Canadian teens rank 3rd among world’s most financially literate
According to a recent study by the Organization for Economic Co-operation and Development, Canadian teens are among the most financially literate in the world.
The study, which polled fifteen-year-olds from seven different provinces, asked questions about consumer rights, personal finance, contracts and different forms of money. All told, young Canadians scored the third most knowledgeable in the world, trailing only China and Belgium from the list of participating countries.
“The [survey] results show that our teachers and parents are doing an excellent job of educating young people about money,” said Doug Currie, the Minister of Education in Prince Edward Island, speaking to Global News.
Mitzie Hunter, the Minister in Ontario, praised the government’s role in educating youth. “Our government has made it a priority since 2011,” she stated.
As Global News points out, the results are somewhat surprising, given the average household debt is 167 percent of its disposable income. So while many children are learning necessary financial skills, the lessons may be more verbal than empirical.
The Canadian score averaged out as a level three of five possible levels, which is just OK, but not great, though many individuals scored in the level four range. China was the only country to average a level four. So while the third place rank is inspiring, the results in context are not overwhelmingly positive.
Nevertheless, the results are an encouraging sign, especially in the face of the growing financial challenges facing the millennial generation. Difficulty achieving homeownership and finding consistent full-time employment only amplify the importance of personal finance knowledge, and that knowledge is apparently a weapon many Canadian youths will carry as they transition to adulthood.