Money does grow on trees!

By estherbangura | Banking

Nov 25

Why do we lie to our children by telling them, Money doesn't grow on trees?

There is definitely a tree- a breathtaking, awe-inspiring tree! Where?! I hear you screaming. In the city of London of course just go to the Bank of England. You can get millions of pounds by a touch of a button, once you have figured out the whole fortress security issue. If you want to bypass security, you may be able to get money sent to you digitally. We witnessed banks receive billions of pounds as part of the government bailout plan during the 2008 recession. Unfortunately, the printed money was supposed to encourage households to spend more. It was anticipated that the spending would have improved the economy. However it only boosted the property economy and enabled the rich (who already had assets at the time) to prosper further. That’s correct- the Bank of England just printed off a few billion pounds to bail out the banks. I accept that if they didn’t do this unemployment would have been higher. As a whole society would have still been worse off. Some critics say that the Government would have been better to give every household a certain amount of money. This would pay off debts and pay their bills instead of bailing out the banks who were irresponsible with our money in the first place.

“It is crucial that we tell children the truth about money and how money works." 

So the next time you rush to tell your child the lie that ‘Money doesn't grow on trees’, you may want to tell them instead the brutal truth. Money does grow on trees, and the way this printed money is distributed and managed can impact our economy. Money is printed to sustain banks, pensions and investment.

Who gets the money tree?

Even though Money does grow on trees, this only benefits the government and Rich people. For you and I- Money grows through our hard work and sweat. As a woman aspiring for wealth, I have nothing against rich people. This blog is to answer the question 'does money grow on trees?’ The answer then is yes, but just not for you!

What does this mean for you?

Knowing that we can't print more money to easily bail ourselves out of personal debts, - should make you want to be smarter with your money. Personal debts include credit and store cards, student loans, secured or unsecured loans and even mortgages. Banks will get printed money to pay off the money they owe. Nevertheless you may have to get a second job or work longer hours, consider working past retirement to pay what you owe. Bearing this in mind, don't you think it's time for you to consider managing your finances better? By better I mean; become debt free, have a six months emergency fund. Start to contribute to your pension, pay off your home as soon as possible. Teach your children how to be better with money so that they can afford to one day bail themselves out if needed.

As grandma says, “Save for that rainy day.” Don’t shoot the messenger!

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