Educating youth on what it means to be financially informed is not on the educational curriculum list in most schools, if any at all. Given the struggling economy, the stock market crash and the job cuts; financial matters are not only in the news daily but weigh heavily on the minds of most Americans. The financial well being of the country is different than it was 20 or 30 years ago. The United States has gone from a bountiful economy where consumerism is a way of life for most, to a country and its citizens now just struggling to stay out of debt. The financial health of the country as evidenced by history, experiences cycles. The difference with the current cycle is that the more advanced we become and the more opportunities for debt that are available- the more dangerous and difficult it is for individuals to dig themselves out of a financial hole. Youth who are not equipped with the tool of knowledge to make informed choices about their personal finances could find themselves in great financial crisis to the point of bankruptcy that can affect their future.

Youth today have no formal training in the area of finances. For many kids today their parents also lack either the knowledge or economic stability to provide direction for their children in the area of personal finance. Many Americans have found themselves in financial distress at one time or another. Youth face a number of factors that have the potential to negatively affect their financial futures. Student loans costs are skyrocketing and legislation is pending for proposed changes to the entire industry. In part this legislation came about because some students can’t afford higher education and others are defaulting on student loans. Those who are able to secure educational funding have successfully graduated from college with a degree in hand only to find themselves without job prospects and mounting debt from loans and the interest attached to them. Credit cards have historically preyed on unknowing youth by offering incentives to apply for credit cards. Without reading the fine print some have fallen into the credit card trap and been left with thousands of dollar debt that have followed them well into their adult lives. There is also legislation that will become active in early 2010 that will work to tighten up the management of the credit card industry that has been historically unregulated. This legislation will work to protect future card holders but there is still a personal responsibility that comes with any type of loan or credit that must be realized. These are just a few of the common situations relating to money that make it necessary for our youth to receive training to better manage their personal finances as they reach adulthood.

There are a few creative and innovative strategies that have been in the media recently that focus on educating youth about the economy and personal finances. Visa Inc. in partnership with the Federation Internationale de Football Association, which sponsors the World Cup competitions, has developed a video game called Financial Soccer. Financial Soccer was developed using the basic methods and rules of soccer to teach youth the importance of financial responsibility. It is a computer game with varying levels that uses a series of questions that range from simple to complex depending on age. The goal is to help young people learn the financial basics and work to develop good future money habits. The U.S Treasury Department also recognized the need to education youth on finances. The KidCreditSchool.com is an online program launched in 2008 designed to provide education and training online for both kids and parents.

These are just a few of the programs that have emerged in response of the identified national need to increase education on the basics that will protect our youth from financial illness. The importance of knowledgeable and financially sound youth is essential for the financial health of the country as a whole.

Youth Need Training on Personal Finances was created by and is property of American Consumer News.

However, no matter how well budgeting can work for you, you still have to work for your budget. Just as not everyone is cut out to save money naturally, not everyone is designed to create and follow a budget. Many will attempt many times to establish something on paper, only to stray away from it shortly afterward. Budgeting does not come easy for all people. It is a process and it takes a commitment. Budgets tend to fail because the user tends to fail their budget.

So how can a non-budgeteer get better at mastering the craft of budgeting? Here are some simple tips to move past your bad budgeting days and make it a positive and life long money habit.

Figure Out What Motivates You

Many people have the best intentions when starting out with a budget but without a specific purpose most budgets will end up failing. When it comes to creating a budget, you need to have a reason behind it that will help motivate you to stick with it. Your ultimate goal in budgeting is likely that you want to get out of debt or retire at a certain age. Whatever your reason, whatever your goal, consider your motivation behind your budgeting practices.

Figure Your Figures

In order to create a budget, you have to know what you are dealing with. The only way to know where your money is going each and every month it to track your spending for 30 days straight. Most people will stop at this step and never move forward with a successful budget but tracking where each and every penny goes will help you set up your budget and give you some room to cut out the unnecessary spending we are all prone to do. Forget the fancy software. Just grab a convenient sized notebook that is easy to carry with you everywhere and make sure you are tracking all monies spent.

Be Reasonable

While it is fine to have certain expectations, it is worthless to have unrealistic ones. Do not expect to go from your usual lifestyle to the most frugal person in the world overnight. It is an unreasonable goal that you will likely never attain – forcing you to throw in the budgeting towel. Start in steps. Take baby steps and build up from one goal to several reachable ones. See where you can make some cuts and increase your savings potential.

Make It Work For You

With so much talk around about different financial tricks and methods to save and manage your money, it can be tempting to believe that every system will work for every person. One of the key things you need to remember is that you only need to worry about what works best for you. Just because your parents or your best friend uses one method that works does not mean that the same method will work for you. It may take several tries before you come up with a system that really works for you an that will enable you to stick with it for the long-term.

Go With The Flow

Remaining flexible is very important on the road to financial freedom. Life will throw curve balls and if you are not willing to go with the changes, you won’t be very successful. Maintaining a budget requires on-going work and changes. Be open to new ideas and ways of doing things.

Tips for Fixing a Busted Budget was created by and is property of American Consumer News.