What have we left for the next generation with our exorbitant lifestyles and lives we have built around credit?  Will our children and grandchildren learn from our mistakes or will they perpetuate this disaster to their children?  It has always been the hope of our parents that we will be able to have a better life than they had, but in reality we have left them in a position to pay for our irresponsibility as well as their own expenses.  We have left them with the very real possibility that they will have a more difficult life than we had.

One challenge the next generation will have is how to prevent the major collapse that we are facing today.  We are not taught in school how to handle our finances responsibly.  There are classes for sex education and physical education but very few schools offer mandatory classes for personal finances.  They can meet this challenge by insisting that their children take these mandatory classes. 

The education does not provide simple concepts such as balancing a check book, buying a home or car, or how to use credit cards.  It is mandatory for them to take gym but nothing about arguably the most important skill in their lives.

Credit card companies and lenders do nothing to help the situation.  They are so concerned about making money that they lure young adults with the promise of a good life if they use their cards.  They are taught everyday that the world revolves around credit.  Advertising is everywhere to convince them that they need a credit card, especially theirs.

By giving our children everything they want they grow up with a feeling of entitlement.  They feel that they have to live the same lifestyle that their parents provided.  What they don’t understand is that in most cases their parents had to work very hard for years to obtain the things they own.  Children are not taught a basic work ethic.  They graduate from high school or college expecting to all of a sudden be able to afford the nicest cars, the beautiful homes, and the ability to go out to eat 5 nights a week.

When they realize that they can’t pay for all the things they want, the credit industry tells them all they have to do is carry their cards or mortgages and they can have anything they want.  No need to work hard or save until they can buy the things they want.

The solution to this debacle is twofold.  Firstly we, as parents must teach our children responsible financial practices.  The first step for us is to practice what we preach and change the way we use credit.  The second is to demand that our schools teach financial responsibility.  In addition, the lenders must take a positive role with honesty, even if it means reducing their profit margin.  That is very unlikely; a corporation’s sole concern is to make money.

So, the responsibility rest with us.  We can’t let our children face to same problems that we have to suffer today.