I bumped into this page today where a radio show call The Bert Show had this segment where a 22 year old college named Kim was in dire need of financial advice. From what I gather, she was given $90,000 from here family to be used towards her college education and she irresponsibly spent about $20,000 of it on other things such as trips and clothes. As a result, she is short on cash and doesn’t know what to do.
Throughout the interview she sounded very entitled where doing things such as getting a job and going to school wasn’t even an option for her. As well, going to a bank and researching about loans seems to be a foreign item to her. She was advised to tell her parents the truth which she was reluctant to do so for obvious reasons. However, she did do it only for the dad to apparently laugh and her and the parents saying they can’t help her. Afterwards, she blames the parents for not educating better in financial knowledge as a reason for her current position.
As much as I do feel she simply needs to do things on her own and accept responsibility and accountability for her own actions, from my own experience the parents are usually one of the biggest factors as to why someone is good or horrible with money in these types of cases. I don’t know what her life was like, but if she was raised like a stereotypical princess where she never really had to earn or work for anything what do you expect would happen when she gets out in the real world on her own?
Likewise, if a parent constantly pulls their child out of a bad financial predicament as oppose to forcing them to fix it themselves to learn from it what do you think they are going to do when they need money? This might not be a very popular answer, but I can’t help to say the parents are probably a huge part of this. Granted at the same time I am not excusing the person as well. If anything, I am kind of surprised everyone keeps telling her to get a loan from the bank or anyone else as she doesn’t sound like she is financially literate to manage a budget in general.
I am inclined to say that the only true way to teach the person a lesson is to say she can’t borrow from anyone and simply needs to find work period. Who knows, based on her past spending I wouldn’t be surprised if focusing on financial education first can potentially save her thousands. Again, I don’t know the person but based on the interview she sounds like someone who would spend a lot dining out and such. Being accountable and recognizing because you over spent translates to you now having to live less lavishly is a better route to go with I feel. Essentially, making you earn a lifestyle.