Time Magazine recently wrote of the rising college debt that kids are leaving college with. On top of a heightened unemployment rate, we must prepare our kids to create their own jobs. Entrepreneurship and small business creation is on the rise and will be what pulls us out of the recession.
It is of utmost importance to teach kids about how business and money work and give them the tools to create financial stability for themselves in the face of troubling economic times.
Here’s an excerpt from the Time article
College Graduates Face Record-High Debt In the Age of Record-High Unemployment
The news just keeps getting worse for college graduates. According to a report out today from the Project on Student Debt, college seniors who graduated with student loans in 2010 owed an average of $25,250—the highest level ever recorded and a 5% increase from the previous year.Those debt-carrying graduates also faced an impossibly tough job market, as unemployment for new college graduates hovered at 9.1%. Add to that the fact that the average debt total doesn’t include for-profits institutions, which often saddle their students with much more debt than a traditional college, as too few provide the data to be included in the study — meaning that the state of student debt is likely much worse than we know. The debt figures add weight to the push to curb skyrocketing student debt.
Start preparing your kids to be Money Smart while they are young so they can navigate the economic challenges they will face upon college graduation.
Give kids real-life, real-money experience from a young age. Support them in exploring money through doing business projects, selling their outgrown toys, doing chores for neighbors, or anything they can do to raise money. Then, most importantly, help them start saving to invest a portion of their money.