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Tuesday, October 30, 2012

Tips and advice to parents to help improve financial literacy

"Financial Literacy Month reminds us of the importance of money management skills in today's modern economy," said John Tracy, Senior Vice President, Retail Savings and Investment, TD Bank Group. "We all have a role to play – families, educators, community groups, government and banks - in improving financial literacy."

ABC Life Literacy Canada offers the following tips and advice to parents to help improve financial literacy:

Increase your knowledge, increase your confidence. When you feel good about your own money management skills, you will feel more confident talking about money with your children. Learn more about budgeting and saving at
Create a spending plan and share it with your kids. Write down all anticipated costs – and talk about the difference between needs and wants.
Encourage your kids to journal about money. Have your children write down the cost of each and every purchase that they make. At the end of a week, use the journal to initiate a conversation about money and priorities.
Start a tax-free RESP (Registered Education Savings Plan)for your child's post-secondary education right away. Explain to your child that money is being saved now for their future education. Studies show that children are more likely to attend university or college if they know that there is money earmarked for their education, regardless of amount.
Get children to save at least 10 per cent of their allowance.Talk to your kids about the benefits of the "pay yourself first" approach.

ABC Life Literacy Canada also increases financial literacy through Money Matters, a free money management and education savings program for adult learners developed in partnership with Founding Sponsor TD Bank Group and the Government of Canada. Money Matters has reached more than 600 adult learners to date, by bringing TD Bank Group volunteer-tutors into community learning centres across Canada to teach numeracy and financial skills. Money Matters is also now available in French.