As I pulled away from a lemonade stand where I bought a glass from two middle-school aged girls for 50¢, I wondered where their earnings would go. At that age, I spent most of my money on baseball cards, video games, and toys. Reflecting back, I probably should have saved more.
According to Lesley Scorgie's book, Rich by Thirty: A Young Adult’s Guide to Financial Success, "Saving money is different from investing money. You save money for things you want in the short term - things like a vacation, new computer, bicycle, or a down payment on a home or vehicle. Investing is for the long term. Think retirement." At 12 years old, lemonade stand earnings shouldn't have to go towards retirement, but short-term savings goals (e.g., clothes) and long-term investment goals (e.g., college) are appropriate.
During high school, most of my friends worked. I spent my weekends at a restaurant packing food to go. Without any financial responsibilities, I was pretty much free to do what I wanted with my money, and I made some pretty stupid decisions. But why? Are parents to blame? Frugal Dad believes that some parents are better role models than others when it comes to managing money, but there is plenty of blame to go around. On the top of his list is a lack of financial education in public schools. I agree!
The Jump$tart Coalition for Personal Financial Literacy determined that the average student who graduates from high school lacks basic skills in the management of personal financial affairs. According to their recent biennial survey, funded by the Merrill Lynch Foundation, high schools seniors correctly answered only 48.3% of the questions.
What or who most influenced your financial habits as you were growing up? Did your parents or schools help you on the right financial track?
Digg
StumbleUpon
Facebook
Delicious
No comments yet
Comment on this