I was in a store Christmas shopping the other day, found the item and approached the cashier. There was a young man and woman ahead of me fumbling for a credit card in the young woman’s purse. They slid it into the credit card machine and it was “denied.” After another credit card was denied, they finally found one that was accepted.

Maybe you can relate, maybe you pay cash for everything, or if you use a credit card, it is paid every month, so there is no revolving credit charges of 18% to 21% on the owed balance.

Most of us have been there some time in our lives — we overspend and extend our credit so we are paying the minimum amount until we can pay the balance. Some abuse the credit card and it is rejected and made invalid so it cannot be used any more.

I my early days of being an adult, I had a good job, but was always on the cusp of overspending because I couldn’t curb my buying appetite. But then I finally decided I was sick of living paycheck to paycheck and on credit. We saved enough money so we could pay everything off — it certainly wasn’t as hard as it seemed to be, just demanded discipline. Everything was paid in cash, no credit cards were ever used again.

After our free and clear status, we only used a credit card for emergencies. Then at the end of the month it was paid off. I had a job, but wasn’t making huge money, just managing what I made. My wife also wanted the same things I did — no debt — so she was also spending only what was needed.

After a while, we had a nice emergency fund built up and savings in the bank. My employer also had a 401K plan that allowed 3% match on every 3% or more I put in. A total of 6% was being saved every pay period into my 401K. After any pay increase, I increased my 401K level, eventually up to 12%. Every year for year after year.

I tell you this because I started with nothing, just an opportunity to work at average wages. As my skill level and knowledge increased and I was given more responsibility and projects, I made more. Now some people would blow this extra cash on frivolous things such as new clothing, furniture, or a used car when they really didn’t need these things. I put it in the bank or bought appreciating assets (like paying down my mortgage balance). My 15-year mortgage was paid in 12 years, just because I paid more than owed. And I really didn’t miss the money.

I see young people such as the ones described in my opening paragraph and feel they just lack financial education, how to handle money responsibly. Money does not make you happy, it only gives you options. The more you have the more options you have. Some give to charity, some buy cars, boats, things they always wanted. These are temporary highs providing happiness. I see other people paying cash from wallets or envelopes for what they want — they have the right idea, not going into debt with credit cards. I encourage anyone with a credit card debt to pay it off as quickly as possible and cut the thing up or only use it for dire emergencies.

I’m certainly not rich by any means, I’m comfortable. But I have enough and feel fortunate to be able to share with others through charity, anonymous giving to those in need (like giving a $100 tip to a young lady serving us in a restaurant saying she was just about done with college and was looking forward to starting a new job — I figured she needed a little boost). I’ve given to others anonymously only because I don’t do it for personal recognition, just knowing I could help monetarily to someone in need. My private pleasure to help others.

I hope these young people get their finances under control and start to get a handle on where their money is spent and how to gain control of their habits. Because money is freedom, not happiness.

Credit card companies are rich on unsuspecting people not knowing how to use them properly.

I hope your Christmas was great, and have a Happy New Year!