Monday, October 24, 2011
Thursday, October 20, 2011
Want-it-now! and other Financial Pitfalls
I don't usually put things off. I'm more of a "get the job done so that I can go on to the next thing" kind of person. But sometimes frustration can trigger a rather nasty episode of procrastination. Tomorrow is a professional day. The kids get a long weekend, but teachers will be at a variety of subject-specific conferences. I have been invited to present a workshop for K-12 teachers on the subject of financial literacy, a subject that is just a blip on the K-12 curriculum.
I wonder how many teachers will sign up for my workshop on "lessons that boost storytelling skills and build financial literacy." They don't have to teach kids about money (unless they are teaching the four-week financial unit of Planning 10) so why would they bother attending my workshop? And, as I know from having done these workshops for teachers before, the ones who come usually have a decent level of financial literacy already. So how is my work advancing the financial literacy cause? Why bother?
Financial and other Pitfalls
Last week, the business editor at The Province newspaper asked me to write a week's worth of tips and advice on money for kids between the ages of 10 and 20. This is part of a larger financial literacy series that starts Sunday, October 30th. My tips will run the second week.
As I pondered the assignment and wrote the seven tips, along with an additional three pitfalls that teens and their parents should avoid, I started to think that tomorrow's financial literacy workshop may not be futile after all. When I drafted the pitfall on delayed gratification (see #3 below), I realized this: Just like every dollar counts when it comes to spending and saving, so does every workshop participant count when it comes to building a more financially literate citizenry and a brighter economic future for all of us.
I have to remember that I don't have to have the world today, the "world" being a country in which every student leaves high school financially literate. The truth is I want this now, but I can wait and doggedly continue to do my part to make it happen one step at a time while side-stepping frustration and procrastination.
On the same note, here are three money pitfalls that youth and their parents should try to avoid.
#1 Not letting teens manage their own money.
Teens, don’t let your parents handle your finances. Parents, give your teens some money to manage entirely on their own. It is far better to regretfully blow $500 when you are 15 than $5,000 when you are 25, or $50,000 when you are 35.
#2 Making money a taboo subject.
Don’t make money a taboo subject in your home. Money should be one of the easiest things to talk about at the dinner table: the good, the bad and the ugly. Share everything, including the gaps in your knowledge. Learn together.
#3 Not practicing delayed gratification.
Don’t buy into the idea that you have to have the world today. Even when you have saved up for something, slow down and wait seven days before you go out and buy it. You don’t want to be a slave to a want-it-now attitude. Practice some self-control.
Copyright 2011. Laura Thomas. All Rights Reserved.
For reprint permission contact moneyme at telus dot net.
Friday, October 14, 2011
Friday, October 7, 2011
TFSA Over-contribution Nightmare
It turns out, that you cannot transfer your TFSA from one institution to another without it being considered an over-contribution. Here's what happened to me.
Ignorance could cost me $1,100
Early in 2010 I decided to move my TFSA holdings from a savings account at one bank to an investment account at another. I did this myself without giving much thought to it. After all, it was just a transfer. Though I was maxed out on my contributions, I was not technically adding any more money to my TFSA. Wrong.
Any movement of cash out of you TFSA is considered a withdrawl. You cannot put money back into a TFSA account during the same fiscal year that you withdrew it. Once it's out, it has to stay out. You can top it up during the next fiscal year. If you do so before that, you will be charged 1% of the total of each month's highest excess amount for the year. My $10,000 "over-contribution" meant that I was charged 1% on $110.000, even though I had technically not added an extra $10,000 to my TFSA but had simply moved my money from one spot to another.
Fortunately, as you can see in a press release issued by Revenue Canada on August 19th, there is room for a pardon on this mistake as long as you respond within 60 days of the date of their letter. I had a late summer holiday and came back to a mountain of paperwork. I found my letter (dated August 18th) this week. I have to respond by October 18th and here's what I have to do.
Making your case
This is what Revenue Canada told me to do:
- Write a letter to Revenue Canada pleading your ignorance of the rules and asking them to please waive the penalty.
- On the one-page TFSA Return 2010 (form 0026301), fill in the "information about you box" and then sign the back at the bottom.
- Attach any bank paperwork that proves your innocent mistake.
- Put it all in the provided envelope and get it in the mail ASAP. I'm mailing mine today!
Copyright 2011. Laura Thomas. All Rights Reserved.
For reprint permission contact moneyme at telus dot net.
Friday, September 30, 2011
Financial Education Impacts Economy
It's official. Financial education is good for the economy. The Boston Consulting Group has just released the results of an independent study on the impact of Canada's non-profit Junior Achievement Program (JA) on the Canadian economy. It turns out that teaching students in grades five through twelve about business and finance pays big dividends. Here are just a few of the tangible results.
What is Junior Achievement?
I spoke with Chris Hindle, Marketing and Communications Manager for Junior Achievement BC, to find out what this largely volunteer organization is all about and how their activities fit into the financial literacy movement. Chris began by expressing one of JA's central messages: to build financially literate citizens you need to start with youth.
"Youth are at the centre of the financial responsibility solution," said Chris, referring to a presentation that JA made to the Task Force for Financial Literacy in 2010. He added, "Our recommendation is that early intervention encourages positive financial behaviours." He also acknowledged that while financial education is important, our kids are just not getting it at school. JA, he said, has a solution.
Their solution is to offer a selection free financial educational programs that are delivered in classrooms by volunteer business people. According to their fact sheet, more than three million Canadian students have participated in JA programs since 1955. Today, through it's seventeen charters in ten provinces, JA volunteers reach over a quarter of a million students every year. Their programs include: Business Basics for grades five through eight, Investment Strategies and Economics for Success for grades nine and ten as well as more advanced business programs for grades eleven and twelve.
What I love about JA is its non-profit, volunteer approach to financial education. I've even met a few local entrepreneurs who volunteer as teachers. Their passion for business and financial literacy are inspiring. But, how do we get our ministries of education and school boards to pick up on that enthusiasm so that every student, not just the ones who happen to have a JA program come to their school, can be better equipped to deal with the financial realities and responsibilities of citizenship?
Well...while we wait for our decision-makers to figure out that financial education makes a significant impact on the economy, please stop by the Junior Achievement Canada website and find out how to get involved as a volunteer, make a donation or book a program for your school.
Financial Literacy News
- For every $1 spent, JA Canada returns $45 to Canadian society.
- $425 million dollars per year of economic activity can be attributed to JA alumni.
- JA alumni are 50% more likely to start a business.
- JA alumni on average earn 50% more than those who do not participate in the program.
- JA programs reach 250,000 students per year and are delivered free of charge.
I spoke with Chris Hindle, Marketing and Communications Manager for Junior Achievement BC, to find out what this largely volunteer organization is all about and how their activities fit into the financial literacy movement. Chris began by expressing one of JA's central messages: to build financially literate citizens you need to start with youth.
"Youth are at the centre of the financial responsibility solution," said Chris, referring to a presentation that JA made to the Task Force for Financial Literacy in 2010. He added, "Our recommendation is that early intervention encourages positive financial behaviours." He also acknowledged that while financial education is important, our kids are just not getting it at school. JA, he said, has a solution.
Their solution is to offer a selection free financial educational programs that are delivered in classrooms by volunteer business people. According to their fact sheet, more than three million Canadian students have participated in JA programs since 1955. Today, through it's seventeen charters in ten provinces, JA volunteers reach over a quarter of a million students every year. Their programs include: Business Basics for grades five through eight, Investment Strategies and Economics for Success for grades nine and ten as well as more advanced business programs for grades eleven and twelve.
What I love about JA is its non-profit, volunteer approach to financial education. I've even met a few local entrepreneurs who volunteer as teachers. Their passion for business and financial literacy are inspiring. But, how do we get our ministries of education and school boards to pick up on that enthusiasm so that every student, not just the ones who happen to have a JA program come to their school, can be better equipped to deal with the financial realities and responsibilities of citizenship?
Well...while we wait for our decision-makers to figure out that financial education makes a significant impact on the economy, please stop by the Junior Achievement Canada website and find out how to get involved as a volunteer, make a donation or book a program for your school.
Financial Literacy News
- Money Moment with Laura Thomas starts airing daily on Sunday, October 16th on Delta TV channel four. Money Moment now has a Facebook page.
- Deadline for Credit Conquest Story Contest contest is October 21.
- In early November, 60,000 Toronto-area families (reaching 79,000 eligible children) will be receiving a special notice from the Federal Government inviting them to claim their Canada Learning Bond - free money for their children's post-secondary education. From www.smartsaver.org.
- November is Financial Literacy month. Brought to you by the Financial Consumer Agency of Canada. Visit financialliteracymonth.ca for more info.
Copyright 2011. Laura Thomas. All Rights Reserved.
For reprint information contact moneyme at telus dot net.
For reprint information contact moneyme at telus dot net.
Wednesday, September 21, 2011
Getting Real About Personal Finance with a Money-smart Dad
My interview with Som Seif, President of Guggenheim/Claymore Investments Inc.
 |
| Som Seif A money-smart dad |
Som hit my radar this summer when he filled in a few times for Kevin O'Leary on CBC's The Lang & O'Leary Exchange. I was impressed by his analysis of the business news particularly because he focused on how blips and pitches in the economy impact the budgets of ordinary Canadians (by ordinary, I mean those of us who do not call Bay Street "home"). As it turns out, this Toronto-based investment banker and father of two is passionate about financial education.
According to Som, being financially literate means having the ability to understand:
- your personal finances and balance your income and expenses.
- how much money you will need in retirement.
- how to invest to meet your future needs.
These skills, he believes, are lacking today. "I don’t believe that families in Canada have the financial literacy they need to balance their own budgets," said Som, pointing to recent reports that personal debt and spending are out of control and that many Canadians do not realistically prepare for retirement.
Though he believes that families are responsible for their children's financial education, Som acknowledges that this may be a problem for parents and caregivers who are not financially literate or disciplined when it comes to spending. I agree.We need to get real about the state of our household finances as well as the state of financial literacy in Canada, especially when it comes to raising the next generation.
Though he believes that families are responsible for their children's financial education, Som acknowledges that this may be a problem for parents and caregivers who are not financially literate or disciplined when it comes to spending. I agree.We need to get real about the state of our household finances as well as the state of financial literacy in Canada, especially when it comes to raising the next generation.
Kids & Money
Beyond "getting money to buy stuff you want," Som didn't learn a lot about budgeting and investing until after high school. It wasn't until university, and then later at his first job, that he learned the importance of having a balanced budget and investing for retirement. Som's hope is that Canadian high school students will start being taught the details of investment and retirement, particularly the benefits of investing early. For younger students, he believes that the fundamentals of balancing a budget should be part of the elementary curriculum as soon as possible.
Beyond "getting money to buy stuff you want," Som didn't learn a lot about budgeting and investing until after high school. It wasn't until university, and then later at his first job, that he learned the importance of having a balanced budget and investing for retirement. Som's hope is that Canadian high school students will start being taught the details of investment and retirement, particularly the benefits of investing early. For younger students, he believes that the fundamentals of balancing a budget should be part of the elementary curriculum as soon as possible.
One of Som's contributions to the "talking to kids about money early" movement involves teaching his two-and-a-half year old daughter about saving. Som shared a story about the time he took her to the bank to set up her RESP account. In the advisor's office, they emptied her piggy bank (which had about $500 in it) and counted out the money. Then they gave the money to the advisor. His daughter was not happy about this. She had been diligently putting money in her piggy bank a couple of times a week for a long time. She cried for hours after they left the bank leaving he and his wife wondering, jokingly, if his daughter had picked up on some mysterious reason we shouldn't give our money blindly to the bank.
Talk about getting real about money! Som's daughter freaked out because she was blind in that situation. She didn't understand why her money was going to the bank or what would happen to it there. We adults face that all too often when it comes to financial products. When I asked Som what word he wishes that we all understood better, he said, "fees."
Not surprising coming from an ETF guy, but he has a point. We have to get real about borrowing, spending and investing for retirement. And we need to get real about the fees we are paying as we do. The sooner we (and our kids) get money-smart, the less likely we will find ourselves crying for hours when we leave the bank...something that's not hard to do these days with all the blips and pitches.
Not surprising coming from an ETF guy, but he has a point. We have to get real about borrowing, spending and investing for retirement. And we need to get real about the fees we are paying as we do. The sooner we (and our kids) get money-smart, the less likely we will find ourselves crying for hours when we leave the bank...something that's not hard to do these days with all the blips and pitches.
***
Watch for Som on my new financial literacy show Money Moment with Laura Thomas. And if you have a personal story to tell about dealing with debt or credit, check out the Credit Education Week website. There is an essay contest for Grade 12 students (maximum 1000 words) and one for adults (maximum 300 words). The deadline for both is October 21, 2011.
Copyright 2011. Laura Thomas. All Rights Reserved.
For reprint permission contact moneyme at telus dot net.
For reprint permission contact moneyme at telus dot net.
Friday, September 16, 2011
Surrendering to Money
Surrendering to money means...
Paying what you owe. It's possible to avoid creditors, for a while. It's possible to live on credit, until no one will lend to you anymore. It's possible to borrow endlessly from friends and family, until they start saying no. It's possible to burden your loved ones with your end-of-life expenses, if that is the legacy you wish to leave behind you. But wouldn't it be easier to surrender and pay what you owe?
Sharing what you have with others. Beyond shelter, food, clothing and basic cost-of-surviving expenses, what else do you need? Instead of surrendering to your wants, could you give that extra $20 in your pocket to someone who is struggling or who would benefit from some heart-felt compassion? Giving up money when you don't have to is an act of surrender, a powerful one.
Working hard, really hard. We give our time and talent in exchange for money. Respect that exchange. Embrace it. Give in to it. If you don't have much money, that may be because you have not surrendered to this fact of life. You have to get your body and mind out into the market place in order to make money.
Giving up luxuries unless you can afford them. Surrendering to money means surrendering to a budget. If you are living without a budget or far beyond your budget, then you have not surrendered to money. It means that you have been tempted by marketing ploys or influenced by unrealistic expectations.
Giving up the idea that you can live outside the economy. There is no outside. Michel Foucault, the French philosopher, was right. We are always inside society and always influenced by the powers and authorities that govern it. That includes the marketplace. You cannot escape money, not if you want to belong.
Copyright 2011. Laura Thomas. All Rights Reserved.
For reprint permission contact moneyme at telus dot net.
Friday, September 2, 2011
Use Back-to-School Shopping to Celebrate Saving
At least, I was weeping. Today, I've come up with a plan to ease the pain of this expensive season and that plan is to throw a little education of my own into the mix.
I'm planning to get more bang per buck by giving my daughter a money lesson. I'm going to show her how to save money when you have to spend it. And I'm going to use back-to-school shopping to show her how it's done.
Make a list
My daughter is going into grade three and for the first time she is going to have her own desk where she can keep her own school supplies. Up until now we have purchased the school's package of supplies because they have always been pooled for the whole class to share. This has meant that back-to-school shopping has been limited to clothes, a back pack and lunch bag.
This year we are taking it up a notch. We are going to choose and purchase school supplies on our own with the aid of our handy supply list. Along with that list, we are making a list of clothing and other supplies that she thinks she will need for the first few months of school.
Budget wants and needs
Once we have our list, we are going to talk about how much money Mom has to spend for back-to-school stuff. Then, we are going to arrange the supplies in order: mandatory items at the top, wants at the bottom. I have set aside a certain amount of money to spend with a twist. I have promised my daughter that any money we have left over will be hers to put in the bank and save.
Have a temperate shopping spree
Armed with the idea that any leftover cash is hers to keep, we will hit the stores, the discount stores. Knowing that we live in a low interest rate environment (and may be doing so for a very long time) it's critical that I teach my daughter the importance of saving today's money so that it will grow for tomorrow. This incentive will help shape discussions about her choices as they arise during our spree.
When she picks up a notebook with a funky design that costs $2 more than a plain one, I can smoothly remind her that the extra $2 could be hers if she makes the thrifty choice. The same goes for clothing. Is there really a difference between $25 gym shoes and $50 gym shoes? Very little, unless your child has special footwear needs.
Eat ice-cream and celebrate the joy of saving
Hopefully, at the end of our shopping spree, there will be at a few dollars left for her to put in the bank. If there is, we will make a big deal out of it. I will count out the amount in cash down to the penny, hand it to her in a special envelope and then we will go to the bank to deposit it during the first week of school. I may even offer a bonus of a few percent interest that she can deposit as well, a little something extra for every dollar saved.
And then we'll go for ice-cream, of course. What would a celebration of saving be without a little ice-cream? Freedomville, here I come!
Copyright 2011. Laura Thomas. All Rights Reserved.
For reprint permission contact moneyme at telus dot net.
Wednesday, August 3, 2011
Financial literacy in schools: Are we afraid of change?
I was so excited last week when I heard that the Ontario Ministry of Education had released its new curriculum guidelines for bringing financial literacy to the classroom this fall. Well, I have good news, bad news and scary news.
The good news
The good news is that Ontario teachers are getting some support. The Scope and Sequence resource documents provided by the ministry have several practical lessons on how to use the existing subject areas to teach students about money. Some examples are: using an art lesson to teach grade-four students how companies use images to promote their wares; and, getting grade-six students to think about why a game company might choose to advertise their newest release with a hip hop song instead of Beethoven.
Another bit of good news is that teachers have the opportunity (though not the mandate) to take a three-day workshop on financial literacy at the Ontario Teacher's Federation Summer Program called A Sound Investment. But none of this is mandatory. There are no prescribed learning outcomes for financial literacy. Teachers don't have to take the workshop, which brings me to the bad news.
The bad news
The bad news is that Ontario's weave-it-in-but-don't-make-it-mandatory approach to financial education, like British Columbia's, is not likely to have the learning outcomes we should be aiming for. Wouldn't it be great if the day after graduating from high school young people could walk into banks, insurance companies or brokerage houses and be able to clearly express their needs and wants in the appropriate language. Wouldn't it be fabulous if all high school grads had the confidence and ability to negotiate a reasonable price for whatever financial services they require.
It gets scary
The scary news is that more than a few adults don't care about the financial literacy of young people. Many seem to subscribe to the school-of-hard-knocks. And some think that because kids don't have much money, they don't really need to learn about it. While others believe that the family, and not the government-run education system, should take responsibility for this aspect of education.
Reading the comments posted in response to a Globe and Mail article on this issue, many people seem to believe that it is ironic that any overblown, deficit-ridden, budget-breaking government would try to teach anyone anything about money, especially about fiscal responsibility.
This leaves me wondering. Do we (if "we" is really the government leaders that we put in power as our representatives) really give two hoots about financial literacy in the preventative, educational sense? Or are we only interested in it as an anesthetic, a soothing fantasy stirred up in our collective imaginations by crashing markets and a double-dip recession? Are we scared to make financial literacy a mandatory part of the education system? Are we afraid of change?
Maybe we are
After all the false hype about mandatory financial education in Ontario, I'm left with two thoughts. First, at least some Ontario students will have teachers over the years who will use the workshops and resource documents to weave money topics into art, drama, music, health and physical education, math, language arts, science and technology and social studies.
Perhaps some of those students will graduate with a deeper understanding of the economy and personal finance and then go into politics. Though whether or not we will get enough financially fluent faces to do something about governmental fiscal irresponsibility, only time and our municipal, provincial and national bottom lines will tell.
Second, financial education will become mandatory in schools when we are no longer afraid of money or the powers that wield it.
The good news
The good news is that Ontario teachers are getting some support. The Scope and Sequence resource documents provided by the ministry have several practical lessons on how to use the existing subject areas to teach students about money. Some examples are: using an art lesson to teach grade-four students how companies use images to promote their wares; and, getting grade-six students to think about why a game company might choose to advertise their newest release with a hip hop song instead of Beethoven.
Another bit of good news is that teachers have the opportunity (though not the mandate) to take a three-day workshop on financial literacy at the Ontario Teacher's Federation Summer Program called A Sound Investment. But none of this is mandatory. There are no prescribed learning outcomes for financial literacy. Teachers don't have to take the workshop, which brings me to the bad news.
The bad news
The bad news is that Ontario's weave-it-in-but-don't-make-it-mandatory approach to financial education, like British Columbia's, is not likely to have the learning outcomes we should be aiming for. Wouldn't it be great if the day after graduating from high school young people could walk into banks, insurance companies or brokerage houses and be able to clearly express their needs and wants in the appropriate language. Wouldn't it be fabulous if all high school grads had the confidence and ability to negotiate a reasonable price for whatever financial services they require.
It gets scary
Reading the comments posted in response to a Globe and Mail article on this issue, many people seem to believe that it is ironic that any overblown, deficit-ridden, budget-breaking government would try to teach anyone anything about money, especially about fiscal responsibility.
This leaves me wondering. Do we (if "we" is really the government leaders that we put in power as our representatives) really give two hoots about financial literacy in the preventative, educational sense? Or are we only interested in it as an anesthetic, a soothing fantasy stirred up in our collective imaginations by crashing markets and a double-dip recession? Are we scared to make financial literacy a mandatory part of the education system? Are we afraid of change?
Maybe we are
After all the false hype about mandatory financial education in Ontario, I'm left with two thoughts. First, at least some Ontario students will have teachers over the years who will use the workshops and resource documents to weave money topics into art, drama, music, health and physical education, math, language arts, science and technology and social studies.
Perhaps some of those students will graduate with a deeper understanding of the economy and personal finance and then go into politics. Though whether or not we will get enough financially fluent faces to do something about governmental fiscal irresponsibility, only time and our municipal, provincial and national bottom lines will tell.
Second, financial education will become mandatory in schools when we are no longer afraid of money or the powers that wield it.
Copyright 2011. Laura Thomas. All Rights Reserved.
For reprint permission contact moneyme at telus dot net.
Monday, July 18, 2011
An Investigation of Financial Education in B.C. Public Schools
Part 1: What's happening in the middle years, grades 4-6?
I've been trying for a while to get a comment from B.C.'s Minister of Education on where we are going with financial literacy in the public school curriculum. Is there a move to make financial education a mandatory part of the grade four to 12 curriculum like Ontario is doing this fall? Or are we sticking with the status quo? Are B.C. high-school grads financially literate? Are we testing for that?
I was recently told by someone in the Ministry of Education's media department that not only is financial education woven throughout the existing curriculum, the twenty hours of instruction that students get in the finance unit of Planning 10 is "significant."
Is that so? As a parent with a child going into grade three this really matters to me. So, I've decided to comb through the curriculum to find out just how much financial education B.C. students are getting right now. I have gone through the subject areas for grades four through six which seem most likely to contain personal finance concepts: Health and Career Education, Math and Social Studies.
The following is an overview of what I found in the Prescribed Learning Outcomes (PLOs) for grades four through six that are made available by the Ministry of Education. PLOs, by the way, are government policy that establish "the learning standards for the provincial K to 12 education system and form the prescribed curriculum for British Columbia. They are statements of what students are expected to know and do at the end of an indicated grade or course."
Grade 4
In Health and Career grade-four students learn to identify the steps in a decision-making model, to inventory their skills and about the importance of developing effective work habits and how those habits can lead to success. These topics are not obviously related to personal finance but there is a connection to career and consumer choices.
In grade-four Math, students become literate with numbers up to 10,000, patterns, variables and equations, shape and space, 3D objects and 2-D shapes, statistics and probability and the concept of chance. How often money is used in examples and exercises seems to be up to the teacher. Nowhere in the PLOs does it specify that financial concepts be taught. Social Studies, however is more promising. In the unit of study called "Economy and Technology," students compare bartering and monetary systems of exchange in the context of exploration and how European explorers traded with Aboriginal people.
Grade 5
In Health and Career grade-five students start to learn how media can influence decision-making, how to identify types of work that appeal to them and continue to learn more about the benefit of having effective work habits. In Math, students work with numbers up to 1,000,000 and go deeper into the other topics covered in grade four. As is the case in grade four there are no money concepts specified on the PLOs for grade five. In Social Studies, however, students learn about supply and demand using specific resource examples such as the boom and bust in Barkerville and how fashion trends in Europe drove the fur trade. But that's it for money concepts.
Grade 6
In Health and Career, students build on the grade-five PLO's but go deeper into planning, goal setting and goal attainment including the consideration of "costs and resources." They talk about the word "budget" and do some exercises to practice creating a budget for a project or to achieve a goal. In Math, grade-six students learn to work with numbers greater than 1,000,000 and continue to build on the other mathematical concepts they have been working on since grade four. Again there are no money concepts in the Math PLOs for this grade.
In the "Economy and Technology" unit of Social Studies, grade-six students learn about trade between regions and countries including what imports and exports are. They also compare Canada's economy, technology and quality of life with those of other countries (suggested for comparison are the Horn of Africa countries). Here they learn terminology such as: industrialized, developed, developing and least developed, non-profit organizations and fundraising.
Not mandatory means it's up to teachers
From grades four through six, B.C.-students learn about decision making, effective work habits, career choices, goal setting, and do some budgeting in Health and Career. They also study Math, which is great and foundational for financial literacy. And in Social Studies they learn about bartering, monetary systems, trade, supply and demand, imports and exports, non-profits and fundraising. That's not bad...or is it?
The bottom line is that personal finance concepts are not specified in the PLOs in the intermediate grades. How many of these concepts each student is exposed to depends entirely on the school and the teacher. As the Ministry states, "Schools have the responsibility to ensure that all PLOs...are met; however, schools have flexibility in determining how delivery of the prescribed learning outcomes can best take place....Evaluation, reporting, and student placement with respect to these outcomes are dependent on the professional judgment and experience of teachers, guided by provincial policy."
Can most teachers teach money concepts?
In May, I asked a group of 42 elementary school teachers to complete a financial literacy questionnaire.When asked this question, "If you were given a list of 100 money-related words, how many do you think you would know?" exactly 50 per cent said they would know less than half of the words. I also asked the respondents "How often do you talk about money issues in your classroom?" While 12 of the 42 teachers responded that they talk about money at least once a week, 17 responded "hardly ever" and 13 said "maybe once a month." That means 71 per cent of the teachers in my survey don't generally talk about money to their students.
It's becoming clear to me that the answer to the question, "What are kids in grades 4 through six learning about money in B.C. schools?" is far from clear and certainly not universal. I can imagine that a small percentage of teachers with a personal interest in investing or entrepreneurship may bring a host of financial language to the PLOs, while those who are financially illiterate likely shy away from talking about money and do just enough to meet the requirements.
Who is responsible?
Unlike the commitment to financial literacy that the Ontario Ministry of Education has made by making personal financial education a mandatory part of the grade four through twelve curriculum (complete with teacher training), B.C. is leaving it up to individual teachers, many of whom are not financially literate themselves.
My hope is that by the time she finishes grade six, my daughter will be fluent in the basics of earning income, credit and debit, cash flow and investment. After all, she already has amassed quite a nest egg and if she makes smart money decisions now that will surely pay big dividends as she gets older. The sooner she is saving and investing her money, the longer she has for that money to grow. Raising fiscally responsible citizens is central to the economic future of Canada. Funny how our "underfunded" school system and "underpaid" teachers in B.C. don't seem to be striving to meet that goal, at least not that I can see from the PLOs that I've been reading.
By the way...there is still room in the Money & Me camp for ages 9-13 that I'm teaching next week in North Delta from 1:30-3:30 pm. Call 604-940-5550.
Copyright 2011. Laura Thomas. All Rights Reserved.
For reprint permission contact moneyme at telus dot net.
 |
| How many B.C. high-school grads are financially literate? |
I was recently told by someone in the Ministry of Education's media department that not only is financial education woven throughout the existing curriculum, the twenty hours of instruction that students get in the finance unit of Planning 10 is "significant."
Is that so? As a parent with a child going into grade three this really matters to me. So, I've decided to comb through the curriculum to find out just how much financial education B.C. students are getting right now. I have gone through the subject areas for grades four through six which seem most likely to contain personal finance concepts: Health and Career Education, Math and Social Studies.
The following is an overview of what I found in the Prescribed Learning Outcomes (PLOs) for grades four through six that are made available by the Ministry of Education. PLOs, by the way, are government policy that establish "the learning standards for the provincial K to 12 education system and form the prescribed curriculum for British Columbia. They are statements of what students are expected to know and do at the end of an indicated grade or course."
Grade 4
In Health and Career grade-four students learn to identify the steps in a decision-making model, to inventory their skills and about the importance of developing effective work habits and how those habits can lead to success. These topics are not obviously related to personal finance but there is a connection to career and consumer choices.
In grade-four Math, students become literate with numbers up to 10,000, patterns, variables and equations, shape and space, 3D objects and 2-D shapes, statistics and probability and the concept of chance. How often money is used in examples and exercises seems to be up to the teacher. Nowhere in the PLOs does it specify that financial concepts be taught. Social Studies, however is more promising. In the unit of study called "Economy and Technology," students compare bartering and monetary systems of exchange in the context of exploration and how European explorers traded with Aboriginal people.
Grade 5
In Health and Career grade-five students start to learn how media can influence decision-making, how to identify types of work that appeal to them and continue to learn more about the benefit of having effective work habits. In Math, students work with numbers up to 1,000,000 and go deeper into the other topics covered in grade four. As is the case in grade four there are no money concepts specified on the PLOs for grade five. In Social Studies, however, students learn about supply and demand using specific resource examples such as the boom and bust in Barkerville and how fashion trends in Europe drove the fur trade. But that's it for money concepts.
Grade 6
In Health and Career, students build on the grade-five PLO's but go deeper into planning, goal setting and goal attainment including the consideration of "costs and resources." They talk about the word "budget" and do some exercises to practice creating a budget for a project or to achieve a goal. In Math, grade-six students learn to work with numbers greater than 1,000,000 and continue to build on the other mathematical concepts they have been working on since grade four. Again there are no money concepts in the Math PLOs for this grade.
In the "Economy and Technology" unit of Social Studies, grade-six students learn about trade between regions and countries including what imports and exports are. They also compare Canada's economy, technology and quality of life with those of other countries (suggested for comparison are the Horn of Africa countries). Here they learn terminology such as: industrialized, developed, developing and least developed, non-profit organizations and fundraising.
Not mandatory means it's up to teachers
The bottom line is that personal finance concepts are not specified in the PLOs in the intermediate grades. How many of these concepts each student is exposed to depends entirely on the school and the teacher. As the Ministry states, "Schools have the responsibility to ensure that all PLOs...are met; however, schools have flexibility in determining how delivery of the prescribed learning outcomes can best take place....Evaluation, reporting, and student placement with respect to these outcomes are dependent on the professional judgment and experience of teachers, guided by provincial policy."
Can most teachers teach money concepts?
In May, I asked a group of 42 elementary school teachers to complete a financial literacy questionnaire.When asked this question, "If you were given a list of 100 money-related words, how many do you think you would know?" exactly 50 per cent said they would know less than half of the words. I also asked the respondents "How often do you talk about money issues in your classroom?" While 12 of the 42 teachers responded that they talk about money at least once a week, 17 responded "hardly ever" and 13 said "maybe once a month." That means 71 per cent of the teachers in my survey don't generally talk about money to their students.
It's becoming clear to me that the answer to the question, "What are kids in grades 4 through six learning about money in B.C. schools?" is far from clear and certainly not universal. I can imagine that a small percentage of teachers with a personal interest in investing or entrepreneurship may bring a host of financial language to the PLOs, while those who are financially illiterate likely shy away from talking about money and do just enough to meet the requirements.
Who is responsible?
My hope is that by the time she finishes grade six, my daughter will be fluent in the basics of earning income, credit and debit, cash flow and investment. After all, she already has amassed quite a nest egg and if she makes smart money decisions now that will surely pay big dividends as she gets older. The sooner she is saving and investing her money, the longer she has for that money to grow. Raising fiscally responsible citizens is central to the economic future of Canada. Funny how our "underfunded" school system and "underpaid" teachers in B.C. don't seem to be striving to meet that goal, at least not that I can see from the PLOs that I've been reading.
By the way...there is still room in the Money & Me camp for ages 9-13 that I'm teaching next week in North Delta from 1:30-3:30 pm. Call 604-940-5550.
Copyright 2011. Laura Thomas. All Rights Reserved.
For reprint permission contact moneyme at telus dot net.
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