No More Mortgage: Budgeting Basics should be taught earlier: Part 2

Continued from Budgeting Basics should be taught earlier. Part 1

There are a lot of people who are forced into bankruptcy over medical costs or other tragedies. But many filers have just built up too much debt that got out of control.

This brings us back to the need to learn about budgeting far sooner in life, preferably as students in school where we can practice and learn to do it well. Where we can see what the repercussions of mistakes look like on paper rather than through first hand experience and how they can affect your life in the future. And yes, this is an area where parents really need to step up and teach their children about money and budgeting.

A lot of our success in life comes from what we learn through childhood and early adulthood. We can't depend on our early education in school for everything. Unfortunately many of the people that have gone through bankruptcy didn't learn about the pitfalls of credit and debt soon enough, and the importance of financial discipline, and paid the price. I've seen friends that have gone into their 40's and 50's before getting a real hold on their finances and still aren't building enough up for the retirement they want to have.

If you aren't in control of your spending and your debt you have a chance of becoming a bankruptcy statistic yourself. That doesn't have to happen. There is often help for you no matter what your current circumstance is. If things are bad you may need to look into debt settlement. If you are still able to cover your bills every month a debt elimination program could help turn things around for you. But no matter what choice you make, you need to learn good budgeting skills and how to spend wisely to avoid future problems.

If you have children you owe it them to teach them how to budget and manage their money so that their money doesn't end up managing their lives. I know a family that uses play money to show how Dad's pay check is spent every month. They start with a pile of money and start taking out money to cover the mortgage, bills and savings. As each item is paid for the pile gets smaller and smaller. This has helped the kids learn how to manage money and think before they spend. Real world examples often help make it easier to understand.

The bottom line is that if someone isn't taught the financial skills they'll need in life early on they will often learn the hard way, which is very costly and often leads to a much more difficult life then they could have.

No one else cares about your future as much as you do. It's your responsibility to make it happen.

Your friends at No More Mortgage.