Date Published: 8/01/21
When it comes to saving, families in America are heading in the wrong direction. We are witnessing people caring more about debt and living for the moment. For instance, they are purchasing cars and struggle to make payments. This one issue makes it hard to save.
On top of that, the credit card debt is draining the savings account. Instead of paying the bill, many cardholders stuff the bill in a folder as if it will disappear. I like what Christopher Parker said, "Procrastination is like a credit card: it's a lot of fun until you get the bill." Every day a person puts off paying the credit card bill, they are putting free money in the pocket of the financial institution.
Unfortunately, a credit card isn’t the only problem.
Parents are neglecting to train their children in financial education. According to debt.com, “Most parents (67 percent) think that their 5- to 8-year olds should be learning about money, says a Junior Achievement USA survey [5]. But their habits say otherwise — again, most don’t teach them about finances until they’re at least 15, says T. Rowe Price.
It’s not surprising that parents are barely more interested in talking to their kids about finances than sex. To parents, it’s a question of “what’s worse?” more than “what’s necessary?” What’s necessary, though, is for parents to teach their kids about money.
However, due to their own financial ignorance, parents often can’t do this. Sure, budgeting and saving are easy for some, but investing and saving is tough for many parents. This leaves kids — grown or not — with the belief that when it comes to money, everything is fine! Nothing to see here! In reality, parents are just hiding their ignorance.”
People have a long list of why they do not save money, but it will not matter in the end. One excuse is their parents never taught them. Another, families do not have a budget; if they do, they do not go by it. Finally, others are too business to stop and see where they might lose thousands from their bank accounts.
Don’t get trapped by instant gratification. People are living more for today and not tomorrow. According to marketwatch.com, “We don’t understand our future selves,” said Jennifer Putney, vice president of participant engagement in Prudential Retirement’s full-service solutions. People plan for the near-term or want to take care of their parents, children, and even pets, but when it comes to who they’ll be in 20 or 30 years, “we just don’t connect with it.” Instant gratification is a sure way to get trapped. “
Since many parents have avoided the financial education talk, having a conversation with their children is avoided. However, all hope isn’t lost. There are many strategies you can use to help improve how you save.
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