But watching a group of young men graduate in year 12 and leave the school environment for the last time one thought struck home - how much more complex life is for a teenager these days than it was just 20 years ago.

In 1986 young people - or old ones for that matter - didn't have to worry about mobile phone bills or credit card debt spiralling out of control. The latest high tech gadget we were having to deal with back then was probably the facsimile machine.

The simple fact is that life in today's world - be it office, home or school - is much, much more complex and inherently more dangerous for young people when it comes to managing the array of financial options they have.

The challenge was driven home this week by the chairman of the Financial Literacy Foundation, Paul Clitheroe. He is spearheading the effort to get financial literacy subjects included in school curriculum across the country and progress is being made with years 3,5,7 and 9 due to include material from 2008.

Clitheroe reminds us that budgeting as a teenager 20 years ago was a much simpler process - if you didn't get to the bank by 3pm on Friday you did not have any cash to buy beer with over the weekend.

That's real life financial planning for you. Today we take access to cash - or credit - for granted 24 hours a day 7 days a week. We grumble when an ATM is not close at hand.

Clitheroe cites research that perhaps highlights the difference between his generation and young consumers today. If you have teenagers or young adults in the house ask the question: how much do you owe on your credit card?

The research among young people, according to Clitheroe, suggests the typical answer will be the minimum amount that has to be paid that month to keep the bank or card issuer happy. Older people understand that the most important number is the box that contains the total amount outstanding. That's the real debt.

Perhaps that knowledge comes with experience but what is critical is that young consumers have a good understanding of what the costs and consequences are of simply maintaining credit card debt month to month.

The Financial Literacy Foundation has produced a simple booklet called Understanding Money which can either be ordered or downloaded from http://www.understandingmoney.gov.au/ and there are also simple loan calculators and budgeting tools to help people do a financial healthcheck.

No-one wants to turn the clock back but convenience comes with a price and for younger consumers it is complexity that potentially can lead to dramatic outcomes like personal bankruptcy.

As we head into the annual spending silly season taking the time to remind yourself or family members of the basics of keeping debt under control by perhaps simply doing a budget for Christmas spending is a great investment of time- for both the young and the young at heart.

Smart Investing
By Robin Bowerman
8 September 2006
Principal & Head of Retail, Vanguard Investments Australia
www.vanguard.com.au