Emergency Preparedness – Family Values. (Paraphrased from Vanguard Group’s Money Whys)
Seventy percent of parents believe that children today have a sense of “entitlement,” according to a 2004 study. In other words, kids expect “to get whatever they want whenever they want it.
Does that hit close to home? Then consider the example of a couple in suburban Philadelphia who taught their children the value of money. They started with allowances in grade school, moved to checking accounts in high school, and then implemented a creative program for college education.
In elementary school the kids got “paid” every week for doing household chores and could spend it pretty much as they chose. As a result, they took great care of whatever they bought – much better than if something was just handed to them.
As teenagers the kids opened checking accounts and paid their own insurance premiums to drive. Missed payments meant no driving. They learned that paying bills takes discipline and planning.
In college, an incentive-based program had parents paying for everything if GPAs were 3.5+. Below 2.5 parents paid nothing. In between they paid different percentages and the child made up the difference from savings and summer jobs.
The statement “there ain’t no free lunch” contains all the financial wisdom of the ages. Start teaching your children now, regardless of their ages. Parents, this takes discipline and planning, also.
CATCH THE VISION, GET FACTS, DEVELOP SKILLS, AND BE PREPARED.