Friday, February 27, 2009

Self Discipline

As you can tell from my recent posts, I have been thinking about prom and the costs associated with it.

Yesterday I attended a seminar entitled, Surviving Financial Meltdown: Confident Decisions in an Uncertain World. There were close to 600 people in attendance.

The speaker, Ron Blue, said alot of things that made tremendous sense to me when it comes to money. One of the things he talked about was a four-part financial plan that the average American family could benefit from:

  • Spend less than you earn
  • Think long term with goals and investing
  • Maintain emergency cash
  • Minimize the use of debt
There were many other great points made throughout the presentation, but here is what I walked away thinking about.

I see so many parents going deep into debt in order to make sure their kids have an over the top prom, a car or some other thing. When we as parents do this what are we teaching our children about money? My guess is our children are learning that you don't really have to have the money in hand before you spend it. Which is somewhat risky because that assumes that the money will be there in the future - and based on the experience of the last 12 months - I don't know that we can bank on that. No pun intended.

I don't want to be preachy. It does weigh heavy on my heart that alot of good kids are learning really bad money management principles.

What are your thoughts about this and what are you teaching your kids about managing money?

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