| |
| |
|
|
Credit Information |
|
Teaching Students To Keep Out Of Credit Card Debt - The Parents Role
Parents have the full responsibility for their children and their education. It is up to parents to teach their children what's right and what's wrong, how to conduct themselves as good citizens, how to cross the road safely and generally protect themselves from harm. In fact, up until the time that child is an adult, the parents have responsibilities in every part of that child's life, right up until the time they are a college student. The influence of the parents, however, goes way beyond college student days. Whether they like it or not, or even admit it, everyone is influenced not only by the way their parents have treated them, but also by the behavioural patterns of the parents. That influence can be good, bad or neutral, but it is there, and it affects many aspects of daily lives. One of the main features of daily life is finance: money, debt, borrowing, lending, spending, and credit cards all fall within that sphere. It follows that parents can have an influence on their children's attitude to credit cards and credit card debt. As a good teacher, mentor and financial adviser, the parent can help to create a positive financial attitude in their children that will help them through their college student days, and eliminate or prevent credit card debt from their future lives. What Can A Parent Do To Help Their Student Children Prevent Debt? Parents are not the only influence on their children. They and their children face a barrage of marketing for credit cards that has reached brainwashing proportions. Easy credit pervades society like a highly contagious virus; it is difficult enough for the parents not to succumb to the debt that follows easy credit, let alone their student children. And if the parents succumb, what chance do the children have? Well, all is not entirely lost. All parents know, or should know, that trying to force feed attitudes and habits on their maturing children is likely to backfire. Many children are rebellious, and will often be inclined to go against the parents wishes or advice. That would apply as much to teaching how to manage their finances as anything else. However, if you accept that you cannot just force something on your children, you can bring them up in an environment that may, through their own observation, make the children think twice about running up credit card debts as a student, and later still in their lives. Here are just a few ideas: 1. Get the children into the saving habit from a young age, but do it in a way that let's them see the benefits. Start a savings account for them even as a one year old, and as they get a bit older, just explain to them what it is and why. No harsh lectures, just a simple explanation that you are helping them to save money for something they will appreciate later. But not too much into the future; saying they will not be able to touch it until they are 25 will not help. The savings theme can be on two levels. Part of the savings could be long term, but part also for something the child will be able to buy within a year. That way, the child has the anticipation of a benefit within a reasonable time; the balance of the savings can go on to accumulate. Ensure you have a savings account that will pay interest on all money in the account, so that when the first and subsequent interest payments are posted to the account, you can show the child that they have this "bonus" in their account. Explain it is the bank paying them money for leaving their savings in the account. It is important for the child to feel that it is their money that is being saved, so explain it is part of their pocket money being put away. Also encourage them, but not force them, to sometimes put birthday or other gift money in the account too. Over the years, this will, hopefully, become a habit that is a useful contra to the debt culture. They will get used to the bank paying them, so when it comes to considering credit cards later, they may be more likely to question the large interest charges the bank makes for using the credit cards. 2. Encourage children to earn a bit of extra pocket money by doing little jobs around the house or in the garden. Say this will help them save for whatever it is they want to save for. Car washing, mowing the lawn when old enough, vacuuming; whatever needs to be done, ask if they would like to do the jobs for the extra money. Then, when paid, encourage them, but do not force them, to save at least part of the earnings. Again, this could become a habit that will stand them in good stead later on, and they will tend to consider the working route to extra money rather than expensive borrowing. 3. When they start doing more advanced maths, say at 9 or 10 years old, help them do a little budget plan for their savings. That will be a simple but quite mature approach for them. 4. The most difficult of all is to set a good example, but do not make a big fuss about it. Mention casually once in a while, for example when there's a commercial on television for a credit card, that the charges are so high, but it is probably best not to give serious lectures and warnings about credit cards and debt. Try not to use credit cards yourself, especially lavishly and in front of the children. There is not guarantee that any of the above will make one iota of difference, but at least, as with many aspects of parenting, you have given it your best shot. This student debt article was written by Roy Thomsitt, owner and part author of the Eliminate Credit Card Debt Now website.
MORE RESOURCES:
Credit - Google News |
|
|
|
RELATED ARTICLES
Searching For A Low Interest Credit Card? These days, people need to very carefully consider what type of credit card they will carry in their wallets. There are so many options out there, and each individual has different needs. How To Prevent Fraudulent Credit Card Transactions What Are Possible Signs of Fraudulent Transactions see at Web Hosting Companies?Customer wants to pre-pay for a yearDomain Name Registration for 5 years or moreOrders using free email address providers like Hotmail, Yahoo, etc.Usage of multiple cards to complete order. Bankruptcy Myths Busted The average American knows very little about bankruptcy. Most people probably are aware of bankruptcy's ability to dissolve debt and give the debtor a fresh start. Some Truth About Credit Credit is currently and has been historically an integral component of our economy. Credit contribute a person's net worth, and financial power. How To Read Your Credit Report The Fair and Accurate Credit Transactions Act, signed into law on Dec. 4, 2003, gives every American the right to a free credit report every year from each of the three major credit bureaus -- Equifax, Experian and TransUnion. Choosing The Credit Card That Is Right For You Credit cards represent an important part of our financial lives. Having the right credit cards is essential and will make a big difference to your finances. Credit Cards - Why Prepay? With prepaid credit cards, you get the practicality of plastic while choosing exactly how much debt to charge. By taking charge of your personal financing, you determine your own limits, to the penny, and change them any time you need to. Identity Theft : They Got Him His hard earned money? Gone. Creditors on his back everyday. Good vs. Bad Credit Debt Do you know the difference between good and bad credit debt? Most everyone seems to think that all debt is bad, but that is not always the case. In fact, there are some instances where good debt can actually help your financial situation. Choosing a Credit Counseling Company If you have considered credit counseling as an option to your financial problems, then you are probably wondering how to choose from one of the many credit counseling companies that are popping up left and right these days. There really is not an easy answer to this dilemma but there are some things that you can look for in a credit counseling company that might make the decision a little easier. 10 Ways of Reducing the Risk of Identity Theft 1- Check your credit report regularly2- Secure personal information in your home, especially if you have roommates, employ outside help, or are having work done in your home.3- minimize the amount of information someone can steal, do not carry extra credit cards, your Social Security card, birth certificate or passport in your wallet or purse, except when needed. SuperCharged Secret 4, Credit Card Utopia YOU SCRATCH MY BACK, AND I'LL BUY SOME MORE BEER!Let's just take a brief moment to recap:If you've been following along on this journey with me, learning the 5 Super-Charged secrets to Credit Card Utopia, then you now know 3 very important things:You now know how to take advantage of zero to low interest credit card offers.You now know that there is safety in numbers, and you know the magic "Who's Who" of the major credit card companies. Making Sense of Credit Card Fees In addition to the APR (annual percentage rate) and the finance charges, most credit cards have a number of 'fees' associated with their use. Some fees are unavoidable with a particular card (like an annual fee or a program participation fee), while others are triggered by certain circumstances. What To Look For In A Credit Card When you are deciding what type of credit card to get it is important to compare credit cards to each other and find the best deal for you. There are a variety of different credit cards available, from low interest cards, cash back cards and even reward credit cards, it's hard to decide what exactly the best credit cards are. Free Credit Reports Now Available From the FTC The Federal Trade Commission (FTC) has set up a new website (www.AnnualCreditReport. Credit Education Having credit education is like knowing how to read. It will be necessary throughout your life. Credit Counseling -- Why It Doesnt Work For Most Debtors "Cut Your Payments in Half!" the headline screams. "Consolidate Your Bills into One Low Monthly Payment!"When you see ads like this, they are often from Credit Counseling firms. Credit Repair Scam - How To Avoid Being A Statistic? A good credit history is critically important for the consumer. A bad credit will prevent you from getting a business loan, owning a home, or even a job. What is a Credit Card? A credit card allows you to buy things even though you might not have the money to pay for it right away. The company that gave you the card lets you spend up to an agreed sum and then makes additional money available to you as you pay off what you've spent. 14 Common Credit Mistakes Establishing credit and wisely managing your credit becomes easier when you know how. You'll feel empowered by taking knowledgeable steps towards good credit, and you'll be on your way to purchasing real estate and greater financial freedom.
|
||||||||||||||||
