Tomorrow's CPA: The Blog

Shockeroo! You and your parents view money differently.

A recent survey from Wells Fargo says that when it comes to personal finance, young people ages 18 - 22 know what's good for them but their parents know what's best for them.

That there's a generation gap is not news.  But the size of the gap is.

For example:

--95 percent of parents feel their children will reach their financial goals; only 5 percent of young adults share that confidence.

--92 percent of parents feel budgeting is effective; only 5 percent of young adults agree.

--Parents' three top priorities for their children are to find a job,and pay off their credit card debt; young adults want most to find a job, buy a car and buy a home.

--A much greater percentage of adults understands credit scores, annual percentage rates, 401k(s) and compound interest.

Like most surveys, this one also raises some questions. How many of those surveyed were 18 and how many 22?  How come the parents interviewed are so much more financially literate than average American adults?  And aren't certain goals--like wanting a set of wheels--simply age-appropriate?

Everyone, parents and young adults alike, can benefit from a solid education in financial literacy.  That's why CPA nationwide are committed to improving the financial IQ of all Americans, of all ages.  You'll find voluminous information on personal finance at the 360 Degrees of Financial Literacy site.

Visit there today.  And take a parent with you.

He shoulda known better

How easy is it for fraud to spiral out of control? Just ask Aaron Beam.

He is co-founder and former CFO of HealthSouth Corp., home of a $2.7 billion accounting fraud that took place between 1996 and 2002. Beam served three months in jail for his role in starting the fraud. In the process, he lost  most of his personal wealth and now does lawn care for a living.  Read this interview with Beam, which ilustrates just how quickly a seemingly minor infraction can snowball into major corporate fraud.

Among his words of wisdom:  "The correct thing I should have done was, at the critical point when we weren't going to make our numbers, I should have said no (to any illegal actions). "If I got fired, I got fired. Once you actually commit fraud and have blood on your hands, getting out of the trap is very difficult."

I doubt Beam was a CPA.  In Maryland you have to take an ethics course in college and pass an ethics exam just to become a CPA.

Even that is not enough.  As a professional CPA you are required to devote at least four hours of training to ethics every two years. 

So CPAs take ethics very seriously.  You can ask Aaron Beam why.