Kids And Finances

Was just reading this article about a musician called Tinchy Stryder who has been campaigning for youngsters to better understand their finances. I think this is a really great idea because a lot of kids have been brought up thinking that it's OK to have debt in order to get the things they want today. They just don't want to save up for the things that they want to buy. They would rather pay high interest rates by taking out computer financing with no credit check.

Kids now need to live in the real world of credit scores, debt collectors and all that other stuff. They just can't leave school and expect the life they had at home where all the important financial decisions are made for them. Of course, learning by making mistakes really will work in the long run but I think it's better to know the mistakes that can be made and avoid them in the first place.

Kids want to leave home, get a nice appartment and a nice car. This isn't realistic unless their parents are really wealthy. Unfortunately most people are strugglying to make ends meet without paying for their kids' lavish lifestyle.

I really want to teach my kids the value of working and how much you need to work in order to afford even the basics. I mean, if they buy a chocolate bar they ought to know that they have to work for it just as an adult does. Maybe it's unfair to be too hard on them but I think giving them an early understanding of all the expenses you need for running a home and other stuff like a car is a good idea.