Key to limiting stress of higher prices: budgeting
In his work with the San Diego Financial Literacy Center, Chase Peckham said nothing surprises him when it comes to what people talk about when they talk about their finances.
"What used to surprise me is the lack of really financial understanding in general. And I'm not talking stock markets, we're talking about just everyday household budgets. Businesses, they follow very strict budgets ... So, why don't we do the same in our households?" Peckham said.
Peckham, who is the director of community outreach for the Financial Literacy Center, joined Midday Edition Monday to talk about why having a personal budget is so important during these times of high inflation.
"That's what a financial budget does. It helps you create a roadmap for your spending and your saving," Peckham said.
He also pointed out that interest rate increases don't just effect the cost of mortgages, but can have a big impact on your credit card bill.
"When the interest rates go up, if you haven't noticed, your interest rate on your credit card has probably gone up whether you have made payments on time or not ... and that can make it extraordinarily expensive to keep revolving debt on those credit cards," Peckham said.
For families with children, Peckham said there is an opportunity to educate young people on the importance of financial planning.
"The best way, especially with children, is sit down with them and explain that decisions have to be made. Moms and dads, grandparents — we have to make decisions every single day about our money, and so why not teach the kids those values at a young age ... But we're really doing a disservice if we don't sit down and discuss with our children the decisions that we make for the better of our families," he said.