I am in working in a bank since last 25 years,but I am yet to know banking , money and finance.

Holly is unquestionably right. If people pull their heads out of the sand, then maybe they will realize they know what they need to do and just resolve to put those ideas into action. Being 22, I have fortunately not gotten myself into too much trouble with money. Well I am not too proud of the $1860.00 I have on a credit card. I have the money to pay it off but since I have an interest rate of 0%, I figured why not pay the minimum and put the rest of the payment in savings to earn 3% in ING for me until June of 2006. I realize this is a plan that hinges on self control. I think I can handle it. I have been going to a community college and paying for school so as not to rely on loans. I have learned the value of contributing my 401k and IRA now instead of later when I have "more" money. I am sure this great site along with a few other blogs will keep me on the straight and narrow financially.

Thanks for the nice comments, Becky.

You're far ahead of a lot of the twentysomethings I know. (And thirtysomethings, too, for that matter.)

Part of the problem is that we do not teach the basics of finance and budgeting to our young people. A few schools offer a basic living skills course as an elective, but I've always felt that a more comprehensive course should be a requirement. I'm not a teacher or educator, but I know that I've used more of the skills that I learned in my 12 week high school "Bachelor Living" course than I have in many of my required courses. Remove one semester of an elective course and require high school students to take a course on basic living skills. A course that would touch on budgeting, balancing a checkbook, saving, credit, etc...

Dale,

My fine home state of Oklahoma had a Senate bill in the works this year to mandate just such a personal-finance course. It would've required one semester of "money education" in high school in order to graduate.

The bill was defeated in committee. Its main opposition was spearheaded by a congressman whose other occupation was ...

... financial advisor.

Pay yourself first.

That is my strategy.

I know it sounds cliche, but I can't over emphatize.

40% of my pre-tax income goes directly into investment accounts. This happens at the same time (or day at least) that I receive the paycheck.

The government keeps about 25% of my pre-tax income.

After that.... Every single penny is fair game. I spend it all. Not that there is too much left (35% of my pre-tax income, and my mortgage alone consumes about 20% of it). But I feel like I can spend freely in anything I want as long as I can afford it without getting into debt.

It works.

Money and Investing