MORTGAGE Blog & ARTICLES
Canadian Parents teaching Teens on Money Management
Canadian parents are now teaching their children about money management. The younger population in Canada is increasingly doing everyday transaction using credit cards, laptops, and cell phones, and experts recommend that parents should start making financial conversation with their children.
According to the survey conducted by the Canadian Institute of Chartered Accountant, 89% of Canadians aging 16-22 think that their parents are accountable for teaching money management. Hence, money should be encouraged as a good topic at home. Kids should learn how to handle money even at an early stage of their life and it is essential for parents to make opportunities in talking about money honestly as well as stress confidentiality.
Parents should be the best financial role model for their children to keep them on the right track. On the other hand, children should also be open in asking their parents questions with regards to money. In this manner, youth are guided on how to manage their finances accordingly. Gaining adequate financial knowledge at an early stage of life is very important for the economy as increasing number of recent graduates in college as well as young professionals find booming rents yet declining incomes.
Most Canadians actually feel that the younger generation is not well-versed when it comes to financial planning when they graduate and the majority feels that it must be part of education. Younger people are also not prepared in handling their own money upon entering the labor force. Also, financial management needs to be included in the courses taught in school.
Canadians desire for financial literacy education for the youth but insufficient retirement savings and rising debt indicate a need to help everyone no matter their age. Helping Canadians in developing their financial knowledge is a critical process and yet Canada is experiencing growth and prosperity.
Lack of knowledge in money management skills is not literally because of lack of effort but due to the reason that even if parents have taught their children, still it did not work on some. Effort is not actually enough to educate people especially the young generation. It is a process of honing and deep engagement that both party needs to learn and apply in practice.
Perhaps, the issue can fall on the part wherein residents are not yet prepared for retirement. Baby boomers are also scared that their financial portfolio isn’t adequate to handle retirement lifestyle. It is an essential part of anyone’s life to understand that money management needs proper commitment and the ability to actually manage one’s personal finances effectively.
Teens are not that tight when it comes to handling money and yet are so busy spending their money everywhere. This is not a good practice and parents should be the ones who should first teach this to their children. Canadian parents, with the cooperation of their children, can actually educate them to become responsible people in money management and spending behavior. Considerably, the young people should be open on this topic at home and in school.
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