For most students, university is the first chance to indulge in adult freedom — deciding how to prioritize their purchases and invest their time. But the majority of Canadians think the incoming adults lack the financial know-how to properly manage their money.
A 2010 survey by the Canadian Institute of Chartered Accountants conducted by Harris-Decima found 84 per cent of Canadians think those aged 18 and over are ill-prepared to manage personal finances.
Given the importance of money management, financial education should be mandatory in high school and subsequently taught alongside compulsory courses such as French and Canadian history.
In order to succeed, everyone needs a basic level of economic and financial literacy. This way, citizens can learn to avoid splurging in the short term and stick to long-term financial goals.
Learning the value of money and saving, rather than spending frivolously, teaches students monetary discipline and responsibility. Regardless of what sort of career they go into, this will be essential later down the road when students make bigger financial decisions such as buying a car or house.
As for the current generation, we must realize there are consequences to spending leisurely and assuming we are financially stable, relying on student loans, scholarships, or piggybacking on our parents. It’s important to learn restraint with money and budget appropriately for essentials such as textbooks and groceries.
Students should weigh their priorities in order to prevent problems that may arise in the near future, and to understand that spending in moderation is key to avoiding future slip-ups and pitfalls.