Education About Handling Money

I realise how the school curriculum falls short in educating people for life. We tend to want our schools to deal with every topic under the sun but I truly see that we need to educate all children from the beginning about the role of money in their lives. Who agrees with me?

 

 

 

 

I think it goes beyond money education. The whole idea of unbridled consumerism for its own sake needs to be questioned. Owning physical items does not make you a better person. You can only watch one TV at a time and listen to one sound system/ipod at a time. Mis-consumption is a huge part of the issue of incurring debt. Commercial organisations have fostered consumption through advertising. Banks have colluded in the past by encouraging easy credit and not helping their clients manage debt in spite of imposing monthly standing charges on current accounts. You are correct to open up discussion on this issue. It is about what we as societies value and what we see as worthy.

The big " for sure" is the promoters need to accept some of the responsibility and guilt society throws at those who go into debt. Credit card companies and the media prey on human nature.

Meaning.....................why in the world would any creditor extend 40,000.00 in credit to a person paying a first and second mortgage with only one income ? That kind of lending is as irresponsible as me taking it out in the first place. The other logic that blows my mind ? Several years ago and another ex wife................we had too much debt to get a personal loan for a few thousand dollars to " consolidate" some debts. The same week however, we had plenty of credit to buy a $ 15,000.00 car. And I always have to laugh when they advertise consolidation loans then when you apply they tell you you have too much debt to income ratio..............duhhhhhhhhhhhhh.

I think that the problem is not only in the education from schools. It is also a responsibility from parents to inculcate values that will improve the way of living of children in the future. Values like discipline, long term gratification and saving can change the picture that we are seeing today. Just to mention some of them.

Delayed gratification is a concept that is totally foreign to Gens X and Y, but was a way of life for our grandparents.  Why was that?  Because there was no such thing as a credit card, and to get a personal loan for a car or appliance was a commitment so huge, that it was only entered into after a lot of serious thought.

Our grandparents delayed their enjoyment of a large item by budgeting and saving for it.  I truly believe that they appreciated their purchases more than we do, because they had to wait so long to get them.  We just rush off and buy things on credit, more because it is a "want" rather than a "need."

It would be great to start teaching delayed gratification in high school, so that our next generation of consumers are more savvy, and less likely to be manipulated by advertising into buying things they don't need, can't afford, and won't make them better citizens.

I think it would be great to have a class in high school about handling money- I also think it's the parents job to educate our children.  For starters - lead by example.  I told my daughter I didn't have the money for something when we were shopping- she said- Use the credit card.  I stopped right there in the store and told her "No- that isn't the answer- you still have to pay for it- when you get the bill". We are saving for a trip to Florida- I said- do you want to skip the trip because I have to pay the credit card bill?

Things should start at home and very early.