Why People Don't Make Smart Personal Finance Choices

People go to school for 12 years and never taught personal finance. By definition, personal finance deals with how individuals or families obtain, budget, save and spend money. This includes obtaining and maintaining current accounts, credit cards, loans, retirement plans, social security, insurance, income tax and 401k information. Children learn key subjects such as math and reading, but they learn nothing about personal finance. Learning of personal financial matters such as budgeting, emergency funds, and savings are part of every household.

Personal finance is all about your technical management of funds. How have you at the end of each audit is dictated by your ability to manage money well. Schools do not teach, churches do not preach, psychology degrees and parents can teach. Financial management skills that promote planning and saving should be taught. These skills can not be supported.Discipline is not like hearing and seeing, people are not born with the ability to be disciplined and save money. It is training and practice to learn to discipline themselves and manage money well. The schools have not felt the need to prepare children for personal finance or money management.

The process of education takes these skills are taught at home. But where did the parents learn skills from? There is a chance that most parents do not know enough about personal finance to teach their children properly. This creates a blind leading the blind scenario. Discussions about managing money are rarely, if ever, occurred in most homes. These discussions are not held in our house where I grew up. Children ask questions about what Santa brings for Christmas, but they never ask why the lights are on or if the bills are paid…

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