If you’re the average family and have teenagers, there’s a good chance your son or daughter is wealthier than you are. You’ve had a few decades to build up your savings or investments while they’ve had a year or two.
So how is that possible? That’s easy: They don’t have access to credit and can’t borrow their way to prosperity. Sure, you the parent have more actual cash – at least the day after payday – but you’re also paying out most of it for debts that you incurred long ago. Your teenager doesn’t have that. Everything they earn they get to keep.
If a teenager really wants that $500 sick snowboard that you’re not willing to pay for, they’ll first whine and complain and have a fit. It’s not fair, they gotta have it, and you ought to buy it. When that wave is done, most kids will get super motivated and focused if their motivation is strong enough and they don’t get the lazy or easy way out. They’ll typically do whatever it takes to save and to work. Whatever: Shoveling snow, mowing lawns, babysitting – whatever is necessary. If that’s their drive, they will save the money.
Most adults on the other hand, won’t take that part time job, do a budget, or drastically cut back our expenses to get out of debt, to buy a newer vehicle for cash, or pay for some renovations or even our holidays. Nope, we don’t do it – we have an easier and lazier way to accomplish any of that: We pull out the credit card, or use our line of credit.
There’s a difference – it’s like night and day. Going broke and borrowing, which is just delayed pain, versus the hard work right now to have what we really want.
Ah, to be a motivated teenager again…