Starting next year, high school students in Ontario will be required to complete a financial literacy course and pass a final exam to graduate. This is a significant step towards ensuring that young people are equipped with the knowledge to navigate their finances in the real world. With the current economic challenges—rising costs, high debt levels, and an unpredictable housing market—financial literacy has never been more important. As a parent, caregiver, or mentor, supporting a Gen Z-er’s financial education is essential to helping them build a secure future. Here are some tips to guide you in helping the young person in your life become financially savvy.
Start Early and Learn Together
In Ontario, financial literacy will officially become part of the curriculum in Grade 10 math, but it’s never too early—or too late—to start discussing money matters. Across Canada, financial education is gradually being introduced at various stages, with some provinces integrating it as early as elementary school. Whether it’s through discussing smart budgeting, managing their allowance or first paychecks, or preventing debt in post-secondary education, teaching your child about financial responsibility early on is key.
Don’t feel like you have to be an expert yourself. If you’re also looking to improve your own financial skills, learn alongside your kids. You’ll both benefit from building a shared understanding of money management, which can foster open communication and a strong foundation for future financial independence.
Find Resources That Match Their Learning Style
Different people learn in different ways, and this is especially true for younger generations who are often more tech-savvy. A 300-page book on personal finance may not engage your Gen Z-er, especially if they have a busy schedule balancing work, school, and social commitments. Instead, consider using resources that cater to their learning preferences. Short, easily digestible lessons, podcasts, or online courses are perfect for young people on the go, and they can easily access them through their phones.
Some great resources include:
- Financial literacy podcasts
- Audiobooks on money management
- Online finance courses
- Blog posts and articles
These platforms can break down complex financial concepts into bite-sized, accessible pieces that your child can consume at their own pace.
Navigate Financial Advice on Social Media
Social media is a powerful tool for Gen Z, and platforms like TikTok have seen a surge in financial advice content. With “FinTok” videos racking up billions of views, it’s clear that young people are looking to social media for financial guidance. While these platforms can offer valuable insights, they can also be rife with misinformation.
Rather than dismissing social media-based financial advice outright, encourage your Gen Z-er to be discerning. Help them identify reliable sources, such as those from reputable organizations like the Bank of Canada, the CRA, or the Financial Consumer Agency of Canada. Teach them to critically evaluate financial information online and remind them that not all advice, especially on TikTok, is accurate or regulated.
Warn them about potential scams, fraudulent schemes, and risky “side hustles” that may seem too good to be true. A healthy dose of skepticism will serve them well in this digital age.
Make Money Talks Part of Daily Life
Many young people grow up with a sense of shame or secrecy surrounding money, which can be detrimental to their financial well-being. By making financial discussions a regular part of your household conversations, you can help break down the stigma associated with budgeting, saving, and managing debt.
Talk openly about how your credit cards and loans work, discuss interest rates, and encourage your child to ask questions. Involving them in household financial decisions, such as budgeting, can also provide hands-on learning opportunities. You might even ask them for input or ideas on improving your financial management system. Doing so will empower them to take control of their own finances in the future.
If you already use a system for tracking expenses—whether digital or paper-based—share it with them. Demonstrating how you manage your own finances can inspire them to start organizing their financial documents and developing their own systems.
Offer Support, Not Criticism
It’s easy to fall into the trap of criticizing younger generations for their financial habits. However, it’s important to recognize that debt and financial struggles can happen at any age and for many reasons. Negative comments or criticism only discourage young people from reaching out for help. Instead of pointing out mistakes, offer guidance and support as they navigate their financial journey.
The “avocado toast” criticism directed at millennials is a perfect example of how misguided assumptions can harm financial literacy efforts. If your Gen Z-er feels judged, they are less likely to open up about their financial challenges. Encourage open communication and offer support without making them feel ashamed of their financial situation.
Conclusion
Financial literacy is a critical life skill, and as a parent or mentor, you play a crucial role in shaping your child’s financial future. By fostering an open dialogue about money, using resources that align with their learning style, and offering guidance rather than criticism, you can help your Gen Z-er develop the financial skills they need to thrive. As Ontario implements financial literacy courses in schools, make sure your child is well-prepared to ace their “Fin Lit” exam and, more importantly, to manage their finances with confidence in the real world.
