Teens admit to not knowing much about basic money skills, such as credit, investing and budgets, but what do they do? They are strongly influenced by their parents and friends. Is this positive? How do they spend their money? Do they save? Do they learn how to handle money responsibly? Where do I start?
Parents expose their children to their habits. Children learn by seeing what their parents and friends do not what they say. Does Mom go shopping even when they family is in financial trouble? Do they buy a car or other major purchase when they could not afford it? In the recent financial crisis their families that bought homes they could not afford and ultimately lost their homes. What did the children learn from these experiences? How do they pay their bills? If they took on more than they could afford they will be delinquent on their bills. Do they save? What do they do when something unexpected comes up such as a repair or replacement of an appliance? Do they go into more debt? How is their credit report? Do they pay the lowest rate or highest for a loan?
Is the basic information on money available at home or in school? If available, are they interested in the material? Lack of money skills will affect your whole life. You will pay higher interest rates on loans or denied loans because of poor credit. Acting responsible with money requires familiarity with the basic information. Information you find on my website. If you want to learn more about money and attain financial literacy, read my articles. If you like this article, please subscribe.
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