By Laura Taylor

Most kids know exactly what they want to be when the grow-up. Unfortunately, landing a position as a pirate or princess isn’t always easy. On the other hand, one thing we all will be when we grow up—whether we like it or not—is a consumer. While being a consumer isn’t as glamorous as being a superhero, it is important and does require a lot of training.

Learning to be a good consumer provides a basis for financial success; but many American students complete 12 years of schooling, with little or no attention paid to economics. As a result, many consumers find themselves on their own to learn from the school of hard knocks. In fact, Americans currently owe more than $2 trillion in non-mortgage debt and have little savings.

The experts at Consumer Credit Counseling Service, a division of Money Management International, have identified the following tips for wise money management:

• Take an active role.  If you are not on top of your financial strategy or are not sure that you even have a strategy, it is time to make a plan. Smart consumers control their money rather than allowing their money to control them.
• Live beneath your means.  Learn the difference between needs and wants; experts agree that one key to happiness is to be content with what you already have. 
• Expect the unexpected. No one plans to lose a job or suffer from illness.  Being prepared for life’s setbacks will give you peace of mind and help you to survive financially if the worst should happen.
• Plan for tomorrow. Shockingly, personal saving as a percentage of disposable personal income is currently in negative territory. Make it a habit to pay yourself first. Don’t despair if you are behind on your savings goals—it is never too late to make a positive change.
• Keep credit under control. The percentage of disposable income dedicated to debt repayment is near record highs. Smart consumers use credit as a tool of convenience, rather than an extension of their income. 

Perhaps most importantly, being financially savvy will set a good example for your children. Kids learn many habits from their parents, and financial stability is a great trait to pass on. Finally, know when to seek help. Seek nonprofit, community service organizations that provide professional guidance, counseling and debt management assistance to consumers. 

Laura Taylor is the director of education and community relations at Consumer Credit Counseling Service of Greater Washington Inc., a division of Money Management International. Visit its website at crediteducation.org.

Disclaimer: The views in the column are those of the author and not necessarily those of DISB or its management.