids discuss money problems with them and talk about the solutions. Parents are their mentors who have a solid financial experience.
It’s crucial to have conscious citizens, who are less likely to make mistakes. To start from the very early age, for example, 12-15 years old is a good practice to follow. Many things can be avoided in the future. Everyone makes a great impact on the students. There are many places where they can be taught about the financial security and develop their knowledge. Everything starts with a family.