There is an old phrase I hear sometimes and it goes like this: " give a man a fish and he will eat for a day. Teach a man how to fish and he will eat for a life time." Want to know what I think? I think that fish is pretty useless if you don't know what to do with it. You don't know how to cut, clean, and cook the fish let alone preserve it. I like to look at finance in a similar way. You could be taught how to make a boat load of money and still have money problems because you dont know what to do with it. Yes you could spend it on junk or nice things but how many kids are being taught about investing or saving up for retirement or emergencies? How do we teach them to resist the ads targeted at them which make them want to buy?
Yes, you know I think financial literacy should be taught in schools and should be a required course for graduation. Other than maybe calculating some basic interest rates..students are given very little information about finances in schools, and it could save a lot of heartache and bad investments by stressing this in school. God knows it would have helped me make some better fiscal decisions in my life.
I started with coupons moved up to how to sell pencils in school to make a profit. Monopoly is a great way to teach investing too. I recall one teaching moment - income tax refunds that was the hardest. All of my sons thought they were getting back all the money they had earned for the year. They were very angry and thought it was unfair.
Parents have an obligation to teach their kids not only how to save money but also understand why they have to save money. The earlier they learn all this the more financially responsible they will be when they grow up. I think the one sure-fire way to teach children fiscal responsibility is by being a good role model.
I also believe financial responsibility should be taught in school as a life skill along with credit and insurance protect your assets. Parents have not been taught how to handle their money so it is hard for them to teach their children how to do something they themselves do not do. That is why their is so many people in bankruptcy right now. Facts show that people that win the lottery are in worse condition within 5 years of winning all the money because it was not handled right.
Financial responsibility is a big thing in my opinion. It's like you said, no amount of money is worth it if you don't know how to handle it. My partner used to be very irresponsible when it came to money, often buying things on impulse that he did not need, and it hurt our budget big time. He has since learned how to spend wisely and put aside a little each week for his luxuries. I am more of a responsible spender, more like money hoarder lol. I won't spend unless I absolutely have to and I do get some slack from others because of being so cheap and stingy with money, but I am never broke.
You have a good point @Jasmine2015. A person can have a lot of money but if he/she doesn't know how to manage it, all the money will eventually disappear. I've seen a lot of people experience that kind of thing. it is indeed very important to teach kids early on about saving and money management. Instilling the value of discipline with regards to money is very important for children to grow up as responsible as possible when it comes to money matters.
My mom used to tell us that discipline starts from the crib. If you want your children to grow up frugal and wise especially when it comes to money matters, you should teach them how to save from an early age. Children are receptive to such teachings. They're also fond of mimicking what grown-ups do. If you yourself practice good money-saving habits, it's likely your children will follow your lead.
Whenever some of my friends ask me to help them in managing their finances, I always ask them first if they are willing to do the necessary practices, or let go of the things they need to let go, in order for them get back up. If they say no, I'll tell them that there's no way that I can help them. If they say yes however, I'll help them. The reason for this is because you won't be able to help someone, no matter how much effort you put into helping him, if they don't want to help themselves in the first place.
