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Young and fiscally uneducated

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kate032
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Young and fiscally uneducated  Reply with quote  

Making mistakes is how we learn. However, it's evident from many of these posts that some people really have no clue about money and do not learn from their mistakes. Some seem to wake up one day in shock that they're $25,000 in debt. (Maybe those same people are shocked that McDonald's made them fat.)

How should society help those who didn't have good role-modeling about finances from their parents?

Perhaps a better question is, how should society deal with those who didn't have good role-modeling about finances from their parents?

It seems that people can re-negotiate terms of their mortgage and also can escape their debt via bankruptcy. Therefore, how we can best teach those most in need of learning how to manage their money?
Post Thu Aug 11, 2011 4:18 am
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coaster
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This doesn't directly address Kate's question, but sort of bears on her topic in a sideways kind of way. Because I think maybe this is a self-correcting problem. And the reason I'm thinking that way is because I'm thinking that maybe fiscal irresponsibility is a generational thing. I've been quite impressed over the last few years with the postings we've gotten from young adults ... the generation now aged under thirty and getting a start on their careers, families, and everything else in that cycle of life....impressed with their attention to their financial FUTURES and what they should be doing NOW at this point in their lives to achieve their future goals. This is quite in contrast to MY generation and my generation's kids. Maybe it's because they've seen how stupid and short-sighted their parents and/or grandparents were; I don't know. I just think that things are looking up for this up-and-coming generation, and I think maybe this generation will be the generation that does get things back on track.

~Tim~
Post Thu Aug 11, 2011 6:36 am
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eastmn
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Single or divorced parents, mom struggling, and no dad in sight (loser or a player). Grandparents in the picture: Loving, but also green. The high school curriculum should include such nurturing (pest or social controls).

Video: Camilla Batmanghelidjh - on London Social Unrest
http://www.youtube.com/watch?v=Ksk6VdgoQfM
.


Last edited by eastmn on Thu Aug 11, 2011 2:00 pm; edited 1 time in total
Post Thu Aug 11, 2011 11:54 am
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oldguy
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quote:
I just think that things are looking up for this up-and-coming generation, and I think maybe this generation will be the generation that does get things back on track.


I see that. The workers of my generation were the first investers, before that 'retirement' meant 'pension;. The 401k/IRA plans became readily available in about 1982. The response rate was in the 35% to 40% range, that was millions of workers who had never owned a stock before, ie, billions of dollars of new money. And as such, the new investoers had very little guidance, HRs encouraged investing but had no advice (illegal to give advice?). And index funds & ETFs hadn't been invesnted, so unsophisticated workers were faced with stock picking & mutual funds.

Now, as you say, we see questions from 22 yr-olds about retirement planning - and just the fact that young people think about it is miles ahead of where I was 50 yrs ago.
Post Thu Aug 11, 2011 1:40 pm
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MrNewEngland
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quote:
Originally posted by oldguy

Now, as you say, we see questions from 22 yr-olds about retirement planning - and just the fact that young people think about it is miles ahead of where I was 50 yrs ago.


This is also a money message board. I don't know if that's a representative sample. I doubt that you get many questions like this on sports/motorcycle/bodybuilding/music message boards.
Post Thu Aug 11, 2011 1:54 pm
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oldguy
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Very Happy When I got my degree in 1963, my big financial decision was - 1964 GTO or wait for the 1965 Mustang ? (Altho I did buy stocks in 1964 or 65.)
Post Thu Aug 11, 2011 3:01 pm
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coaster
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quote:
Originally posted by MrNewEngland
This is also a money message board. I don't know if that's a representative sample. I doubt that you get many questions like this on sports/motorcycle/bodybuilding/music message boards.

Point noted. But I've been here six years, which on message boards is pretty close to eternity, I think long enough to notice a pattern, and I stand by my observations.

ETA - ya know, now that I think about it, though I'm not active on any other boards at the moment, I have been, and I do remember personal finance discussions on other boards of different common interest. So while it's not a representative sample as you say, and nothing where the participation is self-initiated is anyway, I think I'd still have to disagree with the balance of your comment.

~Tim~
Post Thu Aug 11, 2011 9:49 pm
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eastmn
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All of the recent television finance and stock shows have also created a trend (fad).
Show me the money!
Post Fri Aug 12, 2011 1:01 am
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