From earning and saving to budgeting and investing, here are some age-specific financial literacy tips for kids, teens and young adults.
Whether day-to-day or more large-scale in nature, financial decisions exist in so many aspects of our lives. Given the wide range of decisions adults and families make as it relates to their finances, money management skills and knowledge can play an important role in identifying, planning for and reaching financial goals. While research tends to show that most Canadians don’t turn a focus to financial education until their 20s,¹ starting this learning while your kids are younger can have a number of positive impacts. An earlier start to financial education will help younger individuals develop healthy money habits early on and can set the stage for greater financial confidence and informed decision-making as they transition into and throughout their adult lives.
Here are some key concepts to focus on as part of building financial management skills, by specific age groups.
When it comes to financial learning, there’s a common saying that it’s never too early or too late to start. At the early end of that time frame, some research suggests that certain money habits, such as understanding value, what it means to earn money and planning ahead, can be established in children by age 7.² With that in mind, there may be a number of long-lasting benefits in providing learning opportunities when your kids are young.
Created with the support of Royal Bank of Canada, Mydoh is a Smart Card that comes with a money management app for parents and kids, developed through RBC Ventures.
Mydoh provides the opportunity for pre-teens and teens to practice and improve how they manage money in a practical, hands-on way, at the same time ensuring the experience takes place in a safe, controlled environment that parents/guardians manage and guide.
How does it work? Parents can download the app and set up accounts for themselves and their children. Funds can be added securely to their Mydoh Wallet. From there, parents can set a weekly allowance and establish one-off or recurring tasks for kids, and provide guidance for their earning and spending decisions in real time on the app.
With Mydoh, parental guidance and individual parenting approaches are a key focus, so there is flexibility in how involved you want to be. Key capabilities include:
Find out more about Mydoh.
Among teenagers, there may often be a tendency to focus primarily on the short-term when it comes to financial decision-making. At this stage, expanding financial discussions and providing more exposure to a higher level of financial concepts, including more advanced saving and budgeting, as well as basic credit and investing, will offer valuable learning opportunities.
To find out more about getting a head-start with savings and the benefits of starting early, please read the Perspectives article “It’s about time”.
For more tips, resources and educational tools, check out the Government of Canada’s Financial Literacy Database or the Financial Consumer Agency of Canada’s Teaching Children about Money.
For teens who are exiting high school, starting post-secondary education or entering the workforce, this stage of life marks a significant transition where late teens and young adults typically take on greater financial and personal independence. Throughout these years, more advanced financial learning and developing money management skills serves a number of important short-term and long-term purposes.
RBC Wealth Management recognizes the importance of financial literacy and building financial management skills at every stage of life.
Designed for those age 16 or over, the RBC Wealth Management Financial Literacy program provides an advisor-led, comprehensive approach to developing financial knowledge and practical skills. To find out more, contact your RBC advisor.
This document has been prepared for use by the RBC Wealth Management member companies, RBC Dominion Securities Inc. (RBC DS)*, RBC Phillips, Hager & North Investment Counsel Inc. (RBC PH&N IC), RBC Global Asset Management Inc. (RBC GAM), Royal Trust Corporation of Canada and The Royal Trust Company (collectively, the “Companies”) and their affiliates, RBC Direct Investing Inc. (RBC DI) *, RBC Wealth Management Financial Services Inc. (RBC WMFS) and Royal Mutual Funds Inc. (RMFI). *Member-Canadian Investor Protection Fund. Each of the Companies, their affiliates and the Royal Bank of Canada are separate corporate entities which are affiliated. “RBC advisor” refers to Private Bankers who are employees of Royal Bank of Canada and mutual fund representatives of RMFI, Investment Counsellors who are employees of RBC PH&N IC, Senior Trust Advisors and Trust Officers who are employees of The Royal Trust Company or Royal Trust Corporation of Canada, or Investment Advisors who are employees of RBC DS. In Quebec, financial planning services are provided by RMFI or RBC WMFS and each is licensed as a financial services firm in that province. In the rest of Canada, financial planning services are available through RMFI or RBC DS. Estate and trust services are provided by Royal Trust Corporation of Canada and The Royal Trust Company. If specific products or services are not offered by one of the Companies or RMFI, clients may request a referral to another RBC partner. Insurance products are offered through RBC Wealth Management Financial Services Inc., a subsidiary of RBC Dominion Securities Inc. When providing life insurance products in all provinces except Quebec, Investment Advisors are acting as Insurance Representatives of RBC Wealth Management Financial Services Inc. In Quebec, Investment Advisors are acting as Financial Security Advisors of RBC Wealth Management Financial Services Inc. RBC Wealth Management Financial Services Inc. is licensed as a financial services firm in the province of Quebec. The strategies, advice and technical content in this publication are provided for the general guidance and benefit of our clients, based on information believed to be accurate and complete, but we cannot guarantee its accuracy or completeness. This publication is not intended as nor does it constitute tax or legal advice. Readers should consult a qualified legal, tax or other professional advisor when planning to implement a strategy. This will ensure that their individual circumstances have been considered properly and that action is taken on the latest available information. Interest rates, market conditions, tax rules, and other investment factors are subject to change. This information is not investment advice and should only be used in conjunction with a discussion with your RBC advisor. None of the Companies, RMFI, RBC WMFS, RBC DI, Royal Bank of Canada or any of its affiliates or any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this report or the information contained herein.
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