How To Manage Money – Why Your Child Must Learn This
The Shocking Truth about Your Child’s Education on How to Manage Money
Now, more than ever, every parent must come to the realization that our children must be taught early how to manage money. You don’t have to look far to see not only individuals having financial problems, but countries as well. I think that we all will agree that money management is important, but what are we doing about it?
Those of you that have children in grade school know that children are not learning about the different ways to save money as a part of their curriculum. As a matter of fact, I’ve spoken with parents of high school graduates who have stated that their child did not have any training in money management throughout the four years of high school either.
Some educators and others, say that the principles of budgeting and managing money should be done at home, and perhaps this is true to a certain extent. Yet, as important as it is to start early to teach children these concepts, in most situations it isn’t done.
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In grade school in most parts of the country, children are taught sex education, so why not how to manage money? In most homes today, both parents must work just to make ends meet, and there isn’t much family time left.
For too many years, the current generation has relied on credit cards to pay for their wants and also their desires. In my practice, I’ve seen many young couples who have amassed credit card debt of $40,000.00 to $50,000.00, and struggle to make just the minimum payment.
What lesson do you think their children will learn from this? Reluctantly, I believe that they will quickly learn that they can have almost anything they want as long as they have access to credit cards.
Many experts in child behavior believe that children learn many of the bad habits of their parents simply by observing. While we agree that children should be taught how to budget money as a part of the school curriculum, it’s also the responsibility of the parents to make sure that their children are taught basic budgeting and money management at home to reinforce what they learn in school.
Parents can begin by taking them to the grocery store and explaining the concepts of money and why it is so important to live within a budget.
Schools teach our children about health issues and sex, so why not proper money management? I think that it’s an important subject and would not be that difficult to incorporate into the curriculum.
Children should be taught early on, all of these important issues that will help them throughout life. With special emphasis being done in school and also at home, perhaps the next generation will have a better grasp of the meaning of fiscal responsibility.
Do you think our world economy would be in the shape that it’s now in if our lawmakers and other leaders would stop the reckless spending? Many of them don’t seem to have any concept of how large out debt is and some don’t care. I wrote a blog post a few months ago about taxes and recommended that all lawmakers should read the book “Taxes for Dummies”. Perhaps, now, they should also be required to learn proper budgeting and how to manage money. There must be a book on “:Budgeting for Dummies” as well.
There are some economists that still believe we are not heading in the right direction as far as spending and sound money management, and at times, I agree. As a nation, we must adopt sound money management principles and stick to them.
Just as important, we need to elect those lawmakers who are of a like mind. We can no longer take this risk and must see to it that our children are taught early in their school years, and also throughout their high school and college years, how to budget money and live within their means.
In addition to that, being taught how to save and also provide for their retirement should be a part of the ongoing learning process. Parents, do your children know where your money comes from? Do you teach them about saving? Have you mentioned the “B” word to them…budgeting? Do you have a family budget? I won’t ask for a show of hands, but you get the idea. Children will learn your habits, so why not allow them to learn a good one such as how to budget money and live within your means?