The other day I received a mass Facebook message and usually I would just delete them instantly but I decided to give this one a chance. It actually ended up being a sort of Facebook survey about the importance of learning about finances. In the message it was asked what you had wished your parents had taught you about finances and what you plan on teaching your children. I found the question intriguing and was surprised to find that people responded to the message and how they responded.

The first response was this: “I wish I had been taught how credit cards work, especially regarding how interest builds, and how to build interest for one day when you want to get the bank to approve your credit card, or approve you for a car or a mortgage”. Credit cards seem to always be a hot topic as far as financial education is concerned. I think its probably because of how much of our society revolves around the use of those cards. Kids grow up and they see credit cards in the movies and they see their parents using them, they may even have one of their own attached to their parents name but they still don’t understand them. The two main things that parents need to educate their children on credit cards is the dangers of them and also the benefits of them. Namely that credit card use can benefit your credit rating and help you with future bank relations and that misusing them can limit your financial freedom in the future.

Another comment focused on the broader issues of how the financial system works and how that influences our lives.

“I would have liked to learn the basics about how banks work and how the stock market works, both theoretically and practically. Big things, I guess, like, how money moves, why money moves, what governments do with money, what people do with money, how the interest rate is determined, how currency value is determined, and basic information on different economic models.”

This comment touches on some very important financial issues that younger people are hardly aware of. There are many facets to the financial world and when I was younger I simply saw money but economics and the functions of the financial system that is behind the scenes is even more important. For example, as the central banks adjust interest rates the private financial institutions will adjust theirs and so when we as consumers see those numbers changing it is important that we see the deeper issue that effects the value and use of our money.

For another person the confusion of financial language is something that she had wished was cleared up for her a long time ago.

“Oooh - tell people to stop saying "buy an RRSP" (my personal pet peeve). An RRSP is like a bank account for cash and securities... we buy stock, mutual funds, etc. to deposit therein. Sigh. Thanks for letting me get that off my chest!”

Often adults will misuse financial terms and then students and youth won't be able to understand the differences when they are discussed.

It was fascinating for me to see how others my age felt that a huge part of their financial education had been missing and to see what they would want to teach their kids. Financial independence is so important in the world. Parents want it for their kids and kids want it for themselves. That goal is impossible without being educated on the world of money. Parents and children both can access banks for financial advice and answers that would be provided liberally but until financial education becomes a priority that change probably won't happen.