The Financial Guide
for Teenagers: Thirteen- to fifteen-year-olds

Table of contents

• Introduction
  
  
  • Before you start
  • Healthy communication
  • Give teens the chance to make mistakes
  • Where do teens get their money?
  • Making room for learning
  • Using this guide
  
  
• Values
  
  
  • Desires versus needs
  • The real cost of things
  • Opportunity costs
  • Developing consumption patterns
  • The relative cost of things
  • Sharing expenses
  • Working with a goal in mind
  • Shopping
  
  
• Being Aware
  
  
  • Marketing and advertising
  • Internet
  • Advertising to watch for
  
  
• Basic concepts
  
  
  • What is a budget?
  • Earning money
  • Interest
  • Credit
  • Instalment plans
  • Mortgages and other loans
  • Inflation
  
  
• Financial Responsibilities
  
  
  • Earning money
  • Managing a budget
  • Income tax
  
  
• The job search
  
  
  • The steps in finding a job
  • Preparing a cover letter
  • Preparing a résumé
  
  
• Day-to-Day Money Management
  
  
  • Banking services
  • The right account for your teenagers
  • Different types of account
  • Service fees
  • Credit Cards
  
  
• Making Your Money Work for You
  
  
  • Savings
  • Investments
  • Definitions
  • Types of Investment
  • Investment plans
  
  
• Choosing a Career
  
  
  • Step 1: Try to develop a general picture of your teenager's abilities
  • Step 2: Make a list of all possible occupations
  • Step 3: Match possible occupations with personal characteristics
  • Step 4: Come up with a game plan

Contributors

Julie Barrette
Vivian Cousineau
Catherine Dupont
Geneviève Lavigne
Patrick Veilleux

Graphic Design

Roger Langlois

Cover page illustration

Mathieu Hains
Stéphane Perrault

Editing/Translation

Manon Brunet
Anny Robert

About the OSB

The Office of the Superintendent of Bankruptcy (OSB) is the Government of Canada agency responsible for overseeing the Bankruptcy and Insolvency Act (BIA), and ensuring that the act is responsive to market needs. The OSB keeps a public record of all bankruptcies, proposals and receiverships. It sets standards and guidelines for bankruptcy trustees and ensures compliance.

Bankruptcy trustees work with individuals and companies who are faced with insurmountable debt. There are two basic options for debtors. A proposal may be filed with creditors to set up a repayment schedule. Or if this isn't possible, an application is made for bankruptcy protection under the BIA. In the case of a bankruptcy, the trustee sells a debtor's assets to pay creditors.

About Debtor Education

Over the past 25 years, we have witnessed an explosion in the amount of credit offered to Canadian consumers. This growth in the use of credit has been accompanied by a sharp increase in consumer use of insolvency procedures. Several studies have demonstrated that many consumers have a poor understanding of credit and the harmful consequences of excessive debt. That's why the OSB is dedicated to teaching consumers of all ages about the importance of financial planning, the appropriate use of credit, and ways to avoid or emerge from excessive debt. For more information about dealing with debt, visit: www.osb-bsf.ic.gc.ca

About This Guide

This guide was developed by Laval University Consumer Studies students and University of Ottawa Civil Law students, all of whom are involved in the OSB Student Program. The guide contains activities and advice relevant to teens from 13 to 15 years of age. These young people are significant consumers in a constantly growing market. Like adults, they don't always make wise choices, but they learn quickly from their mistakes, in large part because their resources are so limited. If you don't think they will want to discuss these issues with you, begin by talking about your first job, what you had to do, and how proud you felt when you received your first pay cheque.

Organize a workshop for your teens and their friends so they can prepare their résumés and practise interview techniques. Do mock interviews with them. Consult our job search workshop called "Work It!" on our Web site at www.osb-bsf.ic.gc.ca or order a copy at the address listed on the following page.

Tell them how you paid for your education, about renting and furnishing your first apartment, etc. Explain how you chose your current work and the difficulties people generally encounter when trying to decide on a career. Help them understand the many options that are available to them.

Most important of all, listen, and be an objective guide. Don't obsess over their mistakes, or they'll eventually stop consulting you. Try to become a reliable resource for them in financial matters.

In this series: 

The Financial Education Cartoon Strips IC 54272B
The Financial Guide for Five- and Six-Year-Olds IC 54397E
The Financial Guide for Seven- and Eight-Year-Olds IC 54398E
The Financial Guide for Nine- to Twelve-Year-Olds IC 54399E
The Financial Guide for Post-secondary Students IC 54273E
The "Decisions" Educational Game (eight- to eleven-year-olds)
The "Work It!" job search workshop

If you would like to receive any of these publications, or would like additional copies of this booklet, please contact the OSB Corporate Secretary at the following coordinates:

Vivian Cousineau
OSB Corporate Secretary
365 Laurier Ave West, 8th Floor
Ottawa, Ontario
K1A 0C8
(613) 941-2694
Fax (613) 946-9205
e-mail: cousineau.vivian@ic.gc.ca