Now that we are in the month of June I can't help but wonder if we have prepared our new graduates for the responsibility of managing and budgeting their money.
I had a very interesting conversation with my God-son, a recent graduate from a local Los Angeles high school. He assured me that he is ready to take on the responsibility of purchasing a used car because he was working par-time for a fast food restaurant. When I asked him how much money he had saved he quickly told me that he hasn't received his first paycheck yet, but would appreciate money as a graduation gift to purchase a vehicle.
We talked about the value of saving as well as more responsible things he could do with the money he was earning. I explained to him that having a job was a good step towards saving for a car. However, he was still lacking in responsibility for assuming everyone else would buy the car for him. I strongly agree with the lending belief of banks, "if you can't come to the table with some of your own money, I can't give you my money." So our conversation ended with an agreement that he would cover insurance and gas with his income and save at least 10% for college expenses and I would send him a cash gift towards the purchase of his vehicle as a graduation gift.
I do understand that now days getting a car as a graduation gift is much more common then when I graduated from high school. However, I would rather teach graduates the importance of being responsible with their money then fashionable with their peers. What are we teaching them by having the mandatory cell phones, computers, credit cards, digital cameras, dvd players, and mp3 players? I think the message is pretty clear, "consume more, save less and stay in debt."
Well, pretty soon he will be off to college where he will be bombarded with credit card applications, cell phone companies and many other vendors enticing him to get into debt. Hopefully he can learn how to be responsible with money before he earns his college degree. Otherwise my next gift will be for him to attend my debt management class. I don't think he would like that very much.
All Rights Reserved
Dina D. Harbour,
Financial Coach
http://www.wanteddebtoralive.org
Sticking to a budget can be difficult, but with so... Read More
At a time when the entire world's attention is focused... Read More
Just about everyone has a checking account. Checks present easy... Read More
The British government at the beginning of this year officially... Read More
Australians, in general, constitute some of the worst savers in... Read More
Sorting out your personal finances can be a tricky and... Read More
Today many women are struggling with debt and it's even... Read More
This investment retirement account (IRA) is useful to you as... Read More
Most Americans have been brought up to be concerned about... Read More
Most consumers are aware of the importance of their credit... Read More
Most of us, especially those of us who have debtor's... Read More
Financial freedom cannot be achieved without budgeting. Budgeting involves tracking... Read More
Do you have a 401(k) retirement account? Are you vested... Read More
Chapter 7The potential chapter 7 debtor should understand that a... Read More
ID theft is a major consumer concern, though there is... Read More
Did you know that 43% of all married couples argue... Read More
Women have a love/hate relationship with money. Most of us... Read More
I have to admit, I do it too. I complain.... Read More
There have been an estimated 9.9 million victims on America... Read More
With almost two thirds of university entrants from England and... Read More
Many people graduate from college owing thousands of dollars in... Read More
Would you know what to do if you suspect that... Read More
Investing is a subject a lot of people don't want... Read More
How many drawers did you have to look through to... Read More
If you've been thinking about filing for bankruptcy, your best... Read More
It is crucial as an individual who is striving for... Read More
An avid cyclist and bike racing fan, I sit transfixed... Read More
While 40% to 50% of us make New Year's resolutions... Read More
One of the biggest challenges facing black RELATIONSHIPS today are... Read More
Between 15 - 20% of people in our country (UK)... Read More
Debt levels are at an all time high in the... Read More
What is it about being frugal, why do it at... Read More
Six Scholarship judges were sitting around an oval table. Forms... Read More
My personal opinion is that in today's new economy, it... Read More
Those who keep a watchful eye on where their money... Read More
Now that we are in the month of June I... Read More
As a parent you are bound to face a few... Read More
ID theft is a major consumer concern, though there is... Read More
Recent security breaches at several credit card companies continue to... Read More
Did you have a piggy bank when you were a... Read More
Financial freedom cannot be achieved without budgeting. Budgeting involves tracking... Read More
Women have a love/hate relationship with money. Most of us... Read More
With the advent of the internet and especially auction services... Read More
Have you seen the recent article on a new "green"... Read More
Ben Stein has a book called How to Ruin Your... Read More
With interest rates being at an all-time low, I can... Read More
One of the simplest ways to improve your professional image... Read More
The lists of bank and savings accounts that are available... Read More
The British government at the beginning of this year officially... Read More
Millions of people give a lot of thought to financial... Read More
Personal Finance |