Personal Finance

When you’re young and just starting out, finances are a big issue. Most young adults and some older adults don’t have a clue how to make it work. When they’re in college the credit card companies target them as potential customers, because in four or more years these young kids will be working and hopefully making good money in their chosen field. Buy the time there are out of school they are in serious debt. In addition to credit cards they have many student loans. Add the interest rates, late charges and over limit fees and chances are they will be living with mom and dad for a few more years.

This trend will follow them through their life. They will eventually be able to afford to move out on their own. They, hopefully, will be making a good living for themselves, and be able to afford the ability to buy their own car, get their own apartment and be independent of mom and dad. Every one is happy.

Then it happens, there is a concert they want to go to, or a outfit they want now, car repairs, food, cosmetics to buy, gas to put in their car, and of course the normal monthly bills. Their paycheck won’t cover all these things, so, not being willing to do without, they chose to put it all on credit. Problem solved.

In no time at all they are once again deep in debt.

Would it not be beneficial to all kids to teach them about real life finances? Teaching them about saving, taxes, budgets, contracts, interest rates, and managing their money would make their lives easier. If we could teach them early on how to take care of their finances, and how to invest their money, they’d be better off for it. A class like this is just as important as algebra or calculus.

If we could manage to fit this into the curriculum that we use to indoctrinate our children, we might find that we will have a generation of money smart people.