Not enough is done to educate young people about the financial aspects of life even though it will have a dominant effect on their lives. Ask anyone who is struggling to retire and they will tell you they wish they had learned more when they were young about credit or how to save money --- essentially, managing money. It’s called financial literacy.
Early in life, young people get bank cards. Many get jobs at the local coffee shops, fast food outlets and retail stores. They make and spend money without a thought to how they might establish a good credit rating and learn how to save and invest.
They must be 18 and all they will need is a photo ID to apply.
So think about this information for your children. It could be among the most important and valuable things you do for them.
Financial literacy doesn’t just happen
All of these steps are parts of a healthy financial life. In fact, it will probably allow them to retire earlier. The added benefit is that they will substantially reduce the stress that comes with financial difficulties. It’s not rocket science.
The main issue here is that, next to breathing, managing money is one of the most powerful things in our lives. It is not something young people understand because the educational system does little to contribute to financial literacy and its importance.
It is up to us as parents to take the lead. Of course, as adults, we can learn a thing or two from the experience. At the end of the day, the financial well-being of a young adult invokes a well managed independent life, which can be sustained and enhanced earlier in life.
Don’t you wish someone did that for you?