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4 Things The Younger Generation Doesn’t Know About Money

Ask the older generation about the younger generation, i.e. the teens of today, and the answer is likely to contain the words: erratic, stubborn, illogical, and melodramatic. Can we expect this crop to know a few things about money that is known by the more mature people? The answer is apparently not.

Most teens have a hole in their money knowledge that needs to be gaped sooner rather than later to make sure they are ready to function in the money centric world of today.

Here is a list of the 4 Things The Younger Generation Doesn’t Know About Money.

The Basics of a Bank Account

Despite a large amount of students having to encounter student loans on a regular basis it is still surprising to know that most are unaware of the workings of a bank. They are unaware of the rules, procedures, time scale and fees regarding the working of a bank. This in part due to lack of attention and part due to the lack of an institution that can raise awareness regarding the in and outs and workings of a bank.

Budgeting

One of the most important concern for teachers and the society today is the lack of understanding of the teens regarding the importance of budgeting. Budgets are a vital part of your financial cycle and have an integral part in keeping your finances in order. Lack of understanding of budgets by the younger generation is something that should give rise to a concern. The most common reasons that have been identified for this is the fact that kids are being spoilt by their parents and so they feel no need to use the money they have smartly with respect.

Knowing the Importance of Credit Reports

An eye opening fact for most teens today is the realization that their financial behaviour over the year is going to affect their credit card applications and their credit scores. When banks decide to lend someone money or offer them the service of using their credit card, they tend to do a thorough research on that person. A good banking record and credit history over the years means that the chances of success in matters related to obtaining bank finances increases.

Saving for a Bad Day

Teens often tend to lack the amount of far sightedness that is displayed by the elder more mature people in the generations. This lack of far sightedness is the primary reason a large a majority of the younger generation runs away from the idea of savings. They tend to believe that saving is lack of trust on one’s ability to overcome challenges. Much like budgets, planning is not appreciated with the idea of living in the today the most popular among the teens of today.

At this point, it is important to note that not all teens lack the knowledge in money related issues that is mentioned above. Yet, there is a significant majority that needs to brush up on their knowledge of money related matters so they can succeed in the future.

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“Take a deep breath it’s just a bad day not a bad life.”

~ Unknown

 

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