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I think it's a waste of time before say, age 16 (roughly); and even after that, until they are self-supporting, it's all theoretical. No one really understands the value of a dollar until they have to support themselves.
I disagree. Kids need to start young learning how to manage money. They can understand the give and take of currency at a VERY young age. They don't need to be self-supporting. Then it's too late.
My daughter understands the value of the dollar very well. For years (she's 14) she has saved what money she gets then buys something she really wants. She saved and bought an MP3 player. She saved and bought cages and necessary accessories for the bunnies she wanted. She saved and bought a special skateboard. Her goal now is a car.
She went to the mall with a friend. He borrowed a dollar from her for a soda. I asked her why she didn't buy a soda. Her reply; the dollar she loaned her friend will come back to her. The dollar she would have spent on a soda would be gone.
My point; She's at a good point understanding finances that affect her at this stage in her life. As she gets older, I will teach her how to balance a checkbook and other financial things she will need to know, but now she manages her finances quite well.
ALL children would benefit from classes teaching them basic life skills such as managing finances, but there are three groups in particular that would benefit the most: The children who come from families who don't have a money flow at home prominant enough to show how things work; the children who don't have parents who share any financial skills with their kids or don't have the skills themselves to teach their kids; and the children who have things handed to them their whole lives and never had to earn anything.
Life skills SHOULD be taught at school. Children need to be prepared after they graduate from high school. They pride themselves in being 'legal', but they aren't mature or responsible enough to be out on their own.
I disagree. Kids need to start young learning how to manage money. They can understand the give and take of currency at a VERY young age. They don't need to be self-supporting. Then it's too late.
My son, when he was 4, found something in a catalog that he wanted. I told him that it would cost two-thousand pennies (he had about 50 pennies he had been saving), and that if he could save enough, he could buy it.
For two years (yes, I typed that right) he saved every penny, nickel, dime - and dollar, that he possibly could. After about 18 months, he realized that he wasn't making any headway, so he started asking if he could have a job to earn money.
There were times that he wanted other things. I explained that he could get it, but it would take that much longer to save for what he really wanted. He chose, every time, to continue to save.
Now, he's got two more things he wants. The next goal is $40...
There once was a time when students were taught some basic "life skills" - like how to budget, how to balance a checkbook, etc. But for some reason (shall we speculate?) those sorts of classes don't exist anymore - in fact, they pretty much haven't existed since before I started HS.
I graduated from High School in 1990 and that class was taught back then. It did serve a purpose but how people view money is based on their mindset.
The want it now, gotta have it, I deserve it mentality is what gets people into debt.
My kids got some stuff about balancing checkbooks in middle school.
I remember writing checks in middle school, and I guess balancing them. We did stock market investing in one short class project in jr. high. I did mortgage calculations in advanced math.
However, there will always be many people that want it now and will "pay it later." I was surprised at how people I knew making more than me (in higher level positions) had a lot of credit card debt.
I remember writing checks in middle school, and I guess balancing them. We did stock market investing in one short class project in jr. high. I did mortgage calculations in advanced math.
However, there will always be many people that want it now and will "pay it later." I was surprised at how people I knew making more than me (in higher level positions) had a lot of credit card debt.
I used to process loans and I have read a lot of credit reports. The people with the most credit card debt would be doctors, lawyers, financial planners. Basically people with very prestigious jobs a lot of education so I'm sure they can read a balance sheet.
I was watching a episode of the Suze Orman show and a doctor called in who made over 190k a year and they were in debt for the same amount and it wasn't all student loans. Pretty shocking.
My son, when he was 4, found something in a catalog that he wanted. I told him that it would cost two-thousand pennies (he had about 50 pennies he had been saving), and that if he could save enough, he could buy it.
For two years (yes, I typed that right) he saved every penny, nickel, dime - and dollar, that he possibly could. After about 18 months, he realized that he wasn't making any headway, so he started asking if he could have a job to earn money.
There were times that he wanted other things. I explained that he could get it, but it would take that much longer to save for what he really wanted. He chose, every time, to continue to save.
Now, he's got two more things he wants. The next goal is $40...
But he doesn't know what the mortgage payment is, how much food costs, clothes, etc. You are providing all that, and more. And at his age, he shouldn't have to worry about this stuff. Your kid is young. In ten years, you might understand what I'm saying.
The people with the most credit card debt would be doctors, lawyers, financial planners. Basically people with very prestigious jobs a lot of education so I'm sure they can read a balance sheet.
I was watching a episode of the Suze Orman show and a doctor called in who made over 190k a year and they were in debt for the same amount and it wasn't all student loans. Pretty shocking.
Credit card debt, and just plain spending beyond their means. Look at the number of foreclosures there are because people bought beyond what they could afford. I don't mean those who were swindled, but those who were greedy and bought houses they couldn't afford the mortgage on.
I've seen news programs and segments about people who live in beautiful, big homes then say they can't afford to keep the electricity on, or they can't buy their kids Christmas presents because they're broke, or they are being foreclosed on.
THOSE PEOPLE NEED CHICAGO'S CLASS
Their children need to learn responsible financial planning because, clearly, their parents aren't capable of being good role models.
It may be old fashioned but I think finacial education begins at home. Like most people, I learnt about managing money by seeing how my parents did it. We were middle class but no loan officer was going to sell my parents a bigger home becuase they knew what they could reallly afford. I saw my parents buy few things but of good quality. Except for the house, they always paid the purchases in full and I used to hate it when they would simply walk away by saying “we cannot afford it”. I did not get allowance for anything. They packed lunches, ironed clothes but they saved so that we could travel overseas and there was big emphasis on sports. On education, money was never an issue. Eg. They unconditionally helped me with tution (I had 90% scholarship) at a very good university.
IMO, Managing money comes down to prioritizing your choices, curbing the consumerism and undertanding true affordability. That is what I try to teach my kids.
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