3 Financial myths that are defeating our young people today.

There are many financial myths out there. However, we had put together a list of these three myths that we believe are affecting our young people the most. Every parent we had talked to, feels that it is their responsibility to teach kids and teens good money managing lessons. The question however is: where do you start? A strong financial journey can start by teaching kids from an early age, these 3 tricks that will help them make the right decisions in the future.

Myth #1: Saving does not equal fun. This is one of the biggest myths that we hear when we talk to kids (particularly to teens). Most people think, saving money takes away the ability for you to have fun with it. At the end of the day, what good is having money in the first place, if you can’t spend it in what you want? Not fun! The truth is, with the right planning and budgeting, one can have tons of fun with money. From little purchases, like getting the latest video game, to bigger purchases, like getting their first car, money is a tool that can make that possible. The key is budgeting. The challenge, however, is to learn how to explain that to young people and parents. We still believe the old-fashioned saying: ‘teach them by doing.’ Don’t wait any longer to start a budget and start planning for the little fun things you want to get. But priorities need to be in place.

Myth#2: We don’t make enough money to do the things we want to do. This myth is so strong in our society today that even adults are affected by it. People often think, if I had a better job, or if I could have a raise to make more money, then I can do the things I want to do. Nothing wrong with this idea, and acquiring a raise, or a better paying job is a good thing, but it never stops there. The ‘grass is greener, on the other side of the street’ syndrome affects us all. My dad used to say: ‘the grass is greener on top of the septic’ a strong statement to debunk the idea indeed. This myth is stopping teens from entering the workforce into entry-level paying jobs, for the promise that if you wait you can get a better paying job. One teenager told me once, he did not want to work at a local supermarket making minimum wage, because he was waiting to be a video game developer and make millions. As crazy as this may sound, making better use of smaller resources can be a life changing discipline. Instead of waiting for a better job, maximize the one you have or can have now. Saving more and spending less in nonessential of life could lead to having enough to do the things we love. Start by looking for ways to save and to cut minor nonessential expenses in your budget (like unused gym memberships, and the daily trips to the local gas station for a treat) you will be surprised how much you can save to put towards your passions.

Myth #3: You have plenty of time to save tomorrow. This one is tied to the “no fun” one, but it is a bit more complicated. This one teaches our youth that they are too young to start saving. They are only teens, right? They have time. Well, the problem with this myth is that if the right financial IQ is not engraved in the minds of kids from an early age, they are most likely to make the wrong financial decisions in the future. If they do not start having a strong saving plan now, what guarantees they will do it later in life? In fact, the latest statistics, according to www.gobankingrates.com, shows that 69% of families in the US do not have more than $1,000 in savings. This trend does not seem to be getting any better, which indicates that teaching kids to save from an early age could be the long-term solutions to this pandemic.

Debunking these three myths in our own homes is a great start. Credit card companies love these myths, and as a direct result, these myths are putting so much burden on our young people today. Young people become slaves to the credit system that uses them. Don’t fall into the trap. Here are simple steps you and your family can take to be more proactive and start saving today: Budgeting, being content, and start saving early in life. The fun, well, it will come with it. Enjoy!

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