Financial Education for a Healthy 'Money' Relationship

Teaching Financial Responsibility to Teens and Young Adults

Financial Education / Money Education

In today's society, money plays an important role in our lives. Unless you reside in an area of the country where you can live off the land, grow your own food and build your own shelter, chances are you need money. That's why teaching financial responsibility to teens is vital - especially today!

Money runs the economy and pays your bills, and despite the concept that the "best things in life are free," try purchasing a box of popcorn at the cinema with an empty wallet!

Yes, as materialistic and money-hungry as it may sound, money makes the world go round. That is why this article will teach you how to maintain a healthy relationship with money, teach financial responsibility to teens, as well as curbing any false beliefs you may already have about "The Almighty Dollar."

The best things in life

Money is not everything and, of course, you can't buy happiness. Money education can lead to living a happier, fuller life. But sometimes money brings more stress to your life, too.

However, having enough money education as a teenager or college student; can certainly lead to an easier life without bills piling up, thus adding to your financial freedom. Financial freedom leads to freedom to do what you want, when you want. So, according to most experts, a certain degree of money when you're young will make you feel "happier." Once you're able to afford basic needs like shelter, food, transportation, you'll likely find that acquiring a lot more money doesn't guarantee that you'll be a lot happier. But it can help. True happiness, though, as greeting cardsy as it may sound - has more to do with your attitude to life than it does to do with the size of your bank balance.

You see as a teenager or college aged person, money education can play a role in how your feel about yourself, but it's only one aspect of creating a better life. Teaching financial responsibility to teens is very important to happiness and will lead to having close, trusted family, friends, and acquaintances; being physically healthier; enjoying your profession; going with the flow; laughing; doing things you enjoy. Strive for a healthy balance, and the rest will follow naturally.

And, ironically, having money can sometimes lead to negative experiences. You will find examples of this when you read celebrity stories in the weekly tabloids. Money, without financial literacy training, can attract divorces, law suits, gold diggers, gambling debts, and other miseries. To avoid this, create a harmonious relationship with money to keep your life well balanced.

Money education necessary and when teaching financial responsibility to teens remember to point out "The money's inside your pocket, not the other way around."

Teaching financial responsibility to teens and young adults

How much is money is enough? That is entirely up to you and is determined by the lifestyle you want to live. Help your teenager and young adult understand they have a choice on how they want to live. Here are some options:

• In the Poor House - Unable to pay your bills, car repossessed, borrowing money from friends to eat, hungry, can't afford to heat your home in the winter; if that's you, then you're officially in the "poor house."
• Just getting by - Living paycheck to paycheck; you have enough to pay the basic bills now, but if your car breaks down or you get fired, you're one month away from landing in the poor house.
• Safe and Sound - If you have emergency money set aside in case you lose your job, you have a solid budget that you can stick to, and afford your bills: you're safe and sound as long as you keep working.
• Financially Free - You can do what you want, when you want. If you want to work, you can, but you don't need to since you're independently wealthy. You still have to live within a certain budget, but you can afford most of the things that you want. Most entrepreneurs and business owners are, to an extent, financially free.
• Master of Money - Money is no object; you travel the world and buy anything you desire. Yet, some people that live this lifestyle are not happy with their lives. I know it's hard to believe, but it's true. That is why it is important to balance the art of achieving financial mastery with living a happy and healthy life.

Money Education Attitudes

Much of how we feel about money education and how we teach financial responsibility to teens and young adults comes from how we were brought up. Parents, friends and even celebrities shape our attitudes about money. Whether it's your mom and dad cutting your allowance so that they can make ends meet or afford a new washer-dryer, or seeing Gwen Stefani decked out in gold and bling; all of these influences weigh in on our subconscious.

Living in an affluent household as compared to a poor one will obviously shape your style of teaching financial responsibility to teens and young adults. However, it is not just the quantity of money education you have that makes a difference. We all learn by the example of our parents, and if your parents' relationship with money was shaky, then you likely picked up a few bad habits, too.

For example, have you ever heard the sayings, "You can't make money without money," "Money is the root of all evil," "Rich people are greedy" or "Money doesn't grow on trees"? These are all examples of hidden negative money influences.

The truth is you can make money without money, and growing up in the United States you have the best opportunity of anyone in the world to become financially free. Additionally, statistically, wealthy people are among the most generous people. People who use phrases like those above are often unsuccessful with their finances, so watch who you talk to about money. Don't be negatively influenced!

The key to teaching financial responsibility to teens and young adults is to recognize what and who influences you, and maintain a positive relationship with your finances.

I have learned that each of us has a definite approach to how we think about teaching financial responsibility to teens, managing money and giving our loved ones money education. The ideal would be a balanced outlook in all three, but no one is perfect. And you don't need to be perfect to raise a well-rounded, financially successful child.

Vince Shorb author of 'Financially Free by 30' and 'Money Grows on Trees" - A Parents Journey to Raising Financially Savvy Children from Kindergarten to College. Get your free copy ($19.95 value) at www.FreeBy30.com.