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40+ Teachable Moments to Prepare the Next Generation for Financial Wellbeing

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TORONTO, ONTARIO--(Marketwire - Nov. 5, 2012) - Seventy two per cent of Canadian adults in a recent study(i) commissioned by Financial Planning Standards Council (FPSC(R)) acknowledged that today's generation of young adults face more financial challenges when starting out on their own than past generations did. And while the majority of respondents (86%) say schools should play a role in teaching money management skills and as early as elementary school (81%) -- there is also significant widespread recognition for the role parents play in teaching their children good financial skills and values that will stead them well for life.

As part of the Financial Literacy Month and Financial Planning Week activities, FPSC is sharing its research to highlight the importance of the parental role in teaching young people financial literacy skills and values. Additionally, FPSC offers more than 40 "Teachable Moments" from the community of CFP professionals who work with more than 3 million Canadians.

"Parental influence is crucial when it comes to teaching young people the financial skills and values that will stead them for life-long financial wellbeing" says Tamara Smith, Vice President of Marketing and Consumer Affairs, FPSC.

"Faced with greater post-education costs, mounting debt, a challenging employment landscape and many other factors, young people need solid personal finance skills to help navigate their futures," says Smith.

Survey Highlights:

Parental influences growing up: Respondents were asked to indicate their agreement level with various statements related to the influence their parents had on them in teaching them good financial habits.



-- "My parents taught me the value of money at an early age" (81% agreed)
-- "My parents taught me to buy only what we could afford - credit was not
part of our life" (76% agreed)
-- "Growing up I was responsible for sharing it the costs of some of my
wants" (78% agreed)



Stark Differences between those who engage in financial planning and those who do not: Notably, the research revealed that those who currently engage in comprehensive financial planning were significantly more likely to report having had positive parental influence in their childhood than respondents who do no planning. The difference between the two groups varied from 10-19%.



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Have Comprehensive
Statement Plan No Planning
----------------------------------------------------------------------------
"My parents taught me the value of money
at an early age" 81% 62%
----------------------------------------------------------------------------
"My parents taught me to buy only what we
could afford - credit wasn't part of our
life" 76% 66%
----------------------------------------------------------------------------
"Growing up I was responsible for sharing
the costs of some of my 'wants'" 78% 61%
----------------------------------------------------------------------------



"Parental influences early on in life make a tremendous difference. The research is clear: those who are proactively managing their personal finances by engaging in comprehensive financial planning with a professional planner were substantively more likely to report having had early influences in life through parental teaching," says Smith.

Are they teaching their children good habits? Again - those who currently engage in financial planning are far more likely to involve their children in activities that teach them financial skills.



----------------------------------------------------------------------------
Have Comprehensive
Statement Plan No Planning
----------------------------------------------------------------------------
"I involve my children in activities that
teach them to save for something they
want" 87% 77%
----------------------------------------------------------------------------



Lessons Reinforced:

"The research affirms that we must never under-estimate the power of parental influence when it comes to teaching young people good financial habits. Those who are exposed to early life lessons tend to stead better with good personal finance habits throughout their life," says Smith.

It's About Time: In keeping with the theme of FPSC's public awareness campaign for Financial Planning Week (It's About Time), the Council urges Canadians to seize every opportunity to teach children good habits throughout the continuum of their childhood.

"Don't wait until kids are at the age to fly the coupe. Every day can be a teachable moment and at any age," says Smith.

Teachable Moments - CFP professionals offer insight:

CFP professionals work with more than 3 million Canadians helping them bring more financial planning into their lives. Many work with families and/or encourage their clients to make financial planning a family affair. FPSC asked CFP professionals in an online survey to offer ideas for teachable moments for various stages in a child's life. See here for highlights of the "Teachable Moments" shared.

NOTES TO EDITORS:

(i) About this Research: Conducted by The Strategic Counsel, the research surveyed the general English-speaking population in Canada (excluding Quebec) between September 10 - 18, 2012. There were 2,240 respondents who were recruited from a longitudinal panel of Canadians who participated in a study on the value of financial panel.

Teachable Moments were sought from CFP professionals across Canada via a separate online survey.

Interviews: FPSC executives and CFP professionals are available for media interviews to the importance of parental influence and teachable moments.

Other Financial Planning Week Activities:

FPSC has also shared research on "Why Canadians Fail to Plan - Myths and Mistakes".

FPW Challenge: CFP professionals across Canada will host events to educate Canadians and inspire them to take action.

And more -- see www.financialplanningweek.ca for updates.

About Financial Planning Week

Now in its fourth year, Financial Planning Standards Council (FPSC(R)) and the Institut quebecois de planification financiere (IQPF) have jointly declared November 19-25, 2012 as Canada's Financial Planning Week (FPW). During the Week, each organization will be spearheading industry events and public outreach activities in their respective markets. Financial Planning Week is part of an ongoing effort by both organizations to make financial planning a cornerstone of Canadians' sound financial management. This year, Financial Planning Week is a dedicated week within Financial Literacy Month. Stay up-to-date at www.financialplanningweek.ca, Twitter @FPWeek, and on LinkedIn and Facebook.

About Financial Planning Standards Council

Financial Planning Standards Council (FPSC(R)) is a not-for-profit organization which develops, promotes and enforces professional standards in financial planning through Certified Financial Planner(R) certification, and raises Canadians' awareness of the importance of financial planning. FPSC's vision is to see Canadians improve their lives by engaging in financial planning. Currently, there are more than 17,500 CFP professionals in Canada and more than 140,000 CFP certificants in 24 countries worldwide. See www.fpsc.ca for more information.

FOR FURTHER INFORMATION PLEASE CONTACT:
To arrange media interviews or for further information:
Chadnick Communications (for FPSC)
Eileen Chadnick
416.631.7437
eileen@chadnick.com


FPSC
Jay Cameron
416.593.8587 x307
jcameron@fpsc.ca
www.financialplanningweek.ca

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