From the first box of pencils to post-secondary studies: Each stage of life has financial lessons to teach

The back-to-school shopping period is a great opportunity to teach young people of any age the basics of financial management.

From the first box of pencils to the first student housing expenses, each stage in life brings its share of financial decisions. Telling the difference between a need and a want, making choices and planning spending are skills that are developed through experience and can serve a person for a lifetime. Here are a few ideas to support your children as they learn these financial lessons.

Taking the first steps toward the future

When you have a toddler at home, their post-secondary years may seem a long way off. However, this is the best time to start setting money aside and maximizing the benefits of a Registered Education Savings Plan (RESP).

An RESP allows you to save for your child’s future education while taking advantage of government grants. Even small contributions can make a difference over the long run when you start saving early.

Learn more about RESPs

Resources for discussing money with my children

Grade school: Learn how to make choices

Back-to-school shopping can leave you scratching your head, especially when you’re on a tight budget. Why not take this time to teach your kids a few financial basics?

For example, you could give your child a budget for certain types of purchases and encourage them to comparison shop for such things as new clothes, lunch snacks or optional school supplies like a special colour pen or a personal notebook.

The aim is to help children understand that a budget sometimes involves choosing between what you need and what you want. If there’s any money left over, why not encourage them to set some aside? It’s a great way to introduce kids to savings.

High school: Develop good financial habits

As children grow through their teen years, they tend to spend more and want more and nicer things. It is also a time when young people become increasingly self-reliant and start making more financial decisions.

Does a new pair of lilac-coloured sneakers deserve a place in the budget? What are the possible options for a cell phone? Is a new phone a must-have or could a used or refurbished one do the trick?

Back-to-school is a good time to address topics such as a budgeting, savings and financial priorities. If your teen has a part-time job, you might also encourage them to track their spending or set a savings goal.

Discussing these topics will help develop good habits that will benefit your child long after they graduate.

Resources for discussing money with my children

CEGEP and university: Take control of your future

For many young people, entering CEGEP or university represents a first step toward financial independence. However, their newfound freedom comes with responsibilities and decisions that can have short- and long-term financial implications.

Tuition, school supplies, transportation, housing, food… the costs add up quickly. This is the ideal time to teach a young person how to prepare a realistic budget, manage a bank account, use credit responsibly and plan their spending.

Even though your child is making more decisions on their own, your experience is still invaluable. Discussing budgeting, debt management or savings with them can help them develop good financial habits and avoid costly mistakes.

To learn more: Youth Zone

Knowing how to manage your money takes practice

Our monthly budget tool is tailored for young people and will help them track their income and expenses. A traffic-light indicator immediately lets them know if their budget is balanced or if adjustments are needed.

Try out the monthly budget tool

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