The Generation Gap: Passing Sound Financial Practices Down the Family Tree
- In our world of "keeping up with the joneses", it's an everyday
struggle to resist buying the latest, greatest toy to wow our
neighbors with. But how did we come to be this way?
If you're a Baby Boomer, your parents probably weren't like this.
They were too busy trying to feed, clothe, and provide shelter for
their families; everything else was gravy. But in today's world of
borrowing, credit and instant gratification, seemingly anything we
want, we can have. We pay for it for years, and thanks to interest
rates, we end up paying a lot more than actual sticker price. But
hey, we have it now, right? Thing is, if we step back and think about
it, we can learn a lot about finances from our parents. We can also
pass that info on'and then some'to our kids, creating a lineage
equipped with sound, smart financial knowledge.
Teach them about today's money
Spending isn't like it used to be. Through the prevalence of checks,
credit cards and debit cards, cash is a rarity in today's world. But
it's important that our kids understand where money comes from and
how it's used. When you plop down the plastic for a purchase, let
your kids know that the money is either coming directly from your
bank account, or a bill will arrive in the mail which you will soon
have to pay. When at the ATM, tell them that cash isn't magically
coming out of the box. It was put there from your work, and its money
you earned. As they grow older, instill more sophisticated lessons
into their lives. Tell them about late fees, interest and the
importance of saving. The early you start teaching your kids about
finances, the better off they'll be....