This past week, the Smart Cookies spoke to 600 bright-eyed high school students about money.
We took our message to this next generation with the goal of instilling some financial wisdom that we certainly didn’t get (or listen to ) at their age.
And a recent study indicates that we are not alone in our financial ignorance. Charles Schwab reports that most “Generation Xers” — aged 27 to 40 — are way behind when it comes to retirement savings. Almost half of the 5,000 people surveyed reported being so overwhelmed by debt and living paycheck to paycheck, that they could not even begin to think about savings and retirement planning.
As we began to think about what advice we could offer, we also thought about how generations before ours dealt with their money and what advice we could take from them now. One of our own Smart Cookies recalls chatting with her grandfather about how individuals of his age group spent and saved, and his answer was simple; “we had no credit, if we wanted to buy something, we had to have the cash to do so.” Sound simple? It is!
Below are a few lessons we can learn from the generations before:
Cash, cash and more cash.
It may sound old school, but Smart Cookies live by the cash system. We allow ourselves an allotted amount of “fun money” each week, and when the money disappears, we are not allowed to resort to credit. It’s helped us get out of debt, start saving and also has kept our priorities in check.
If the shoe fits, you don’t have to buy it.
For whatever reason, our generation never learned this lesson. Instead we feel that we are entitled to everything our parents worked their whole lives for — the beautiful home, the luxury car, the fabulous wardrobe — by the time we are 30. You will have all these things, just not right now. If you wait until you can truly afford them, these possessions will mean much more.
Whose life are you living anyway?
It’s easy to fall into the trap of trying to keep up with your friends when it comes to portraying an image, but if it means using your credit, it’s time to reconsider your priorities.
In recent years, our generation has felt even more pressure to pretend as if we have it all. But really, who are you fooling? Not your friends or your family, who know that you are living way beyond your means. And we are willing to bet that your boyfriend doesn’t care whether you have the latest Prada bag!
Visit www.smartcookies.com for more money saving tips and e-mail questions or comments to smart cookies@metronews.ca.
And pick up our book Smart Cookies Guide to Making More Dough on sale in bookstores.
– Tune in Wednesday night at 9 p.m. EST/PST on the W Network and be sure to visit www.smartcookies.com for more tips.
