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.

---

The Art of Stoozing to Make Money from Credit Cards

Make Money from StoozingStoozing, this is a sophisticated method of... Read More

Why Your Credit Score is Important

Your credit score can either haunt you or reward you.... Read More

What is Credit Counselling?

Ever wondered what is Credit Counselling? There are occasions when... Read More

Boosting Your Credit Score To Get The Best Credit Card Deal

Making Your Credit Rating Work For YouOne of the basics... Read More

Different Types of Credit Cards and Features - Part 1

Just as there are too many credit card companies to... Read More

Saving Money: Quick Cash, High Cost

I didn't think it was possible. But it is. Folks,... Read More

Five Debt Negotiation Facts

These five debt negotiation facts along with a few debt... Read More

Understanding Your Credit Score

When you apply for credit one of the first things... Read More

Defeating Credit Card Debt With Self Control

Credit card debt is a major social problem in some... Read More

Check Your Credit Before Shopping For That Home Loan

Review Your Credit Score.Nearly every bank, credit union, and mortgage... Read More

Automobile Credit Report

When applying for a loan to purchase a car, the... Read More

Collection Agency Secrets for Collecting on Bad Debt

Getting worried that one of your clients, customers or patients... Read More

Credit Repair Companies and Credit Counseling

Let's be crystal clear, right up front. Paying someone to... Read More

10 Ways To Boost Your Credit Score

1. Deleting Errors in 48 HoursThis is the absolute fastest... Read More

The Next Person With Credit Problems Got Their First Credit Card Today!

One of the focus areas of my information is the... Read More

Credit Counseling: Could it Work for Me?

In the face of financial hardship, many seeking a responsible... Read More

Know Your Credit Card Rights

When you apply for a credit card, the application that... Read More

Finding the Right Credit Card

There are so many credit cards out there to choose... Read More

What Is A FICO Score?

A credit score is most commonly known as a FICO... Read More

Credit Score ? for Scoring the Right Loan

Somebody once said, "There is always a way of knowing... Read More

Free Credit Report ? A Website Typo Could Be Costly

In 2003, Congress passed the Fair and Accurate Credit Transactions... Read More

How You Can Help Prevent Identity Theft

How can I prevent Identity theft from happening to me?... Read More

Bad Credit Credit Cards

Chances are you've gotten your share of offers like this... Read More

How You Can Avoid Becoming A Victim Of Identity Theft

To reduce or minimize the risk of becoming a victim... Read More

What You Need to Know About Credit Reports

You hear people talk about credit reports all the time... Read More

Is Your Credit Score Being Held Against You?

Credit Scores That HurtIs your credit score being held against... Read More

Top 5 Credit Misconceptions

We have all heard the rumors?from neighbors, relatives or friends.... Read More

What Is A Credit Report?

Even if you have heard of a credit report, you... Read More

What is a Credit Report?

Ever wondered what is a credit report? If you've ever... Read More

Why Is It important!

Your credit is the most important thing you have other... Read More

How To Prevent Fraudulent Credit Card Transactions

What Are Possible Signs of Fraudulent Transactions see at Web... Read More

How to Avoid Credit Card Late Fees

Everyone hates late fees and being late will cost you... Read More

Credit Repair: How To Deal With Your Creditors

If you are in danger of credit problems because you... Read More