Do you worry about the pressure of making the right choices to when it comes to creating debt? Do you understand the importance of money sense? Are your children able to budget their money or are they led by peer pressure into spending money? Today’s society is all about having access to credit, but that can have consequences on those who are unable to manage their debt in the right way.
Making sure children are prepared should happen in school, teaching children about money and personal finance is vital. However it should not stop there, parents need to show, by example, how to use money successfully.
Parents understanding money
But for any parent to teach a child about money, they need the information first. They need to know how to budget and use money wisely because otherwise they are not going to be able to teach the child correctly.
Children learn by example and if they see that you are unable to budget accordingly and run up high credit card debt this message is going to be passed on to your children.
If they then go off to college, with the average debt being around $29000 by the time they leave, if they have no money skills this could be a lot higher. Paying off this amount of money is not going to be easy, it is going to be a burden for many years and this is why it is important to understand about good debt and bad debt.
If, as an adult, you are unaware of what you need to consider as the right type of debt then how are you going to pass on this information to your children. Having a generation of adults who are unable to manage their money, this is why there are companies and charities offering monetary advice and ways to pay off debt. This is because these adults have been bombarded with credit and buying now and paying back at a later time with high interest payments without the knowledge of what this debt means to them, how it will affect their long-term finances.
The message to pass on
As a society, we need to pass on a message of control, teaching children how to budget their money. How to save for the items we need and not to rely on credit, which in the long term costs more money.
It is not just about teaching how to budget and manage money but the reasons for this. They need to understand the whole picture so they are able to learn the reasons for creating good monetary habits throughout their lives.
There are ways that we, as adults, are able to prepare our children for the monetary world, but are we doing enough in society to protect them from becoming too consumed into the credit market that there is no escape for them?
Giving the information to allow young adults to make their own mistakes is difficult in monetary terms. However, at some point you have to let go, let them take on the world; are you ready for that day?