- While majority of parents agree it's important to teach their kids,
time and complexity are barriers; TD Canada Trust provides advice to
parents for everyday teachable moments -
TORONTO, Dec. 12, 2012 /CNW/ - Homework, reading, sports practice - a
parent's to-do list is busy even on a good day. But parents themselves
say they should make room for one more: financial literacy. Recent
research from TD Canada Trust found that while 97% of parents with
children under 12-years-old say it's extremely important to talk to
their kids about money and finances, 42% say they haven't yet talked to
their children and 36% say they find it difficult to find the time to
talk to their kids because it's a complicated topic.
"Financial literacy is an essential life skill that children need to
learn to be successful adults. It's never too early for your kids to
start learning the value of a dollar," says Raymond Chun, a senior vice
president at TD Canada Trust. "With patience and a little creativity,
even the busiest parents can find teachable moments every day to help
their children grow up to be financially savvy adults."
Walk the money talk: your kids are paying attention
As with many life lessons, kids learn about finances from the example
that parents set in their own life. Nine-in-ten parents surveyed (88%)
said they believe that how they manage their finances impacts how their
children will manage their own.
"Really think about the example you are setting for your kids every
single day when it comes to money management," says Chun. "How often do
they see you shopping versus depositing money at the bank? Do you show
your kids that you're willing to wait and save up for the things you
want? Use examples in day-to-day life to demonstrate to your kids that
life is about balancing priorities and budgets. Look for those ordinary
moments as an opportunity to teach, such as explaining why you bought
the milk on sale. Be open about how much things like groceries, toys
and vacations cost."
Don't let your kids see you dipping into their savings
While most parents wouldn't even think of touching their kids'
piggybanks, 31% of parents with young kids admit they would raid their
children's piggybanks if they needed some change and couldn't find the
cash anywhere. Chun advises to plan ahead to show your kids
organization and discipline when it comes to money management. "I'm
sure we've all been in that situation where we've run out of cash
before we can get to the bank. But when it comes to leading by example,
we should show our kids that we're in control of our cash flow. And, if
you must dip into their savings, explain to them that it's only
Kids ask the darndest things - and how you can answer:
A father of two, Chun offers his advice on how to answer five common
questions your kids might ask about money:
1. Why do I have to learn about money? I'm just a kid. It's so boring.
It's never too early to start learning about money. Learning about money
can be fun with a little planning and creativity. For example, set up a
play store with your kids' toys and pretend you are shopping for a big
party but they only have $10 to spend. Help your kids figure out what
they can afford to buy.
2. I have to make my bed and take out the trash every week to get my
allowance, but my friend says she doesn't have to do anything. It's not
fair. Why do I have to do chores to get my allowance?
Money doesn't grow on trees and it's important that children learn this
from a very early age. Explain that parents tie allowance to kids'
chores, like cleaning their room or raking the lawn, to show them what
it will be like when they grow up. Adults don't get an allowance, and
instead have to get a job - like being a firefighter or a bus driver -
to earn money.
3. But why do I have to give my piggybank to the people at the bank? It's
Many young children start saving in a piggy bank so they can see the
money growing in front of them. To introduce them to concept that money
can be more valuable when you save it in a bank, offer to add a nickel
to their piggybank for every quarter that they save. Once their
piggybank starts to fill, take them to the bank to open their very own
bank account. Go online regularly with them so they can see for
themselves how their balance is growing.
4. Why can't you just buy me the toys I want? You have money.
Sometimes we have to wait for things we want and save. I use this
analogy: If you're at the playground and there's a really great new
swing that every kid wants to play on, you may have to wait in line
before it's your turn to play on it. The same goes for saving and
5. I really want this cool new video game, but it costs $30! How do I save
Sit down together to calculate how much of their allowance they need to
save every week to afford their new game. Help your kids stay
interested by tracking their progress. Work together to create a
colourful countdown calendar to hang on the refrigerator that
illustrates their savings goals, and use stickers to track their
About TD Canada Trust
TD Canada Trust offers personal and business banking to more than 11.5
million customers. We provide a wide range of products and services
from chequing and savings accounts, to credit cards, mortgages and
business banking, to credit protection and travel medical insurance, as
well as advice on managing everyday finances. TD Canada Trust makes
banking comfortable with award-winning service and convenience through
24/7 mobile, internet, telephone and ATM banking, as well as in over
1,100 branches, with convenient hours to serve customers better. For
more information, please visit: www.tdcanadatrust.com. TD Canada Trust is the Canadian retail bank of TD Bank Group, the
sixth largest bank in North America.
About the TD Canada Trust poll
TD Bank Group commissioned Environics Research Group (www.environics.ca) to conduct an online omnibus survey of 686 parents with children
living at home, including 453 parents with children ages 12 and under.
Responses were collected between November 9 and 13, 2012.
SOURCE: TD Canada Trust
For further information:
Jillian Turgeon / Liz Christiansen
Paradigm Public Relations
416-413-5198 / 416-413-5188
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TD Bank Group