Today is Talk With Our Kids About Money Day and thousands of teachers, parents and kids are talking today in classrooms and homes across Canada.
Created by the Canadian Foundation for Economic Education (CFEE), Talk With Our Kids About Money Day (TWOKAM) is celebrating its fifth anniversary today.
Brian Denysuik from CreditAid says it's very important to talk to your kids about money. "Money plays a very big part in all of our lives," Denysuik says. "If we don't start talking at a very young age with our kids about money, they can easily make some incorrect assumptions."
"When we use plastic, there is theoretically no limit to them. You want to buy something, you take out plastic and it just happens."
Denysuik says using a debit or credit card is making the concept of money more difficult for children. Cash is easier to understand, because you can see it grow and shrink.
If you can get your hands on a game of Monopoly with cash and not the debit machine, Denysuik says that it's a good exercise for kids.
"If you're going to talk about money, make sure you do it in front of the children," Denysuik says. "The children need to understand that there are challenges when it comes to cash flow in a home."
Setting goals with your kids is also a good practice. "If your children really want something . . . you sit down with them and calculated how long do [they] need to save before [they] can purchase what they want," Denysuik says.
"I like to encourage parents to transition [from an instant gratification model] to a save to spend model."
The TWOKAM program was created for young Canadians by CFEE to get a jump start on their financial education and while it all year long, today its the big day of celebration. The program is available in all provinces in Canada, with plans to expand into the territories next year. 500,000 young people participated in the program last year.