Why Parents Keep Repeating Financial Blunders

Category: Basic Money Management Published: Tuesday, 14 October 2014 Written by Admin

GEORGE PAPADOPOULOS: It is hard to single out one single dumbest financial lesson that parents teach their children. The problem usually is caused by many dumb lessons done repeatedly.

It is unfortunate and even unfair to blame parents when they themselves are not knowledgeable about financial matters, in part because their own parents did not educate them adequately about money either. Kids learn many of their adult money habits from their childhood. Seeing their parents cavalierly use their credit cards to buy things they clearly do not need without explaining how credit cards work and their potential dangers will certainly not help the children when they get to college and banks give them plastic to buy things on credit, too; it is an accident waiting to happen. Personal responsibility to buy only what you can afford should be ingrained while growing up. Sadly, it is not.

According to the 2014 study by the Council for Economic Education, only 17 states require students to take a personal finance course. This is ludicrous; teaching basic money-management skills should be required in every school. Will it fix the problem? No, but it will certainly help.

George Papadopoulos is a fee-only wealth manager in Novi, Mich., serving affluent individuals and families. You can follow him at twitter (@feeonlyplanner), connect with him at Google+ or visit his firm's website.

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