Humanomics credit unions have collaborated to launch a variety of financial literacy tools to assist Canadian parents in undertaking the importance discussing money matters with today’s youth.
According to a national poll carried out by Ipsos Reid in March, only 44 per cent of Canadian parents speak with their children about financial matters.
“Young people need to have the skills, knowledge and tools to make the right choices for their finances in the future, and we believe credit unions have a role to play in engaging youth and helping them build their financial literacy skills,” said Bruce Howell, president of Prospera Credit Union.
After introducing Canada’s first-ever bonus savings account for 11- and 12-year olds earlier this year, the credit unions behind the Humanomics Youth Savings Account are now offering a free online workbook designed to create a money skills conversation between youth and parents. The workbook contains key tips to get children started on forming healthy financial habits.
“Talking to kids about money isn’t always the easiest conversation,” said Marie Mullally, president of Credit Union Atlantic. “With so many mixed messages coming at them from all directions, it’s hard to differentiate between wants and needs.
Humanomics lists five simple tips to help parents approach the money conversation:
Start young – Children love to collect things, so build on your child’s interest in coins and provide them with a piggy bank they can use to start a collection.
Use visuals – There are a number of websites and apps available that have been designed to help children understand money management by tracking their spending, or helping them save for a specific goal.
Leverage real life lessons – Take your child with you when you run errands such as grocery shopping and use store coupons to create a savings game.
Give your child an allowance – Attach the allowance to specific duties to reinforce that financial compensation is reliant on certain tasks and responsibilities.
Encourage savings – show your child that money has profit making potential all on its own. If possible, consider contributing to the pot if they save, similar to how interest builds in a savings account.
