There is no denying the advantages of putting kids on the path to financial education. We discussed the importance of mentors and role models in a home setting last year, which included stock trading. Let me share some lessons from someone who struggled to learn about money on her own but learned important lessons about investing, saving, and her role as a result this year.
This is D.D.’s story.
“I had to work hard to learn the value of wealth. My parents never taught us how to use a ledger, save income, or pay bills, and I never took classes in school that covered money for daily life.
It was difficult to grow up in a wealthy town as the second oldest child in an extended family of eight siblings. I went to a school where other boys always seemed to have brand-new clothes and toys, unlike my hand-me-downs. I was ashamed and scarcely had lunch money, but I could see why it was this way.
“My parents put in a lot of effort to support their nine babies and pay the bills. Dad worked two jobs back-to-back for many years, and we didn’t see him much during the week. My mom worked a full-time job and came home late on many nights. The majority of my siblings and I were much more determined to find a way to get what we needed and wanted when we were old enough to do it for ourselves because my parents did not give us everything (or anything) we desired.
“I developed independence and responsibility at a young age. It was not a requirement set by my parents, but as soon as I was able to help, I wanted to and did. When I was 12 years old, I started working as a paper ship, and I donated all of my earnings to my mother to help out.
“I think we need to learn how to be accountable for paying our bills, saving for a rainy day, and perhaps even putting some of our hard-earned funds into an IRA or other pension plan. I advise all that the first day you start working is the best time to start saving for retirement. Saving enough money to leave easily and on schedule takes a very long time.
It won’t matter if someone has a little common sense and accepts responsibility for their spending and saving, but in my opinion, college students or those who learn new skills will likely be more likely to make more money. My uncle, who was born in 1894, ran a moving company for many years. He often advised us to save money and pay cash for anything we wanted. Everything he and my aunt, who was born in 1898, owned, including their home, property, cars, businesses, etc. â were paid in full… Although neither of my grandparents completed school past eighth grade, they both led really nice, comfortable lives.
The story of D.D. is both motivating and exciting. Her parents did not teach her how to save money, pay bills, or balance a checkbook, but they did show her the importance of duty and hard work, which are essential for achieving financial security.
The National Standards for Personal Financial Education (tinyurl.com/ynrfcp77), published by the Council for Economic Education and the Jump$tart Coalition for Individual Financial Literacy, are a good resource if you’re in the teaching profession.
Earning money, spending, saving, investing, managing credit, and managing risk are the six divisions of economic literacy.
According to CEE and Jump$tart, the standards’ goal is to “identify knowledge, skills, and decision-making abilities that young people should acquire during their Kâ12 education.”
Even though you might not be able to learn all of the fundamentals of financial education at home, it’s the best place to begin.
Financial education and investment protection are promoted by Skilled Investment Counsel (tinyurl.com/52nus8hz) and award-winning columnist and author Julie Jason, JD, LLM. Read her most recent book, which was released by the American Bar Association and is titled “The Discerning Investor: Personal Portfolio Management in Retirement for Lawyers (and Their Clients)” at tinyurl.com/4u7h9pjs. Julie can be reached at [email protected]. Each contact is read, reviewed, and may spark discussion in a subsequent column even though no questions can be answered.