I was talking with our 13yo and one of the 11yos about the credit crisis. They were trying to understand why so many people are having such extreme problems. So, I tried to explain about how in society many people rely on credit in order to buy things. Some people have to buy food and clothing that way and others houses and cars. Of course the conversation turned to why don't people just save their money and then buy.
So, first off I am not attacking people with credit cards. I am however sharing how I at least attempt to teach my children about money.
In our family we do not have credit cards. I do have an account of credit for emergencies merely because we haven't had a chance to save a rainy day fund. We do not buy things unless the money is there. So, the girls were having a hard time understanding about people just going and buying because they wanted something.
I took them to the Bible. Galatians 6:7b ...for whatever a man sows, that he will also reap.
This verse and passage cover alot more important things than the economy, however it implies even with the economy that if you sow poor money management that it will come right back at you.
In the U.S. and elsewhere people are used to living above their means. Our government has enabled this with the easy loans and also with programs meant to help those in need. Fixing the problem starts at home. How are your finances?
In our house we are teaching our kids that while money does make the world go round, that it is not the source of life. Success in life isn't about how much stuff you have, it's about how many lives you have touched for good.
Perhaps I can have this view because the economic crisis isn't directly affecting us. Our mortgage isn't one of the ones in question, we don't have investments in these companies that are losing value. Yes, we are paying more for groceries, yes we pay more for gas, but we know that the Lord will provide. God is our Source.