Financial literacy is something far too few adults possess. From understanding the magic of compound interest on our savings to the woe of compound interest on our debts, financial literacy is a skill we hope our children will perform better than we ourselves have.

Sure, there are certain aspects of math class that we never use again outside of the classroom, but financial literacy is one of the best examples of how math is applied to daily living.

The basic concepts of financial literacy begin with math skills. Addition, subtraction, algebra, and more are key elements of managing money skillfully, teaching the basic concepts early and will be used regularly in everyday life.

From knowing the amount of change one ought to receive back from a cashier after making a purchase to the full cost of borrowing money, these are some of the most valuable skills we can give to our children. Better math skills help prepare children for life beyond the classroom, beginning with paying for post-secondary education and lifelong smart spending and saving practices.

Those credit cards seemingly thrown at first-year college and university students are just the beginning. With so many young adults graduating from post-secondary education with tens or hundreds of thousands of dollars of student debt, one wonders if better financial literacy might have reduced this debt load. If our children had a better understanding of money, debt and compound interest, perhaps they’d be less inclined to sign up for mortgage-level debt while still in their teens.

Kids need to learn about money. Understanding how to earn it, save it and spend it smartly is a skill children need to understand. One of the best ways to impart financial literacy to your children is through math. While it’s never too late to learn financial literacy skills, constant reinforcement of math skills from a young age can help young people make smarter financial decisions intuitively when they are older.

Because math seems so abstract, it can be challenging to learn for some students. Money is something they are familiar with, making it easier to make those important connections. By improving their math skills, we can better prepare children and adolescents for life. Help them make better life decisions regarding finances and understand the real cost of living.

 From paying for goods and services to managing a household budget, money is an integral part of our lives. Better math skills can help set your children up for better financial management skills. If you want to prepare your children for better financial literacy, it starts with stronger math ability.

Contact Ottawa’s Mathnasium Carlington to learn more about how our math tutors can help set your children up for a lifetime of success and financial literacy with better math skills.