The Ontario government has unveiled plans to improve financial literacy in high schools, introducing a new assessment students will need to pass to graduate.
Education minister Stephen Lecce said the new approach to financial learning will ensure students leave the public school system with the skills and knowledge to create and manage a household budget, save for a home, learn to invest wisely, and protect themselves from financial fraud.
Starting in September 2025, students will be required to score 70 per cent or higher to meet the financial literacy graduation requirement in their Grade 10 math course. The province is also standardizing making EQAO Grade 9 math scores reflect at least 10 per cent of a student’s final mark.
It’s the first major overhaul to Ontario Secondary School Diploma requirements in 25 years – the last coming in 1999 with the removal of Grade 13 and introduction of community volunteer hours.
Kim Williams, superintendent of learning for high schools at Trillium Lakelands District School Board (TLDSB), said she’s still waiting to hear if a new curriculum will be rolled out.
“School boards, right now, don’t know what this is going to look like. We get the feeling [the ministry] is going to add some things… but until we get more specific information, we can’t comment on what that will look like,” Williams said. “Certainly, we’ll talk about it. Teachers have always been excited to be able to teach that financial literacy piece – it’s just a matter of… what changes are going to take place to accommodate teachers being able to spend the time they need on it.”
Williams said financial literacy is a core component of Grade 9 and 11 math, and Grade 10 careers curriculums already, while it’s also taught at the elementary level.
She said high schoolers across TLDSB are already testing well in financial literacy.
“In terms of the Grade 9 curriculum, when looking at EQAO test results, financial literacy is actually our strongest [area]. We’re almost at the provincial level, one per cent below in terms of financial literacy,” she said.
While Williams hopes the enhanced focus on financial literacy will benefit students, she doesn’t want it to come at the expense of other components of the literacy and numeracy curriculums that she feels are just as important.
A long time coming
Chris Salmans, a financial adviser with Sunlife in Haliburton, said a renewed focus on financial education at the high school level is long overdue. A 2022 Royal Bank of Canada poll found around 83 per cent of young Canadians reported needing more information and support on money management, while 68 per cent reported feeling overwhelmed with financial matters and required help.
Canada also has the highest household debt level among G7 countries. Statistics Canada eported, based on a 2021 Census survey, the national debt-to-income ratio sat at around 185 per cent – meaning for every dollar a household had in disposable income, they owed about $1.85.
In 1980, that debt ratio was about 66 per cent.
“This renewed focus on improving basic financial skills is greatly needed. Students go to school, and they’re educated on mathematics, science, and the arts. Then they go to university and get trained to do a job, but they never actually get trained on what to do with the money they earn,” Salmans said. “Debt is a big problem in Canada… and I think part of the reason is newer generations aren’t exposed to that education and learning the value of money.”
While the recent interest rate hikes are partly to blame, along with high housing costs, Salmans said consumer debt, brought on by non-discretionary spending, has grown substantially in Canada since 2008.
Statistics Canada said, at the end of 2021, Canadians 35 and younger averaged $69,500 of total debt, those between 35 and 44 carried $105,100, 45 to 54 had $130,000, 55 to 64 had $80,600, and those 65 and older had $49,900 worth of debt.
Equifax noted, at the end of 2021, the average Canadian owed $72,950 in credit card debt, lines of credit, car loans, and personal loans.
“We’ve seen people find other ways to pay for things they want or think they need, which usually means more debt,” Salmans said.
He said a good starting point for financial learning at schools would be to teach students the basics of banking – how to write a cheque, open different accounts such as RRSPs and TFSAs, understand the rates of return on investments, and the implications, and costs, of taking out new loans.
Chris Salmans, a Haliburton-based financial advisor, believes recently-announced updates to financial literacy in high school are long overdue.
