Thoughts Along the Way...

So I wrote this earlier this last week when I was learning a bit more the community and the financial literacy class that I will be helping to teach...


I think that all along we have been taught the wrong way to go about our finances. Maybe part of thee differences between low, mid, and high income earning families is dependent mostly on education.


We are taught to go out and get a job, but our budget doesn't come into the picture in obtaining that job. We don't plan our lives out per say with the things that we want in mind in relation to our budget. If we decide to go get a 4yr, degree we may think about how we will pay for it afterward, but do we add up the vacations we want to take? Or the places that we want to see over time? Or the medical bill possibilities?


A lot of families are stuck on immediate needs, phone bill, rent for this month, food, car payment, etc. What about 5 or 10 yrs from now? Are we really planning for the future? In reality, the more we invest and plan for it now, the more we will be able to do in the future.The more financial education a family has, the greater their ability to acheive success and move up on the socioeconomic totem pole.


Investment planning needs to start early. I think that many of the simple things that bank and credit union employees know is oblivious to the general public. Yes, people need to educate themselves on their rights and available options, but I think that they also need to be taught that those things exist. People are coming out of their high schools not being equipped with the information they need to be financially stabile and the evidence is shown in the communities in which we reside. This is not acceptable.


We truly need to address these issues and give a hand up to our community members. I remember having to balance a checkbook and some small budgeting from high school, but none of that stayed with me. I had to figure it out on my own. How many students, or parents for that matter, from these low-income communities are being taught that these things are important, moreover crucial to their financial well-being? What makes them want to be financially literate?


There has to be more than part of a semester of learning about financial responsibilities for the younger generation; some thing that youth and adults will enjoy and will engage them. The financial literacy classes will hopefully get parents and kids excited about their financial futures and help them to really look at some of the areas where money could be saved or spend in a different manner. Hopefully people will be thinking things like: How much money do we need to earn to make this or that happen? Do we need to just open our closets to see our spending habits? How do we start budget for life events in order to make them happen and not spend too much money?