Brown: Candidates needed for family chief finance officers

In the Smart App spending generation, there are various ways to make a purchase. Each day, I watch students make purchases with their smart watches from the vending machines. Are there lessons to learn from them? For starters, we need to embrace new ways of tracking our spending and say goodbye to the good old paper and plastic (credit cards and checks).

Generations of check writers often realized too late that they wrote checks without having enough money in their account. Credit cardholders often pay the minimum amount each month, not appreciating the downside of interest added to the balance owed.

Carla Cargle, author of "The Financial Truth: Your Mind, Your Mouth and Money," and Valerie C. Morris, a former CNN correspondent and author of "It's Your Money So Take It Personally," agree that smart spending requires financial intelligence - essentially being more aware of your money and where it's going. A key observation about the Smart App spending generation is that they know exactly how much they've got in the bank - there are ways to set up their accounts so they get all sorts of notifications to help them stay on budget.

Am I envious of these millennials and their options in acquiring financial intelligence, in mastering the art of budgeting and prioritizing spending and saving? Let me take you back to my elementary school days to help you understand my early relationship with money.

I was at the laundromat with my mother and sister when Mom realized she needed a quarter. Mom later became furious with me after she discovered I had a dollar in my pocket and did not let her use it. I am still the joke of the family. This was the beginning stages of my financial intelligence. I would hide my money and refused to let others borrow from me based on my observations of family and friends. If I loaned them money, could I trust that they would pay me back? If so, when? How would that affect how I would be able to enjoy what I earned through my hard work?

Many of us know someone who always borrows money or asks others to pay their bills. The borrowers will smile and say, "I promise I will pay you back." The reality is that you can't get rid of generational debt overnight.

Morris provides insights to the root of financial intelligence. What does it cost to run - or live - your life? Have you evaluated your needs versus your wants? These are simple questions you can ask yourself whenever you are approached by someone who wants to borrow money. Often, those who borrow money or fail to pay their bills on time have a poor mindset - a mindset that Cargle says tells itself "I'm broke" or "I don't have enough."

Cargle is convinced that people can move away from that mindset, whether they are 20, 40 or 60.

"We can change to the wealthy mindset of peace of mind and make wise choices with money," she says.

It is not easy. I've been in higher education more than 20 years. In my role as academic adviser, I've seen millennial students receive their financial aid refunds and immediately send that money home to assist their families, who are struggling for any number of reasons. They are, in short, giving away or loaning the money they earned on their own merit to go to school. Often, this causes their academic performance to suffer. For example, some miss class due to working additional hours to play catch up on bills, bills they would have been able to pay had they not sent money home. It saddens me to see the look of stress and fatigue on students' faces. There must be a resolution for those who have never mastered budgeting or money management before getting to their college years - the first time many young adults will be independent of their families.

Cargle recently met with a client about this same issue. She says it is about guilt, about people feeling obligated to loan money because of their relationship with the borrower. However, those who choose to loan money must understand that should be clear that "when we loan money, consider it a gift." That way, people won't be disappointed or angry when the borrower dodges your emails, texts and phone calls.

Morris also warns that some people will come to depend on you loaning them money. There are other avenues to pursue, she noted.

"You can refer people to resources that are available that will assist them in their situation," Cargle said. If you choose to be a "financial resource" for others, what happens when you need help?

Here is one idea to begin making changes today. Morris suggests families designate a Family Chief Finance Officer who will facilitate one-hour monthly meetings to discuss the budget and make everyone in the family more comfortable talking about money, financial decisions and choices. Each family member has a role at the meetings. For example, three- to five-year-olds can be responsible for loose change, which they can store in piggy banks. Teenagers can research discount apps for clothes, food and travel. College-bound young adults can use this time to become familiar with budgeting.

Cargle says parents and their families can learn together about the principles of money, budgeting, when to use a checking account, the purpose of a savings account, credit cards and life insurance. Perhaps this is how we can empower the next generation with financial intelligence.

Cargle, Morris and I suggest three steps to acquire financial intelligence:

-Own one major credit card you can use for up to $5,000 in an emergency.

-Do not sabotage your relationships for your money (and always run a credit report before you say "I do.")

-Set a personal goal to secure your family's financial freedom today, tomorrow and forever.

Nicole Brown serves as the adjunct professor and academic adviser for the communication department at The University of Tennessee at Chattanooga. Twitter: @LiveNicoleBrown.