Should you Teach Good Money Habits to your Kids?
It’s alarming that credit card companies approve credit lines for students at an early age. Most high school seniors and college freshmen receive their credit cards even before taking the first mid-term exam! In addition, cross-marketing with retail affiliates (like Visa-issued Gap cards for example) make it easier to do impulse shopping.
Another concern is that financial literacy and money values are not taught in school. These days, teens want instant gratification, and saving or long-term planning is a thing of the past.
With material expectations and peer pressure, many teens are now viewing consumer credit as social entitlement and not as earned privilege. Added to that the promotion of some credit card companies where they offer electronic gadgets as reward for high purchases. They imply that the more people spend, the more “fun” they will have and the more “toys” they will receive. Thus, saying that a credit card is a “currency of fun” distorts the thinking of students that they have the right to pursue happiness through shopping.
Giving easy consumer credit to young people demonstrates a host of psychological and emotional problems. If they have poor payment habits, they will have poor credit reports. Later on, they might be shocked that they have been rejected for car insurance, auto loans, apartment rentals, home mortgages, or even jobs.
Don’t let this thing happen to your children. Teach them good money habits before going to college and save yourself a lot of headaches and heartaches in the future.