Did you know that in the United States more people file for bankruptcy than graduate from college?
Did you know that in 2008 the average student will leave college with an average credit card debt of over 3000 dollars?
Here are some other statistics that might startle you.
- Freshmen in college carry an average credit card debt of $1500. Seniors in college carry almost double that amount.
- The 18-25 age group has posted the highest bankruptcy rate for several years in a row
- Approximately 50% of all credit card holders don’t pay the full amount of credit card charges each month. About 11% say they usually pay only the minimum monthly payment but not much more.
- 66% of young adults carry over 25000 dollars in debt (not counting a mortgage)
- 50% of young adults have saved less than $5000
These statistics are astounding! Clearly, the quality of money education in the US is extremely poor otherwise these numbers wouldn’t be so egregious.
With the birth of my daughter, I’ve decided to take a stand. I’m not just going to sit there and let my daughter go through life without additional education on money management. I’m going to actively read, reflect and study, in order to come up with clever ways to instill the value of money within her.
As part of my research, I’ve tried to delve deeply into my childhood as well in order to pinpoint mistakes that my parents may have made and hopefully not repeat them. This section of my blog will showcase the results of my hard work and research. I hope these articles will be of help to the parents out there.
When I was a kid, I always wanted to buy what my friends were buying. I remember when the Reebok Pump basketball shoes first came out, all of my friends bought a pair except for me. I never was allowed to buy my own pair because they cost 160 dollars, enough to buy 4...
Part of the reason most kids in America have no concept of money is because parents don’t share their financial information with them. Most kids have no clue how much their parents make nor do they have any idea how much it costs to survive in the real world. Because this information is...
I received an extremely well written and thoughtful comment from Bleu Panda regarding my article on 5 Crucial Subjects Schools Don’t Cover That You Should At Home so I thought I’d respond to his comment in a blog entry as a token of my appreciation. Please take the time to read his...
In my previous article on mistakes parents make with kids and money – part 1, I pointed out 3 crucial mistakes that parents make with their kids and money.
1. Parents use credit cards in front of their kids
2. Parents buy their kids stuff because other kids have it
3. Parents hide financial details from their kids
My parents came to the United States with practically no possessions and very little money. They had to take odd jobs just to scrape by and could barely afford to have a roof over their heads. Every morning my Dad had to carry 2 buckets of water with outstretched arms up a mountain...
If you take the time to sit back and reflect on all of the knowledge and experience you’ve gained throughout your life, you’ll inevitably come to the conclusion that only a very small fraction of practical knowledge was actually learned in school.
Looking back, I used to think school was the be all and end all...