Thank you, Mr. Speaker. Financial literacy is not something on the radar for most of our young people. The basis of financial literacy includes identifying the role of money in everyday life, using credit responsibly, managing a personal bank account, being wary of credit cards being pushed on consumers, knowing the pitfalls of consumer debt and learning about investment options.
In the NWT schools, there is a mandatory Grade 11 course about personal financial management, but this topic should be addressed even earlier. To illustrate the need for financial literacy, here is a familiar money story.
A young man enters the job market. He earns $50,000 a year. Thinking his future is set, he buys a brand new truck and heads south for a vacation. Meanwhile, credit card companies bombard him with enticing offers, and before he knows it he has racked up $50,000 in consumer debt. He’ll probably spend years paying off his credit cards. In fact, he may never climb out of debt.
I believe a new action is required in the approach to retirement planning. For one thing, medical advances are extending the average person’s lifespan. Decades ago when the Canadian Pension Plan and the Old Age Security were developed, it was normal for a person to retire at 65 and die by the age of 75. But these days, young people can expect to spend a quarter of a century in retirement, or even longer. A second factor is that by 2050, the pension plans will probably no longer be in existence.
I’d like to see the NWT schools partner with the organizations like Junior Achievement, which has an impressive track record. Junior Achievement staff and volunteers assist young people with financial literacy and job readiness. Courses are available for all group ages. Unfortunately, Junior Achievement has not made regular inroads to the NWT schools. I know at least one experienced financial planner, John Henderson, who is willing to serve as a Junior Achievement volunteer.
Mr. Speaker, I seek unanimous consent to conclude my statement.
---Unanimous consent granted
We’re not putting enough emphasis on financial literacy and this is a great disservice to our young people.
I’ll have questions later for the Minister of Education, Culture and Employment. Mahsi.
Thank you, Mr. Yakeleya. The Member for Deh Cho, Mr. Nadli.
