While having lunch, a cousin of mine commented on her recent push to eat more veggies. Not being much of a fan of green foods since childhood this has proven to be quite a challenge. “Well,” I said, “At least you know that if you buy it you WILL eat it.” We both grew up in families that simply did not let anything go to waste.She stopped chewing her sandwich to laugh.
In a recent editorial about the personal finance habits of Americans, the author began by stating, “People who lived through the Great Depression learned and retained some hard lessons about living in lean times.” Going on to say that, “… the recession of the last few years has not been long or painful enough to get the same message across to today’s families,” the editorial outlines the ways in which Americans are not properly managing their money. The tips given by the author to improve money management are, “Set some money aside for emergencies, pay extra toward your debts until they’re all gone (and stop signing up for more debt), and have a portion of your paycheck diverted to a long-term savings plan.”
Isn’t it painful enough? Most likely one or two of the 8.8% of unemployed persons in the U.S. would be inclined to disagree. Sometimes, when enough time has passed, we tend to romanticize a bygone era.Perhaps this will give away my age, but I did not live through the Great Depression. Still, the value of using things to their full potential-of not wasting time, food, energy, money was passed down to me (and my vegetable eating cousin).
Obviously, the best time to start learning about personal finances is at the start. The very start of your life. For many children, who do not have the opportunity to learn about healthy spending, the consequences of credit card debt will come as a shocking surprise.
Only 4 states require students to take a course in financial education, while just 20 states have standards that math classes include some financial objectives in their curriculums.Would it benefit young adults to learn more about finances in school? That depends.
Personal finance is, well, personal. My vehicle is old. The side is smashed up from a suicidal deer that met its end in the ditch near my house.But that car stills runs. Paid in full several years ago, that car gets me when I need to go (and I’m okay that it isn’t entirely beautiful).
I can’t say, though, that everyone should drive a beater. Why not? Because each person has their own set of circumstances. How much trust would the average person place in a lawyer or accountant that drove a junky looking car?
Financial education in schools would be helpful for the basics. Understanding how to balance a checkbook, how credit cards (and interest) work, and some basic guidelines for how much to save for emergencies could benefit young adults as they head off to college. But it’s still going to be up to each individual to define their priorities.
Hopefully, the next generation of students will make decisions that will contribute to their long term happiness, rather than short term comfort. Is there a way to teach that in school? I’m not sure.
