A Toronto District School Board trustee would like to see students learn about budgets, interest rates and savings as part of their education.

"Many people don't know how to put together a personal budget," Josh Matlow told CTV Toronto. "Many people don't know that if you miss one credit card payment, you might not be able to get a mortgage for your house."

At Tuesday night's TDSB meeting, Matlow pushed the idea of mandatory financial literacy education.

Teenagers form a huge consumer market for goods and services ranging from fashion to cellphones and entertainment.

A 2008 survey conducted for the Financial Consumer Agency of Canada had the following findings:

  • 85 per cent of young people have a chequing account
  • 74 per cent have a savings account
  • 72 per cent have a credit card
  • Seven in 10 say they have sole responsibility for their personal finances
  • Two-thirds make a monthly budget, but only 22 per cent stick to it
  • Half say their debt load is as much or more than they can handle
  • 37 per cent say they have had a month in the past year when they didn't have enough money to cover expenses
  • 23 per cent report ever having taking a course or training in personal finance

Many high school students agreed with CTV Toronto that they could stand to learn more about how to handle their money.

Education Kathleen Wynne told CTV Toronto that she's not in favour of a dedicated course, but agrees that students could use more education about consumer issues.

"I think that it's the kind of thing that can start very early," she said. "I think it's the kind of that already some teachers in elementary start to help kids learn about money -- learn about how money works. So I don't think we have to wait until high school."

Aspects of money management already exist inside current courses, but Wynne said more could and should be done.

Matlow's motion will go before the full school board on April 22. He hopes a new course could be created in time for the 2009-10 school year.

The province is currently undertaking a curriculum review and that changes on financial literacy education may be considered, Wynne said.

'Financial literacy is essential'

A 2007 report by Industry Canada's Office of Consumer Affairs observed the following: "Unless consumers are financially literate, they are vulnerable to problems such as fraud or the mismanagement of credit."

Fewer than 20 per cent of Ontarians considered themselves highly knowledgeable about investments, it said.

"And 26 per cent of those surveyed did not understand one of the basic tenets of investing, one of concern to regulators - the relationship between risk and return," it said.

There is some help available to teens outside their regular classwork.

The Canadian Bankers Association, in association with the Financial Consumer Agency of Canada, has a program called Your Money: Save It. Spend It. Protect It.

It offers web-based resources and free seminars for schools.

Some of the web resources include tips on:

  • budgeting
  • saving
  • borrowing
  • investing
  • your credit profile
  • avoiding scams

There are sections available for teachers, students and parents.

VISA also offers a website called Practical Money Skills that offers "financial basics for the real world." It has resources for students, adult consumers and teachers.

With a report from CTV Toronto's Pat Foran