Where are we in regards to the teaching of children the basic principles of money management? We are seeing first-hand what this lack of education is leading to, with many young parents unable to balance their finances, and unable to write a budget from which to live; instead we are seeing an increase in these young adult age groups turning to the payday lenders to get them through to the following month.
But what is scary is the purpose of the money; it is not to pay for food, or an emergency but apparently a way to fund a great night out. Are we teaching our children to a point where they are unable to see the potential that this can cause?
How can we be living in a society where borrowing money at high interest rates is an acceptable form of credit?
Questioning what we are teaching
It makes me question what skills we are teaching our children, are they, too, going to find living with high levels of debt an acceptable part of life? It is great when the government is encouraging spending on the high streets to increase the economic growth, but at what cost is this spending.
To increase the power of spending in the economic growth of a country, you need to be able to afford the money spent on the goods and services, to further increase the growth potential. But if the price of goods has increased with the lines of inflation, the next point needs to be an increase in income; otherwise, the only place any money can come from to pay for these goods and services is the loan companies and the credit cards.
These companies are seeing their profits soar because the amount of loans and lines of credit they are giving to people. There are guidelines with which some of the payday lenders have to abide by, yet there are still people who have borrowed money and there is no way out from the cycle of borrowing more to pay off the original loan amount.
It should be compulsory that every child in the world is taught about the basics of finance. It should not be a subject that a teacher with no finance experience, and who might themselves be in debt, teach a subject which is so fundamentally important in the modern world.
The age of the plastic debit cards and credit cards are partly to blame; they are not spending the cash that they have on their person, but are able to access money from a bank to pay for all goods and services. Many companies don’t even require a minimum value on the card any more to process the transaction.
This could change if teachers and professions that have an understanding of the financial sector and can teach appropriate skills, including budgeting and financing skills, addressed the issue when the children are at school. This would then have a knock-on effect with the parents of the children allowing them to learn more about their money, too.