We make thousands of spending decisions each year. Some purchases are truly needs, while others are clearly wants. But why is this distinction, which appears to be so simple, often so confusing?

Saving is a learned behavior. It’s something kids need to practice over and over from an early age. When teaching your child how to save money, it is important to start early. I worked with a family whose 12-year-old son, Luke, decided he wanted to buy a car when he turned 16.

There’s no question about it, everyone has suffered through the recession. But, according to a recent study released by the Pew Research Center, young adults are arguably being hit the hardest by today’s economy. Only 54% of 18 to 24 year-olds are employed, the lowest since the government began collecting this data in 1948.

There’s no question about it. Money is a necessary ingredient for happiness. We need it to meet our basic needs on a daily basis.

How does our culture’s hyper focus on shaping youth spending habits square with the new austerity trend that is sweeping the globe? The contrast couldn’t be more dramatic. Imagine how confusing the message of austerity must be for youth around the world.

Establishing and maintaining an emergency fund is one of the most important things you can do for yourself—both financially and emotionally.