The Biggest Gap in Education
— By Basia Pozin, Excel 2016
I find it extremely fascinating that almost any statement about the way things ought to be done leads to an inevitably passionate debate — whether the topic is about social welfare, environmental degradation, or standardized testing; everyone and their mother has an opinion to share. That is when it comes to most topics. But there is one statement that I have yet to hear an argument about. And that is the lack of practical financial literacy education in schools. There seems to be a general consensus on the importance of this matter and yet we are far away from raising financially literate adults. I believe the most fundamental skill for adulthood has been largely omitted from every stage of schooling throughout most of recent history.[1]
Everyone goes through 8 years of elementary school, 4 years of high school, and often 4 or more years of post-secondary education and yet most people graduate with minimal understanding of how credit scores work, how to effectively budget one’s money, and what investment options are available to them. How strange is it to be considered an educated adult and yet be completely financially illiterate? At what point does a child learn the difference between a debit card and a credit card? When do we teach our kids about developing a savings plan and being disciplined in following that plan? When are students taught in school how to file their taxes, get approved for a mortgage, or understand what the prime rate is and how it affects them financially? Unfortunately the answer is never. Students either eventually figure it out on their own, hopefully before it’s too late, or they don’t figure it out at all. Perhaps they will first tank their credit score, or drown themselves in consumer debt, or in the best case, simply continue to lose 2% of their purchasing power every year as they try to figure out what to do with the cash slowly accumulating in their bank account as it sits there unproductively.
I too had no idea what it meant to be financially responsible until I began working at one of the largest North American banks, TD Canada Trust, as a management trainee. I was training on the retail side and met with clients on a regular basis to discuss their financial portfolios. This allowed me to develop a wealth of knowledge about the best practices in personal finance. The more financial portfolios I reviewed, the more obvious it became that financially literate individuals who understand their investment options, maximize on government incentive programs, and leverage publicly available online resources, end up in significantly better financial health. Unfortunately, far too many people do not possess the know-how to manage their personal finances responsibly and thus end up in a financial position that is damaged beyond repair.
This knowledge gap does not discriminate against age, gender, or race. I witnessed young adults in financial oblivion, middle aged folks in financial straits, and ultimately pensioners suffering from the same ill-fate. Given the magnitude of the issue, I felt compelled to do something about it. Armed with the knowledge that I gained from my training along with my relentless desire to instigate change, I developed a financial literacy program for kids called ‘Money Works’. I had a strong feeling that this program had uncapped potential so I sprung into action immediately.
Upon obtaining approval and funding from both my employer and the UJA Federation of Greater Toronto, I partnered with the local JCC, the Schwartz/Reisman Centre, to add Money Works to their portfolio of year-round programs offered by J. Projects, a youth programming department at the center [2]. Upon receiving all the necessary approvals, the fun part began. I started developing the course content — choosing the topics to cover, developing engaging activities to help demonstrate the concepts, and making aesthetically pleasing slides (the best part!). My goal was to keep it fun, exciting, and most importantly practical!
Fast forward 10 months and Money Works has educated over 100 middle and high school students in financial literacy and continues to do so on an ongoing basis. Each session is full of interactive activities, games, discussions, and practical content. We cover topics such as budgeting, building credit history, investment options, inflation, taxation, and much more! We have also hosted two sold-out info sessions about “Careers in Finance” where we invited a panel of guest speakers from the industry to share their insights about working in the fields of finance, accounting, and banking. These sessions were met with overwhelmingly positive feedback.
I have had colleagues and friends reach out to offer their support in getting involved with the program because they too share a common vision. I have also had people asking me to open a Money Works session for adults, which is something I am now considering doing in the near future. The widespread demand for this program proves the importance of it and how successful the initiative has become. My personal favourite request came from a 12 year old graduate of the program who requested that there be a continuation to the program so that he could keep learning more “important and interesting stuff”. What a gem. Money Works is an undeniably necessary investment in the next generation and the benefits of the initiative are apparent to all.
Overall, it has been a tremendously rewarding experience to create a program where kids are acquiring the knowledge, skills, and resources to become financially educated young adults. Money Works has opened up doors to many wonderful collaborations, partnerships, and even friendships. But the most fulfilling part has been watching the students actively participate in class, raise intelligent questions, and draw conclusions that help them understand how the world around them operates. And it is gratifying to know that Money Works made that happen.
[1] Granted that in recent times, schools have advocated for financial literacy programs and legislation has been made to mandate financial literacy education in some parts of the States and Canada. However, from my experience, there is still a large gap between the content being taught in school and what is considered to be practical knowledge. This, of course, is my subjective opinion based on empirical evidence gathered from talking to kids in my program, their parents, and hundreds of clients that I interact with on a daily basis.
[2] Money Works is generously supported by Genesis Philanthropy group, UJA Federation of Greater Toronto, & the Schwartz/Reisman Centre. TD Canada trust has also provided a donation in support of the program.
Basia Pozin is a 2016 Birthright Excel Fellow that interned at Deloitte in the operations consulting department while on Excel. As a public speaking enthusiast, Basia was drawn to the client facing part of consulting. During her internship, she enjoyed presenting the final strategy to company leaders and craved more client facing opportunities. Upon returning from Israel, Basia entered her final year of studies at the Schulich School of Business and found her dream job at TD Canada Trust. She joined TD’s national “Consumer Banking Management Training Program” in which she had the opportunity to rotate through all the retail banking roles while simultaneously being groomed for management. During her training, it became apparent to Basia that many people lacked basic personal banking knowledge. This was the inspiration behind launching Money Works — a financial literacy program that aims to educate participants of all ages on how to achieve financial wellbeing. Whether in the classroom, at the branch, or during conversations with friends, Basia loves that she gets to help people with their finances and personal banking questions. Today, Basia works as a branch manager at TD while leading Money Works at a local JCC. She also enjoys practising yoga, organizing spaces using the KonMari method, and exploring new places around the globe.
