Prepare the Next Generation for Lifelong Financial Wellbeing

FPSC shares research on parental influence
and more than 40 teachable moments

November 5, 2012, Toronto, ON — Seventy two per cent of Canadian adults in a recent study* commissioned by Financial Planning Standards Council (FPSC®) 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' sought 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 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%.

Statement

Have Comprehensive 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.

Statement

Have Comprehensive 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 were taught the value of a dollar at a young age 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:

* 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:

About Financial Planning Week
Now in its fourth year, Financial Planning Standards Council (FPSC®) and the Institut québécois de planification financière (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®) is a not-for-profit organization which develops, promotes and enforces professional standards in financial planning through Certified Financial Planner® 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.

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To arrange media interviews or for further information, contact:

Eileen Chadnick
Chadnick Communications (for FPSC)
416.631.7437 or eileen@chadnick.com

Jay Cameron
FPSC
416.593.8587 x 307 or jcameron@fpsc.ca

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CFP®, Certified Financial Planner® and CFP (with flame logo)® are certification trademarks owned outside the U.S. by Financial Planning Standards Board Ltd. (FPSB). Financial Planning Standards Council is the marks licensing authority for the CFP marks in Canada, through agreement with FPSB. All other ® are registered trademarks of FPSC, unless indicated.

©2012 Financial Planning Standards Council. All rights reserved.