Why is the America’s national debt so high? A recent article presented an excellent graphic using a family budget to show the national debt as “credit card” debt, something we all can relate to. This visual explanation makes it easy to understand that as a county we overspend with little attempt to manage our money [...]
Do you always spend money the same way? By this I mean do you always use the same form of money? Before you answer, think of all the forms of money available today for personal money management: cash, check, credit card, debit card, and electronic funds transfer. While spending, do you always use the same [...]
Recently I read an article that posed an intriguing question–what ever happened to our relationship with cash? The article, When using cash is better than credit, suggested that consumers should use cash instead of credit cards for day-to-day expenses. Why? Because psychologically money is more real when it is in the form of cash. Really? [...]
Parents often ask me, “How much allowance should I give my child?” Alas, there is no magic formula. If you really want to know how much money to give your kids, look no farther than yourself. As a parent, you are in the unique position to transform your kid’s allowance into one of your most [...]
Here’s a little story for all you parents out there. Parents often tell me about their kid’s experiences with money. In this true story I have changed the name of the boy to Sam. Sam is six years old and about to go on a spending experience that sends him home with out spending a [...]
Teens, in our society, have what might seem to be the perfect relationship with money–plenty of money to spend with few recurring debts or financial responsibilities. Yet it is only a short journey from a teen’s world to that of an adult who is legally responsible for his spending. To expect someone who has been spending money freely to make an overnight transition to being a financially savvy adult is unrealistic.
Kids can teach us simple truths about money–if we pay attention.
The Pathways to Prosperity Project done by the Harvard Graduate School of Education reveals some thought-provoking statistics that should be of interest to both parents and students. As parents look to guide their children to a successful career choice, these statistics tell us that “college for all” may not be the best plan after all.
Money is like fuel for a car; fuel is measurable, gets used up and has to be replenished. How does this compare with teaching kids to manage money?
When driving your car you routinely glance at the fuel gauge, check the speedometer and the odometer. This information helps you decide when to re-fuel, when to adjust your speed, and how much farther you have to go. Managing money similar to driving a car, but most of us pay more attention behind the wheel than with our finances.