As I See It / February 2007
Raising Money
A recent survey by USAA, the Fortune 200 financial services giant, found that nearly two thirds of American teenagers expect to be millionaires by the time they reach their forties-or younger. More than twenty percent of them, one in five, expect to earn $60,000 or more at their first full-time job after high school or college. And forty-two percent of teens expect to retire before they are sixty.
It is an optimism based on…nothing at all.
Raised on “invisible money’ from direct deposits, credit cards and ATM’s, perhaps it would be natural for a teenager to expect cash to flow as readily as Willie Wonka’s chocolate river. More than half of those surveyed think money can buy happiness. Their parents know better. And, although it’s true that celebrities, television and media have played a huge part in giving teens these ridiculous expectations, at the end of the month, it is parents who must take responsibility for both the bills and the magical thinking.
It was a financial survey, not an ideological one, yet the answers pointed to a surprisingly clueless population. It wasn’t just the teenagers.
Thirteen percent of parents said they either spent money as fast as they could get it, or were almost always broke. More than one third of parents didn’t have a budget. And, 49% of parents say their own money management skills range from simply “OK” to “terrible.”
Yes, children are bombarded with material messages, their noses rubbed in the opulent lifestyles of sports figures, movie stars and young blondes with PR firms. And, yes, they are affected by watching thousands of hours of television and movies that never show or acknowledge anyone doing something as boring as work. Reality shows are pure fantasy. They never feature ordinary challenges-paying the bills, fixing the toilet, applying for a loan. On The Island, no one has to write a resume, endure a dozen job interviews or explain why the check bounced. No American Idol spends eight hours each day fitting pipe or standing at a cash register. The surprise endings don’t include corporate embezzlements turning the savings of a lifetime to dust.
In TV land, all the children are clean, cute and healthy. Anyone over 65 is feisty and hip. Everyone has health insurance; no one has to pay for it.
Even in the real world, ATM’s are like money trees. A pocket full of plastic is even better than cash because it never runs out.
Schools can try, but parents are the only ones who can turn the tide. It’s good news that over 85% of the teens said their parents are more helpful than other sources in teaching them about money and 79% said they wanted to know more about money management. But parents must step up with the information.
It doesn’t help to talk a good game. Teens turn off and tune out messages presented in ‘Do as I say, not as I do’ format. Parents can lecture all they like. It’s a very parental thing to do. But if Mom keeps her credit cards maxed out, pays bills when she gets around to it or shops till she drops without saving, her kids get the signals loud and clear.
Nearly three-fourths of parents surveyed said they discuss spending and saving with teens “all the time” or “fairly often”. Only half of teens say the same. Sixty-three percent of parents say they reveal information about their own finances with teens “a lot” or a “decent amount.” But half of teens say parents share little to nothing.
Being a parent is such a huge responsibility. There’s so much to be weighed and worried about, from safety to sex education-money may seem mundane. But kids who miss the chance to get and practice financial knowledge will have no tools to build a financially comfortable future.
Great expectations are dandy. But they generally must be accompanied by work, great ideas, skill, talent, planning, perseverance or innovation to turn a profit–and to make a life. Children who have been thoughtlessly prepared for riches without effort and leisure without work will end up impoverished in every way. PL
Copyright © 2007 A Woman's View. All rights reserved.
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