Teach Tax and Financial Literacy: Why That Matters More Than Ever

Evelyn Jacks

I had the opportunity to coach one of our Knowledge Bureau instructors this past weekend as she prepared to provide a basic tax and financial literacy lesson to a group of young people. The issue we spent the most time discussing: how to convey and discuss the importance of financial wellness and why that matters especially in these times? The answer required only one word.

That word is engagement. As financial educators, we have an opportunity to engage worried people in thought-provoking conversations about the importance of financial literacy in their lives as they go forward in a post-pandemic world. 

Financial literacy has long been a life skill that arises again and again as we are confronted with changes in our lifecycle, during various financial life events and when the economic events around us cause us to want to  make financial decisions. 

A lack of financial knowledge can generally cause stress. But unfortunately, in these time,  much more financial stress is definitely on its way. 

Consider this article from Jack Mintz, who is a frequent speaker at past Distinguished Advisor Conferences. Canada’s debt load, he says, is even worse than we may think.  Why does it matter to average Canadians? 

“Creditors eventually will want Canadian governments to have sustainable fiscal plans. If not, they will downgrade our debt, leading to higher interest rates. . .The most serious problems arise in countries that lose capital inflows, have falling currencies and can’t repay their international loans. . .Governments whose fiscal plans don’t impress markets often resort to printing money, which leads to higher demand for goods and services. . .Monetary expansion and a relaxation of Bank of Canada targets could push up consumer prices, leading to higher inflation and interest rates. . .”

. . .and taxes we might add.  When savings are worth less after taxes and inflation, and things start to cost more, the wealth that savers perceived they had, diminishes. And that has implications on their ability to pay back any debt they have, too. That’s why financial literacy is so important: understanding how to manage resources for the future is critical today.     

At Knowledge Bureau, we focus on a framework called “Real Wealth Management™”:  the accumulation, growth, preservation and transition of sustainable wealth, after taxes, inflation and fees.  Those who have it, will have enough; and that brings financial peace of mind - the true meaning of wealth.

Financial peace of mind is built in a variety of different ways.  It begins with knowing that we are not alone in the financial questions that we have; that we in fact should be asking them, and that we can be empowered to live a worry free financial life when we begin by taking an interest in our financial affairs.

The circle is complete when we make it our business to ask questions of those with both knowledge and experience. . . our selected circle of financial professionals who may be needed at various times to help : tax advisors, professional bookkeepers, financial advisors and legal advisors.   

I mentioned to our novice instructor that the people we have the privilege of teaching have taken the first step towards an empowered financial life and with her dedicated and enthusiastic guidance, they will be able to  chart a new financial path that works for them.  That’s a pretty inspiring calling and she thought so too!

We have created the RWM™ Designation Program to empower professionals in implementing this process. We hope you consider taking it and at some point in the future, consider teaching and supporting students who study online with us here at Knowledge Bureau. 

We are planning a Zoom Meeting to connect  with our instructors and writers on June 24 to discuss summertime projects.  Please join us!

In the meantime, kudos to Knowledge Bureau instructors, student support mentors and students.  You are all doing important work at a challenging time!

Evelyn Jacks is Founder and President of Knowledge Bureau and author of 55 books on tax and financial literacy.   

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