Many young adults are currently in financial trouble . They are thousands of dollars in debt and have no job to pay it off. There are many problems with this. It affects us and our economy as a whole. The problem actually starts way younger, when the teenagers are still in school.
The first problem is their parents. A parent is supposed to teach their son(s)/daughter(s) how to manage and organize things in their life. Many parents love their kids so much, they’d do anything for them. This makes the child spoiled. The first problem with a spoiled child is that they won’t be liked in school, however, that is only a very small problem. The big issue here is that they will have no sense of money and finances. In their mind and eyes, they see expensive stuff come to their hands on a daily basis with no effort. They don’t know the value of money and they have no sense of how to manage or spend their money. Whereas a child who is on an allowance for doing chores will know to save up money for a big item. Also, they would know many important skills like money management and the dangers of overspending. I think some parents just need to change their attitude towards their kids and treat them like a young adult. In the long run, it will definitely benefit their child.
Now, to the other major problem. Financial literacy is hardly taught in schools. We only learned the basics like interests and banks and a little bit if the stock market when we are young. We were never taught how to save money, organize funds, save for a pension etc… There is also the problem of credit cards. I clearly remembered that when I was two years old, I though credits cards were pieces of plastic with an infinite about of money. Then, at the age of four, I realized that credit cards have to be paid back and that they are only funds given to the user. However, without schools teaching that, many young adults don’t know that. They would end up using thousands of dollars that they don’t have and expect their parents to pay the money. Well, parents ain’t going to support you when you’re older than 18. These people often get buried in debt as they will have a family to raise, a car to support and a mortgage to pay off. The education boards should seriously add more content for their financial literacy section. Credit cards should also be seen as dangerous money grabbers, not miracle money producers. Cause’ in the end, the bank will always win.
I seriously hope that the world changed sometimes. Teenagers should know how to spend their money effectively. Most importantly, their parents and the education board have to change.