Like many skills in life, learning financial literacy at an early age can lay the foundation for future success, say Brock University education and finance experts.

The Ministry of Education recently announced changes to Ontario’s high school graduation requirements for the first time in 25 years, introducing a financial literacy component to the curriculum dedicated to creating a sense of fiscal responsibility.

While life skills and home economics historically had strong roots in the Ontario education system, rapid technological development and financial pressures on schools in recent years saw budgetary investments move to other educational priorities. Now, those historic priorities are re-emerging, says David Hutchison, Professor and Chair of Educational Studies.

“Driving a renewed focus in these areas is an acknowledgment that practical life skills are important even in a modern technological society, and that teaching them builds a sense of responsibility and self-reliance in students,” he says.

Ernest Biktimirov, Professor of Finance at Brock’s Goodman School of Business, says technological advances have made it easier than ever for young people to access a range of complex financial services.

In addition to traditional financial responsibilities, like applying for student loans or managing credit card debt, teens can now play the stock market without the assistance of a financial professional and buy and sell cryptocurrency on their smartphones.

“Young people have to deal with important financial decisions very early in life and if they make the wrong decisions, the consequences can be quite dramatic and have very negative impacts on their financial situation,” he says.

Hutchison says the new curricular focus on financial literacy being backed by a graduation requirement will help to ensure the new standards are met.

“It will also be key that there is budgetary investment, as teaching such skills will require professional development for teachers and, in some cases, specialized classroom spaces, technologies and curricular materials,” he says.

The changes build on an existing focus on financial literacy in the elementary and secondary level mathematics curriculum.

“Although the focus of the announcement is on the secondary school level, elementary schools should also continue to strengthen their focus on financial literacy, including in the primary grades,” Hutchison says.

Merging financial literacy with mathematics is “brilliant,” says Biktimirov, as fundamental math skills are needed to understand risk analysis, interest rates and returns and other basic financial concepts. Teaching the two skills in tandem gives students real-world examples they can apply in their day-to-day lives and makes both subjects more engaging to young learners.

“In order to make all of these important financial decisions, you need to understand mathematics and the quantitative and critical thinking skills it requires,” he says. “Financial literacy isn’t just knowledge, it’s a habit, and the earlier they learn how to make the correct decisions, the earlier it will become second nature.”

When considering what to include in the curriculum, Biktimirov suggests the Ministry focus on core financial activities that will impact students most. This includes skills such as budgeting and money management; savings and investments; credit and debt management; understanding taxation and the responsibility of being a taxpayer; financial and retirement planning; and digital financial literacy and cybersecurity.

For parents and guardians wanting to get a jump start on enhancing their child’s financial literacy skills now, Hutchison suggests talking with kids about how household budgets are managed, including the types of expenses the family routinely incurs each month.

“Provide your kids with a broad sense of understanding of the choices you make in terms of spending and saving, and talk to them about their hopes, concerns and questions about their own financial futures,” Hutchison says.

Biktimirov adds that modelling good financial habits and involving children in financial activities from a young age provides them with critical life skills that will last a lifetime.

“It’s both good for the child and good for society overall.”

Editor’s note: This article was written by Gillian Minaker and Sarah Ackles in University Marketing and Communications.