7. Why People Fall Into Financial Traps

My parents didn’t teach me about finances. I was expected to go to school, study hard, get a job and pay my bills. We didn’t have credit cards, cash was still acceptable and, in many cases, the only way to pay your everyday bills. My parents would go to the local electric company store to pay the electric bills. We had no telephone.

There were banks for businesses and savings and loan offices for the worker.

My father went to the savings and loan office to pay our mortgage and, you were allowed to run up a tab at your local grocers until payday. That, in many cases, was the extent of your debt--the grocer.

Only businesses used checks. You got paid by check and usually cashed it at the grocer’s and paid him any monies owed. The milkman and the bread delivery driver got paid weekly, or whenever you were at home.

I didn’t teach my kids very much about finance either, other than some basics. They learned about checking and savings accounts and my wife showed them how to balance a checkbook. We told them they had to go to school, study hard and get a good job. It would be nice, we said, if they could get a job that would allow them to do what they like, but don’t count on it.