For many of us, our relationship with money starts long before our first paycheque or credit card. It beings at home, with an allowance, a piggy bank, a first savings account, and the everyday conversations (or silence) around spending, saving, and borrowing.
An Organization for Economic and Cooperative-Development (OECD) and International Network for Financial Education (PISA) study results show that Canadian teens who regularly discuss money with their parents score significantly higher in financial literacy, highlighting how early, frequent financial conversations at home help build the skills young people need to navigate an increasingly complex financial world. Students with early financial engagement, such as holding a bank account, also demonstrate stronger financial literacy overall.1
In February, across the country we celebrate “Family Day”, a fitting time to reflect on how early financial education shapes long-term confidence, resilience, and responsible credit use.
The Allowance Years: Learning the Basics of Value
An allowance is often a child’s first introduction to money management. Whether it’s tied to chores or given as a weekly amount, it teaches that money is finite, financial choices have consequences, and the difference between spending now and saving for later.
Simple lessons like setting aside a portion for spending, savings, and even giving can quietly build the foundation for budgeting skills later in life.
The First Paycheque: Understanding Earned Income
Teen years often bring a first job, and with it, a new sense of independence. This is a powerful moment to introduce budgeting for short-term goals, long-term savings, the concept of taxes and deductions, and how bank accounts work and digital payments work.
These experiences create the bridge between “money given” and “money earned”, reinforcing responsibility and planning.
The First Credit Conversation: Borrowing with Purpose
For many young adults, a credit card is the first formal financial product they manage independently. This is also where misunderstandings can lead to long-term challenges if education comes too late.
Key concepts families and financial institutions can help demystify include what a credit score is and why it matters, how interest works, the importance of paying balances on time (and in full when possible), and how credit can be a tool (not a safety net).
When framed correctly, a first credit card isn’t just a way to pay, it’s a learning tool for building a positive credit history. For more on teaching “credit confidence” check out Credit Confidence: Teaching Teens and Young Adults to Use Credit Wisely on our blog.
Building Financial Confidence for Adulthood
Healthy credit habits developed early can support major milestones later, from renting a first apartment to buying a home or financing education. Open conversations, access to trustworthy resources, and guidance from financial institutions all play a role in helping young Canadians navigate these decisions with confidence.
Supporting Families Through Financial Education
At every stage, from allowance to first credit card, education matters. Financial institutions, credit unions, and their partners are uniquely positioned to support families by:
By empowering families today, we help build a generation of financially confident Canadians tomorrow.
[1]Financial Consumer Agency of Canada. Progress Report on the National Research Plan 2016–2018. Government of Canada. https://www.canada.ca/en/financial-consumer-agency/programs/research/progress-report-national-research-plan-2016-2018.html