Children and Unsecured Personal Loans, Saving and Money

Thursday, December 17th, 2009 By

The world of finance is changing

Unsecured personal loans saved a hefty portion of consumers throughout the 2008-2009 recession. Many people who believed that they were safe financially got a wake up call when the economy took a turn for the worse. They realized that financial tools they used in the past quickly became irrelevant. Lenders closed their doors to everyone except their premiere customers. Home values declined severely putting people in even more debt. It was a difficult time and it is first now that consumers are seeing some hope that the market will return to normal. One thing that many people recognized, however, was the need to educate themselves and their children on how to manage money. With an unstable economy, it’s imperative for people to be ready with tools to manage and pass those tools onto the next generation of consumers.

Things to teach children regarding money

The next generation of savers and investors need to be taught the general rules of managing money. It’s no doubt that the global market is shifting and it will be critical for young people to be able to make wise decisions. Here are some tips to follow:

1) Educate children on the value of the dollar. When children are in school they learn about reading, writing, and arithmetic. Most of their schooling is centered on the basics of maneuvering value, but unless they delve deeper into the field of finance when they get older, that’s the only education they will get on the topic. “It’s sad how we teach children about binomial functions, something few will ever carry into their adult lives, but neglect finance, something they will need every day for the rest of their lives,” said Mike Mooney, of It’s up to parents to education children on life’s fiscal challenges.

2) The sooner the better. Anyone who has seen a retirement savings schedule knows how time is key to maximizing money. If children can be taught that value of saving, they can also be taught the value of starting a savings account early. Mooney also said, “Children need to be taught to develop strong saving habits, learn how to make smart purchases, begin to understand the true meaning of ‘investment’ and why delayed gratification is number one when it comes to money.” Education should begin with simple topics like how to save, but then move on to more complex issues as a child ages. Things like payday loans, car loans and investments need to be addressed when children are ready.

3) Mom, dad, and money. Most children think that money comes from their parents. It isn’t until they push too far with buying that they get an explanation of the hard work involved in earning money. It’s best to teach children right away that work means compensation. Small chores are the best way to teach value. As a child grows, bigger compensations can be given for bigger responsibilities.

4) Saving is exciting. One of the best tools to use is teaching children that saving money is a good thing. Piggy banks, shoe boxes and all the old tools are the most appropriate for young children. Older children and young teens can use bank accounts to be introduced to financial institutions and how they work.

Making sense of money

Mixing money with a recession is a formula for financial confusion. No one knows the future or what the economy will be like when today’s children are adults. It’s best to teach children from the beginning about saving, investing, unsecured personal loans, mortgage loans, stocks, and credit. Taking their training step by step as they age is the easiest way to empower them financially for the future.

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This post has one comment

  1. Franrose says:

    Great article! Instilling the responsible usage of money at a very young age will reap great results when the little ones advance into their adult lives. We as parents are fully responsible of teaching our children the importance of money management. We need to educate them about the process of making money, more specifically the hard work involved in the making of money, and what the probable outcomes may be if finances are not managed properly. We need to set the example for them. They are the tomorrow of today. The future will hold no promises if we fail to address this matter today.

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