The current economic climate is not kind to young adults. The uneducated face serious threats to their long term quality of life. Not so long ago, our society was fairly forgiving of a financial snafu or two during early adulthood. But, these days’ simple mistakes can have a dire impact on a young adult’s future. It is imperative that they be well prepared to navigate the tricky world of finances to ensure their best possible chance at a stable and plentiful future. If you want the best for them, you absolutely must teach your children about money.
Children today face more economic temptation and pressure than their parents ever had to endure. And, the stakes they face are higher than what we have had to contend with in the past as well. If parents don’t teach your children about money, it can go very badly for them very quickly. An 18 year old who is uneducated on money matter could easily find themselves in an extremely disadvantaged financial position within 5 years.
Dangers To Your Child’s Financial Future:
- Enormous student loan debt that may take decades to repay
- Double digit auto loan interest
- Identity Theft
- Ineligibility for mortgages
- Underfunded retirement plans
Raising a child in today’s unforgiving financial market can be more than a little scary. Everyone wants to give their child the best chance for a bright future and financial success. Although the situation can be very grim for the uneducated, there are things that concerned parents can do to maximize their off spring’s chance at a stable economic future. Here are some things you must teach your children about money.
Modern cultural norms are absolutely dripping with consumerism. Your child is bombarded with images of ridiculous spending habits on their television screens, social media feeds, and pretty much any advertisement campaign tailored to appeal to young adults. Keeping up with the Joneses has turned into a high stakes game that can thrust your child into poverty. Television shows that idolize the elite’s waste of resources on big ticket items and lavish events encourage youngsters to waste money on over the top birthday parties and luxury items. With all of this pressure to make bad decisions that may cripple their financial future it’s more important than ever that you teach your children about money.
Today’s job market is terrifyingly competitive. A college education is required to ensure your child’s ability to obtain a position that will keep them afloat in the increasingly dire financial situation that is gripping the global economy. But, student loan debt can leave young adults buried in debt that will take many years to dig out from under. Today the average college degree comes with an average of $29,400 of debt. And, this number increases exponentially every year.
Even more troubling, today’s young adults must begin monitoring their credit score and planning for retirement almost immediately. If you do not teach your children about money, there are a frightening number of pitfalls just waiting to suck them into economic hardship. The stakes are high and the economy is so tight that mistakes are incredibly challenging to recover.
Parents Can Teach Children Good Financial Habits
Credit card debt is out of control in America. This is one of the easiest mistakes for young adults to make. It seems so easy to swipe a card and pay for everything from a gallon of gas to an unnecessary luxury vacation that many children have little self-control when it comes to plastic. To make matters worse, it is likely that they have witnessed their parents using credit cards to pay for all manner of purchases most of their life. And, even worse than that, prepaid debit cards are being marketed to preteens in ways that just flat out encourage financial irresponsibility.
The only way you can protect them from this societal ill is to teach your children about money. Model responsible behavior with your own credit cards. Talk to them about why you make certain purchases with plastic and never buy items you can’t afford and don’t need with a credit card.
Another disturbing trend that faces children on the cusp of adulthood is a sense of entitlement resulting from never having to earn money before in their lives. Just handing your children money removes their ability to understand the honest value of an earned dollar. Even while the stakes of financial irresponsibility grow more dire parents are removing children’s ability to grasp the severity of financial hardship. Teach your children about money by making them earn it. They will reap the benefits of this experience throughout their entire lives.
The global economy gets tighter all the time. Careful planning and conservative spending are requirements if one wants to ever be debt free or enjoy home ownership. Our societal norms are at odds with the requirements of financially savvy behavior. Only you can teach your children about money. Get started right now!