The current culture of acceptance that surrounds the issue of debt is one that has arisen as a result of an increased dependence upon credit and the act of satisfying an ‘I want it now’ attitude. A rise in materialism and the inherent temptation of credit cards and personal loans in aiding presentation of a very specifically affluent outer appearance can be held accountable for a building crisis in personal finance.
While many adults around the world are learning very difficult lessons as credit bubbles burst, the next generation are facing these issues with a fresh mind. It is important that the youth of today learn from our mistakes and reliance upon debt solutions, and it is possible for them to do so through teaching our children the value of money and importance of living firmly within our means with a mind for the future.
There are many tools that can be employed to help instill sensible attitudes to money in our children, many of which are simple and often overlooked in search of more complicated ideas. The most important factor in providing children with financial perspective is teaching them by example.
Children can be taught the value of money through strategies such as completing chores for an allowance or having part-time employment. Useful habits can be formed by encouraging realistic, attainable targets and goals in savings, providing them with a sense of achievement once they have worked hard enough to afford the item they were saving for.
Other ways in which to educate our future generation about the importance of good money management is to encourage sensible habits from an early age. When grocery shopping, ask them to compare prices for an item on your list and encourage them to make decisions about the value of a range of different products. Utilize coupons and vouchers in your shop and offer accessible explanations as to how they work, why you use them and what it is possible to do with the money saved.
In addition to encouraging financial frugality, it is possible to nurture children’s independence through actively engaging in the application of frugal habits, such as cooking, baking and participating in free or cheap activities. For example, making your own homemade pizza offers not only a wealth of enjoyment for children in kneading the dough to applying toppings, but also demonstrates to them that pizza night does not need to cost an average of $20, before even considering tips for the service provided.
In considering the perspective we, as adults, have come to adopt we are able to help the next generation appreciate things we now often take for granted. The accessibility and apparent affordability of travel has allowed the world to become a smaller place and many adults are now guilty of considering an air fare a right as opposed to a privilege. Not always using the car where it is possible to walk aids children’s understanding from an early age that the world is, after all, a big place.
The generation of tomorrow are going to grow up to be pivotal in our future, their future and their own children’s future. We lead by example and teach them in a wealth of so many other areas; it is crucial we allow them to learn from our financial mistakes, provide them with the benefit of our knowledge and help them to avoid growing into another ‘Generation Debt’.
This article was written by Donna Green on behalf of IVA.net, a financial website offering free information and finance tools. She has extensive knowledge in personal finance, particularly in the areas of budgeting and debt solutions such as bankruptcy, debt management and IVAs, and holds a degree majoring in Developmental Psychology.
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