Today’s fantastic family finance article is:
Economist Noreena Hertz posed the following question to her focus group of 14-21 year olds: What would be the killer personal finance app?
One teen responded: “An app which, each time I was going to buy something, sent me a message which said, ‘Do you really need this?’”
It’s so simple. It’s so effective. Introspection — the examination of your own thoughts and feelings — is the killer personal finance habit.
No need to wait for the app though. Coach your kids to pause and reflect before each purchase: “Do I really need this?” And, if the answer is “yes,” tell your kids to ask themselves one more question: “Why?”
Teach your kids early on that personal finance isn’t so much about math as it is about behavior and emotion. Slowing down and asking why can make all the difference. Reflection is a real impulse killer.
Read more about Noreena’s research and why she dubs today’s teens “Generation K” here. Hint: it’s related to The Hunger Games.
Get tomorrow’s tip here.