Finances

Finances include the money and non-money resources that can be exchanged for goods and services in a marketplace (e.g., shelter, food, clothing, entertainment, travel, recreation). Throughout the life span, individuals ideally develop a capacity to use financial resources in ways that support one’s goals. Financial development can take place in formal and informal settings. For example, children and adolescents may be guided through early development by caregivers who give an allowance, or offer cash for chores performed around the home, and through conversations with parents and teachers about finances. When adolescents transition into early adulthood, changing roles and expectations define the financial development context. These include becoming financially self-sufficient through work, developing human capital [Page 885]through educational programs, learning to account for life’s risks through ...