By David Norton
When you think of inflation, housing bubbles, and leverage, one would tend to associate these conversations with an older and more educated crowd. But is it a bad thing to expose children to the realities of today's market? The answer obviously lies in moderation. But, maybe exposing the youth to some of the realities of a recession is not necessarily a bad thing.
Studies show that now more than ever, parents are talking to their children about money and the importance of prudently saving (quite possibly very hypocritically, but that doesn't matter). In this world which is inundated with technology, it is nearly impossible for children to completely be oblivious of the financial world around them. With this being said, often times they selectively hear the truths about such any given situation, and these notions could affect them down the road for better or worse.
From a parental standpoint, it is very important to educate children on the value of the dollar from a young age. Children are very impressionable and many of their traits and feelings about finances are acquired at an early age. For these reasons, it is advisable to discuss the status quo of the economy with children. Obvious discretion must be used. No matter how smart your five year old is, he's not going to understand financial leverage, but still talk to young kids about money and remain positive, yet realistic. As children get older, more sophisticated concepts can be addressed.
It is good to shelter kids from the perils of the outside world, but it is also good to expose them to these realities such as an economic recession. Everyday we see an ever-increasingly strenuous world only get more complicated, and today's youth needs to be up for the challenge. Though finances may not be the best talk you ever have with your kids, it may be one of the most important.
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