Lesko: Are You Smarter Than A Kindergarten Student
By Fox 40 Staff.
Jason: Are you smarter than a kindergartener? Greg Lesko of Lesko Financial reports on an article that lists financial lessons everyone should know--by kindergarden. Greg.
Greg: Thanks Jason. If not by kindergarten- -at least by high school.
The article outlined basic concepts that some Americans haven't learned even into adulthood--judging by surveys of financial literacy. First, money equals labor.
It's good to learn early on that people get paid for their time and the work they do...also what they know--which is "mental work." This also helps you understand spending.
How many hours do you need to work to buy that new gizmo you desire? The second idea is related: wants and needs aren't the same. Knowing the difference will help you make smart money choices in a consumer economy that often thrives on confusing needs with wants.
Jason: What about debt?
Greg: Yes--marketing credit cards to children and teens is the latest move from card issuers. Learning the powers and pitfalls of credit is a must. Basically, credit is a loan- -one that has to be paid back. The longer you take to pay, the more it costs--in interest.
Another concept is: investing. If you invest money, you turn it into something that's worth more. Investing can be a college education to help you get a better job.
Or it can be something where your money grows with interest paid over time.
Jason: Why is it important to learn these concepts?
Greg: Multiple surveys have tied people's financial knowledge to how wealthy they become. Getting a handle on the basics early in life would likely go a long way toward closing the "wealth gap" between rich and poor.