Do you feel like you’re always falling behind, especially when it comes to debt? If so, don’t feel alone. According to the Federal Reserve, the average American household carries $137,063 in debt when you take into account mortgage, credit cards, student loans and auto loans.
With the U.S. Census Bureau reporting that the median household income was just $59,039 last year, it’s easy to see that many Americans could be living beyond their means, including teens and young adults who are mostly thrown into the big world of financial temptations without a proper education to guide them.
Don’t I believe at a minimum, all high school students should be required to take two years of personal finance classes and pass an exam before being able to graduate. Can you name a subject our kid's study in high school that is more important (or used more) once graduating?
The quick solution for the lack of education falls on parents who must provide enough knowledge to get their kids through, even though, this generally happens when faced with a particular situation. Take some time to sit down with your kids to explain the basics of finance – saving, sharing, spending and investing. Also, make sure they get the gist of budgeting and limiting credit card use. BusyKid minimizes the growing number of adults that lack budgeting skills by teaching basic finance to your kids so they won’t be able to say – “I don’t know”.