We are facing hard times now, and with international finances in total disarray, money has become a scarce commodity. Not only is it high time we started getting literate financially; but it is also time for our kids to start early. When we used to be kids we were blissfully ignorant of the intricacies of finance. However, today we are at the crossroads where unemployment is increasing with prices going up resulting in money losing much of its value and purchasing power getting affected. It makes sense to inculcate financial literacy programs at school and college levels.
The great thing is that, today’s kids are well informed and knowledgeable. As internet access is now available at incredibly low prices, there is hardly any household that does not have a connection. Kids have amazing knowledge on a variety of subjects and are great at mining information and collating it. However, as there is no need for them to get into the maze of the financial world there isn’t much interest shown in this area.
Most young people have no knowledge or understanding of the basics of finance and economics. College going kids spend without a thought and use up their credit cards to the limit with no means to pay up. Little do they realize that bills not paid on time attract penal interest and when unpaid debts start mounting it leads to a very unpleasant situation. It will be a good idea to inculcate the habit of being thrift starting with the allowances kids are paid. A $5 allowance to spend on candies or ice-creams is not all that bad; however, when it stretches to $30 or $50, things get out of control.
As mentioned earlier, access to the Internet tempts kids to browse several online marketing sites and buy things that they cannot afford or don’t need right away. Surveys reveal that one in five Americans in the age bracket of 18 to 25 file for bankruptcy. Life ends when it should be beginning. These are the kids who started spending when they were 14 or 15 – spending money that was not earned by them.
The surveys also revealed that those who were financially literate came from well-educated families with a history of good financial discipline. Their parents had sufficient retirement savings and had invested wisely in stocks and bonds, and they had instilled the rules of finance in their wards with good results. Teaching kids the basics of financial management in schools will go a long way in preventing debt and creating responsible citizens.
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I'm Louida from Atlanta, Georgia and I'm a mother of two daughters, blogger, and full time working mom at a Business Consulting Firm.
I love helping others learn how to start working from home on the internet free to supplement their current income.
I also blog at Productreviewmom.com
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