As a parent, does it really matter what material possessions you leave to your children? It’s always nice to give them things, but at the end of the day, at the end of your life, you hope that your children have learned the most important lessons you passed on to them. One of the most important lessons you will ever pass on is that of taking responsibility.
It’s not just about money. It’s about becoming self-sufficient, a survivalist, and a person who has a good reputation in the community. Children need to learn these fundamentals if they are going to find their way in life. The world is not kind to people who beg, who steal and who refuse to take responsibility. Now, while they’re young, is the best time to educate them regarding financial responsibility, reputation and credit.
Of course, while teaching your child the basics of finance and credit, you may actually learn a few things yourself. Many people are tempted into buying something that their finances could not possibly pay for. Collectively, the education that we think we have regarding credit and banking is mediocre at best. And it’s no coincidence that so many adults and youngsters are falling into debt because of their erroneous financial decisions.
Starting With the Basics
So it’s time to learn how the system really works so that you and your children can climb out of debt and stop it from ever accumulating. This may require a return to the basics, such as you will find at our Credit Card Education Centre; a page written for parents and educators to cover all the essentials of credit, lending and pay back. The topics discussed are not just dry contract-style information, but an educational approach with topics like how to teach teens financial responsibility, deciding on whether a young person is ready to have his/her own card, the responsibility that parents have, advice from experts to parents, and even a financial responsibility pledge. (There’s even a credit card quiz just for fun!)
Quite frankly, we think it’s a shame that financial planning isn’t taught more often in high school curriculum. Just think how different the world would be if financial limitations and perspectives were taught from educators and parents from an early age. Why, we’d all be debt free and living like Vikings! Err, in a good way, of course. Like Valhalla…
One common mistake we see is that parents purposely avoid talking about credit to their children. They think of the card as some sort of Pandora’s Box, destined to turn these sweet innocent little babies into mall-stalking monsters. We won’t lie to you…some of your children will be turned into mall zombies…but at least they will avoid the trap of massive credit card debt.
That is, IF you teach them from an early age to:
- Avoid buying on impulse
- Never charge purchases you don’t have the funds to pay
- Stop adding onto a card with accumulating debt
- Buy only “cash”, as in the cash you have in your bank now
Yes, in essence a credit card is meant as a rewards system. Not free money. Not emergency funds. (A credit card is not a savings account!) Namely, you make purchases that you can already afford, but pay them off quickly and take advantage of your card’s rewards system.
This is a proper view of credit and it’s precisely what the Education Centre teaches students, teens and parents (who could always use a refresher course). Come and check it out today…it’s free, easy and without obligation!
Such a timely article, with Financial Literacy Month starting on Thursday. Thanks so much for the great advice that everyone can use!