Wednesday, December 14, 2011

Pop Quiz Later


The Lesson


I’m amazed at the amount of debt people pile up during the holidays.  You see them maxing out their credit cards just to make sure Little Johnny gets the latest smart phone, or Little Suzie gets the latest $100 pair of jeans that she will outgrow in a matter of months.  Then they stress about how they will ever get the bill paid off.  Why a 14-year-old needs a smart phone or a $100 pair of jeans is beyond me.  Yes, I know about peer pressure and keeping up with the Jones’s but come on, whatever happened to living within your means or saying no.  My Mom used to do the same for my sister and me.  There was never anything we didn’t want for when it came to the holidays.  How do I know?  Well, my Mom called me one time asking me to help her pay off some huge credit cards bills so my Dad did not find out.  So I did.  Debt is a part of life but consciously putting ourselves in a financial pickle rather than saying no or using logic, does nothing but keep the cycle going. 

One of my biggest financial blunders was getting rid of a perfectly good Toyota pickup in order to get a Porsche just to impress “the girls.”  Between the cost of the car, rent, insurance, etc., I only had $35 left over to last me two weeks between paychecks.  I became a big fan of boil n serve meals and bread sammiches.  I also lived off the credit card until I ended up getting rid of the car before it put me in the poor house.  That little event cost me a ton of money, but the lesson I learned was priceless, “Think before you spend.”

I’m concerned about the lesson we are teaching the next generation.  I want it; therefore, I get it.  You see the occasional news story about a college student whining about being $20,000 in debt on credit cards yet they try to portray themselves as a victim of the credit card companies.  Hmmm, they filled out the form, they signed the form, they used the card to buy things they could not afford yet that is the fault of the credit card companies?  Absolutely Not!

We need to be teaching lessons like the A word – accountability, R word – responsibility, B word – budgeting, and my favorite B word – boundaries.   

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