The biggest lie parents of teens like to tell themselves and each other is “My teen will learn to manage money when they’re adults, and it will all be fine.”
Here’s what a Junior Achievement white paper has to say:
One of the best and most recent examples of a lack of financial literacy is the global economic crisis, sparked by the sub-prime mortgage crisis in the United States. . . . Homeowners began defaulting on loans in record numbers, banks announced billions in write-offs, and lending was quickly restricted. In a matter of months, the global economy had slowed to a crawl and slid into a meltdown.
What caused this economic pandemic?
One of the causes was a lack of financial education on the part of consumers. Some blame the investment banks and predatory lending practices. Others may look to government inaction and the failure to impose strict regulations. But the millions of uneducated consumers who took what was offered them without an eye to the future, and borrowed more than they could afford, must accept their share of the responsibility.
You can read the entire White Paper here.
Please each your teen great money skills and attitudes. Our teens deserve this, our country deserves this, our world deserves this.
© WealthQuest for Teens, Ltd., 2012 All rights reserved worldwide.
