Financial Literacy 101: Money and Graduation

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What We Don’t Know About Money Can Hurt Us

Congratulations! You or your son or daughter will soon be graduating from high school or college. What a great milestone in the life of a young adult. The world is opening up and there are so many opportunities. Guess what? This is also a time many people make some foolish decisions with money. Have you already received offers for credit cards, loans, and “easy payment plans”?  Please be VERY careful what you sign up for.

I am not a financial advisor or a stocks wizard but I am a student of people who are financially secure but they live financially free/debt free. Orrin Woodward and Chris Brady, co-founders of Life Company, are in INC. Magazine’s top 50 leaders to follow. Warren Buffet and Zig Zigler have a long history of financial literacy.  By becoming more financially literate, I better understand how to make money, keep more of what I earn, but also see the pitfalls of the current financial system. These “financial waters” can be treacherous if there are holes in your financial boat! Keep reading for a few principles to consider so you can learn to live a life of financial security.

Financial Literacy Basics

Graduates and parents… think back when you were a kid. You begged your mom or dad for a candy bar in the checkout line at the market. Miracle of miracles, you got it! You had no idea that there was a price tag attached to the candy. It was SO EASY- just a bit of paper or a swipe of a card and it was yours!!! You got a bit older and might have gotten a spending allowance or were paid to do chores. What did you do with your hard earned cash? I know what I did… I got into a cycle of “work-get paid- spend-repeat”. Now you are getting ready to graduate from high school, trade school, or college. Do you have the financial skills to live a lifestyle that is sustainable, potentially debt free, and still have fun? Below are a few principles to get you started.

  1. Find your WHY. Ok, let’s be real. You are not going to stick to financial principles if you don’t have a reason to. Discover what you want. WHYs may be some material things like nice clothes, the latest smart phone, or gaming system. Your WHYs may be service driven like giving to a charity or cause you believe in. Your WHYs may be to just have more money at the end of your month. The point is that you have to have something to work for. Learning to live financially secure is a process and can be tough at times. Remember, bits of information, applied over time, creates lasting change.
  2. Invest in yourself. You may be heading off to the college of your dreams or have been in the workforce for a while.  Invest the time in continuing to work on yourself to increase your earning potential. Spend time reading, listening, and hanging out with people who have qualities you admire. Learn from them.
  3. Discover you Money View. How do you view money? This has a lot to do with how you were raised. No disrespect intended to parents, maybe they weren’t taught how to handle money either. We teach what we know. There are 10 Money Views discussed in Financial Fitness by Chris Brady and Orrin Woodward (2013). I will only throw out four to get you thinking…

Money Views

Do you view:

Money as a MYSTERY- You may have no idea how money is made, how it’s retained, and how it works. Do you think that others who are successful financially are “lucky”?

Money as a MASTER- Are you living your life in bondage to paying the bills. Are common phrases something like “we just can’t afford it”, or “Hi Ho, Hi Ho, It’s off to work I go..”.  At the same time is consumer debt on the rise?

Money as a MONSTER- This is the money view when Money as a MASTER has gone on so long that all you can think about is money problems. You may be emotionally and physically overwhelmed.

Money as a MAXIMIZER- This view enables you to make a greater contribution and maximize your potential. You are living up to your potential and helping other do the same.

Want To Know More?

Dr Pam Rin PhD LMFT Associate offers counseling for families who are going through a rough time. Schedule a session with her today!

Wouldn’t it be nice to take care of the “money thing”? So many families are living paycheck to paycheck with no idea how to get out of the rat race struggle. Others make good money but still struggle with consumer debt and are one paycheck or job change away from financial disaster.  I want to share resources to help plug the holes in your financial boat and help you get a grip on the “money thing”. Check out my for more information about Financial Freedom products. Acorn is also hosting a few events in the next month focused on this important information. April 25th from 5:30 to 6:30 will focus specifically on Financial Freedom products. In May, Acorn will host my seminar in May for graduating seniors! Sign up now for more information.

 

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