It is absolutely obvious that young people have very little knowledge of personal finance. I know I probably didn’t when I was young (but that was so long ago I can barely recall what sort of wacky ideas I used to embrace).
I got to talking with my young nephew, Booker, the other day. I’m not sure exactly how the subject came up, but I mentioned that I was having a little trouble making ends meet. He just sort of looked at me like a cow looks at an oncoming train, so I just assumed he wanted me to go into more detail. So then I described what kinds of bills I had to pay, then I told him how much I was getting paid at work. Then of course I had to explain how much tax is being deducted off my cheques plus my C.P.P. payments. But he obviously didn’t get the concept of the Canada Pension Plan, so I had to try and explain that (which I just barely understand myself). Then there are all the necessities that I purchase every month, for example Blue Beaver Beer, internet connection, cable T.V. plus all the personal luxuries that I have become accustomed to; food, toilet paper, books about how to become successful; you know stuff like that. It was a lengthy conversation, although admittedly rather one sided, but somehow at the end I knew that I just hadn’t got through to him.
So I mentioned to my sister that I thought he didn’t understand personal finance. She gave me a look like I had a marlin growing out the top of my head and then asked me if I had forgotten that Booker is a year and a half old. I said that if he was learning about this sort of thing already it would really give him a leg up when he made it to grade one. She rolled her eyes and muttered that I should have another beer and explain my insane logic to the dog. I happily grabbed the beer out of the fridge but I told her that Tucker is ten years old and you can’t teach an old dog new personal finance tricks.
I’m more interested in whether your nephew relieved himself on you afterwards… :p
I like your list of necessities!
Jean-Luc Picard’s last blog post..Filming On The Enterprise (Part Two)
What are kids thinking about these days??? If you have figure out that CPP, let me know okay.
Hari: being as my nephew is of my own blood, he is far too civilized to ever soil himself or anyone else; unless he’s been drinking excessively.
Jean-Luc: one must have clear priorities in life.
Tammy: I might have it figured out by the time I’m eligible to receive it.
With the poor financial situation in some countries, I think children should be taught about personal finance while they learn to read and write. Then in twenty years we’ll have a bunch of super saving adults with mega financial powers, who save well and spend little. It could happen, trust me.