Posted by: eileenandrory | October 15, 2009

Financial maturity

How do we get it? Who teaches us to be financially savvy?

When i thought about it i assumed that it was our parents, but what if they themselves are bad at it?

Are we leaving our financial well being to chance?

We are teaching our kids about delayed gratification through the use of a money box, but how effective is that?

If you’re anything like me you would have steered well clear of the ‘accounting’ type courses at school, <i preferred the more practical subjects> it is only recently that i have had to take not one but two accounting papers this year, and it has opened my eyes <ish>

I think of myself as financially mature, however as a family we have recently fallen into the debt trap, despite knowing the consequences of our actions, we signed ourselves up to a bunch of debt without reslising how it would affect us.

Until now.

 Its time to pay for our past sins, and we are struggling.

No amount of brow beating is goign to save us.

But the thing is, why did we get into this situation? 8 months ago when we signed a hire purchase agreement and the student loan forms, why did we not consider the ramifications our our actions?

What stopped us intelligent <reasonably> people from realising that one day we would need to actually pay the reaper?

I think it’s because we are eternal optimists. We as human beings always beleive that things will get better and our lot will improve with time. So when the retailers tells us “No interest or payments for till January next year” we think…. i can afford that because by January next year our situation will have improved, maybe i’ll get a payrise, or i’ll have paid off X, and so willhave a bit of spare cash… etc

Justification.

I feel sorry for those that don’t even have the realisation that we had, when we were signing the hire purchase agreement, we at least thought we would have enough cash to cover it, we did a budget everything on paper looked good. A large proportion of people i would hazard a guess just sign up and don’t think about how they are going to pay for it in 12 months time.

Anyway i can’t help connecting my personal financial blunders with those of our country and indeed the world.

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