The United States has a problem.  It’s called the National Debt.

School Districts have a problem.  It’s called eroding tax bases, which means cutting education expenses.

Families have a problem.  It’s called credit card debt.

College graduates have a problem.  It’s called student loan debt.

Anyone see a pattern?

A recent article found on the blog of In Charge Debt Solutions spoke about the sad shape the students of our nation are in when it comes to handling money.  You can access it at https://www.incharge.org/blog/current-state-of-financial-literacy-in-america-data/

The bottom line is that teachers in schools feel unqualified to teach about it.  Why is this an issue?  Financially illiterate children grow into financially illiterate adults.  I know of a couple who needed to turn in their paychecks to their parents when they were young, and were given an allowance by them.  When they were old enough to get married and start their family, they had control of their money, but were never taught the importance of saving – and every commercial that they saw on television told of the conveniences of constructs like “layaway” and credit cards, refinancing and home equity loans.  But when you don’t realize the “minimum payment” is usually just enough to pay the interest being charged on a credit card, the amount of debt can rapidly escalate.  Further, if spending limits aren’t observed, a sense of “unfairness” develops, to the point that individuals can’t understand why they have “no money,” and, even when it’s explained to them how they can change their spending habits to be able to get out of debt, their habits are so deeply ingrained that they just don’t want to change, and prefer to continue to complain rather than take action to correct their situation.

With that in mind, be on the lookout for a new blog launching soon, called “The Financial Literacy Blog” (at http://www.thefinancialliteracyblog.com).  There are some resources available now, but one in particular is intended for entrepreneurs and small business owners to gain insights into running a successful business and it’s not located in the United States.  This is is being designed to share some simple concepts regarding the importance of saving, of managing debt and budgeting to solidify one’s financial future.

Remember, what you schedule gets done.  What you don’t teach isn’t learned.