Context

The Investor Education Fund (IEF) promotes financial literacy and aims to help future generations of Canadians manage their finances effectively. It provides online education through GetSmarterAboutMoney.ca as well as school-based programmes, teacher training, financial literacy tools and an assembly programme. IEF wanted to improve and update their understanding (from a previous survey conducted in 2009) of secondary school students’ financial confidence and behaviour, their preferences for financial education and their interest in financial topics, so they commissioned this study to further their understanding of their key target group.

The study

IEF commissioned The Brondesbury Group to undertake the research. This report summarises findings from primary research into the financial literacy of Canadian secondary school students aged 14-18. It discusses findings from a 15-minute online survey carried out in June 2012, which repeats questions asked in 2009, to help assess changes over these three years. The survey’s questionnaire covers financial confidence and behaviour, preferences for financial education and interest in financial topics. 400 English-speaking students in Ontario completed the questionnaire, with an even split by school grade (year) and by gender.

Key findings

• Around 90% of students have at least one financial product and the mean number of financial products held is 2.2. Savings accounts are the most common product, held by 69%. Overall 46% have a debit card and 37% have a chequing (current) account. Just 22% are aware of having a Registered Educational Savings Plan (RESP).

• Larger items are the main items saved for, particularly clothes (67%), entertainment (55%), technology (47%) and gifts for others (38%). Many students expressed interest in saving for education, but only 28% are actively doing this.

• 90% of secondary school students would turn to their parents for advice and parents are by far their most trusted source (79%). Around a quarter of students would consult the internet and banks for advice, but both are much less used and less trusted than parents.

• Post-secondary education funding is of particular interest, especially to the oldest secondary school students (Grade 12). Financial education topics with high interest levels but lower levels of knowledge include buying a car living costs after college/university, moving out of home and managing debt.

• Students attach increasing importance to knowledge of how to manage money and take care of finances (70% in 2012 think it is important to know about managing personal finances, up from 64% in 2009). 39% of students feel they are somewhat or very prepared for managing their money after secondary school (no change from 2009 to 2012).

• 69% think it is important for schools teach them about personal finance (up from 57% in 2009). Although 26% of students say that their school provided them with most or all of the information needed (an increase since 2009), 47% feel schools provide the bare minimum or no financial education. When schools do provide such a programme, students feel better prepared to meet the financial challenges ahead, and are more likely to budget.

Points to consider

• The study explores young Canadians’ experiences, so there may some cultural and legal differences to consider, for example in attitudes to and prevalence of teenage employment, or funding of further education. However, the study report is very detailed, and includes the full survey questionnaire used, so those who wish to can see how well the questions might transfer to other audiences (for example, by older or younger people or those living in other areas). Differences in school age or year groups between countries should also be noted, as Canadian Grade 12 appears to correlate most closely to UK Year 13 (17-18 year olds).

• This research is applicable to anyone with an interest in financial education, and financial behaviours and attitudes among teenagers.

Full report

Youth financial literacy study - full report