Youth Financial Literacy

by: CLHIA Staff

Another study reviewed by the National Steering Committee for Financial Literacy’s Research Sub-Committee are the Canadian Highlights from a 2015 OECD survey of 15 year-olds in 15 countries/economies, including seven Canadian provinces (Newfoundland and Labrador, Prince Edward Island, Nova Scotia, New Brunswick, Ontario, Manitoba, and British Columbia). It assessed the relative performance of Canadian youth in financial literacy. Some 87 percent of Canadian students performed at or above Level 2 (baseline level of financial literacy), defined by the OECD as allowing them “to participate fully in modern society”. This is compared to 78 percent of students in OECD countries performing at or above Level 2. Only China outperformed Canada overall.
The survey also found that 22 percent of Canadian students demonstrated advanced levels of financial literacy—well above the OECD average. Canadian students who discussed money matters with parents tended to score higher, with those discussing money matters at home once or twice a week ranking the highest. 78 percent of Canadian 15 year-olds held bank accounts, and 89 percent reported saving money either frequently or for specific purchases. Those students who kept bank accounts, and who spoke with their parents about money matters, tended to outperform those who did not in the assessment of their financial literacy. There were no gender differences reported in Canada, whereas on the whole girls tended to slightly outperform boys.

The survey concluded that further investigation into the characteristics of the students who are struggling could help determine the best ways of helping them attain the knowledge and skills required to make good financial decisions. Another OECD survey is planned for 2018.