Why People Don't Make Smart Personal Finance Choices

People attend school for 12 years and are never taught personal finance. By definition, personal finance addresses the ways in which individuals or families obtain, budget, save, and spend money. It includes obtaining and managing checking accounts, credit cards, loans, retirement plans, social security, insurance, income tax and 401k information.

Children learn key subjects such as math and reading, but they don't learn anything about personal finance. Learning about personal financial matters such as budgeting, emergency funds, and savings are a part of every household. Personal finance is all about your money management techniques. How much you have at the end of every check is dictated by your ability to manage money well. The schools don't teach it, churches don't preach it, and parents can't teach it.

Money management skills that encourage planning and saving have to be taught. These skills can't be assumed. Discipline isn't like hearing and seeing, people aren't born with the ability to be disciplined and save money. It takes training and practice to learn how to become disciplined and manage money well.

Schools haven't seen a need to prepare children for personal finance or money management. The education process assumes these skills are taught at home. But, where did the parents learn the skills from? There is a great chance that most parents don't know enough about personal finance to teach their children correctly. This creates a blind leading the blind scenario. Money management discussions are rarely if ever held in most homes. These discussions didn't occur in our house when I was growing up. Children ask questions about what Santa Claus is bringing for Christmas but they never ask why the lights are on or if the bills are paid.

The lack of proper personal finance training and poor money management skills causes havoc and chaos in people's lives. All too often people entertain discussions on being in debt. They tell you how they are making partial payments or late payments on their bills. People talk and complain all of the time about not having enough money to pay their bills or not having enough money left over after paying the bills.

Splurging is not a solution. Fulfilling instant gratifications and buying things because you see and want them doesn't show discipline. The home shopping networks know they have a market for you. When you see the item and it's displayed so beautifully, you tell yourself you just got to have it. There is a great chance that when the item is delivered you'll have forgotten you purchased it. Often, these articles are thrown in a drawer or put up for safe keeping and never used. Everyone remembers the special occasion that necessitated the perfect outfit ensemble. A must have outfit has caused many gas and electric bills to remain unpaid.

Personal finance and money management skills should be taught to everyone if the truth were told. Some people need the training worse than others. Everyone can benefit from learning about how to manage money better. Children need to be taught as early as possible and the schools should require it as part of their curriculum.

America saves less than 5 percent of their income because we haven't been taught how to save. Seeking the services of a financial advisor whose profession is to teach personal finance skills will help Americans save more. A financial advisor is different than a financial planner. Don't get the two different professions mixed up. A financial advisor also known as a financial coach will teach you how to change your attitude about money. Learning how to plan and budget sounds simple but these skills present a great challenge to the average person. Learning what an emergency fund is and how to save for it while incorporating your current and future goals take skill.

Learn how to plan a course for financial well being. You can stop living from paycheck to paycheck if you commit to learning about personal finance and improve your money management skills. Awaken the financial genius in you.