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| Teen Bank Cards - Lessons In Responsibility |
Let's face it, your teens are growing and want a feeling of freedom and independence up.
While you, the mother or father, don't want to see your children grow up and leave the nest it is a fact of existence that they can be from their own in a few short years.
Given that your teens will be leaving for college or getting into the workforce earlier than you might think I believe it is finest to start teaching your kids fiscal responsibility at the initial possible age.
Did you know based on the Jump Begin Coalition for Personal Financial Literacy that almost 1 / 3 of high school seniors possess a credit card?
This to me is usually a frightening statistic especially if those teens have not been armed with sound financial education.
To me, the mixture of a teenager and an unsecured credit card are a ticking time period bomb of financial disaster
Yes, that's right teens are getting themselves into financial problems from the gate. Parents must start teaching their children about economic responsibility before their teens acquire personal credit card debt.
Why not start teaching them about credit cards right away to handle the problem of personal credit card debt long before it becomes a concern.
You borrowed from it to your kids to provide the lifespan skills they'll need when they are young adults. I only wish my parents talked about credit cards spending with me when I was in my teen years.
At the tender age of 18, I acquired my first credit cards and within the initial month of holding my first credit card I had the $1000 limit maxed out.
While a thousand dollar credit line isn't a large amount of debt, the nagging problem was the indigent credit spending habits I had developed.
Some tips about what happened that produced 9 years of me digging out of personal debt.
It started with the $1000 limit about my first credit cards that We pushed to the limit. When I saw that I really was only servicing the interest with my minimum monthly premiums I started paying larger amounts on my cards.
It had been when I was close to having paid down half of the $1000 balance on my credit cards the credit card issuer increased my limit to $1700.
Since I hadn't had good credit spending habits instilled in me at a young age, I saw this as some free money and decided to go on a road trip with my buddy.
I looked at the upsurge in my borrowing limit as having $1200 in available funds to go have some severe fun. At age 18 and having over one thousand dollars in credit paid for gas and a lot of bar expenses (Yeah, we managed to get into a few bars).
Within 9 times my credit cards were maxed out once again!
Now I owed $1700 on my cards and the routine of paying off my cards and getting credit limit increases repeated over and over again until my stability owing was roughly $15000! That took me almost 9 years to pay off!
Help your teens prevent the nightmares and headaches of digging themselves into debt simply by teaching them how exactly to use a debit card and monitor their spending at this time.
Even if your kids are just getting into their teen years, the previously you can begin teaching them the better off they will be when they become adults with real-world bills and financial duties.
Generally, parents have tried to teach their kids about money by providing them with an allowance which they must spend budget until their next allowance day.
This is a good start to teaching your kids how to budget however the problems in having maximum impact when you discuss monetary issues with your children and their spending behaviors with their allowance is normally you have no means of tracking their spending.
The money is positioned in your teen's hands and the amount of money leaves their hands without a trace.
There is one credit card issuer that's changing all that, it is the Allow Card. The Allow Cards is a prepaid debit MasterCard that provides you, the parent, on-line usage of view your teens spending.
Now you can have a genuine conversation with your kid about spending. The way this program function is normally you fund the card via your credit card or bank account and then your teen is absolved to spend the money until they are gone.
Afterward, you can log in online to see where your child has been spending money and then can discuss strategies for stretching their allowance.
Begin educating your teenagers about responsible use of a credit card right now with a card such as the Allow Card.
Not only do you be provided by the card with the opportunity to discuss credit card spending with your kids, but there is also a series of financial lessons that your children shall receive to further their financial intelligence.
As a mother or father you are responsible for educating your kids in financial matters, don't leave it to the school system, you must do something to teach your children about money.
Enough time that you invest right now with your teens are lessons that will last a lifetime.
Thanks for reading and please visit my personal website for more details www.ahmadikatu.com
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