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When it comes to being upwardly mobile, being 2)reference of the article financially literate and understanding the importance of money it truly starts in the home. The concept of must be taught early and often to children. Parents must not only be moral role models but models for spending wisely, saving and investing. In reality everyone knows how to spend money but not everyone knows how to use money. Most parents fail to grasp the simplest concepts when it comes to money. This brings up the question how can you teach something that you don’t know.

Our earliest habits are usually learned by watching our parents. It cannot be gainsaid that kids retain and pick up on everything that they see adults do. if everytime you get paid you go shopping you children might grow up to do the same. If money is an issue in your household chances are it’ll b ean issue in your childrens household aswell.

Lower and middle class families tend to stay that way because upward mobility is not taught and practiced by the parents.Financial security and planning for the future should be dogma in all homes. Sure you may have heard your parents speak about their 401k’s, IRA’s, savings and checking accounts, but did they teach you why and how these things work? Chances they don’y know themselves. Again you can’t teach what you don’t know. People tend to pass the responsibility of their finances onto others. Whether that person be a banker,broker, fund managers or even future generations. That fear of money comes from a lack of understanding. That fear will be passed down  to your children and their children class inertia for generations to come.

life lessons come in different forms. As parents it is your duty to educate yourselves in order to teach. Teach you children the importance of investing and saving. Teach them that saving a little now will pay off later. Pennies become dollars, the same way inches become feet and feet miles. Teach them how to place true value on things, assets from liabilites.The mojority of our GDP is consumption, thats because we need what we want and we are willing to go ino debt for it. Banks are more than willing to loan us enough rope to financially hang ourselves. Credit cards will give us a spending limit, the interest rate might be astronomical, but instant gratification is all we believe in. The banks and other loan intutions know we have bad habit and prone to a lack of self control. So they plan for the future by selling our debt getting and  their money upfront. They then invest their money wisely.

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It was the lack of knowledge of manistreet and the greed of wallstreet that led to the 2008 recession. The effects of which are still being felt today in the US and abroad. If we are taught discipline and good spending habits. Some of us, and I say some of us because greed clouds the judgement of even the smartest of us , would not have fallen victim. Financial responsibility is synonymous with personal responsibilty.

I’m asking all parents to lead by example. Be an entrepreneur and pass that spirit if not the business onto your children. Teach your kids to be an employer, not just an employee, to be a producer not just a consumer. Teach them to respect themselves, others and their money. Money is not just the gateway to instant gratification. Money is a concept and an applied science. it can be anything you want it to be and made in as many ways as your brilliant mind can conjure up.

If financial responsibility is not taught in the home the only outcome will be a nation of financial illiterates and the mercy of instant gratification and preadatory lending. It starts in the home be a good parent and American. The lessons  you teach your kids might be the reason we avoid another financial crisis. Financila improves the quality of life for not only yourself, but your children and the entire country.