May 26, 2011

Financial literacy

Some teens don't want parents to teach them about money. In an article by the Globe and Mail's Rob Carrick, a student named Tristan says, "Some parents are very bad with money so they can easily teach their children wrong information and ultimately put them into debt when they are older." Not every teen shares this view; others say their parents have given them good advice by teaching them to save half their money and spend half. Nathan tells us that his mother urged him to get a job if he wanted money. (Financial literacy: the kids weigh in)

While the parents' advice is good, it could be better. Spending half your money sounds a little high. Most books suggest money be used for saving, spending, and donating to a good cause. Getting a job is fine too, but teens shouldn't get into the habit of working solely for money. They could end up trapped in an unsatisfying career.

According to Rich Dad's Escape from the Rat Race(or How to Become a Rich Kid by Following Rich Dad's Advice) by Robert T. Kiyosaki, wanting to become rich is not enough. Nor is simply getting a job. You may find yourselves caught in the "rat race" (always working to stay ahead of your debts). Instead, you should look for opportunities to purchase assets. In other words, start your own business.

Written in comic book format, this book tells kids to find opportunities to make money so that they'll never have to work. These opportunities, Kiyosaki says, are all in their heads. Commendable, but a little simplistic. Some kids may need a bit more guidance.

For more books about finance and entrpreneurship, go to Look for Entrepreneur under Book Selections.

Also read Raising Financially Fit Kids (an excellent book reviewed previously in this blog). 

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