Alberta
Making money matter to Alberta students
Alberta’s government is getting students the training they need to better understand saving, budgeting, spending and investing.
To make sure junior and senior high students have the financial knowledge for today’s world, Alberta’s government is releasing a call for grant proposals totaling $1 million. The successful organization, or group of organizations, will work with schools to provide financial literacy programming to students starting in fall 2021.
Students will study financial concepts such as costs, interest, debt, investing, insurance and how the economy affects their lives. This call for grant proposals will expand learning opportunities to students in classrooms across the province.
“For the first time in a meaningful way, financial literacy is being addressed across multiple subjects and grades in an age-appropriate way in our province. Understanding how money works will help students gain confidence, solve practical problems and prepare them for the future.”
“Strong financial management is the foundation of a successful economy. Likewise, it’s an essential life skill that can add immense value to one’s personal endeavours. This is why I’m proud of the $1 million investment in financial literacy education, which will support our youth transitioning into adulthood and better equip them for personal and professional success.”
“Integrating financial literacy concepts across multiple grades will help to ensure we don’t just prepare students for a successful career, but for a successful life. Teaching financial literacy will empower countless Alberta students with the foundational tools needed not only to manage their finances, but to build their own business. These are essential skills for our changing economy.”
“It’s never too early to become financially literate. The ability to understand finances, in terms of budgets, income, expenses, saving, borrowing, credit – this is knowledge, skills and practices that will not only last one’s entire life, but enable young Albertans to set themselves up for success and to lead a prosperous life. Students are Alberta’s future entrepreneurs – future business owners, restauranteurs, innovators, creators – all roles that require sound knowledge and insight into finances and budgets. I applaud the Government of Alberta for investing in the financial literacy of Alberta’s next generation.”
This call for grant proposals builds on successful current financial literacy programs, including those offered by Enriched Academy and Junior Achievement in the 2020/21 school year. These organizations have been working with 39,000 students in Grades 4 to 12 in the past year – in urban and rural communities.
“Normally, the seriousness involved in personal financial literacy can be overlooked when you’re 15 or 16. But through this training, my students and I have been able to have meaningful, quality conversations about investing, credit, debt and so much more.”
“Before joining Junior Achievement, all I knew was that companies pay their employees, and people have to budget their own money. However, after joining, I learned that there are so many more steps and so much effort goes into this. I’ve also learned all about making decisions that financially benefit a business or individual – break-even points, budgeting, investing, financial management and so many more financial skills. This program has made a change in my life for the better.”
By focusing on financial literacy, Alberta’s government aligns with the Ministerial Order on Student Learning released last fall. Developed following consultations with parents, teachers and education experts, it calls for students to acquire competence in managing personal finances.
Financial literacy was also among recommendations from Alberta’s independent curriculum advisory panel. In their report, the panel noted students may leave Grade 12 without the basic skills necessary to transition successfully into life after high school. They recommended financial literacy, work readiness, wellness and goal-setting to enhance student learning.
As part of the work to refocus on essential knowledge in Alberta’s elementary schools, financial literacy is also a key component of Alberta’s draft kindergarten to grade 6 curriculum, under the theme of practical skills. In the draft, all students will study financial literacy in all subjects and grades – from counting coins to creating a budget.
Quick facts
- Details on the call for grant proposals will be available in May through the Alberta Purchasing Connection.
From the Fraser Institute
By Tegan Hill
According to the recent mid-year update tabled Thursday, the Smith government projects a $4.6 billion surplus in 2024/25, up from the $2.9 billion surplus projected just a few months ago. Despite the good news, Premier Smith must reduce spending to avoid budget deficits.
The fiscal update projects resource revenue of $20.3 billion in 2024/25. Today’s relatively high—but very volatile—resource revenue (including oil and gas royalties) is helping finance today’s spending and maintain a balanced budget. But it will not last forever.
For perspective, in just the last decade the Alberta government’s annual resource revenue has been as low as $2.8 billion (2015/16) and as high as $25.2 billion (2022/23).
And while the resource revenue rollercoaster is currently in Alberta’s favor, Finance Minister Nate Horner acknowledges that “risks are on the rise” as oil prices have dropped considerably and forecasters are projecting downward pressure on prices—all of which impacts resource revenue.
In fact, the government’s own estimates show a $1 change in oil prices results in an estimated $630 million revenue swing. So while the Smith government plans to maintain a surplus in 2024/25, a small change in oil prices could quickly plunge Alberta back into deficit. Premier Smith has warned that her government may fall into a budget deficit this fiscal year.
This should come as no surprise. Alberta’s been on the resource revenue rollercoaster for decades. Successive governments have increased spending during the good times of high resource revenue, but failed to rein in spending when resource revenues fell.
Previous research has shown that, in Alberta, a $1 increase in resource revenue is associated with an estimated 56-cent increase in program spending the following fiscal year (on a per-person, inflation-adjusted basis). However, a decline in resource revenue is not similarly associated with a reduction in program spending. This pattern has led to historically high levels of government spending—and budget deficits—even in more recent years.
Consider this: If this fiscal year the Smith government received an average level of resource revenue (based on levels over the last 10 years), it would receive approximately $13,000 per Albertan. Yet the government plans to spend nearly $15,000 per Albertan this fiscal year (after adjusting for inflation). That’s a huge gap of roughly $2,000—and it means the government is continuing to take big risks with the provincial budget.
Of course, if the government falls back into deficit there are implications for everyday Albertans.
When the government runs a deficit, it accumulates debt, which Albertans must pay to service. In 2024/25, the government’s debt interest payments will cost each Albertan nearly $650. That’s largely because, despite running surpluses over the last few years, Albertans are still paying for debt accumulated during the most recent string of deficits from 2008/09 to 2020/21 (excluding 2014/15), which only ended when the government enjoyed an unexpected windfall in resource revenue in 2021/22.
According to Thursday’s mid-year fiscal update, Alberta’s finances continue to be at risk. To avoid deficits, the Smith government should meaningfully reduce spending so that it’s aligned with more reliable, stable levels of revenue.
Author:
Better, faster, more affordable auto insurance
Alberta’s government is introducing a new auto insurance system that will provide better and faster services to Albertans while reducing auto insurance premiums.
After hearing from more than 16,000 Albertans through an online survey about their priorities for auto insurance policies, Alberta’s government is introducing a new privately delivered, care-focused auto insurance system.
Right now, insurance in the province is not affordable or care focused. Despite high premiums, Albertans injured in collisions do not get the timely medical care and income support they need in a system that is complex to navigate. When fully implemented, Alberta’s new auto insurance system will deliver better and faster care for those involved in collisions, and Albertans will see cost savings up to $400 per year.
“Albertans have been clear they need an auto insurance system that provides better, faster care and is more affordable. When it’s implemented, our new privately delivered, care-centred insurance system will put the focus on Albertans’ recovery, providing more effective support and will deliver lower rates.”
“High auto insurance rates put strain on Albertans. By shifting to a system that offers improved benefits and support, we are providing better and faster care to Albertans, with lower costs.”
Albertans who suffer injuries due to a collision currently wait months for a simple claim to be resolved and can wait years for claims related to more serious and life-changing injuries to addressed. Additionally, the medical and financial benefits they receive often expire before they’re fully recovered.
Under the new system, Albertans who suffer catastrophic injuries will receive treatment and care for the rest of their lives. Those who sustain serious injuries will receive treatment until they are fully recovered. These changes mirror and build upon the Saskatchewan insurance model, where at-fault drivers can be sued for pain and suffering damages if they are convicted of a criminal offence, such as impaired driving or dangerous driving, or conviction of certain offenses under the Traffic Safety Act.
Work on this new auto insurance system will require legislation in the spring of 2025. In order to reconfigure auto insurance policies for 3.4 million Albertans, auto insurance companies need time to create and implement the new system. Alberta’s government expects the new system to be fully implemented by January 2027.
In the interim, starting in January 2025, the good driver rate cap will be adjusted to a 7.5% increase due to high legal costs, increasing vehicle damage repair costs and natural disaster costs. This protects good drivers from significant rate increases while ensuring that auto insurance providers remain financially viable in Alberta.
Albertans have been clear that they still want premiums to be based on risk. Bad drivers will continue to pay higher premiums than good drivers.
By providing significantly enhanced medical, rehabilitation and income support benefits, this system supports Albertans injured in collisions while reducing the impact of litigation costs on the amount that Albertans pay for their insurance.
“Keeping more money in Albertans’ pockets is one of the best ways to address the rising cost of living. This shift to a care-first automobile insurance system will do just that by helping lower premiums for people across the province.”
Quick facts
- Alberta’s government commissioned two auto insurance reports, which showed that legal fees and litigation costs tied to the province’s current system significantly increase premiums.
- A 2023 report by MNP shows
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