Toronto junior school students know more about money management than many people think, according to a Money School Canada study that assessed the baseline money management knowledge of Toronto public school students in grades 4-6.
The study found 85% of students know that you should spend your money on things you need before you spend on things you want. In a child’s vernacular ‘want’ and ‘need’ are often used interchangeably, especially when it comes to spending someone else’s money. But the reality is that most kids are well aware there is a difference.
Read: Survey: lack of financial literacy takes its toll
Many of the Grade 4–6 students who participated in the financial literacy knowledge assessment survey could correctly identify an example of a long-term savings goal and knew that it is a good idea to save monthly. The findings reveal that parents and educators can make a difference by helping kids to better understand interest, and how it is earned on savings account balances.