I was talking to a person today who mentioned briefly what his financial plans were for after he graduated from school. He wanted to move to a new area which would offer a lot more opportunities for his career of choice. While he knows it is expensive, he was saying how he was sure that his parents would at least help him out and so he is considering that as a positive factor in wanting to make the move. This made me think whether it is better or not to make say a teenager think that there is no savings of any kind available for them after graduation and that they will have to work for everything they want. Basically, starting them early in becoming financially responsible.
I know for me that was a big factor in learning financial literacy as I didn’t exactly get much money from my parents. As a result, right from an early age and through high school I would be excited to find some work while finding ways to best manage it. I know the negative to this scenario is that if you as like a teenager or young adult has to worry about making money then as a result your education will probably take a hit due to you not being able to focus on it.
I honestly don’t know how true that is as I usually hear more stories of people blowing like say their college savings funds on recreation. At the same time, there are many who manage things like a job and school at the same time. Maybe I am a bit bias of course, but I would think if the person was forced to develop al the financial skills where the mindset is they have to depend on their own efforts then afterwards receiving like the financial support from the parents as a surprise would be a lot more beneficial.
Almost like having to earn and be component in managing money before you win like a lottery to increase the chance you won’t lose it all on bad money management or being duped by others. Personal preference of course, but I would think that would be a good way to teach younger people the financial literacy skills they need to venture into career and family life.